integrated risk management 30 – month status report christian devoll, risk management specialist...
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Integrated Risk Management30 – Month Status Report
Christian DeVoll, Risk Management SpecialistJune 2012
IRM Benchmark PolicyReduce Member losses
Loss rate comparison for fixed route: (est. 2008, amended May 2012) - On board injuries, pedestrian events, and collisions
Member Satisfaction Survey (omitted on 5/26/2012)
Assessment CriteriaQuantitative Return on investmentLoss Rates (fixed route liability only)Qualitative DeliverablesOn Site Services
Quantitative BenchmarkingBenchmarking period:
July 1, 2007 – June 30, 2009July 1, 2009 – June 30, 2011Review is as of May 30, 2012Final review will as of May 30, 2013
Loss ratesLosses x 1000 Miles
Qualitative Deliverables (last report out)
Individual Risk Assessments
Workers Compensation Review
Safety Committees and Preventability Guidelines
Best PracticesHiringReduction in Force
Serious Loss Analysis Reviews
Qualitative Deliverables (current)Worker’s Compensation Review
- Offered to all members- 7 elected to participate
Best Practices- Rural Boarding & Alighting- Transit Operations: Rules of Conduct and Transit
Exclusion - Digital Recording System on Street Vehicles
Operator Development Course
Qualitative Deliverables
Training/ResourcesReasonable Suspicion Drug & Alcohol
Training for Supervisors
Bus Operator Training – Pacific Transit
Network Security Reviews – ITS Architecture
Emergency Management Drills– Whatcom, Skagit, Grant, Valley
Qualitative DeliverablesCNG Audit – Valley Transit
ADA Reviews of Train Stations – Skagit Station and Centennial Station
Serious Loss Case Review - VideosPull the Maxi
Rock n’ Roll
On Board Injuries
IRM Costs2007 Board approved $1.3 million for IRM Program
2008 spent $500,000 on Select Inc.
Wages and Benefits and Travel Expenses
$341,300 (March 2009 – May 2012)
• Cost of IRM to date $841,300 (2007 – May 2012)
Challenges of the ProgramSystem wide communication
Intent of the program
Time managementOver 109 site location visits in 2 year period
Best Practice Policy Adoption of Loss Prevention Policy
Revising best practice policy document and complete system wide review
Loss Rate Comparison
2007 - 2009 average 31.63 (Control Period)
*2009 - 2011 average 26.41 (Comparable Period)
Member’s average – above or below?
*Loss data as of 5/31/2012
2007 – 2009 2009-2011 Pool Avg. 31.63 (control) 26.41 (comparable)Large 32.92 27.14Medium 24.45 20.10Small 30.10 24.79
Loss Rate Comparison
Large Sized Agencies
Medium Sized Agencies
Small Sized Agencies
Event Loss Rate Capped at $10,000as of May 31, 2012
Event Type 2007-2009 (Base Period) 2009-2011 (Review Period)
Pedestrian Events $92,684 $62,615
On Board Injury Events $428,224 $454,926
Collision Events $2,074,370 $1,527,497
Total $2,453,735 $2,045,039
Current IRM Savings $408,696 + Indirect Program Savings (Workers Comp, Training, Risk Services, Networking, etc.)
Indirect BenefitsIRM Cost Member Benefit
Operator Development $9,000 to purchase for each Course - $35,000 member x 25 = $225,000
Workers Comp Consultation 7 members x $10,000 =
$30,000 $70,000 (Grays Harbor, BFT, Clallam, Pierce, Spokane, C-Tran)
Training Video Vignettes (3) $750 for (3) videos x 25 members $30,000 = $56,250
Reasonable Suspicion $1,500 per class = $7,500 Training - (in house) Pullman, Grays Harbor, C-Tran, Intercity,
Link
Indirect BenefitsIRM Cost Member Benefit
Risk Management Assessments $800 each x 25 members +
(in house) follow up visits = $20,000+
Emergency Management Market price for 4 members
Drills - $27,500 $40,000
ITS Architecture (Network Market price for 25 members
Security Reviews) = $3,650 $150 x 38hrs x 10 = $57,000
ADA Reviews of Train Stations Market price = $10,000
$2,500
Total IRM Costs - $122,500 Market Costs - $485,750
Cost Savings(March 2007 – May 2012)
Current:
Approved Amount $1.3 million
Select Inc. - $500,000
Wages, Benefits - $341,300
Balance $458,700
Indirect:
Unrealized Member Benefit $485,750
IRM Budget Expenses $122,500
Balance $363,250
Direct: Loss Rate Adjustment $408,696
From this date forward, the IRM Project will produce a ROI in excess of the Boards’ approved funding.
Future Recommendations for IRM
Incorporating IRM into existing loss prevention program at WSTIP for 2014 budget
Focus on Serious Loss Analysis to identify high exposure incidents to reduce risk to the pool
To explore technical innovations that will create awareness to reduce risk
Web portal training: On board passenger injuries, Supervisor interviewing techniques
Recommendations cont’d
On going supervisor training in Risk Management best practices with a possible certificate program
Assist awareness and communication to individual member's safety committees
Identify and address individual member’s expectations