Risk Insider: George Browne

Planning for the Unexpected

By: | December 20, 2016 • 3 min read
George Browne, CFPS, has a B.S. in Fire Protection. He is Manager of Training Services for Global Risk Consultants. He manages fire protection services, and develops and delivers training programs for clients on an individual basis. He can be reached at [email protected]

When you hear the word emergency, do you think of a fire, chemical spill, medical incident or other type of emergency that might occur at your facility? Or, possibly even a large event that occurred at a nearby location?

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Emergencies occur every day, and some of those emergencies are large, and rare, events. Many more small emergencies occur every day, and you often do not hear about them.

Yet every emergency shares certain common features that allows us to prepare for such incidents. Those common factors can be used whether the event is small (i.e. the loss of heat in your facility on a very cold day) or large (i.e. a multiple alarm fire in your building). That said, let’s expand upon that idea.

Consider whether or not your facility has some unique features that may require you to meet with the local first responders and create a written, pre-incident plan.

First things first – you need a strategic plan; simple and easy to use. The foundation for the plan is built upon three basic priorities: life safety, incident stabilization, and property conservation. The order of importance of these priorities never changes, even if you can simultaneously work on all three priorities at once.

Let’s take a closer look at each of these priorities:

  1. Life safety – refers to the protection of people who may be victims, spectators, or emergency responders.
  2. Incident stabilization – aims to contain the incident to keep it from growing larger than what is needed to control the emergency.
  3. Property conservation – entails identifying the most valuable property at your facility and protecting it from damage or any additional damage.

Secondly, you need to accept three basic truths about emergencies and the action plan you develop from your strategic plan.

  1. Protect your people – this is life safety 101, but it needs to be reiterated here so that you include it in your action plan during an emergency.
  2. Make sure everyone knows who is in charge. Your plan should spell out who manages the emergency from the initial stages until it is resolved. This is not the name of a person, but the functional title of the emergency responders, and includes both on-site and off-site responders.
  3. Call for professional help early. The fire service has a saying, “The first five minutes are more important than the next five hours.” Get enough help to the emergency early on to prevent playing catch-up.

Third, be conscience of the fact that local emergency service organizations have limited knowledge of your facility, regardless of how often they may be there.

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Consider whether or not your facility has some unique features that may require you to meet with the local first responders and create a written, pre-incident plan. This effort helps to provide realistic expectations for everyone involved. More importantly, it can also provide accurate information that allows for good decision-making during an emergency.

Responding to emergencies is not always easy, but all emergencies can be managed. A small event may only require calling for the paramedics, while a larger event may require the evacuation of your facility and watching, from a distance, as the incident is handled by professional emergency responders.

Efficient and profitable businesses develop plans to improve the efficiency of critical functions in order to improve profitability. Why should an emergency, especially one that may have the potential to destroy your business, receive any less attention and preparation?

More from Risk & Insurance

More from Risk & Insurance

2018 Risk All Stars

Stop Mitigating Risk. Start Conquering It Like These 2018 Risk All Stars

The concept of risk mastery and ownership, as displayed by the 2018 Risk All Stars, includes not simply seeking to control outcomes but taking full responsibility for them.
By: | September 14, 2018 • 3 min read

People talk a lot about how risk managers can get a seat at the table. The discussion implies that the risk manager is an outsider, striving to get the ear or the attention of an insider, the CEO or CFO.

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But there are risk managers who go about things in a different way. And the 2018 Risk All Stars are prime examples of that.

These risk managers put in gear their passion, creativity and perseverance to become masters of a situation, pushing aside any notion that they are anything other than key players.

Goodyear’s Craig Melnick had only been with the global tire maker a few months when Hurricane Harvey dumped a record amount of rainfall on Houston.

Brilliant communication between Melnick and his new teammates gave him timely and valuable updates on the condition of manufacturing locations. Melnick remained in Akron, mastering the situation by moving inventory out of the storm’s path and making sure remediation crews were lined up ahead of time to give Goodyear its best leg up once the storm passed and the flood waters receded.

Goodyear’s resiliency in the face of the storm gave it credibility when it went to the insurance markets later that year for renewals. And here is where we hear a key phrase, produced by Kevin Garvey, one of Goodyear’s brokers at Aon.

“The markets always appreciate a risk manager who demonstrates ownership,” Garvey said, in what may be something of an understatement.

These risk managers put in gear their passion, creativity and perseverance to become masters of a situation, pushing aside any notion that they are anything other than key players.

Dianne Howard, a 2018 Risk All Star and the director of benefits and risk management for the Palm Beach County School District, achieved ownership of $50 million in property storm exposures for the district.

With FEMA saying it wouldn’t pay again for district storm losses it had already paid for, Howard went to the London markets and was successful in getting coverage. She also hammered out a deal in London that would partially reimburse the district if it suffered a mass shooting and needed to demolish a building, like what happened at Sandy Hook in Connecticut.

2018 Risk All Star Jim Cunningham was well-versed enough to know what traditional risk management theories would say when hospitality workers were suffering too many kitchen cuts. “Put a cut-prevention plan in place,” is the traditional wisdom.

But Cunningham, the vice president of risk management for the gaming company Pinnacle Entertainment, wasn’t satisfied with what looked to him like a Band-Aid approach.

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Instead, he used predictive analytics, depending on his own team to assemble company-specific data, to determine which safety measures should be used company wide. The result? Claims frequency at the company dropped 60 percent in the first year of his program.

Alumine Bellone, a 2018 Risk All Star and the vice president of risk management for Ardent Health Services, faced an overwhelming task: Create a uniform risk management program when her hospital group grew from 14 hospitals in three states to 31 hospitals in seven.

Bellone owned the situation by visiting each facility right before the acquisition and again right after, to make sure each caregiving population was ready to integrate into a standardized risk management system.

After consolidating insurance policies, Bellone achieved $893,000 in synergies.

In each of these cases, and in more on the following pages, we see examples of risk managers who weren’t just knocking on the door; they were owning the room. &

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Risk All Stars stand out from their peers by overcoming challenges through exceptional problem solving, creativity, clarity of vision and passion.

See the complete list of 2018 Risk All Stars.

Dan Reynolds is editor-in-chief of Risk & Insurance. He can be reached at [email protected]