CTSI Loss Prevention Manual Section C Management Duties
Management Responsibilities for Loss Prevention The basic responsibility for loss prevention in any organization must be assumed by top management if it is to be fulfilled in an effective manner. Basically, management s responsibilities can be broken down into three general areas: 1. To provide and maintain safe physical conditions (safe place to work, safe vehicles, safe equipment, etc.) Fulfilling this responsibility must be a prerequisite to all other loss prevention efforts. 2. To provide management direction to loss prevention efforts. The object is to assign responsibility, with accountability, throughout the chain of command. 3. To provide adequate management controls for loss prevention. Loss prevention and efficiency go hand-in-hand. The same lack of management controls that results in accidents will also result in other operational problems. The first responsibility is one imposed by federal guidelines and state workers compensation legislation, as well as being a basic moral responsibility. The other two responsibilities are simply good management principles. Loss Prevention Manual, 05/07 C-1
Management Involvement The active participation of top county management is vital to the success of your loss prevention program. It is not enough to be concerned management has the obligation to provide a safe and healthful workplace, free of recognized hazards. To do this, management must translate its concern into policy and action. The key to management involvement is to handle loss prevention problems the same as other operational problems. Once a statement of loss prevention policy has been issued and responsibilities have been assigned, management s loss prevention role has just begun. Just as in any other phase of county operations, continual management involvement is necessary to make certain of an effective program developing. The key is for management to display active interest and concern for loss prevention throughout the entire operation. Listed below are ten methods of county management s becoming actively involved: 1. Issuing a written safety policy statement to all employees in all county departments. (See pages B-2 through B-4) 2. Allocating realistic manpower and capital for loss prevention. 3. Assigning responsibility for the overall program to one individual at the staff level. This safety coordinator must report directly to top county management in order to obtain effective program compliance and enforcement. 4. Take safety performance into consideration in the overall evaluation of supervisory personnel. 5. Requiring periodic reports as to the status and effectiveness of loss prevention efforts being carried out throughout the organization. 6. Reviewing and taking executive action on both good and poor accident/injury records. 7. Discussing loss prevention problems during staff meetings. 8. Making certain that management/supervisory personnel follow all rules and regulations regarding loss prevention, just as general employees have to. 9. Following up on all loss prevention reports, suggestions, complaints, etc. 10. Attending safety meetings, when possible. Loss Prevention Manual, 05/07 C-2
Providing Safe Physical Conditions As a prerequisite to all other loss prevention efforts, every employee must be provided with safe working conditions. Even though a majority of accidents are attributable to unsafe acts, the importance of unsafe working conditions cannot be minimized. Once the employee has been provided with safe work conditions, a joint effort is required on the part of the employee and the county to maintain safe operating conditions. The employee must report all unsafe conditions which develop, and administration must ensure that corrective action is taken promptly. Additionally, routine inspections and preventive maintenance must be performed on a regular basis to maintain safe conditions. The importance of recognizing the need to provide safe physical conditions cannot be stressed too strongly; however, limiting loss prevention efforts only to control physical hazards will not prevent the majority of losses. It is only the base from which to start. Loss Prevention Manual, 05/07 C-3
Providing Management Direction to Loss Prevention Efforts Why should loss prevention be treated as anything but a management problem? Why should it be treated differently than other management concerns? To meet an objective for safe and efficient operations, responsibility (with accountability) should be assigned to each member of management and supervision, as well as to each employee. The following are key steps for formalizing management direction: 1. Issuing a statement of loss prevention policy. 2. Approving a loss prevention coordinator. 3. Providing continuing management involvement. The objective is to make loss prevention an integral part of day-to-day operations; make loss prevention a part of, not apart from, all operational responsibilities. Loss Prevention Manual, 05/07 C-4
Safety Coordinator One management representative should be assigned the responsibility for coordinating the loss prevention activities and administering the safety program. This person should have the following responsibilities: 1. Coordinate all loss prevention activities. 2. Serve as liaison between management and CTSI Risk Management Services. 3. Establish a minimum safe standards, rules and regulations and ensure employees are aware of these regulations. 4. Ascertain that safe practices and conditions are established. 5. Review all Supervisor s Report of Accident forms and see that recommendations are acted upon. Use these reports for analysis of accident trends. 6. Establish training programs for all employees and supervisors. 7. Stimulate employees interest through motivation (contests, meetings, posters, etc.) 8. Establish and preside over a safety committee, comprised of supervisors and key employees. Time required to carry out these responsibilities will vary with the size of your county. In larger counties, a separate position on a full or part-time basis may need to be established. In smaller counties, an existing administrator or supervisor may be able to resume these responsibilities. As always, contact your Loss Prevention Specialist at 303-861-0507 for any necessary guidance. Loss Prevention Manual, 05/07 C-5
Conclusion Many of the areas to be considered in formulating a management-directed loss prevention effort are covered in the preceding pages. It is not intended that this be regarded as a package program, which will automatically eliminate losses and improve the accident experience of a county. It is intended, rather, as a guide to assist management in determining how they can best meet the responsibilities for loss prevention. Which management controls, and the extent to which they can or should be implemented will depend to a large degree on the size of the organization and the complexity of the operations conducted. Once an organized loss prevention effort has been decided upon, the extent of its success will depend on top management s involvement. If loss prevention is given the same attention as other management objectives, with proper management direction and management controls established, the effort will be a successful one. In addition, it will significantly contribute to management objectives related to efficiency, quality and cost reduction in insurance as well as job-related tasks. Loss Prevention Manual, 05/07 C-6