Introductions Your name Where you work Your job

Introductions • • • Your name Where you work Your job responsibilities How long you have been in the industry What you hope to get from this class Course 7: Risk Management 2

Agenda • • • Introduction to Risk Management Minimizing Risks to Residents Minimizing Risks to Staff Handling Emergencies Liability and Insurance Course 7: Risk Management 3

Property Assets to Protect • People – staff, residents, visitors • Property – buildings, facilities, equipment, materials • Community Goodwill – reputation, stature in the community, appeal to prospective residents Course 7: Risk Management Chapter 1 4

Definition of Risk Management • Risk Management is a process that involves recognizing, confronting and preparing for any potential threat to your property. Course 7: Risk Management Chapter 1 5

Risk Analysis Process • Identify potential risks in company operations • Analyze the frequency and severity of past and potential losses • Work to eliminate or reduce the risks • Build financial protection to cover risks that cannot be eliminated • Set up policies and procedures to carry out the risk management process. Course 7: Risk Management Chapter 1 6

Areas to Address • • Minimizing Risk to Residents and Staff Emergency Planning and Handling Liability Insurance Course 7: Risk Management 7

Effective Practices • Conduct, document and maintain periodic inspections • Involve everyone in risk management • Stay current with changes in health and safety laws and regulations • Document and update safety records Course 7: Risk Management Chapter 1 8

Effective Practices (cont’d) • Implement preventive maintenance procedures • Post and communicate safety procedures. • Establish and enforce safety programs for the entire multifamily housing community • Educate site personnel and residents on their role and responsibility • Understand how insurance and contracts transfer risk Course 7: Risk Management Chapter 1 9

Activity # 1 Work within your group to identify a potential risk for each of the three property assets and then discuss what action can be taken to protect the asset from the identified risk. Course 7: Risk Management Chapter 1 10

Chapter 2 Minimizing Risk to Residents Course 7: Risk Management 11

Areas to Address • Property Hazards • Crime Deterrence • Environmental Hazards Course 7: Risk Management Chapter 2 12

Property Hazards: Habitability • Suitable maintenance of housing properties is known as habitability. Course 7: Risk Management Chapter 2 13

Required Housing Provisions • Protection from weather with roofs, walls and windows • Working water, heat, air conditioning, electrical, plumbing and lighting systems • Trash collection and pick-up • Clean and safe elevators, lobbies, stairwells and other common areas Course 7: Risk Management Chapter 2 14

Required Housing Provisions (cont’d) • Elimination or warning of environmental hazards • Control of nuisances such as excess noise and overcrowding • Maintenance of all appliances and equipment supplied Course 7: Risk Management Chapter 2 15

Steps to Ensure Habitability • Conduct, document and maintain periodic inspections • Follow a preventive maintenance program • Keep current and comply with building, housing, health and safety codes • Keep records of all requested and completed repairs, inspections and preventive maintenance Course 7: Risk Management Chapter 2 16

Steps to Ensure Habitability (cont’d) • Encourage residents to notify management of needed repairs and make repairs quickly • Inspect repairs upon completion • Follow-up with residents to ensure the repair work was satisfactory Course 7: Risk Management Chapter 2 17

Activity # 2 and 3 Types of Property Hazards Course 7: Risk Management Chapter 2 18

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Resident Responsibilities • • • Notify management of any item they damage Dispose trash properly Keep the residence safe and in sanitary condition Pay the cost of repair for damaged property Notify the manager of needed major repairs and normal usage maintenance • Perform minor repairs (replace light bulbs, clean drains) Course 7: Risk Management Chapter 2 25

Crime Deterrence • • • Stay informed of neighborhood crime Respond quickly to neighborhood crime Control building access and keys Provide adequate lighting Complete employee background checks Course 7: Risk Management Chapter 2 26

Governing Agencies • Environmental Protection Agency (EPA) Occupational Safety and Health Administration (OSHA) • State and County Health and Environmental Departments Course 7: Risk Management Chapter 2 27

Types of Environmental Hazards • • Asbestos Freon Lead Radon Carbon Monoxide Mold Meth Labs Course 7: Risk Management Chapter 2 28

Asbestos is: • a mineral that is supposed to be inextinguishable when set on fire. • found in pipe wrapping, acoustical ceilings, floor tile and caulking in joint and spackling compounds Course 7: Risk Management Chapter 2 29

Freon is: • a shortened term for chlorofluorocarbon • a gas used in appliances and HVAC systems to provide cooling • known to deplete the ozone layer protecting the earth’s atmosphere Course 7: Risk Management Chapter 2 30

Lead: • can cause lead poisoning and serious disabilities • is found in paint, soils, lead pipes and lead -based solder used on copper pipes Course 7: Risk Management Chapter 2 31

Radon: • as a radioactive gas emanating from uranium-rich soil or water • can enter a building through the water supply, building material and soil beneath he building Course 7: Risk Management Chapter 2 32

Carbon Monoxide (CO) Carbon Monoxide is: • A poisonous gas, colorless and odorless • Produced when fuels burn incompletely and/or are emitted from appliances such as gas stoves, fireplaces, kerosene space heaters, gas dryers and water heaters that are not properly ventilated Course 7: Risk Management Chapter 2 33

Mold: • comes from various moisture sources • is also known as mildew and fungi • is found almost anywhere • grows on wood, paper, carpet, foods and insulation Course 7: Risk Management Chapter 2 34

Components of Resident Education • Ensure residents understand they are responsible for their personal safety • Provide safety information and emergency numbers in the resident handbook • Periodically update safety information • Clearly communicate that management cannot guarantee resident safety • Tell residents that management is not liable for resident property Course 7: Risk Management Chapter 2 35

Components of Resident Education (cont’d) Stress the importance of adopting personal safety measures, including: • Never leave an apartment unlocked • Keep all windows and doors locked • Never provide a relative, neighbor or friend with a key • Get to know the neighbors and watch out for one another • Report all crime to police authorities • Complete an incident report for management Course 7: Risk Management Chapter 2 36

Survey Results • 77% of owner firms noted security was very important to their residents • 78% of such firms have a Crime Prevention/Resident Safety Awareness Program • 80% have disaster/emergency management procedures in place • Only 36% of the firms managing these units conduct formal security assessments for their communities Course 7: Risk Management Chapter 2 37

Recommendations • • Know what’s going on Communicate with residents Screen and check backgrounds Strengthen relationships with legal authorities Course 7: Risk Management Chapter 2 38

Skill Check #1 Chapters 1 and 2 – Risk Management Course 7: Risk Management Chapters 1 39

Chapter 3 Minimizing Risks to Staff Course 7: Risk Management 40

Safe Working Conditions Employees can ensure safe working conditions by: • following all OSHA employer safety and health rules • reporting hazardous conditions and any job-related injury or illness • using assigned personal protective clothing and equipment Course 7: Risk Management Chapter 3 41

OSHA Regulations Being informed of OSHA regulations and performing regular inspection will help you: • prevent a situation where you fail to meet code standards during an OSHA review • Reduce/avoid possible claims an injured employee might file against you Course 7: Risk Management Chapter 3 42

Areas of Focus for OSHA • • • Hazard Communication Standard Lockout/Tagout Standard Bloodborne Pathogens Personal Protective Equipment (PPE) Electrical Safety Related Work Practice OSHA Record Keeping Course 7: Risk Management Chapter 3 43

Purpose of Hazard Communication Standard The Hazard Communication Standard is intended to educate employees: • of the hazardous chemicals they work with • on how to use them properly • on how to avoid potential accidents or injuries Course 7: Risk Management Chapter 3 44

Employer Compliance Requirement • • • Hazard Evaluation Labeling Safety Data Sheets (SDS) Information and training programs Written Hazard Communication Plan Course 7: Risk Management Chapter 3 45

Hazard Evaluation • Identify and disclose available scientific data concerning hazards • Identify chemicals based on statute requirements • Provide appropriate labeling Course 7: Risk Management Chapter 3 46

Labeling • • Identity of the hazardous materials Appropriate hazard warnings First aid instructions Name and address of the chemical manufacturer or distributor Course 7: Risk Management Chapter 3 47

Current Label vs. New Label Course 7: Risk Management Chapter 3 48

Labeling (cont’d) Portable or non-original containers such as spray bottles, pump sprayers, mixing containers or metal cans: • NO label required if for immediate use • LABEL required if will not be emptied by the end of the work shift or if more than one person will use Course 7: Risk Management Chapter 3 49

Safety Data Sheet (SDS) SDS: • is a document that describes the health and physical hazards associated with a particular chemical • Must be prepared and provided to all users • Must be written in English to conform to Hazard Communication Standard requirements Course 7: Risk Management Chapter 3 50

Minimum SDS Requirements • • Identification Hazards Identification Composition First-Aid Fire-Fighting Accident Release Handling/Storage Exposure Control • Physical/chemical properties • Stability/reactivity • Toxicology • Ecological • Disposal • Transport • Regulatory • Other Course 7: Risk Management Chapter 3 51

Information and Training Programs Information provided to employees should include: • Written Hazard Communication Plan • List of hazardous material in the workplace • Location of Safety Data Sheets (SDS) • Explanation of non-routine tasks • Relationship employers have to outside contractors Course 7: Risk Management Chapter 3 52

Written Hazard Communication Plan Assignment of duties: • Ensure labeling of shipped or original containers and labeling of non-original and portable containers • Update inventory of all hazardous chemicals in the workplace • Review SDS information and check to make sure all chemicals have an SDS • Assign tasks noted above and maintain the written plan • Verify onsite contractor statements regarding hazardous materials • Notify all employees of the written plan including information on requesting a copy of the plan Course 7: Risk Management Chapter 3 53

Written Hazard Communication Plan (cont’d) Plans to ensure compliance: • Hazardous materials in the workplace will be properly labeled • SDS forms will be maintained • Workers will be provided with specific hazard information training • There will be a list of: – All hazardous materials associated with non-routine tasks – Unlabeled bottles – Possible hazards to contractors working in your facility Course 7: Risk Management Chapter 3 54

Lockout/Tagout Standard Requires the de-energizing or placing locks and tags on: • Electrical switches • Liquid or gas valves • Other energy control points Course 7: Risk Management Chapter 3 55

Lockout/Tagout Requirements Must: • be a written document • be accessible to employees at all times during normal working hours • establish contractor responsibilities • establish annual auditing procedures • establish inventory of hazardous energy sources and procedures to de-energize equipment • detail training and retraining programs Course 7: Risk Management Chapter 3 56

Inventory Hazardous Energy Sources • • • Electrical Hydraulic Chemical Pneumatic Mechanical Thermal Course 7: Risk Management Chapter 3 57

Who Needs Training • Authorized employees (those actually performing service and maintenance) • Affected employees (those who are affected by actions of authorized employees) • Other employees (office employees) Course 7: Risk Management Chapter 3 58

Contents of Training • The scope of the standard • Methods and procedures to de-energize equipment • Employee responsibilities • Auditing procedures • Hazardous energy inventory Course 7: Risk Management Chapter 3 59

Assignment of Duties • Maintain the written program • Notify employees of the written plan, including information on requesting a copy of the program • Notify outside contractors of the property’s lockout/tagout requirements and guidelines Course 7: Risk Management Chapter 3 60

Bloodborne Pathogens Standard • OSHA’s Exposure Control program for dealing with the control of bloodborne pathogens in the workplace, including Hepatitis B Virus (HBV) and the Human Immune Deficiency Virus (HIV). Course 7: Risk Management Chapter 3 61

Areas to Address The following areas must be addressed to comply with the Bloodborne Pathogens Standard: • Surveying employee exposures • Assignment of tasks to third party abatement specialists • Investigate exposure accidents • Offering employees the HBV vaccine • Establishing a written exposure control plan • Communicating hazards to employees • Training and retraining Course 7: Risk Management Chapter 3 62

Exposure Control Plan The Exposure Control Plan must be in writing and should include: • an exposure determination • a schedule and method of implementation • post-exposure evaluation and follow-up • interaction with health care professionals • training Course 7: Risk Management Chapter 3 63

Who Needs Training • Each property must provide formal training for employees who engage in potential exposure activities as defined by the standard. Course 7: Risk Management Chapter 3 64

Contents of Training • • Scope of the standard Basic definitions of bloodborne pathogens Exposure parameters Methods of compliance Inoculation/HBV Decontamination and proper disposal Reporting incidents and procedures to follow with a healthcare provider • Recordkeeping parameters and follow-up procedures Course 7: Risk Management Chapter 3 65

Personal Protective Equipment (PPE) OSHA requires the use of PPE to reduce employees’ exposure to hazards in the workplace. Employers are required to determine if PPEs should be used to protect their employees. The standard does not require a written program, but does require a written assessment and documentation of exposures. Course 7: Risk Management Chapter 3 66

Electrical Safety-Related Work. Practice Program Phase Two of OSHA’s lockout/Tagout Standard for training “qualified” and “unqualified” employees who perform electrical service Course 7: Risk Management Chapter 3 67

Qualified Employee Training includes: • Basic electrical principles • Safety related work practice (proper hand power tool usage) • Emergency procedures and response Course 7: Risk Management Chapter 3 68

Unqualified Employee Training includes: • Basic electrical principles • Emergency procedures and response Course 7: Risk Management Chapter 3 69

OSHA Inspections are performed without advance warning and the OSHA officials are authorized to: • Enter any workplace covered under OSHA regulation during regular hours • Inspect and investigate any facility, equipment, personnel records mandated by the regulations • Interview Personnel • Observe areas that aren’t covered by the employers’ consent or the inspection Course 7: Risk Management Chapter 3 70

Criteria for Selecting Facilities to Inspect • • • Imminent danger Catastrophes and fatal accidents Employee complaints/referrals Programmed inspections Follow-up inspections Course 7: Risk Management Chapter 3 71

Record Keeping • Injury and illness records for the past five (5) years • All required written programs • OSHA Form 300 A • OSHA poster • Documentation of all training and written assessments • Medical and exposure records Course 7: Risk Management Chapter 3 72

Activity # 4 What Would You Do? Course 7: Risk Management Chapter 2 73

Chapter 4 Handling Emergencies Course 7: Risk Management 74

Areas to Address • Develop a clear plan with specific procedures to follow for various types of emergencies • Educate staff and residents about their roles in emergencies • Train staff to respond to emergencies in specific ways • Hold periodic drills Course 7: Risk Management Chapter 4 75

Emergency Plan An emergency plan can help: • Conserve limited resources during an emergency • Prevent poor performance • Limit or avoid negative media attention • Limit liability for your multifamily housing community • Help you meet regulatory requirements Course 7: Risk Management Chapter 4 76

Guidelines for Emergency Plans • Determine which types of emergencies you are most likely to experience • Identify the areas of high risk for experiencing an emergency • Evaluate the impact of those emergencies • Create a plan according to the impacts • Implement the plan • Train and drill according to the plan • Review and adjust he plan based on drill experiences Course 7: Risk Management Chapter 4 77

Determining Type of Probability • • Review historical data Proximity Adjacent properties Weather and geography Residents Property arrangement Property infrastructure Course 7: Risk Management 78

Impacted Entities • People • Property • Business The goal should be to minimize impact on the residents, staff and business operations. Course 7: Risk Management Chapter 4 79

What to Include The plan should specify details for: • Prevention • Detection • Communication • Evacuation • Containment/Mitigation • Recovery • Public Relations Course 7: Risk Management Chapter 4 80

Common Emergencies • • • Fire Natural Disasters Technological disasters Criminal Incidents First Aid situations Course 7: Risk Management Chapter 4 81

Skill Check #2 Chapters 3 and 4 – Risk Management Course 7: Risk Management Chapters 3 82

Chapter 5 Liability and Insurance Course 7: Risk Management 83

Liability • A duty owed • A breach of that duty • Damages resulting directly therefrom Course 7: Risk Management Chapter 5 84

Loss Prevention and Control Loss Prevention: • Being proactive in preventing losses Loss Control: • Doing everything you can to mitigate or lessen the impact of the loss once it occurs Course 7: Risk Management Chapter 5 85

Cancellation Insurance policies may be canceled under the following conditions: • failure to pay the premiums • failure to remedy an identified hazard • new risk factors Course 7: Risk Management Chapter 5 86

Property Insurance • Covers property loss and/or damage to buildings, their contents and external equipment. Course 7: Risk Management Chapter 5 87

Coverage Examples • • • Fire Mechanical Equipment Burglary and Robbery Rent Loss Flood Loss Business- interruption Course 7: Risk Management Chapter 5 88

Fidelity Insurance • Fidelity insurance and bonds cover losses from frauds and thefts by employees and in some cases by third parties. • Sometimes referred to as “crime insurance”. Course 7: Risk Management Chapter 5 89

Workers’ Compensation Insurance • Provides employee medical and lost wage benefits in the event of a work related injury or illness. • Benefits are paid to the employee regardless of liability. Course 7: Risk Management Chapter 5 90

Third Party Liability Insurance • General Liability • Errors and Omissions Course 7: Risk Management Chapter 5 91

General Liability coverage includes: • Bodily injury • Property damage • Personal injuries Course 7: Risk Management Chapter 5 92

Incident • An incident includes all accidents, crimes, property losses and resident losses. Course 7: Risk Management Chapter 5 93

Claims Avoidance • • • Criminal episode or injury Security representations Referral to police Confidentiality Locked files Documentation Course 7: Risk Management Chapter 5 94

Handling Claims • • Incident report Follow up and document Photographs Rent concessions Promises Medical bills Claims re: resident car Police reports Course 7: Risk Management Chapter 5 95

Skill Check #3 Chapters 5 Risk Management Course 7: Risk Management Chapters 5 96