REPS Helps Agencies Identify Risks

Saturday, December 2, 2006 | 0

By Benny Vanden Avond

Do you remember "The Jetsons?" They lived in a utopian world of elaborate robotic contraptions, moving sidewalks, and flying space cars. Father George Jetson was the digital index operator at "Spacely Space Sprockets." His co-worker, the talking computer Referential Universal Digital Index (RUDI), assisted George in identifying, analyzing, and fixing the innumerable kinks that occurred in the sprocket-making process, ensuring that George was not fired by their short-tempered boss, Mr. Spacely.

Although not quite as advanced as RUDI from "The Jetsons," SORM has its own "smart" computer system - the Risk Evaluation and Planning System (REPS). REPS is a data collection and analysis tool intended to assist state agencies in identifying exposures to loss in their various operational areas. When fully and carefully completed by an agency, REPS internally computes a list of key risk exposures the individual agency faces and exports a report of necessary changes or actions the agency should take to mitigate its risks. An additional benefit of REPS that is not as obvious, perhaps one that is even more important than the individual agency risk management assistance, is that it allows SORM a forum to identify statewide risk management issues and trends through observing the aggregate data entered into the system. The purpose of this article is to briefly elaborate on some preliminary trends SORM has identified during REPS initial year of service. In addition, at the end of the article I will discuss the impact that identifying these trends has on the risk management services provided to client state agencies by SORM. Note: All information presented is based on a Response Report pulled from REPS on Sept. 11. As of that date, 46 agencies had entered data into the REPS system.

Formal, written risk management and safety procedures are the most important prerequisite to having a solid risk management program. The majority of client state agencies are on board. When REPS asked whether the agency has a safety plan or manual, 95 percent of agencies responded "yes." When asked if the agency had a current written safety and health policy statement signed and dated by the agency head, 86 percent reported affirmatively. One irregularity to the trend of having formal, written procedures, however, is Indoor Air Quality Management - only 25 percent of agencies report having one. This item is of particular importance because nearly half of SORM's client agencies (44 percent) report having received a complaint about indoor air quality.

Another standard of a sound risk management program is a culture attentive to risk. A key aspect to building this type of culture is "buy-in" from top-level management. According to REPS data, top-level managers are quite involved in agency risk management activities. When asked whether risk managers provided loss data to agency directors and key managers, 100 percent of agencies replied "yes." Similarly, when asked if senior management has issued a "policy statement" or "directive" establishing the value and the agency's commitment to business continuity planning, 83 percent of agencies responded positively.

Not all of the trends seen during REPS' first year have been as positive as management "buy-in" and formal, written risk management policies. While it appears that agencies often implement sound risk management and safety procedures, some do not take the extra step to monitor and follow up on these items. For example, 100 percent of agencies report having first-aid kits available to their employees, however, only 66 percent of the agencies report that their first-aid kits contain appropriate hand, face, and eye protection. Items such as rubber gloves and face shields are essential to ensure the safety of an agency's injured and responding workers.

Another example regards business continuity plans. Though 86 percent of agencies report that they have implemented a continuity plan that encompasses all of their critical functions, further analysis in REPS shows that only 47 percent of these agencies have actually tested their plans. Testing and refinement of plans before actual catastrophes occur is an important and necessary risk management action to ensure the safety of agency employees and facilities.

Another trend identified during REPS' initial year is the lack of risk management training client agencies report receiving from SORM and other qualified service providers. While every agency reports having an appointed risk manager, only 49 percent have attended SORM's Training for New Risk Managers. Likewise, although 97 percent of agencies report that accident investigations are conducted and reviewed by managers and supervisors, only 55 percent of agencies report having received any kind of accident investigation training. Training is essential, not just for daily operations. This issue is exacerbated by the fact that 55 percent of agencies report loss of institutional knowledge because of employee retirement or resignation is a serious threat to the attainment of agency goals.

But this is where the true benefit of the REPS system shows. By enabling SORM to collect both statewide and agency specific data, REPS enables risk management specialists and SORM's Agency Outreach and Training section to identify aggregate exposures that, when observed individually, may have gone unnoticed. The end result is that the specialists can conduct more focused and ultimately more effective Risk Management Program Reviews and On Site Consultations and the training section can better address specific training deficiencies.

I hope this article has made it apparent that REPS is not only a great tool for individual agencies to refine their risk management programs, but that it is also a great instrument for SORM to provide better risk management services. Much like the computer RUDI always helped George on "The Jetsons," REPS enables the risk management specialists and training section to better identify, analyze, and fix the innumerable kinks facing the risk management programs of our client state agencies.

Now if SORM could only implement The Jetson's work schedule: 3 hours a day, 3 days a week.

REPS has been available for client state agencies since Sept. 1, 2005.

Benny Vanden Avond is a risk management specialist in the Risk Assessment and Loss Prevention division.

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