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California CAM

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 6: Risk Management 2

Agenda• Introduction to Risk Management• Minimizing Risks to Residents• Minimizing Risks to Staff• Handling Emergencies• Liability and Insurance


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 6: 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 propertyproperty.


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• 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.


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Areas to Address• Minimizing Risk to Residents and Staff• Emergency Planning and Handling• LiabilityLiability• Insurance


Effective Practices• Conduct, document and maintain periodic

inspections• Involve everyone in risk management

St t ith h i h lth d• Stay current with changes in health and safety laws and regulations

• Document and update safety records


Effective Practices (cont’d)• Implement preventive maintenance procedures• Post and communicate safety procedures.• Establish and enforce safety programs for the

entire multifamily housing communityy g y• Educate site personnel and residents on their

role and responsibility• Understand how insurance and contracts

transfer risk


Activity # 1Work 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 riskto protect the asset from the identified risk.


Chapter 2

Minimizing Risk to Residents


Areas to Address• Property Hazards• Crime Deterrence• Environmental HazardsEnvironmental Hazards


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Property Hazards: Habitability

• Suitable maintenance of housing properties is known as habitability.


Required Housing Provisions• Protection from weather with roofs, walls

and windows• Working water, heat, air conditioning,

electrical, plumbing and lighting systems, p g g g y• Trash collection and pick-up• Clean and safe elevators, lobbies,

stairwells and other common areas


Required Housing Provisions (cont’d)• Elimination or warning of environmental

hazards• Control of nuisances such as excess noise

and overcrowdingand overcrowding• Maintenance of all appliances and

equipment supplied


Steps to Ensure Habitability• Conduct, document and maintain periodic

inspections• Follow a preventive maintenance program• Keep current and comply with building, housing,Keep current and comply with building, housing,

health and safety codes• Keep records of all requested and completed

repairs, inspections and preventive maintenance


Steps to Ensure Habitability (cont’d)• Encourage residents to notify

management of needed repairs and make repairs quickly

• Inspect repairs upon completion• Inspect repairs upon completion• Follow-up with residents to ensure the

repair work was satisfactory


Activity # 2 and 3

Types of Property Hazards


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Course 6: Risk Management 23 Course 6: Risk Management 24

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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 propertyy p g p p y• Notify the manager of needed major repairs and

normal usage maintenance• Perform minor repairs (replace light bulbs, clean

drains)


Crime Deterrence• Stay informed of neighborhood crime• Respond quickly to neighborhood crime• Control building access and keys• Provide adequate lighting• Provide adequate lighting• Complete employee background checks


Governing Agencies• Environmental Protection Agency (EPA)

Occupational Safety and Health Administration (OSHA)

• State and County Health and• State and County Health and Environmental Departments


Types of Environmental Hazards

• Asbestos• Freon• Lead• Radon• Carbon Monoxide• Mold• Meth Labs


AsbestosAsbestos is:• a mineral that is supposed to be

inextinguishable when set on fire.f d i i i ti l ili• found in pipe wrapping, acoustical ceilings, floor tile and caulking in joint and spackling compounds


FreonFreon is:• a shortened term for chlorofluorocarbon • a gas used in appliances and HVAC

t t id lisystems to provide cooling• known to deplete the ozone layer

protecting the earth’s atmosphere


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LeadLead:• can cause lead poisoning and serious

disabilitiesi f d i i t il l d i d• is found in paint, soils, lead pipes and lead-based solder used on copper pipes


RadonRadon:• as a radioactive gas emanating from

uranium-rich soil or watert b ildi th h th t• can enter a building through the water

supply, building material and soil beneath he building


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,are emitted from appliances such as gas stoves, fireplaces, kerosene space heaters, gas dryers and water heaters that are not properly ventilated


MoldMold:• comes from various moisture sources• is also known as mildew and fungi• is found almost anywhere• grows on wood, paper, carpet, foods and

insulation


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 informationPeriodically update safety information• Clearly communicate that management cannot

guarantee resident safety• Tell residents that management is not liable for

resident property


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 keyNever 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


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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 Program80% h di t / t• 80% have disaster/emergency management procedures in place

• Only 36% of the firms managing these units conduct formal security assessments for their communities


Recommendations• Know what’s going on• Communicate with residents• Screen and check backgrounds• Strengthen relationships with legal

authorities


Skill Check #1

Chapters 1 and 2 – Risk Management

Course 6: Risk Management Chapters 1 and 2 39

Chapter 3

Minimizing Risks to Staff


Safe Working ConditionsEmployees 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


OSHA RegulationsBeing informed of OSHA regulations and

performing regular inspection will help you:

• prevent a situation where you fail to meet code t d d d i OSHA istandards during an OSHA review

• Reduce/avoid possible claims an injured employee might file against you


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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


Purpose of Hazard Communication StandardThe Hazard Communication Standard is

intended to educate employees:• of the hazardous chemicals they work with

h t th l• on how to use them properly • on how to avoid potential accidents or

injuries


Employer Compliance Requirement• Hazard Evaluation• Labeling • Safety Data Sheets (SDS)• Information and training programs• Written Hazard Communication Plan


Hazard Evaluation• Identify and disclose available scientific

data concerning hazards• Identify chemicals based on statute

requirementsrequirements• Provide appropriate labeling


Labeling• Identity of the hazardous materials• Appropriate hazard warnings• First aid instructions• Name and address of the chemical

manufacturer or distributor


Current Label vs. New Label


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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


Safety Data Sheet (SDS)SDS:• is a document that describes the health and

physical hazards associated with a particular chemicalM t b d d id d t ll• Must be prepared and provided to all users

• Must be written in English to conform to Hazard Communication Standard requirements


Minimum SDS Requirements

• Identification• Hazards Identification• Composition• First-Aid

• Physical/chemical properties

• Stability/reactivity• Toxicology

E l i l


• Fire-Fighting• Accident Release• Handling/Storage• Exposure Control

• Ecological• Disposal• Transport• Regulatory• Other

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• Explanation of non-routine tasks• Relationship employers have to outside

contractors


Written Hazard Communication PlanAssignment 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 workplaceworkplace

• 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


Written Hazard Communication Plan (cont’d)Plans to ensure compliance:

• Hazardous materials in the workplace will be properly labeled

• SDS forms will be maintainedW k ill b id d ith ifi h d i f ti• 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


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Lockout/Tagout StandardRequires the de-energizing or placinglocks and tags on:• Electrical switches• Liquid or gas valves• Other energy control points


Lockout/Tagout RequirementsMust:• be a written document• be accessible to employees at all times during

normal working hours• establish contractor responsibilities• establish contractor responsibilities• establish annual auditing procedures • establish inventory of hazardous energy sources

and procedures to de-energize equipment• detail training and retraining programs


Inventory Hazardous Energy Sources• Electrical• Hydraulic• Chemical• Pneumatic• Mechanical• Thermal


Who Needs Training• Authorized employees (those actually performing

service and maintenance)

• Affected employees (those who are affected byAffected employees (those who are affected by actions of authorized employees)

• Other employees (office employees)


Contents of Training• The scope of the standard• Methods and procedures to de-energize

equipmentE l ibiliti• Employee responsibilities

• Auditing procedures• Hazardous energy inventory


Assignment of Duties• Maintain the written program• Notify employees of the written plan,

including information on requesting a copy of the programof the program

• Notify outside contractors of the property’s lockout/tagout requirements and guidelines


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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 HumanHepatitis B Virus (HBV) and the Human Immune Deficiency Virus (HIV).


Areas to AddressThe 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 accidentsInvestigate exposure accidents• Offering employees the HBV vaccine• Establishing a written exposure control plan• Communicating hazards to employees• Training and retraining


Exposure Control PlanThe Exposure Control Plan must be in writing and

should include:• an exposure determination• a schedule and method of implementationa schedule and method of implementation• post-exposure evaluation and follow-up• interaction with health care professionals• training


Who Needs Training• Each property must provide formal training

for employees who engage in potential exposure activities as defined by the standardstandard.


Contents of Training• Scope of the standard• Basic definitions of bloodborne pathogens• Exposure parameters• Methods of compliance

Inoc lation/HBV• Inoculation/HBV• Decontamination and proper disposal• Reporting incidents and procedures to follow

with a healthcare provider• Recordkeeping parameters and follow-up

procedures


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.


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Electrical Safety-Related Work-Practice Program

Phase Two of OSHA’s lockout/Tagout Standard for training “qualified” and “unqualified” employees who performunqualified employees who perform electrical service


Qualified Employee Training includes:• Basic electrical principles• Safety related work practice (proper hand

and power tool usage)E d d• Emergency procedures and response


Unqualified Employee Training includes:

• Basic electrical principles• Emergency procedures and response


OSHA InspectionsOSHA 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, p g y y q p

personnel records mandated by the regulations• Interview Personnel• Observe areas that aren’t covered by the employers’

consent or the inspection


Criteria for Selecting Facilities to Inspect• Imminent danger• Catastrophes and fatal accidents• Employee complaints/referrals• Programmed inspections• Follow-up inspections


Record Keeping• Injury and illness records for the past five

(5) years• All required written programs • OSHA Form 300AOSHA Form 300A• OSHA poster• Documentation of all training and written

assessments• Medical and exposure records


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Activity # 4

What Would You Do?


Chapter 4

Handling Emergencies


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


Emergency PlanAn emergency plan can help:• Conserve limited resources during an

emergency• Prevent poor performancePrevent poor performance• Limit or avoid negative media attention• Limit liability for your multifamily housing

community• Help you meet regulatory requirements


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 emergenciesEvaluate 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


Determining Type of Probability

• Review historical data• Proximity• Adjacent properties• Weather and geography• Residents• Property arrangement• Property infrastructure


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Impacted Entities• People• Property• BusinessBusiness

The goal should be to minimize impact on the residents, staff and business operations.


What to IncludeThe plan should specify details for:• Prevention• Detection• Communication• Communication• Evacuation• Containment/Mitigation• Recovery• Public Relations


Common Emergencies• Fire• Natural Disasters• Technological disasters• Criminal Incidents• First Aid situations


Skill Check #2

Chapters 3 and 4 – Risk Management

Course 6: Risk Management Chapters 3 and 4 82

Chapter 5

Liability and Insurance


Liability

• A duty owedA b h f th t d t• A breach of that duty

• Damages resulting directly therefrom


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Loss Prevention and ControlLoss Prevention:• Being proactive in preventing losses

Loss Control:• Doing everything you can to mitigate or

lessen the impact of the loss once it occurs


CancellationInsurance policies may be canceled under

the following conditions:• failure to pay the premiums

f il t d id tifi d h d• failure to remedy an identified hazard• new risk factors


Property Insurance• Covers property loss and/or damage to

buildings, their contents and external equipment.


Coverage Examples• Fire• Mechanical Equipment• Burglary and Robbery• Rent Loss• Flood Loss• Business- interruption


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• Sometimes referred to as crime insurance”.


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• Benefits are paid to the employee regardless of liability.


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Third Party Liability Insurance

• General Liability• Errors and Omissions


General LiabilityGeneral Liability coverage includes:

• Bodily injury • Property damage• Personal injuries


Incident• An incident includes all accidents, crimes,

property losses and resident losses.


Claims Avoidance• Criminal episode or injury • Security representations• Referral to police• Confidentiality• Locked files• Documentation


Handling Claims• Incident report • Follow up and document• Photographs• Rent concessions• Rent concessions• Promises• Medical bills• Claims re: resident car• Police reports


Skill Check #3

Chapters 5 Risk Management

Course 6: Risk Management Chapters 5 96

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