RISK MANAGEMENT BEST PRACTICES€¦ · RISK MANAGEMENT BEST PRACTICES Peter Erndwein Linda Poole...

RISK MANAGEMENT BEST PRACTICES

Peter Erndwein Linda Poole Mike Pacana

Director of Risk Control Sr. Risk Control Consultant Sr. Risk Control Consultant

[email protected] [email protected] [email protected]

267-803-5713 267-803-5717 267-803-5768

6/20/19 © 2019 Delaware Valley Trusts. Proprietary and Confidential Information.

mailto:[email protected]



PE

Identify

Problem

Develop

Alternatives

Select

Best

Alternative

Implement

Evaluate

Effectiveness

No

Yes

Done!

Risk Management Decision-Making Cycle


Identify the Problem

PE6/20/19 © 2019 Delaware Valley Trusts. Proprietary and Confidential Information.

Incept – Feb. 2019 2014-2018

Public Works

Public Works

Police Police

All Others

All Others

Signals & Lights

Signals & Lights

Refuse

Refuse

Sewer

Sewer

15,323/15,438 Total Claims (99%) 3,479/3,578 Total Claims (97%)

DVPLT Claims By Dept.

PE

Incept – Feb. 2019 2014-2018

PolicePolice

Public Works

Public Works

All Others

All Others

Signals & Lights

Signals & Lights

SewerSewer

Admin

$71,215,340/$71,602,504 Incurred (99%) $17,750,608 /$18,118,494 Incurred (98%)

Admin

DVPLT Incurred Losses By Dept.

PE

Incept – Feb. 2019 2014-2018

Strike By/ Struck By Vehicle

Premises

Hit Stationary

Object

Hit Stationary

Object

All Others

All Others

Intersection IntersectionStrike By/ Struck By Vehicle

Backing or Rolling

Back

Backing or Rolling Back

Operations / Completed Operations

14,159/15,438 Claims for Which Cause Data Available (92%)

2,544/3,578 Claims for Which

Cause Data Available (71%)

Struck Parked Vehicle

DVPLT Claims by Cause

PE

Incept – Feb. 2019 2014-2018

Premises

Operations/Completed Operations

Hit Stationary Object

All Others

All Others

Hit Stationary Object

Sewer Backup

Intersection

Intersection


Fire

Professional Liability

$60,841,427/ $71,602,504 Incurred for

Which Cause Data Available (85%)

$9,462,717/$18,118,494 Incurred for

Which Cause Data Available (52%)

Collision

DVPLT Incurred Losses by Cause


PE

• Police & Public Works drive DVPLT claims (both frequency &

severity) historically and in the past five years.

• The proportion of vehicle-related claims appears to have

increased in recent years.

• Premises, operations and professional liability claims appear

to be less prominent in recent years compared to historical

data.

Some Conclusions from the Data

PE 6/20/19 © 2019 Delaware Valley Trusts. Proprietary and Confidential Information.

• 2004 – Innocent sibling of warrant target shot in abdomen during police raid. $1,000,000 Incurred

• 2002 - Land use dispute triggered when township altered zoning classification in response to resident activism while a redevelopment application was pending. $829,960 Incurred

• 2013 - Innocent bystander unintentionally shot and killed by police during standoff with barricaded armed subject. $679,780 Incurred

Top DVT Claims Since Inception


PE

Identify

Problem

Develop

Alternatives

Select

Best

Alternative

Implement

Evaluate

Effectiveness

No

Yes

Done!



RISK CONTROLS FOR HIGH FREQUENCY CLAIMS

LP6/20/19 © 2019 Delaware Valley Trusts. Proprietary and Confidential Information.

• Driver hiring and vetting

• Post-offer CDL medical exams

• Driver performance management – consequences for repeat

crashes

• Recognize distraction and fatigue as major crash root causes

• Driver behavior monitoring with vehicle GPS technology

Insured Vehicle Crash Prevention


• Vehicle safety technology – especially cameras and

driver-assist safety tech

• Continuous lights and sirens during emergency driving

• Pursuit only for felony crimes

• Deer population management

• Safe vehicle parking practices (Balantine vs. CWA)

Insured Vehicle Crash Prevention


• Select safe fleet vehicles

• In-car cameras

• Signal preemption

• Protection of roadside assets

− Conspicuity tape bands

− Type 2 object markers

− Delineators

− Guiderails

− Crash attenuators – RaptorTM

• Traffic cameras

Other Vehicle Crash Prevention


• Select safe fleet vehicles

• In-car cameras

• Signal preemption

• Protection of roadside assets

− Conspicuity tape bands

− Type 2 object markers

− Delineators

− Guiderails

− Crash attenuators – RaptorTM

• Traffic cameras

Other Vehicle Crash Prevention

PE

Source: https://safety.fhwa.dot.gov/roadway_dept/countermeasures/reduce_crash_severity/guardrail101.cfm

A guardrail is, first and foremost, a safety barrier intended to shield a motorist who has left

the roadway.

The best case scenario, if a car is careening off the road, would be for that car to come to

rest unhindered. In some cases and places, however, that is not possible. The roadway

may be abutted by steep embankments or side slopes, or it may be lined with trees, bridge

piers, retaining walls, or utility poles. Sometimes it is not feasible to remove those things.

In those cases – when the consequences of striking a guardrail would be less severe than

striking the other objects next to the roadway – guardrails should be installed. They can

make roads safer and lessen the severity of crashes. The guardrail can operate to deflect a

vehicle back to the roadway, slow the vehicle down to a complete stop, or, in certain

circumstances, slow the vehicle down and then let it proceed past the guardrail.


Guide Rails and Trees

Source:

https://www.dot.state.pa.us/public/pubsf

orms/Publications/Pub%20652.pdf

• Generally, guide rail should not be used to shield a line of utility

poles or trees.

• Where guide rail is used in front of poles or trees due to other

obstructions, use the Deflection Table on page 18.

• Consider removing trees where they are an obstruction and in

locations where they are likely to be hit.

• Use crash history at similar sites, scars indicating previous crashes

or field views to determine removable trees.

• Tree removal is usually a preferred option but an assessment

regarding its expense and effectiveness should be considered.

• Roadways through wooded areas with heavy nighttime traffic

volumes, frequent fog and narrow lanes should be well delineated.

• Pavement markings and post mounted delineators are among the

most effective and least costly improvements that can be made to a

roadway.


Source:

https://www.dot.state.pa.us/public/pubsf

orms/Publications/Pub%20652.pdf


https://www.dot.state.pa.us/public/pubsforms/Publications/Pub 652.pdf

Sewer Backup Prevention

• Fat, oil and grease (“FOG”) ordinances and enforcement

• Resident education on back-up prevention practices

• 5-yr. cyclic collection system visual inspection and

maintenance; more frequent in known areas of concern

• Capital upgrades to aged/undersized system components

• Back-up prevention devices for problem properties

MP6/20/19 © 2019 Delaware Valley Trusts. Proprietary and Confidential Information.

DVPLT Sewer Backup Education Resources


• At least an annual inspection of all property assets

• Mark and promptly abate all vertical displacements or horizontal

gaps in excess of 0.5 inches

− Sidewalk grinding

− Slab jacking

− Remove/replace

• Avoid brick pavers

Slip, Trip and Fall Prevention

LP 6/20/19 © 2019 Delaware Valley Trusts. Proprietary and Confidential Information.

RISK CONTROLS FOR LOW FREQUENCY / HIGH SEVERITY CLAIMS


• Law enforcement accreditation

• Hire and retain ethical and competent officers

• Up-to-date use of force policy

• Ensure availability of less lethal options

• Officer performance management / early intervention

Preventing Officer Involved Shootings


• Realistic (high stress) use of force training

• Mandatory body armor

• Do not co-locate ECD and firearm

• Provide a “cool down” period before officially debriefing officers

involved in a shooting

Preventing Officer Involved Shootings


• Hire and retain competent and ethical employees

• Law enforcement accreditation

• Up to date policies disseminated to officers

• Performance management / early intervention

• Train on diversity

• Train on de-escalation

Preventing Civil Rights Violations


• Educate board members on Pa. ethics and land use liability

• Ensure competent counsel reviews decisions prior to adoption / public release

• Adhere to due process

• Avoid getting involved in private property issues involving trees and neighbor disputes

Preventing Land Use Disputes


• Be respectful regardless of differences. Managers and supervisors in particular need to model respectful behavior and establish a civil atmosphere in the workplace.

• Do not ignore reports of harassment or misconduct –investigate and take action if warranted.

• Ensure the organization has deployed and trained on critical personnel policies:

− Code of conduct

− Ethics

− Respectful workplace / anti-harassment / sexual misconduct

− Discipline

− Whistleblower

Preventing Employment Liability


• Provide employees with respectful workplace training

that includes a review of relevant employer policies.

Train upon hire and every 3-5 years thereafter.

• Suspend pending a discharge investigation rather

than on-the-spot terminations. Involve employment

attorney in termination proceedings.

• Utilize a formal performance improvement plan

(“PIP”) to address employee misconduct.

Preventing Employment Liability


• Minimum age 21 to drive fire apparatus.

− Driver qualification and vetting

− CDL preferred

• Preventive maintenance of equipment per manufacturer instructions.

− Don’t ignore fluid leaks

• Monitored fire detection and sprinklers in fire stations where apparatus are stored.

• Thoroughly clean compost fines from tub grinders at the end of each day.

• Park tub grinders in a mulch-free area at the end of the day.

• No open flames at mulch processing sites.

Fire Apparatus and Tub Grinders Loss Prevention


Ransomware & Wire Fraud Loss Prevention

• Ensure the organization has a basic information technology

disaster recovery plan.

− Test by asking, “How quickly could we resume operations

should all computers suddenly be disabled?”

• Ensure the organization knows how to respond in the event of an

in-progress or post-cyberattack.

• Ensure critical data is periodically “imaged” with at least one

copy saved to an off-site location.

• Require robust passwords using a string of upper and lower case

letters, numbers and symbols. Change passwords periodically

(e.g., quarterly). MP 6/20/19 © 2019 Delaware Valley Trusts. Proprietary and Confidential Information.

Ransomware & Wire Fraud Loss Prevention

• Utilize multiform access credentials (minimum of three) for high-value

sensitive data such as SSN and payment cards. For example, access

with username, password and email/phone transmitted temporary code.

• Criminal background, credit and post-offer drug and alcohol testing of

employees who handle sensitive personal data or who have access to

facility IT equipment (e.g., housekeeping staff).

• Educate employees/volunteers to recognize and avoid fraudster tactics.− Do not explore memory sticks that you happen to come across (“candy drop”)

− Confirm financial transactions or inquiries communicated via email or text message

− Do not click on email attachments, videos or other communications from questionable sources

− Consider testing employee preparedness with an unannounced simulated hacking event

MP 6/20/19 © 2019 Delaware Valley Trusts. Proprietary and Confidential Information.

WHAT’S LEFT TO DO?


MP

Identify

Problem

Develop

Alternatives

Select

Best

Alternative

Implement

Evaluate

Effectiveness

No

Yes

Done!



Need assistance with this process?

Contact your Risk Control Team.

Peter Erndwein Linda Poole Mike Pacana

Director of Risk Control Sr. Risk Control Consultant Sr. Risk Control Consultant

[email protected] [email protected] [email protected]

267-803-5713 267-803-5717 267-803-5768

MP 6/20/19 © 2019 Delaware Valley Trusts. Proprietary and Confidential Information.




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