Risk Management User Risk Management User GroupGroup

November 29, 2006November 29, 2006

WELCOMEWELCOME

Michael L. Hay, CRM, CGFM, Michael L. Hay, CRM, CGFM, CPPMCPPM

MEETING AGENDAMEETING AGENDA

8:30 – 9:008:30 – 9:00 Healthcare Networks Jonathan BowHealthcare Networks Jonathan Bow 9:00 – 9:30 9:00 – 9:30 Return to WorkReturn to Work Gordon Leff Gordon Leff

FY06 Claims UpdateFY06 Claims Update 9:30 – 10:30 9:30 – 10:30 Travel SafetyTravel Safety Officer Garry Parker Officer Garry Parker 10:30 – 10:45 10:30 – 10:45 BREAKBREAK 10:45 – 11:15 10:45 – 11:15 SORM 200 UpdateSORM 200 Update Mary Loza Mary Loza 11:15 – 11:30 11:15 – 11:30 Training Updates Brad PraisTraining Updates Brad Prais 11:30 – 12:00 11:30 – 12:00 Loss Trending Benny Vanden AvondLoss Trending Benny Vanden Avond

Cost of Risk Cost of Risk

HEALTHCARE HEALTHCARE NETWORKSNETWORKS

Jonathan BowJonathan BowExecutive DirectorExecutive Director

CLAIMS UPDATECLAIMS UPDATE

Gordon LeffGordon Leff

Deputy Director Deputy Director

Claims OperationsClaims Operations

Total Claims Costs x Year

$-

$10,000,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

$60,000,000

$70,000,000

$80,000,000

2000/00 2001/00 2002/00 2003/00 2004/00 2005/00 2006/00

Medical Costs x Year

$-

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

2000/00 2001/00 2002/00 2003/00 2004/00 2005/00 2006/00

Indemnity Costs x Year

$-

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

2000/00 2001/00 2002/00 2003/00 2004/00 2005/00 2006/00

TIB Payment x Year

$-

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

$16,000,000

2000/00 2001/00 2002/00 2003/00 2004/00 2005/00 2006/00

IIB Payment x Year

$-

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

2000/00 2001/00 2002/00 2003/00 2004/00 2005/00 2006/00

SIB Payment x Year

$-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

2000/00 2001/00 2002/00 2003/00 2004/00 2005/00 2006/00

Texas Workers' Compensation Act Texas Workers' Compensation Act (Labor Code, Title 5, Subtitle A, (Labor Code, Title 5, Subtitle A,

Section 412.051) Section 412.051)

A program designed to assist employees who A program designed to assist employees who sustain compensable injuries to return to worksustain compensable injuries to return to work

Immediate savings when TIBS ceaseImmediate savings when TIBS cease

Potential benefits in return-to- work program

Other Benefits to the Employer - Other Benefits to the Employer - Direct Savings:Direct Savings:

Productivity increases and human resources Productivity increases and human resources are utilized to the maximum extentare utilized to the maximum extent

Wage costs for substitute employees are saved. Wage costs for substitute employees are saved. Litigation costs are normally prevented or Litigation costs are normally prevented or

reducedreduced Possible reduction or ending of medical costs Possible reduction or ending of medical costs

Benefits to the Employer - Indirect Benefits to the Employer - Indirect Savings:Savings:

Work delays and business interruptions are eliminated when Work delays and business interruptions are eliminated when the experienced employee returns to work. the experienced employee returns to work.

Co-workers are not required to perform extra duties to Co-workers are not required to perform extra duties to compensate for the absent employee. compensate for the absent employee.

Communications and relations between employees and Communications and relations between employees and management are enhanced. management are enhanced.

Recruitment and staff training costs of new or substitute Recruitment and staff training costs of new or substitute employees are saved. employees are saved.

Goodwill and a positive image with the public and employees Goodwill and a positive image with the public and employees are created, as the employer is perceived as a caring employer are created, as the employer is perceived as a caring employer

Benefits to the Injured Workers:Benefits to the Injured Workers: Employee concerns about continued employment are resolved. Employee concerns about continued employment are resolved. Full or partial wages are earned which brings the employee's Full or partial wages are earned which brings the employee's

income closer to pre-injury wages than workers' compensation income closer to pre-injury wages than workers' compensation temporary income benefits alone. temporary income benefits alone.

They remain active and mobile when returned to the They remain active and mobile when returned to the productive workforce. productive workforce.

Self-esteem, morale and personal security are maintained or Self-esteem, morale and personal security are maintained or restored through gainful employment and a productive life restored through gainful employment and a productive life style. style.

Stress, boredom, and depression associated with the Stress, boredom, and depression associated with the injury/illness and being out of work are reduced or eliminated, injury/illness and being out of work are reduced or eliminated, not only for the injured worker, but for the family or not only for the injured worker, but for the family or significant others.significant others.

Physical conditioning through a work-life discipline is Physical conditioning through a work-life discipline is maintained. maintained.

Your front-line supervisors must be on Your front-line supervisors must be on board!board!

Successful return-to-work programsSuccessful return-to-work programs

Knowledgeable, proactive return to work coordinatorKnowledgeable, proactive return to work coordinator Continuous education and trainingContinuous education and training Job descriptionsJob descriptions Job hazard analysisJob hazard analysis On-going identification of positions suitable for alternate On-going identification of positions suitable for alternate

duty assignmentsduty assignments Written communicationsWritten communications Early intervention and prompt, sympathetic regardEarly intervention and prompt, sympathetic regard Consistent application of a detailed return to work policy Consistent application of a detailed return to work policy

and proceduresand procedures FormsForms Accurate and systematic evaluationAccurate and systematic evaluation

You and Your front-line supervisors You and Your front-line supervisors must be on board!must be on board!

http://www.sorm.state.tx.us/http://www.sorm.state.tx.us/Workers-Compensation/Workers-Compensation/

Return to Work Programs Return to Work Programs

"Position Description”"Position Description” DWC 73 "Return-to-Work Status" DWC 73 "Return-to-Work Status" SORM 85 Return To Work PolicySORM 85 Return To Work Policy Bona-fide Job Offer of Employment Notification Bona-fide Job Offer of Employment Notification

Bona-Fide Offer of EmploymentBona-Fide Offer of Employment

First:First: a) An employer or insurance carrier may a) An employer or insurance carrier may

request the treating doctor provide a Work request the treating doctor provide a Work Status Report by providing the treating doctor Status Report by providing the treating doctor a set of functional job descriptions which list a set of functional job descriptions which list modified duty positions which the employer modified duty positions which the employer has available for the injured employee to work. has available for the injured employee to work. The functional job descriptions must The functional job descriptions must include descriptions of the physical and include descriptions of the physical and time requirements of the positionstime requirements of the positions. .

Second:Second: (b) An employer may offer an employee a (b) An employer may offer an employee a

modified duty position which has restricted modified duty position which has restricted duties which are within the employee's work duties which are within the employee's work abilities abilities asas determined by the employee's determined by the employee's treating doctortreating doctor. .

Third:Third: In the absence of a Work Status Report by the In the absence of a Work Status Report by the

treating doctor, an offer of employment may be made treating doctor, an offer of employment may be made based on another doctor's assessment of the based on another doctor's assessment of the employee's work status employee's work status provided that the doctor provided that the doctor made the assessment based on an actual physical made the assessment based on an actual physical examination of the employee performed by that examination of the employee performed by that doctor and provided that the treating doctor has doctor and provided that the treating doctor has not indicated disagreement with the restrictions not indicated disagreement with the restrictions identified by the other doctoridentified by the other doctor. .

This is CriticalThis is Critical

Fourth:Fourth: c) An employer's offer of modified duty shall be made to the employee c) An employer's offer of modified duty shall be made to the employee in in

writing and in the form and manner prescribed by the Commission.writing and in the form and manner prescribed by the Commission. A A copy of the Work Statuscopy of the Work Status Report on which the offer is being based shall Report on which the offer is being based shall be included with the offer as well as the following informationbe included with the offer as well as the following information ::

1) the location at which the employee will be working; 1) the location at which the employee will be working; 2) the schedule the employee will be working; 2) the schedule the employee will be working; 3) the wages that the employee will be paid; 3) the wages that the employee will be paid; 4) a description of the physical and time requirements that the 4) a description of the physical and time requirements that the

position will entail; and position will entail; and 5) a statement that the employer will only assign tasks consistent with 5) a statement that the employer will only assign tasks consistent with

the employee's physical abilities, knowledge, and skills and will provide the employee's physical abilities, knowledge, and skills and will provide training if necessary. training if necessary.

None of these elements may be overlooked and the offer MUST be made None of these elements may be overlooked and the offer MUST be made in writing.in writing.

Fifth:Fifth: d) A carrier may deem an offer of modified duty to be a d) A carrier may deem an offer of modified duty to be a

bona fide offer of employment if: bona fide offer of employment if: 1) it has written copies of the Work Status Report and the 1) it has written copies of the Work Status Report and the

offer; and offer; and 2) the offer: 2) the offer:   a) is for a job at a location which is geographically accessible a) is for a job at a location which is geographically accessible

as provided in subsection (e) of this section; as provided in subsection (e) of this section;     b) is consistent with the doctor's certification of the b) is consistent with the doctor's certification of the

employee's work abilities, as provided in subsection (f) of employee's work abilities, as provided in subsection (f) of this section; and this section; and

was communicated to the employee in writing, in the form and was communicated to the employee in writing, in the form and manner prescribed by the Commission and included all the manner prescribed by the Commission and included all the information required by subsection (c) of this section. information required by subsection (c) of this section.

Sixth:Sixth: (e) In evaluating whether a work location is (e) In evaluating whether a work location is

geographically accessible the carrier shall at geographically accessible the carrier shall at minimum consider: minimum consider:

(1) the affect that the employee's physical limitations (1) the affect that the employee's physical limitations have on the employee's ability to travel; have on the employee's ability to travel;

  (2) the distance that the employee will have to travel; (2) the distance that the employee will have to travel;   (3) the availability of transportation; and (3) the availability of transportation; and   (4) whether the offered work schedule is similar to (4) whether the offered work schedule is similar to

the employee's work schedule prior to the injurythe employee's work schedule prior to the injury . .

Seventh:Seventh: (f) The following is the order of preference that (f) The following is the order of preference that

shall be used by carriers evaluating an offer of shall be used by carriers evaluating an offer of employment:employment:

  (1) the opinion of a doctor (1) the opinion of a doctor selected by the selected by the Commission Commission to evaluate the employee's work status; to evaluate the employee's work status;

  (2) the opinion of the (2) the opinion of the treating doctortreating doctor; ;   (3) opinion of a doctor who is providing regular (3) opinion of a doctor who is providing regular

treatment as a treatment as a referral doctor referral doctor based on the based on the treating doctor's referral; treating doctor's referral;

  (4) opinion of a doctor who evaluated the employee (4) opinion of a doctor who evaluated the employee as a as a consulting doctor consulting doctor based on the treating doctor's based on the treating doctor's request; and request; and

  (5) the opinion of (5) the opinion of any other doctor any other doctor based on an based on an actual physical examination of the employee actual physical examination of the employee performed by that doctor. performed by that doctor.

Eighth:Eighth:

(g) A carrier may deem the wages offered by an employer (g) A carrier may deem the wages offered by an employer through a bona fide offer of employment to be Post-Injury through a bona fide offer of employment to be Post-Injury Earnings (PIE), as outlined in §129.2 of this title (relating to Earnings (PIE), as outlined in §129.2 of this title (relating to Entitlement to Temporary Income Benefits), on the earlier of Entitlement to Temporary Income Benefits), on the earlier of the date the employee rejects the offer or the seventh day after the date the employee rejects the offer or the seventh day after the employee the employee receivesreceives the offer of modified duty unless the the offer of modified duty unless the employee's treating doctor notifies the carrier that the offer employee's treating doctor notifies the carrier that the offer made by the employer is not consistent with the employee's made by the employer is not consistent with the employee's work restrictions. For the purposes of this section, if the offer work restrictions. For the purposes of this section, if the offer of modified duty was made by mail, an employee is deemed to of modified duty was made by mail, an employee is deemed to have received the offer from the employer five days after it have received the offer from the employer five days after it was mailed. The wages the carrier may deem to be PIE are was mailed. The wages the carrier may deem to be PIE are those that would have been paid on or after the date the carrier those that would have been paid on or after the date the carrier is permitted to deem the offered wages as PIE. (Post Injury is permitted to deem the offered wages as PIE. (Post Injury Earnings)Earnings)

Important Concept Coming UpImportant Concept Coming Up

The employee may decline the employer's The employee may decline the employer's offer of an alternate duty job and remain on offer of an alternate duty job and remain on leave. However, the Texas Workers' leave. However, the Texas Workers' Compensation Act allows income benefits to Compensation Act allows income benefits to be reduced when an employee refuses a bona-be reduced when an employee refuses a bona-fide offer of employment. This reduction in fide offer of employment. This reduction in benefits is permitted regardless of FMLA.benefits is permitted regardless of FMLA.

Changes in the Designated Doctor Changes in the Designated Doctor and Required Medical Examination rulesand Required Medical Examination rules

As of January 1, 2007As of January 1, 2007

Rule 126.7 (c), the Designated Doctor’s role has expanded to include the Rule 126.7 (c), the Designated Doctor’s role has expanded to include the

resolution of questions regardingresolution of questions regarding (1)(1) impairment caused by employees compensable injuryimpairment caused by employees compensable injury (2)(2) the attainment of MMIthe attainment of MMI (3)(3) the extent of the employees compensable injurythe extent of the employees compensable injury (4)(4) whether the employee’s disability is a direct result of whether the employee’s disability is a direct result of

the work-related injury;the work-related injury; We are already being warned not to use this rule for # 3 or # We are already being warned not to use this rule for # 3 or #

4, but that’s a different class.4, but that’s a different class. (5)(5) the ability of the employee to return to work (RTW); or the ability of the employee to return to work (RTW); or (6)(6) issues similar to those described in 1-5.issues similar to those described in 1-5.

Sample RTW forms are provided on Sample RTW forms are provided on SORM’s website at SORM’s website at

WWW.SORM.state.tx.us/Claims_Cordinator_WWW.SORM.state.tx.us/Claims_Cordinator_Handbook/forms.phpHandbook/forms.php

Bona Fide Offer of Employment Letter Bona Fide Offer of Employment Letter (SAMPLE)(SAMPLE) Delivery Confirmation Requested Delivery Confirmation Requested

Dear (claimant): Dear (claimant):

Our office is in receipt of medical information from Dr. _____________ outlining the restrictions under Our office is in receipt of medical information from Dr. _____________ outlining the restrictions under which you are able to return to work. Pursuant to Workers' Compensation Commission Rule 129.6, this which you are able to return to work. Pursuant to Workers' Compensation Commission Rule 129.6, this letter is a Bona Fide Job Offer for you to return to work consistent with information provided herein. Our letter is a Bona Fide Job Offer for you to return to work consistent with information provided herein. Our office will abide by the physical limitations as outlined by the physician. The office will only assign tasks office will abide by the physical limitations as outlined by the physician. The office will only assign tasks consistent with your physical abilities, knowledge and skills and will provide training if necessary. consistent with your physical abilities, knowledge and skills and will provide training if necessary.

Position title 2. Hours of duty: ____a.m. / p.m. until ____ a.m. / p.m. 3. Wages: $____Hourly Position title 2. Hours of duty: ____a.m. / p.m. until ____ a.m. / p.m. 3. Wages: $____Hourly $____Weekly $____Monthly 4 Job description, including duty hours, and maximum physical $____Weekly $____Monthly 4 Job description, including duty hours, and maximum physical requirements of the position (lifting and approximate lbs.; approximate time stooping, pushing, standing, requirements of the position (lifting and approximate lbs.; approximate time stooping, pushing, standing, sitting, etc.): 5.Address, location, and approximate distance in miles from employee’s residence6. sitting, etc.): 5.Address, location, and approximate distance in miles from employee’s residence6. Beginning date of the position _________ Ending date of the position________ Beginning date of the position _________ Ending date of the position________

Should you have any questions, please contact the undersigned below. Should you have any questions, please contact the undersigned below.

Sincerely, Sincerely,

ForFor more information about return to work, please more information about return to work, please go to SORM’s website at:go to SORM’s website at:

http://www.sorm.state.tx.us/http://www.sorm.state.tx.us/Workers_Compensation/Return_To_Work/Workers_Compensation/Return_To_Work/return_to_work.phpreturn_to_work.php

Travel SafetyTravel Safety

Officer Garry ParkerOfficer Garry Parker

Texas Department of Public SafetyTexas Department of Public Safety

BREAKBREAK

See you in 15 minutesSee you in 15 minutes

SORM 200 DATASORM 200 DATA

Mary Loza, ARM, AICMary Loza, ARM, AIC

SORM 200SORM 200• The State Office of Risk Management 200 (SORM The State Office of Risk Management 200 (SORM

200) is the sole source for collecting statewide 200) is the sole source for collecting statewide information from state agencies regarding their information from state agencies regarding their expenditures for risk management activities, expenditures for risk management activities, insurance purchases and non-workers’ insurance purchases and non-workers’ compensation claims made or settled against the compensation claims made or settled against the agency.agency.

• The intent of the SORM 200 is to capture costs The intent of the SORM 200 is to capture costs associated with agency Risk Management Programs, associated with agency Risk Management Programs, and to compile information necessary for SORM to and to compile information necessary for SORM to include the administrative costs of risk in the include the administrative costs of risk in the Office's biennial report to the legislature.Office's biennial report to the legislature.

SORM 200SORM 200

• The SORM 200 is divided into two parts:The SORM 200 is divided into two parts:

• Part I - Risk Management Expenditures: the intent of Part I - Risk Management Expenditures: the intent of this section is to capture those costs associated with this section is to capture those costs associated with agency’s direct risk management costs. agency’s direct risk management costs.

• Part II - Insurance and Risk Related Expenditures: used Part II - Insurance and Risk Related Expenditures: used to submit non workers’ compensation insurance to submit non workers’ compensation insurance information for the current fiscal year. information for the current fiscal year.

SORM 200SORM 200

• Data for SORM 200 is requested Data for SORM 200 is requested from each agency for online input from each agency for online input by October 30 of each fiscal year.by October 30 of each fiscal year.

• Database is closed on October 30 Database is closed on October 30 and any additions or corrections and any additions or corrections can can onlyonly be entered by SORM be entered by SORM personnel. personnel.

• Data is being analyzed for data Data is being analyzed for data integrity. integrity.

Cost of RiskCost of RiskFY 03, 04, 05FY 03, 04, 05

CASH BASISCASH BASIS

Risk Management Risk Management ProgramsPrograms

Workers’ Comp ClaimsWorkers’ Comp Claims

Cost ContainmentCost Containment

Settlements & Settlements & JudgmentsJudgments

Bonds, Insurance & Bonds, Insurance & DeductiblesDeductibles

Actuarial ServicesActuarial Services

Court Costs & Attorney Court Costs & Attorney FeesFees

Risk Management & Risk Management & Claims AdminClaims Admin

Lost, Damaged & Lost, Damaged & Destroyed PropertyDestroyed Property

FY 03 FY 03

$ $ 27,262,527,262,58888

67,571,167,571,17777

1,279,951,279,9566

3,512,083,512,0800

11,732,211,732,27979

12,00012,000

1,901,061,901,0622

6,086,276,086,2766

539,687539,687

FY 04FY 04

$ $ 33,029,7333,029,7377

54,650,8754,650,8722

1,146,7111,146,711

5,653,4845,653,484

15,417,8915,417,8955

4,5004,500

1,866,3691,866,369

6,458,0346,458,034

504,585504,585

FY 05FY 05

$ $ 26,171,326,171,31111

52,534,052,534,02424

1,380,951,380,9500

4,190,854,190,8588

14,934,014,934,03333

13,00013,000

971,006971,006

6,525,056,525,0555

3,103,683,103,6811

ACCRUED COSTSACCRUED COSTS

Reserves for Future Reserves for Future ClaimsClaims

Incurred But Not Incurred But Not ReportedReported

TOTAL COST OF RISKTOTAL COST OF RISK

63,259,263,259,24141

67,860,067,860,00000

$251,016$251,016,345,345

50,99,36750,99,367

84,966,0084,966,0000

$254,690,$254,690,553553

54,103,754,103,73232

77,929,277,929,24444

$241,856$241,856,894,894

Expenditures vs CORExpenditures vs COR%%

FY 03FY 03 FY 04FY 04 FY 05FY 05

Cost of Risk Cost of Risk $ $ 251,016,3251,016,34545

$ $ 254,690,5254,690,55353

$ $ 241,856,8241,856,89494

Risk Risk ManagementManagement

ExpensesExpenses

$ $ 27,262,5827,262,588 8

$ $ 33,029,7333,029,7377

$ $ 26,171,3126,171,3111

PercentagePercentage

RM RM Expenses/COExpenses/CORR

11%11% 13%13%

11%11%

Loss Prevention Effect Loss Prevention Effect RatiosRatios

FY 03FY 03 FY 04FY 04 FY 05FY 05

RM ExpendituresRM Expenditures $ $ 27,262,5827,262,5888

$ $ 33,029,7333,029,7377

$ $ 26,171,3126,171,3111

Cost of Risk (Cash Cost of Risk (Cash Basis) Basis)

$ $ 92,880,7592,880,7599

$ $ 85,702,4485,702,449 9

$ $ 83,652,6083,652,6077

RatioRatio

COR/RM COR/RM ExpendituresExpenditures

3.43.4 2.62.6 3.23.2

Property & Casualty Property & Casualty ClaimsClaims

• Virtually, any event, where damages to persons Virtually, any event, where damages to persons or property, that may cause a financial loss to or property, that may cause a financial loss to the agency must be reported. This includesthe agency must be reported. This includes::

• 1. Injuries or damages (insured or 1. Injuries or damages (insured or uninsured); automobile accidents involving uninsured); automobile accidents involving agency owned vehicles whether owned, non-agency owned vehicles whether owned, non-owned or hired; owned or hired;

• 2. Agency owned vehicle damage (automobile 2. Agency owned vehicle damage (automobile physical damage) or third party vehicle physical damage) or third party vehicle damage (automobile liability - property damage (automobile liability - property damage); damage);

• 3. Property damage which may includes 3. Property damage which may includes theft/vandalism of personal property. ;theft/vandalism of personal property. ;

Property & Casualty Property & Casualty ClaimsClaims

• 4. Right to sue notices from EEOC or 4. Right to sue notices from EEOC or Department of Human Rights Department of Human Rights (employment practices type), injuries (employment practices type), injuries to volunteers (accident type); to volunteers (accident type);

• 5. Injuries to the public within/on 5. Injuries to the public within/on state owned/managed facilities or state owned/managed facilities or premises (slips and fallspremises (slips and falls). ).

Auto Liability ClaimsAuto Liability ClaimsFY 06FY 06

0

20

40

60

80

100

120

140

160

InsuredUninsued

Insured 32

Uninsued 144

Insured Auto ClaimsInsured Auto Claims FY 06 FY 06

$57,500

$58,000

$58,500

$59,000

$59,500

$60,000

$60,500

Open $60,015Closed $58,558

Uninsured Auto Claims Uninsured Auto Claims FY 06FY 06

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

FY 06

FY 06 $151,960 $83,481

Open Closed

EPL Claims EPL Claims FY 06FY 06

• Employment Practices ClaimsEmployment Practices Claims

0102030405060708090

Insured Uninsured

Insured 11

Uninsured 80

Uninsured EPL ClaimsUninsured EPL ClaimsFY 06 FY 06

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

FY 06

FY 06 $128,854 $46,854

Open Closed

Property ClaimsProperty ClaimsFY 06FY 06

0

10

20

30

40

50

60

70

FY 06 33 66

Insured Uninsured

Uninsured Property ClaimsUninsured Property ClaimsFY 06FY 06

$0

$10,000,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

FY 06

FY 06 $44,437,686 $15,246,338

Open Closed

Insured Property ClaimsInsured Property ClaimsFY 06FY 06

$0

$50,000

$100,000

$150,000

$200,000

ClosedOpen

Closed $50,464

Open $176,526

•QUESTIONS ??QUESTIONS ??

Agency Outreach & Training

Bradley Prais

Training Specialist

Regional Open EnrollmentResults

• 3 Completed: 700+ Students, 32 Agencies• Most Popular:

– Bloodborne Pathogens– Stress Management– Anger & Conflict in the Workplace

• Problems: – Limited attendance by smaller field offices– Limited announcements to field offices

Sample Schedule: AM  Day 1 Day 2 Day 3

  Room 1 Room 2 Room 3 Room 1 Room 2 Room 3 Room 1 Room 2 Room 3

9:00                  

9:15 Stress   Notary       Office    

9:30     Public       Safety    

9:45       CPR       Supervisor's  

10:00   ADSO     Accident Claims   Role Claims

10:15       Investigation Coordinator   in Coordinator

10:30       Vicki     Ergo Safety  

10:45 Anger     &     in    

11:00 &   HAZCOM Diane     Workplace    

11:15 Conflict                

11:30                  

11:45                  

12:00                  

Sample Schedule: PM  Day 1 Day 2 Day 3

  Room 1 Room 2 Room 3 Room 1 Room 2 Room 3 Room 1 Room 2 Room 3

12:45                  

1:00                  

1:15                  

1:30     Solving   Slips, Trips   Back Inj    

1:45   ADSO Conflict   & Falls   Lifting Workplace  

2:00   (Cont)           Violence  

2:15               for  

2:30 Defensive     First   Claims   Managers Claims

2:45 Driving     Aid   Coordinator     Coordinator

3:00     Workplace  (Cont) Confined  (Cont) Bloodborne   (Cont) 

3:15     Violence Spaces   Pathegons    

3:30   15 Pax   Short        

3:45   Van            

4:00                  

4:15                  

4:30                

4:45                

5:00                  

Regional Open EnrollmentsSchedule

• Harlingen: February 13-15 Hosted by TSTC

• Nacogdoches: June 12-14 Hosted by SFA

• Open Dates: April, August, October

New Classes

• Driving Safety: 4hrs

• CPR & First Aid: 8hrs, Limited availability

• Office Safety: 1hr

• Claims Coordinator: 2 days

• Supervisors Role in Safety: 3hrs

Pinpointing your Exposures:

Loss Trending and Benchmarking through the

State Office of Risk Management

Presented by:Presented by:Benny Vanden AvondBenny Vanden AvondSORM Risk Management SpecialistSORM Risk Management Specialist

Risk Management Process

• Step 1: Risk Identification

• Step 2: Risk Analysis

• Step 3: Consider Alternatives– Risk Control– Risk Finance

• Step 4: Implement

• Step 5: Monitor

Risk Identification Techniques• Insurance Surveys

• Property Inspections

• Internal Resources

• External Resources

Risk Identification through SORM• Onsite Consultations & Risk

Management Program Reviews

• Risk Tex Articles

• Risk Management User Groups

• Insurance Policy Reviews

• Risk Evaluation and Planning System (REPS)

Risk Identification through REPS

Risk Identification through REPS

Risk Identification through REPS

Risk Identification through REPS:Questions, Questions, Questions

Identified Risks

22 Automobile Accidents occurred in Fiscal Year 2005, but only six occurred in Fiscal Year 2006

Two Employees complained

about indoor air quality

Our agency spends 17.04% of our Risk Management

Program Expenditures on Employee Salaries

Blah, Blah, Blah…

Risk Identification through REPS

Blah, Blah, Blah…

Identified Risks

22 Automobile Accidents occurred in Fiscal Year 2005, while six occurred in Fiscal Year 2006Has your fleet size significantly changed?

Two Employees complained

about indoor air quality

Have you had previous complaints?

Our agency spends 17.04% of our Risk Management

Program Expenditures on Employee Salaries

How does this compare to other state agencies?

Risk Management Process

• Step 1: Risk Identification

• Step 2: Risk Analysis

• Step 3: Consider Alternatives– Risk Control– Risk Finance

• Step 4: Implement

• Step 5: Monitor

Risk Analysis Techniques

• Loss Trending

• Benchmarking

Loss Trending (Trend Analysis)• Loss forecasting technique that

identifies past loss patterns and uses them to forecast future losses

Loss Trending through SORM

• REPS

• Online Property and Casualty Claims Reporting System (OPCC)

Loss Trending through REPS

Loss Trending through REPS: Data, Data, Data

Loss Trending through REPS: Statewide Trends• REPS also helps SORM to conduct

Statewide Loss Trending– October 2006 Risk Tex Article:

‘Smart’ System: REPS Helps Agencies Identify Risk, Helps SORM Recognize Trends

Loss Trending through OPCC

Loss Trending through OPCC

Loss Trending through OPCC

Benchmarking

• An entity’s use of information about other entity’s in the same industry to set standards and goals for itself

Benchmarking through SORM• REPS

• Cost of Risk Report (CORR)

Benchmarking with REPS

Benchmarking with REPS

Benchmarking with REPS

Benchmarking with REPS

Benchmarking with CORR

• Agencies can use the CORR information to benchmark their risk management expenditure performance compared to statewide totals

• Individual agency expenditure data for the past four years is available within the RMIS section of the SORM website.

• Agencies should find the percentage columns particularly useful for benchmarking efforts.

Benchmarking with CORR

• What

• Where

• When

Benchmarking with CORR

Benchmarking with CORR

Benchmarking with CORR

Benchmarking with CORR

Benchmarking with CORR

Benchmarking with CORR

F - Salaries $13,550 17.04%

G – Benefits $5,500 6.92%

H – Travel $1,200 1.51%

Total Expenditures

$79,500 100.00%

Summary

• Risk Analysis is a vital piece of the Risk Management Process

• Loss Trending and Benchmarking are just two of many risk analysis techniques available

• REPS, OPCC, and CORR are valuable risk analysis tools provided through SORM

Risk Management Risk Management User GroupUser Group

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