Day 7, Continuing the Review Process

Analysis of the Current Organization Climate Continuing the review of the current organization climate and becoming fully acquainted with your new position and organization requires expanding your circle in the search for information. Other sources of information that may be available include the services and visits by the insurance carrier and insurance broker, the local fire marshal and local emergency response units, as well as possibly federal, state and local regulatory compliance officers. Each of these entities provides additional indicators of the current state of the organizational climate as well as a perspective on risk issues that have been address or should have been addressed. You may find that there is a lack of commitment, not funds allocated for reducing the risk, or other underlined problems why the risk has not been corrected. You may find that a fine may be justified as “the cost of doing business.” There are still organizations that think that way. I once hear an argument on citations that was $10,000. The question was it more expensive to fix the condition than just to pay the fine. This think should not be acceptable, but this is the reality of life and the mentality of organization that you will not exist until you are employed. Insurance company and/or insurance brokerage risk and loss control specialists may visit as part of the insurance services and provide some valuable guidance. Many times these types of services can be a hindrance, as they are “insurers” and they want to ensure that they will not have to pay out losses. Therefore, some of these insurance companies are very restrictive and may ask you to do some things that may sound unreasonable. And in some cases the survey may be unreasonable. The nature of the game is that you have to sort out what is best for the organization. Bear in mind, Insurance Company and/or insurance brokerage risk and loss control specialists are the “surveyors” that provide insurance underwriters with information about the state of the risk they have taken on.   After each visit, a letter or report is often written sent to the organization’s insurance or risk manager. Reports go to underwriters who price your insurance programs. The reports provide details on the concerns of the insurance company as well as possible recommendations for improvement. Response to any recommendations should not be taken lightly and a response should be provided that provides the controls or alternatives to be taken. Based on discussions with the insurance specialists determine the scope of any services and how you can best use the expertise. You may find safety, industrial hygiene; property, fleet and other expertise have been on site or under utilized, as well as a source of materials available for specific program development. Regulatory visits are due to a variety of issues, from some internal or external complaint on to special projects of the agency.   These may involve legal issues and the legal department may need to be involved. Any indicators that regulatory compliance problems exist should be given the highest priority; after all, these requirements are usually “the laws of the land!” Non-compliance may also increase the potential for increased liability in the event of a loss-producing incident and in turn impact the insurance program. Needless to say, non-compliance publicity may further harm the company “brand’ which is a major concern to most companies. While these various services with their visits and reports may range in timing and quality, they offer another perspective about your organization. This specialist may have made recommendations that should be reviewed for validity. If no one has been tracking and working with these specialists, this area has potential impact on the organization, insurance cost, and regulatory compliance. Work at making these personnel and services allies to your efforts. Summary of Day 7 - Depending on the specialist visiting, you may find a history of safety, fleet, property and environmental/industrial hygiene reviews or reports that provides further insight into the needs of the safety culture.