OH&S Risk Management: Due Diligence in the Workplace

October 25, 2012

Presented by: Kathleen Collins, Health and Safety Manager at Drake International

For audio, it is recommended you dial inA copy of the slides + recording will be available post webinar

AUDIO: 1-877-668-4493Access Code: 663 876 254

Event password: 1234WebEx Support: 1-866-863-3910

Agenda

• Organizations

• Risk Management Practices

• Risk Management Skills

• Applying Legislation

• Due Diligence

• Offences

• Defense

• Be Proactive

• Case Study

• Year in Review

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ORGANIZATIONS

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Organizations

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People

Equipment

MaterialsEnvironment

Process

What is the function of an organization?

RISK MANAGEMENT PRACTICES

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Risk Management Practices

The basic definition of Risk Management Practices can be defined as follows:

1. Identification

2. Assessment

3. And prioritization of risk

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Risk Management Practices

• Risk creates uncertain effects on goals and objectives, whether they are positive or negative

• When establishing goals and objectives have you considered “positive and negative uncertain effects”

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RISK MANAGEMENT SKILLS

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Risk Management Skills

• Some of the Management skills required to manage Risk activity are as follows:

• Create Value-Resources (The Gain Should Exceed the Pain)

• Be an integral part of the organizational process

• At minimum uphold your duties and maintain active participation within your roles and responsibilities

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Risk Management Skills

Continued from Previous Slide:

• Take into account the human factor

• Be transparent and inclusive

• Be dynamic, iterative (repeat and review the facts/data) and be responsive to change

• By capable of continual improvement and enhancement

• Be continually or periodically re-assessed

Risk Management Skills

Benefits to Risk Management Skills Include:• Understanding of goals and objectives

• Developing a method for prevention of reoccurrence

• Helps with forecasting consequences both negative and positive

• Help with forecasting costs associated with any given object

• Increase your knowledge as it relates to Health & Safety

• Demonstrates due diligence

APPLYING LEGISLATION

Applying Legislation

Legislation governs business practices and has been developed on the principles of an Internal Responsibility

System

What does this mean?

Employer

SupervisorWorker

Applying Legislation

What happens to an business or an individual are at fault for not being able to demonstrate self-governance of the Internal Responsibility System associated with the legislation?

• Up to $500,000 fine(s) to corporation• Up to $75,000 fine(s) to the individual• Imprisonment• Criminal Conviction • Use of Minimum to Maximum Insured thresholds• Law Suits • Bad Press

DUE DILIGENCE

Due Diligence

What is Due Diligence?

“A measurement of the level of judgment, care, prudence, determination, and activity that a person would

reasonably be expected to do under particular circumstances.”

**Important Note: This encompasses activities prior to an occurrence and activities post

occurrence**

Due Diligence

Due Diligence will also measure:

• Standard of Care

• Duty of Care

• Reasonable Precautions

OFFENCES

Offences

There are different types of liability offences the business or individual can be subject to if a contravention of the legislation is found:

• Strict Liability Offences

• Absolute Liability Offences

• Regulatory Offences

Offences

Strict Liability Offences Law Suits

Application (Section of Law)

Pleading (Section of Law or incurred loss)

Response Pre-Trial Discovery

Mediation Trial or Judgment

Pre-Trial Appeal

Trial and Judgment Enforcement

Appeal

Enforcement

Offences

Things you should know about “Absolute Liability Offences”:

• Referring to criminal law

• Where it is not open to the accused to exculpate individual/business by demonstrating the business is fault free

Offences

The courts must determine the following:

• Overall regulatory pattern

• Subject matter of legislation

• Importance of penalty

• Precision of the language

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Offences

Things you should know about “Regulatory Offences”:

• Can be also referred to as quasi-criminal offence

• Is a class of crime in which the standard for proving culpability has been lowered

• Mens Rea element is not required

• Such offences are used to deter potential offenders from dangerous behaviour rather to impose punishment for a moral wrong doing

DEFENSE

Defense

An organization defends its actions when the law or loss is applied. Therefore you need to be able to produce material as a defense:

• Investigations• Witness Statements • Reviews/Audits/Inspections • Industry Best Practices • Standards, Polices, Procedures. • Journals, Logs, Entries• Terms and Conditions• Contracts

Defenses

Due Diligence

The Business or Individual will have three things:

• Did the involved parties take every reasonable precaution to protect the individual or property

• Demonstrate actions prior to an event

• Demonstrate actions after an event

PROACTIVE NOT REACTIVE

Proactive not Reactive

• Apply Risk Management Techniques Daily• Understand completely any Term and Conditions or Terms

of Service Agreements you may sign • Know your clients business and conduct risk management

assessments. Make sure your employees are receiving the appropriate training (In-house or at the client site)

Proactive not Reactive

• Reference the operational standards and forms made available on public folders

• Become familiar with the laws that apply to you and the business

“Risk in business is not black and white, it is in shades of grey so be prepared to react and develop solutions and be able to defend your

actions”

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Upcoming Webinars

Register at http://drake-webinars.com

November 1, 12pm EDT

Performance Management

November 15, 12pm EDT

Workplace Wellness

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HEALTH AND SAFETY Q & A For additional questions please email:

Kathleen: kcollins@na.drakeintl.com

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Thank You for Attending For Questions please contact Kathleen Collins

kcollins@na.drakeintl.com

416-216-1088

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