critical(waysto(control(your( enterprise3wide(riskexposure · 2020-06-21 ·...

Thought Leadership Series

This webinar is broadcast through your computer speakers via the audio broadcasting icon on your screen. You may adjust the sound volume by using the slide bar on the audio broadcasting icon. If you cannot access the audio, you may dial into the call by dialing 1-‐650-‐479-‐3208 and using access code 662 628 913. Need further assistance? Contact SIA customer service at 800-‐950-‐9496.

Presented by:Rich Altus, PresidentPeople 2.0

Jason Lannie, Vice President – Risk ManagementPeople 2.0

Rebecca Sokolowski, Vice President – Affiliate ServicesPeople 2.0

Moderator: Adrianne Nelson, Director, Global ServicesStaffing Industry Analysts

Sponsored and presented by

November 30, 201610 am PT/ 1 pm ET

©2016 by Crain Communications Inc. All rights reserved. 1

Critical Ways to Control Your Enterprise-Wide Risk Exposure


Welcome to the Staffing Industry Analysts Thought Leadership Series

Suppliers Of Staffing Services Share Their Expertise

The Staffing Industry Analysts Industry ThoughtLeadership Series provides the perspective of the suppliersof staffing services. The views expressed in this webinarare those of the sponsor and not necessarily that ofStaffing Industry Analysts.

This webinar is broadcast through your computer speakers via the audio broadcasting icon on your screen. You may adjust the sound volume by using the slide bar on the audio broadcasting icon. If you cannot access the audio, you may dial into the call by dialing 1-‐650-‐479-‐3208 and using access code 662 628 913 Need further assistance? Contact SIA customer service at 800-‐950-‐9496.

©2016 by Crain Communications Inc. All rights reserved 2


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Today’s Speakers


Rich Altus, President

Jason Lannie, Vice President – Risk Management

Rebecca Sokolowski, Vice President – Affiliate Services Adrianne Nelson,

Director, Global Services, Staffing Industry Analysts

Moderator:

November 30, 2016

© 2016 People 2.0222 Valley Creek Blvd., Suite 100

Exton, PA 19341Phone 610-429-4111www.people20.com


Presented by:Rich Altus, PresidentJason Lannie, Vice President – Risk ManagementRebecca Sokolowski, Vice President – Affiliate Services

5

What Enterprise-Wide Risk Management Can Do For You


When companies proactively acknowledge enterprise-wide risk management, they can:

Identify opportunities ahead of competitors

Rapidly pursue growth opportunities

Rapidly accommodate changes to their business

3-4x faster than the companies who don’t*

* As per PWC survey results

6

Risks Impacting Your Business


Topics

7


Risk Trends and Mitigating Measures


Topics

8



Workers’ Comp Insurance Program Structures


Topics

9

© 2016 People 2.0Phone 610-429-4111www.people20.com

Workers’ CompensationInsurance Program Structures

10

Risk Financing AlternativesTransfer vs. Keep

Workers’ Compensation Insurance Program Structures

Transfer Keep

Complete Risk Transfer

Pure Self-‐Insurance

Guaranteed Cost

Small Deductible With Aggregate

Small Deductible

No Aggregate

Retro With Low Maximum

Retro With High Maximum

Large Deductible With Aggregate

Large Deductible

No Aggregate

Group Captive

Single Parent Captive

Qualified Self-‐Insurance

Uninsured

11

Considerations

Best Price

Best Cash Flow

Risk Appetite

Ability to Retain Risk


Letters of Credit

Cost of Claims Handling

Tax and Accounting

Back-office strength and expertise to manage

12

Insurance Program Structure – Polling Question

What type of workers’ compensation insurance program do you currently maintain?

Guaranteed Cost

Low Deductible Program (i.e., less than $50,000)

Large Deductible Program (i.e., greater than $50,000)

Loss-Sensitive Retrospective (Retro) Program

Captive

Workers’ Compensation Insurance Program Structures 13

Determining an Optimal Retention

Financial condition—the capacity of organization to retain losses (e.g., balance sheet and income statement concerns)

Risk tolerance of the organization

Ability to control losses

Expected losses—frequency and severity

The general rule is to transfer the unpredictable layers of risk

Workers’ Compensation Insurance Program Structures14

Risk Financing AlternativesTransfer vs. Keep


Transfer Keep

Complete Risk Transfer

Pure Self-‐Insurance

Guaranteed Cost

Small Deductible With Aggregate

Small Deductible

No Aggregate

Retro With Low Maximum

Retro With High Maximum

Large Deductible With Aggregate

Large Deductible

No Aggregate

Group Captive

Single Parent Captive

Qualified Self-‐Insurance

Uninsured

15


Workers’ Comp Insurance Program StructurePolling Question Results

What type of workers’ compensation insurance program do you currently maintain?

16


Enterprise-Wide Risks Impacting Your Business

17


Light Industrial / Industrial

28%

Clerical / Office29%

Professional (engineering, IT,

finance, accounting)27%

Healthcare16%

WHAT SERVICE CHANNEL DO YOU PRIMARILY SERVE?

18

N = 56

Survey Results

What keeps you up at night

Actions taken or planned to mitigate risk exposures

Network and data security

Enterprise-Wide Risks Impacting Your Business19


Responses

0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1

Workers’ compensation costs

Cash flow management

High employment

Uncertain and/or changing work conditions at client worksites

Employee Screening Practices

Contractual risk transfer

Data protection/records privacy/IT security

Internal business controls

Business Continuity/Emergency Preparedness

Compliance with regulatory requirements

Performing work without an executed contract

Adequate business insurance coverage

What keeps you up at night as it relates to your staffing business?

20


Responses

0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1

High employment


Customer/client retention


21


Responses

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%





22


Responses

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%



High employment












23


Respon

ses

41.9%

6.5%

25.8% 25.8%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Assign responsibilities among existing core employees

Hire a risk and/or compliance professional

Outsource risk to a workforce engagement service provider

(e.g., People 2.0)

Nothing

What are planning to do in the next 12 months to mitigate your risk exposure?

24


Responses

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Completed an IT risk assessment

Created and/or updated your password change policy

Upgraded/Increased network security

Moved data from local servers to a Cloud-‐based environment

Limited access to data records and other sensitive/confidential information to only individuals that require the information

Trained your personnel and/or tested systems to see how effective they are at preventing a security breach

Haven’t given it thought

What steps have you taken regarding the security of your network and data records?

25



26

Workers’ Compensation Fraud

Employment Practices Liability

Cyber Liability



27

0% 20% 40% 60% 80% 100%





Risk Trends and Mitigating MeasuresWorkers’ Compensation Fraud

Workers’ Compensation Fraud –Polling Question

Have you been a victim or experienced WC fraud?

Yes or No

28



3

29



3Unlicensed Insurance Company

30




Premium Deception

31




Premium Deception

Claimant Fraud

32



3Dancing Kia hamster pleads no contest in

workers’ comp fraud case

33


Workers’ Compensation FraudPolling Question Results

Have you been a victim or experienced WC fraud?

34

Risk Trends and Mitigating MeasuresEmployment Practices Liability

Employment Practice Liability Issues

Wrongful termination

Defamation Wrongful discipline or demotion

Violation of FMLA, EEOC, FCRA, ADA or other such laws

Discrimination (age, race, gender, etc.)

Sexual harassment

Failure to employ or promote

35

Risk Trends and Mitigating MeasuresEmployment Practices Liability

An Ounce of Prevention

Workplace Policies

Educate/Train

Hiring Practices

Job Descriptions

Documentation

36

Risk Trends and Mitigating MeasuresCyber Liability 37


How can this happen to me?

Risk Trends and Mitigating MeasuresCyber Liability

$2.4M39

How can this happen to me?


Responses

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%



High employment












41


Protect Yourself at All Times

Bring your own device (BYOD)

Use an effective password policy

Regular backups

Restrict email attachments

Incident response procedures in place

Educate employees

42

Critical Ways to Control Your Enterprise-Wide Risk Exposure 43


Key TakeawaysKnow, understand and monitor your risk exposure

“Don’t set it and forget it!”

Determine who is the subject matter expert in the room as it relates to managing risk, and ask yourself, “is this a function I desire to keep in house?”

Understand ways to detect workers’ compensation fraud and be mindful that it extends beyond claimant fraud

Recognize employment practice pitfalls and adopt preventative measures

Maintain data security and monitor the ever-‐growing and changing methods of criminal cyber activity or outsource this risk to a subject matter expert

44

November 30, 2016

© 2016 People 2.0222 Valley Creek Blvd., Suite 100

Exton, PA 19341Phone 610-429-4111www.people20.com


Presented by:Rich Altus, PresidentJason Lannie, Vice President – Risk ManagementRebecca Sokolowski, Vice President – Affiliate Services

45



Upcoming Staffing Industry Analysts Webinars:

December 13, 2016, 10 AM Pacific / 1PM Joint Employment-‐ Cost and Consequences-‐Presented by Kronos

January 17, 2017, 10 AM Pacific / 1PM Eastern Staffing Industry Analysts SIR Webinar


THANK YOU!

Copies of the slides and a link to the audio recording will be distributed to all attendees within 24 hours following the webinar. A replay of the webinar will be available at www.staffingindustry.com

critical(waysto(control(your( enterprise3wide(riskexposure · 2020-06-21 ·...

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