RISK MANAGEMENT Best Practices Ward Henderson

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RISK MANAGEMENT Best Practices Ward Henderson 1 RISK

implementing decisions that will minimize the adverse

1 RISK MANAGEMENT Best Practices Ward Henderson 1 RISK MANAGEMENT Risk Management The process of making and implementing decisions that will minimize the adverse effects of accidental and business losses on an organization. George L. Head, Stephan Horn II, Essentials of Risk Management, 3 rd ed. (Insurance Institute of America, 1997), pg CHF Canada Workshop 1

2 RISK MANAGEMENT Risk management as a program is a decision making process, including: Identifying and analyzing exposures. Examining alternative techniques to deal with them. Selecting the best technique. Implementing the chosen technique Monitoring the results. 3 RISK MANAGEMENT What do I do about the exposures? Once you ve identified and analyzed the potential exposures: Focus on putting together a plan to address the issues. Examine the potential alternative techniques, and the feasibility of the measures. 4 CHF Canada Workshop 2

3 BEST PRACTICES What does this mean to you? - Having a plan in place, and implementing what is considered as best practices, can help in reducing the potential for a loss. - The start would include an annual inspection of each dwelling unit. We will walk through what that will look like later in this session. 5 BEST PRACTICES Risk Management Plan: Recently, CHF Canada updated their risk management reference material, and included a checklist to assist in identifying risk and being proactive in your efforts to reduce risk potentials. 6 CHF Canada Workshop 3

4 Take Time to RECOGNIZE HAZARDS 7 8 CHF Canada Workshop 4

5 9 10 CHF Canada Workshop 5

6 11 12 CHF Canada Workshop 6

7 13 BEST PRACTICES Risk Management Checklist - Let s review the handout Risk Management Checklist. - This has been designed to help identify some very specific areas of concern. - Break into groups, and each review your assigned sections. 15 mins to review and come up with your thoughts, and present. 14 CHF Canada Workshop 7

- From a risk management perspective, what are some options to address No answers?

8 Risk Management Checklist Discuss the following: - How is the question applicable to our co-op, and my unit? - What is the risk potential, and is it real? - From a risk management perspective, what are some options to address No answers? - How or what should we implement? 15 LOSS PREVENTION Preventing a loss from occurring in the first place is far more preferable and less costly than correcting the problem once the loss has occurred! 16 CHF Canada Workshop 8

9 Loss Control Practices and Programs By Implementing some sound Loss Control programs and practices, you can help reduce the potential of a loss from occurring in the first place, or at least reducing the severity if one does occur. 17 Loss Control Practices and Programs This program is handled in two ways: - The Co-operators Loss Control department will make a visit to each CHF location, once every 4 years. - The co-op themselves implement the self-inspections, and help the membership recognize and address the hazards. 18 CHF Canada Workshop 9

10 Loss Control Practices and Programs Some of the major areas of concern: - Fire - Water - Crime - Liability A structured look at conditions around your premises can identify areas and situations where improvements may be made. 19 FIRE STATISTICS The major acts of omission(ignition source): - Cooking pan fires and pots, - Misc. Arson, exposures, - Heating/Cooling equipment, - Electrical distr. & wiring - Cigarettes/smoking materials, - Unknown other causes, Others - Appliances including chargers, - Candles, Are any of these preventable? 20 CHF Canada Workshop 10

11 FIRE PROTECTION FIRE EXTINGUISHERS: Their successful functioning depends upon: Location and Accessibility Working Condition Persons Knowledge of The Extinguisher Proper type of fire extinguishers Class A - B - C 21 FIRE PROTECTION Fire & Life Safety: - Alarm systems, detectors and devices, - Fire drills, - Smoke and heat detectors, - Automatic sprinklers, - Emergency lighting systems, - Exit lights, - Escape plans, rope ladders 22 CHF Canada Workshop 11

12 WATER DAMAGE One of the major sources of loss is the result of water damage. What can you do as a member to help prevent losses from occurring? 23 WATER DAMAGE Outside the Building: - Where does the rain water drain to? - Are there building issues that allow water to get inside? - Landscaping and sloped areas to drain away run-off. - Downspouts proper alignments, in good condition, and cleaned, - Guarding against overland flooding. 24 CHF Canada Workshop 12

13 WATER DAMAGE Inside the building: Sources of water damage include: - Washing machine hoses, consider braided hoses, replace every 5 years. - Dishwasher connections, out of sight. - Water pipes freezing, - Overflowing bathtubs??? - Consider a water/leak detection device and alarms. 25 CRIME CONCERNS Areas of potential concern include: - Private units/suites, - Common areas, parking lots, - Lighting and physical security measures, - Theft moneys and valuables in common areas/office 26 CHF Canada Workshop 13

14 LIABILITY CONCERNS Another major source of loss is the result of premises liability exposures: personal injuries. A duty of care is owed What can you do as a member to help prevent these type of losses from occurring? 27 LIABILITY CONCERNS Areas of potential concern include: - Public walkways broken sidewalks, slippery areas, obstacles. - Stairs and steps sturdy and compliant. - Parking areas tire-stops, adequate surfaces, potholes. - Playgrounds construction standards, who is using the equipment, hazards, maintained. Consider a checklist and frequency. 28 CHF Canada Workshop 14

15 Loss Control - Best Practices Implementing an interior Unit checklist. - This will focus on the key areas where the most risk exists, - An annual review of the higher risk items to reduce and eliminate loss potentials. - Implementing some sound loss prevention measures, and best practices, will help to ensure a safe property. 29 Loss Control Best Practices Lets discuss interior inspections: - Where can incidents occur, and how can they happen? - We have outlined the major areas and conditions of concern that should be checked. - We want to provide you with the best knowledge, to enable you to recognize and help mitigate losses. 30 CHF Canada Workshop 15

16 Best Practices - Interior inspections Balcony railings: - Is the railing solid? Grab ahold of it and confirm. - Is it high enough and has proper spacing of openings. The top should be a minimum of 900mm (35.4 in). Any openings cannot be more than a 100mm (4 in) sphere can pass through, - Generally, any deck or balcony over 600mm (23.6in) high requires a guard. 31 Best Practices - Interior inspections Balcony structure: - The overall structure must be solid, - The supports, beams, framing and flooring, - Can water pool and cause damage? Can be hidden sometimes. - Older structures may not confirm to todays building codes. 32 CHF Canada Workshop 16

17 Best Practices - Interior inspections Stairways & Ramps: - Are stairways and ramps in good condition? - Coverings and anti-slip coatings as required, - Handrails: as rule of thumb, when more than 3 steps, a handrail is required, - And maybe two, if the span is greater than 1.1m (43.3in). Int. vs Ext. - Handrails should be between mm high (34 38in) high. 33 Best Practices - Interior inspections Circuit breakers and fuses: - Installed as protection for each circuit in an electrical service, - Sized based on required protection, and to the size of wire installed, - Has there been any history of circuit breakers tripping or fuses blowing? - Was it investigated and corrected? - Have oversized fuses been installed? - Majority of household breakers/fuses will be 15 Amps. 34 CHF Canada Workshop 17

18 Best Practices - Interior inspections Temporary power: - Extension cords are only designed for temporary use, - Light-gauge wire and subject to damage, - Potential overload and over-heating, - Avoid cluster plugs, or octopus plugs, - If power bars are being used, they should be approved types, - When permanent power is required, have receptacles installed, by an electrician. 35 Best Practices - Interior inspections Electrical modifications: - We often see modifications made by unauthorized people, - Handy-man tinkering can be dangerous, - Very often, the hazards are hidden, and can pose both a fire and shock hazard, - Any electrical work, repair or modifications, should be made by a qualified electrician. 36 CHF Canada Workshop 18

19 Best Practices - Interior inspections Space heaters: - These should only be temporary, when unusual measures require, - Should not be left unattended, - If used, only approved and safe designs, - Unplug it, versus only shutting it off, when not in use, - Be aware of the environment it is installed in combustibles near? - They should never impede egress. 37 Best Practices - Interior inspections Smoking concerns: - Fires caused by smoking materials and careless habits are a huge concern, - Are your units smoke-free? Property? If so, you should provide a place to smoke. - Are proper receptacles or ashtrays provided outside? - Planters with peat moss make a great place for a fire to start we have many claims from this. 38 CHF Canada Workshop 19

20 Best Practices - Interior inspections Candle use: - The use of candles in dwellings can also be deadly, - They should never be left unattended, - Be aware of the surroundings drapes, combustibles, - Keep out of reach of children, pets, 39 Best Practices - Interior inspections Criminal activity: - Is there any evidence of criminal activity happening grow-op s, weapons, drugs? - A little tricky to address, and will probably need some police intervention, - Potential hazard to life and property. 40 CHF Canada Workshop 20

21 Best Practices - Interior inspections Cooking hazards: - For years, this was the number one cause of house fires, - Unsafe and unattended cooking, - Excessive grease build-ups, - Burning pots left on the stove, - Poor understanding on how to safeguard against, and extinguish a cooking fire. 41 Best Practices - Interior inspections Hoarding & clutter: - This is usually more of a mental health issue, and the proper medical advise should be obtained, - Hazardous from both a life and fire safety aspect, - Even excessive storage can contribute to fire hazard, and also a fire load/severity issue. - Also can be very dangerous in an emergency situation. 42 CHF Canada Workshop 21

22 Best Practices - Interior inspections Barbeques: - Do you have a policy on barbeque usage? - Obviously, these should never be located in an interior area, even a carport or overhang, - Propane tanks can be very dangerous, - Proximity to combustible materials, - Storage of spare tanks, stored for the winter, upper balconies 43 Best Practices - Interior inspections Risk Management Checklist: What is expected; - An interior review of each unit should be in your Best Practices plan. - Being proactive is always more beneficial than reactive. - Involve the members in contributing to a safe environment. 44 CHF Canada Workshop 22

LOSS PREVENTION LOSS PREVENTION IS NOT COMPULSORY.

Materials CHF Canada Website: Resources www.

coop/workshopmaterials AGM Website: Events

23 LOSS PREVENTION LOSS PREVENTION IS NOT COMPULSORY... BUT NEITHER IS YOUR SAFETY 45 Getting Workshop Materials CHF Canada Website: Resources AGM Website: Events AGM Conference App CHF Canada Workshop 23

24 6/4/2018 Risk Management Program AGM JUNE 2018 Risk Management Program Partnership between CHF Canada and The Co-operators Program focuses on risks in individual units 2 1

25 6/4/2018 Why are we doing this? To make co-op units safer. To reduce the claims and keep the cost of commercial insurance down. 3 How the program works Asking co-ops to review the units for risks and fill out checklists Flexible: Different ways to complete the checklists: During annual inspections Hiring somebody to check the units Ask your maintenance staff or property manager if this can fit into their hours Self reporting We hope that the checklists can be completed for 100% of the units. If this is not possible, please complete at least 15%. Many co-ops are completing the checklist with their unit inspections Deadline was extended to August 31 st. 4 2

26 6/4/2018 What happens with the checklists? They can be mailed, or ed back. Online version ( I will review the checklists and work with the co-ops to make sure there is a plan in place to address serious risks (unsafe balconies, stairways). For other risks we will provide educational materials(posters, handouts) to the co-op to be shared with members. 5 How do co-ops benefit? Your members will be safer. If you lower your co-ops loss ratio, you will get a credit. Fewer, smaller claims will help lower program rates. 6 3

27 6/4/2018 Feedback and observations Some co-ops have re-started annual unit inspections after many years. Some have rescheduled their annual inspections to complete the checklists at the same time. Property managers are able to identify and address maintenance issues quickly. Many co-ops create work orders or complete minor repairs while they complete the checklists. 7 Risk Management Program For our members that are in the commercial insurance program Checklist and educational materials to raise awareness, identify and address risks in the units. To make co-op units safer, prevent claims and to keep the cost of insurance down. Flexible: combine with unit inspections, hire a contractor, ask maintenance staff or property manager, self report. 8 4

28 6/4/2018 Thank you Deniz Bilgen /ext

29 CHF Canada s Risk Management Checklist 2018 Housing co-op name Street address Unit number Below is a list of things that should be checked in each unit. If the answer is Yes or N/A (not applicable), no further action required. If the answer is No, an action plan might be required and we will be in touch. Balcony If the unit has a balcony: Yes No N/A Does the balcony have railings that are at least 90 cm (3 feet) high? Grab the balcony railing and shake it. Is it secure? Is the balcony structure in good condition? Answer No if: The balcony is deteriorated or rotted. The flooring is bouncy. Stairways If there are any stairways with more than three steps: Answer N/A if the unit does not have any stairways with more than three steps. Yes No N/A Do the stairways have a handrail? Grab the stairway handrail and shake it. Is it secure? If the stairway is more than 110 cm wide (43 inches), does it have a handrail on each side? Answer N/A if the stairway is less than 110cm (43 inches) wide. Electrical Yes No N/A Is the use of extension cords safe? Answer N/A if there are no extension cords used in the unit. Extension cords should not be used as a permanent power source. For example: Using an extension cord to power a hair dryer is safe. Using an extension cord to power a refrigerator is not safe. Have electrical additions or modifications (if any) been done by a licensed and qualified electrician? Answer N/A if there are no electrical additions or modifications. Is the occupant able to use electrical devices without tripping circuit breakers or blowing fuses? If there is a space (portable) heater in use, is it plugged directly into a wall outlet? Extension cords should not be used with space heaters. Answer N/A if there are no space heaters.

30 Risk Management Checklist 2018 continued Electrical continued Yes No N/A Is the space (portable) heater at least 90 cm (3 feet) from anything that could easily catch fire? Examples of items that should not be close to a space heater: Answer N/A if there are no space heaters. Furniture, papers, curtains. SMOKING Answer N/A if there is no smoking. Yes No N/A If there is evidence of smoking, are ashtrays being used? Answer No if: There are cigarette butts visible in planters or other containers. There are burn marks on the carpets. Are the ashtrays made of non-combustible material? A non-combustible material is a material that cannot catch on fire, such as metal or glass. Are the ashtrays stable? Ashtrays should be a shape that cannot easily be tipped over. OTHER Yes No N/A Are there functional smoke/carbon monoxide detectors in the unit? Remember to replace the batteries every year. Do the stove and surrounding area seem to be in good working condition? Answer No if you see: Excessive grease buildup, damage to the stove, or signs of burns. Is the apartment free of excessive clutter or hoarding? Answer Yes if: You can walk through all of the rooms safely. You can get to items such as the stove, electrical plugs, and fire escape. If there is a barbecue in use, is it at least 90 cm (3 feet) from combustible siding or finishing on the building? Answer N/A if there are no barbecues in use. Combustible siding or finishing would include: Wood, vinyl, plastic, stucco. If the building is made from one of these materials, the barbecue must be at least 3 feet away. If there are any candles in the unit, are they in safe containers? A safe container for a candle: Should not be able to tip over easily. Should be made of a non-combustible material such as metal or glass. Answer N/A if there are no candles. Are candles away from anything that could catch fire, such as curtains or papers? Answer N/A if there are no candles. Comments If you have any further comments or feedback please Deniz Bilgen at dbilgen@chfcanada.coop. The information in this checklist describes the conditions observed in the unit when the form was completed, and is intended to support the CHF Canada Risk Management Program. No responsibility is assumed by CHF Canada, The Co-operators or the individual or firm who completed this checklist, for any loss or damage which may be suffered, by any party, as a result of having relied on the information contained in this form.

RISK MANAGEMENT Best Practices

RISK MANAGEMENT Best Practices RISK MANAGEMENT RISK MANAGEMENT Risk Management The process of making and implementing decisions that will minimize the adverse effects of accidental and business losses on an organization. George L. Head,