Category: Risk Management

Managing Human Capital Risk

human-capital-211Human resource risk is the chance that bad outcomes will occur in some aspect of HR. Those risks get attention when the bad outcomes threaten the overall organization and its goals. Then it becomes a business risk.

Employee turnover, an example of one type of HR risk, becomes a business risk when it could threaten the viability of the business. Business risk matters because it has the attention of everyone at the top of the organization.

Among important human resource risks that affect business outcomes are class-action litigation and other compliance and regulatory issues, the loss of key employees and critical knowledge, talent-management gaps that make it difficult to get employees with needed skills, and individual employee behaviors that create liability issues (e.g., imprudent investment decisions or ethical scandals that damage brand value).

Interestingly, the most important risk associated with human capital in a survey of HR and risk managers that was conducted as part of the study was a “shortage of critical skills within your company’s workforce.”

via Human Resource Executive Online | Managing Human Capital Risk.

Driving Organizational Success Through Human Capital

humancapitalIn today’s globally integrated, tightly regulated, and increasingly competitive business environment, one critical success factor stands out: people. Your people represent one of your company’s most significant investments, and they provide you with a big opportunity to gain competitive advantage.

via Human Capital – Ernst & Young – United States.

Portable Ladder Safety

ladder-safetyFalls from portable ladders (step, straight, combination and extension) are one of the leading causes of occupational fatalities and injuries.

  • Read and follow all labels/markings on the ladder.
  • Avoid electrical hazards! – Look for overhead power lines before handling a ladder. Avoid using a metal ladder near power lines or exposed energized electrical equipment.
  • Always inspect the ladder prior to using it. If the ladder is damaged, it must be removed from service and tagged until repaired or discarded.
  • Always maintain a 3-point (two hands and a foot, or two feet and a hand) contact on the ladder when climbing. Keep your body near the middle of the step and always face the ladder while climbing (see diagram).
  • Only use ladders and appropriate accessories (ladder levelers, jacks or hooks) for their designed purposes.
  • Ladders must be free of any slippery material on the rungs, steps or feet.
  • Do not use a self-supporting ladder (e.g., step ladder) as a single ladder or in a partially closed position.
  • Do not use the top step/rung of a ladder as a step/rung unless it was designed for that purpose.
  • Use a ladder only on a stable and level surface, unless it has been secured (top or bottom) to prevent displacement.
  • Do not place a ladder on boxes, barrels or other unstable bases to obtain additional height.
  • Do not move or shift a ladder while a person or equipment is on the ladder.
  • An extension or straight ladder used to access an elevated surface must extend at least 3 feet above the point of support (see diagram). Do not stand on the three top rungs of a straight, single or extension ladder.
  • The proper angle for setting up a ladder is to place its base a quarter of the working length of the ladder from the wall or other vertical surface (see diagram).
  • A ladder placed in any location where it can be displaced by other work activities must be secured to prevent displacement or a barricade must be erected to keep traffic away from the ladder.
  • Be sure that all locks on an extension ladder are properly engaged.
  • Do not exceed the maximum load rating of a ladder. Be aware of the ladder’s load rating and of the weight it is supporting, including the weight of any tools or equipment.

via Portable Ladder Safety.

America’s High Blood Pressure Burden

High-Blood-pressureHigh Blood Pressure is often referred  to as “The Silent Killer”. Here are the facts:

  • About 1 in 3 U.S. adults—an estimated 68 million people—has high blood pressure.
  • 69% of people who have a first heart attack, 77% of people who have a first stroke, and 74% of people with chronic heart failure have high blood pressure.
  • High blood pressure is also a major risk factor for kidney disease.
  • High blood pressure was listed as a primary or contributing cause of death for about 348,000 Americans in 2008.
  • Costs directly attributable to high blood pressure for the nation total almost $131 billion annually in direct medical expenses and $25 billion in lost productivity.
  • Less than half (46%) of people with high blood pressure have their condition under control.
  • Almost 30% of American adults have prehypertension—blood pressure numbers that are higher than normal, but not yet in the high blood pressure range. Prehypertension raises your risk of developing high blood pressure.
  • Reducing average population sodium intake from 3,300 mg to 2,300 mg per day may reduce cases of high blood pressure by 11 million and save 18 billion health care dollars annually.

via CDC – DHDSP – High Blood Pressure Facts.

Safety – Begin With The End In Mind

mazeThe Second Habit in Steven Covey’s book The Seven Habits of Highly Effective People is Begin With the End in Mind. I think that is a great habit to apply to workplace safety. I have attached an Annual Safety Audit to the end of this message anyone can use as a road map to an effective safety strategy. It’s been my experience that most employers want to keep their employees healthy and safe because it’s not only good business but also the right thing to do.

Click on the link to download a copy of Annual Safety Audit:

dl.dropbox.com/u/13760500/RM365AnnualSafetyAudit.pdf

Coronary Heart Disease – 10-year risk

heart_disease

Since it’s beginning in 1948, the Framingham Heart Study, under the direction of the National Heart, Lung and Blood Institute (NHLBI), has been committed to identifying the common factors or characteristics that contribute to cardiovascular disease (CVD). They have followed CVD development over a long period of time in three generations of participants.

Here are the Coronary Heart Disease Predictors:

  • Age
  • Diabetes
  • Smoking
  • JNC-V blood pressure categories
  • NCEP total cholesterol categories
  • LDL cholesterol categories

Click on the link below to calculate your risk of coronary heart disease.

via Coronary Heart Disease 10-year risk Framingham Heart Study.

Machine Guarding

WarningMoving machine parts have the potential to cause severe workplace injuries, such as crushed fingers or hands, amputations, burns, or blindness. Safeguards are essential for protecting workers from these preventable injuries. Any machine part, function, or process that may cause injury must be safeguarded. When the operation of a machine or accidental contact injure the operator or others in the vicinity, the hazards must be eliminated or controlled. This page contains general information on the various hazards of mechanical motion and techniques for protecting workers.

via Safety and Health Topics | Machine Guarding.

Roles of HR Professionals in Risk Management

HR Functions[4]The “people” risk in business is significant and role of HR Professionals to manage this risk varies by organization. The challenge is that risk area’s and responsibilities are often very siloed. The key is risk management should be an integrated effort, with executive level support, that enhances the strategic goals and growth of the organization. HR professionals role is to participate in risk management by assessing risk and creating HR policies to prevent or mitigate loss and ensure business continuity.

What Triggers Behavior Change?

pasted-graphicBJ Fogg founder of  the Persuasive Technology Lab at Stanford University  designed  a behavior model to serve as a guide to identify what stops people from performing desirable behaviors. The Fogg Behavior Model shows that three elements must converge at the same moment for a behavior to occur:

  • Motivation
  • Ability
  • Trigger

When a behavior does not occur, at least one of those three elements is missing.

When designing health and safety processes it’s important to include all three elements to drive desired behavior change. To be successful you need participation, education and encouragement built into the process.

via BJ Fogg’s Behavior Model.