Public Risk July 2016

PUBLISHED BY THE PUBLIC RISK MANAGEMENT ASSOCIATION JULY 2016

The Risk-Crisis Continuum How Integrated Risk and Crisis Management Can Protect, Create and Transform Value for an Organization PAGE 6

ALSO IN THIS ISSUE

PLAYING IT SAFE Are Your Community Playgrounds Adequately Protected?

PAGE 11

HOW TO PREPARE YOUR PROPOSAL IN ADVANCE OF RFP RELEASE PAGE 15

MAKING IT RIGHT...

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JULY 2016 | Volume 32, No. 6 | www.primacentral.org

CONTENTS

PRESIDENT Terri L. Evans Risk Manager City of Kingsport Kingsport, TN PAST PRESIDENT Dean R. Coughenour, ARM Risk Manager City of Flagstaff Flagstaff, AZ PRESIDENT-ELECT Amy J. Larson, Esq. Risk and Litigation Manager City of Bloomington Bloomington, MN DIRECTORS Brenda Cogdell, AIS, AIC, SPHR Risk Manager, Human Resources City of Manassas Manassas, VA

The Risk-Crisis Continuum

6

HOW INTEGRATED RISK AND CRISIS MANAGEMENT CAN PROTECT, CREATE AND TRANSFORM VALUE FOR AN ORGANIZATION

By Jennifer Hills, Lauren Pashia and Greg Wallig

Scott J. Kramer, MBA, ARM City/County Director of Risk Mgmt Montgomery County Commission Montgomery, AL Jani J. Jennings, ARM Insurance & Safety Coordinator City of Bellevue Bellevue, NE Scott Moss, MPA, CPCU, ARM, ARM-E, ALCM P/C Director Oregon Public Entity Excess Pool Salem, OR Lori J. Gray Risk Manager County of Prince William Woodbridge, VA Donna Dolinger-Capria, CRM, CIC, AINS Risk & Insurance Coordinator WaterOne of Johnson County Lenexa, KS NON-VOTING DIRECTOR Marshall Davies, PhD Executive Director Public Risk Management Association Alexandria, VA

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11 Playing it Safe

ARE YOUR COMMUNITY PLAYGROUNDS ADEQUATELY PROTECTED?

How to Prepare Your Proposal in Advance of RFP Release

By Thom Newman

By Kenny Smith, CSP

IN EVERY ISSUE

| 4 NEWS BRIEFS | 19 ADVERTISER INDEX

EDITOR Jennifer Ackerman, CAE Deputy Executive Director 703.253.1267 • jackerman@primacentral.org ADVERTISING Donna Stigler 888.814.0022 • donna@ahi-services.com

Public Risk is published 10 times per year by the Public Risk Management Association, 700 S. Washington St., #218, Alexandria, VA 22314 tel: 703.528.7701 • fax: 703.739.0200 email: info@primacentral.org • Web site: www.primacentral.org Opinions and ideas expressed are not necessarily representative of the policies of PRIMA. Subscription rate: $140 per year.

Back issue copies for members available for $7 each ($13 each for non-PRIMA members). All back issues are subject to availability. Apply to the editor for permission to reprint any part of the magazine.

POSTMASTER: Send address changes to PRIMA, 700 S. Washington St., #218, Alexandria, VA 22314.

Copyright 2016 Public Risk Management Association

JULY 2016 | PUBLIC RISK

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MESSAGE FROM PRIMA PRESIDENT TERRI L . EVANS

S

The Depth of PRIMA

ummer is upon us! It seems just yesterday we were shoveling snow, and for some of our northern members, that may be reality!

Our fantastic PRIMA 2016 Annual Conference in Atlanta was a whirlwind of fun, learning, networking, eating, sampling Coca-Cola products from around the world, and dancing, infused with new ideas or ways of looking at things. I always come back from PRIMA events with renewed focus and drive to implement new ideas in my home environment. I make new friends and contacts, learn about new products and services, expand my vision on what a great risk management program can look like, and find new ways of solving old problems.

I had an exceptional conference this year as I was installed as your 2016–17 PRIMA president. I am honored to be PRIMA’s president and will do all that I can to continue PRIMA on its trajectory toward public risk management educational excellence. We are fortunate to have an extremely dedicated PRIMA staff of seven, led by Marshall Davies, executive director and Jennifer Ackerman, deputy executive director, as well as board members who are committed to serve this organization, going above and beyond as needed; Amy Larson, president-elect; Dean Coughenour, past president; Scott Moss, Scott Kramer, Lori Gray, Jani Jennings, Donna Dolinger-Capria, and Brenda Cogdell. Leaving PRIMA board service this year are Regan Rychetsky and Tracy Seiler, who have been valued members of the team. All the board members have demonstrated their desire to propel PRIMA forward to provide the services you, our valued members, desire and deserve.

PRIMA is a top-notch organization with many options for getting involved. If you are interested in furthering your commitment to public risk management excellence, learning from peers and developing new relationships, PRIMA has many opportunities for you to consider:

Join me as we embark on another exciting, fun-filled, PRIMA year, full of learning, sharing and support. Your PRIMA experience only needs one thing—you!

 Submit a presentation for the 2017 conference in Phoenix, Ariz. Practicing risk managers have a wealth of knowledge to share with their peers regarding best practices, avoiding pitfalls in new programs, communicating the risk management message, and any number of other subjects.  For those of you with writing skills, provide an article for this fine publication, Public Risk magazine. Again, the topics are open to your interest and expertise, as long as they further the cause of public risk management in some way.  Perhaps you want to give back but not be “out front.” You could volunteer to moderate a session at next year’s conference in Phoenix.

A moderator introduces the speaker, counts the attendees of the session, and facilitates the question and answer session if needed.  Participate in PRIMAtalk, the interactive on-line community for PRIMA members where questions are posed and answered, new programs are touted, and documents are shared. PRIMAtalk is part of the online community, accessed through PRIMA’s web site, primacentral.org.  Submit topic ideas for webinars and/or podcasts, or agree to lead one. Ideas can be submitted to the Education Committee by emailing PRIMA’s manager of education and training, Shaunda Ragland, at sragland@primacentral.org.

As you can see, there are any number of ways you can become involved. If you are still shy about volunteering on the national level, I suggest you consider attending PRIMA Institute (PI), a week-long, intensive training for new and experienced risk managers. This year’s training will be held October 24–28 in Pittsburgh, Penn. PI will allow you to meet other members and develop lifetime relationships, delve deeply into many of the issues we face, and learn that public risk managers are some of the most giving and sharing individuals you will find.

We don’t operate in a vacuum or whirlwind, but rather in a community where we assist each other every day. That comradery will allow the easy transition into the national arena, making your membership in PRIMA that much more valuable to you!

Join me as we embark on another exciting, fun-filled, PRIMA year, full of learning, sharing and support. Your PRIMA experience only needs one thing—you!

Terri L. Evans 2016–2017 PRIMA President Risk Manager City of Kingsport, Tenn.

JULY 2016 | PUBLIC RISK

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NEWS BRIEFS

NEWS Briefs

NEW MAPS WILL PREDICT WHERE FLOODING WILL HIT WORST The National Hurricane Center will launch storm surge inundation maps for the first time this summer, predicting where and how deep flooding will hit here and elsewhere, reports The Virginian-Pilot.

Two years ago, the maps were tested on the Outer Banks. Data from hundreds of hurricane forecast scenarios was fed into a supercomputer.

Hurricanes and tropical storms are measured according to wind speed. The new maps turn attention to flooding. Storm surge threats could be worsening as the ocean level rises and more people build on the coast, said Jamie Rhome, storm surge specialist with the National Hurricane Center.

In the past 50 years, 2,544 people have died in Atlantic cyclones, according to the Miami-based center. The cause of death was determined in 2,325 of those deaths. Of the known causes, 90 percent were water-related and most were drownings. About half of the fatalities were caused by storm surge.

“Water is killing more people than any other hazard in a hurricane,” said Rhome, who travels the world to speak on flooding dangers and how to prepare for them.

Recent storms have inundated the North Carolina communities of Manteo, Buxton, Colington, Kitty Hawk and Rodanthe among other communities. Residents are frequently taken by surprise when the water rises several feet and severely damages property. Sound-side flooding is often worse than expected. Ocean overwash has breached N.C. 12 repeatedly, stranding residents on Hatteras Island.

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PUBLIC RISK | JULY 2016

Fortunately, no deaths from hurricane storm surge have been reported in Dare County in recent memory, said Drew Pearson, emergency management director for Dare County.

The maps will be available on the National Hurricane Center website and on social media. The color blue will indicate a prediction of at least 3 feet of water above ground level. The colors will progress from yellow to orange to the worst, red, which will mean a forecast of water rising above nine feet.

The colors demonstrate the reasonable worstcase scenario, said Rich Bandy, meteorologist

“

in charge at the National Weather Service in Morehead City, N.C. The maps will take into account flooding from ocean storm surge, tidal rivers, sounds and bays nearby. Tides, land elevation, uncertainties in the cyclone track, landfall location, intensity, forward speed and size will be figured in, he said.

The hurricane center will also issue storm surge watches and warnings as part of an experimental program available on the center’s website.

People have focused on wind…

The world is awakening to storm surge.

“

“People have focused on wind,” Rhome said.

“The world is awakening to storm surge.”

Jamie Rhome, storm surge specialist with the National Hurricane Center

CONGRESS REFUSES WASHINGTON, D.C., SUBWAY SYSTEM’S PLEA FOR MORE FUNDS House Republicans told the leaders of the capital’s beleaguered subway system that they would not “bail you out,” soundly rejecting pleas for more federal funds to support it, reports the New York Times.

Instead, members of two House subcommittees responsible for oversight of the system, known as Metro, instructed its leaders to make significant organizational reforms and physical repairs before asking for more money.

“I’m not here to make up for bad management.

I’m not here to make up for a poor safety record.

I’m not here to make up for a lack of action,” said Representative John L. Mica, Republican of Florida, who leads one of the subcommittees, amid a sharp exchange with Metro’s chairman, Jack Evans.

HOW TO TELL IF YOUR HOUSE COULD BE DESTROYED

BY A TORNADO

“You are dealing with people who are broke,” Mica said, referring to the federal government.

“I am not going to bail you out.”

Thinking about moving to a new city on the beach? Or maybe you’re moving abroad, for adventure or work?

in which they chose to build their homes and businesses so they can diminish the risk their lives will be destroyed by a future storm.

The declaration came as lawmakers questioned the agency’s leaders and federal safety oversight officials on a wide range of safety and management concerns brought to the forefront by an unexpected closure of the system last month for an emergency inspection.

Before you relocate, you can now check the likelihood your new home could destroyed by a tornado, earthquake or host of other natural disasters, reports the News & Observer.

“Understanding the potential for such events will mean that we can make our roads, hospitals, schools, agriculture etc. more resilient to natural hazards and climate change,” the World Bank said.

A new tool released by the World Bank, which uses open-source data to determine the risk of natural disaster in a particular area, allows citizens to find the risk in their city or state, or in another country. The global price tag of such events has quadrupled in recent years, costing around $200 billion a year when communities are flattened by gale-force winds or flooded by swelling rivers and seas.

Recently, a state of emergency was declared in 15 counties in Oklahoma when a swath of storms produced 11 confirmed tornadoes, 8 of which hit the state. Two people were killed, and twisters were also reported in Nebraska, Iowa, Illinois, Kansas and Arkansas.

The World Bank project aims to empower citizens with knowledge about the conditions

Oklahoma Insurance Commissioner John Doak said that his state needs stronger building codes to prevent such damage from natural disasters.

“Our statewide building codes need to improve.

We need to have homes that can withstand winds up to about 135 to 140 miles per hour,” Doak told KOCO, noting that building such storm-resistant structures costs more.

“Oklahomans I think would gladly pay that extra one or two percent more to make sure their home can withstand that type of wind.”

The U.S. as a whole is at high risk for seven major natural disasters: earthquakes, cyclones, coastal floods, river floods, volcanoes, landslides and water scarcity. There was no data reported for the eighth disaster measured by the tool, tsunami.

JULY 2016 | PUBLIC RISK

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The Risk-Crisis Continuum How Integrated Risk and Crisis Management Can Protect, Create and Transform Value for an Organization

BY JENNIFER HILLS, LAUREN PASHIA AND GREG WALLIG

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PUBLIC RISK | JULY 2016

W

hen risks cannot be adequately mitigated, organizations face crises. A crisis, or a sudden or evolving change, results in an urgent problem that must be addressed immediately, as it has the potential to greatly damage an organization’s reputation, finances, operations, and people, and destroy the trust it has built with its stakeholders. King County faced just such a crisis the day after Thanksgiving, 1998, when a gunman unexpectedly shot a bus driver, and himself, causing the bus and its 33 passengers to plummet 50 feet off the Aurora Bridge and into an apartment complex below. King County could have taken an immediately defensive crouch, denying liability and fighting all claims. Instead, King County’s response was unconventional: rather than aggressive defense and dispute, county leadership adopted a compassionate, caring response. The result was enhanced stakeholder value, reduced cost to taxpayers, and a strengthened county reputation.

THE RISK-CRISIS INTEGRATED MODEL

To date, there has been little or no overlap in the practices of risk and crisis management. It seems logical that these two disciplines should be linked, allowing for a smooth transition between the two as events occur. One revelation from integrating risk and crisis management is a transformation of the traditional risk curve, which ordinarily would simply plot risks and relative outcomes, into a series of zones where different management approaches can be used to maximize value and minimize loss. Understanding where an organization sits on the risk-crisis continuum provides management a powerful tool to gauge response and maximize value in the face of unexpected events.

The diagram in Exhibit 1 depicts the relationship between enterprise value and risk that results from integrating risk and crisis management.

EXHIBIT 1: THE INTEGRATED RISK AND CRISIS CURVE ENTERPRISE VALUE RISK OPTIMIZATION POINT

FLASH POINT

RISK OPTIMIZATION ZONE RISK TOLERANCE ZONE INEFFICIENT

RISK OPTIMIZED

SMOLDERING CRISIS

CRISIS

RISK LEVEL

In the first zone, risk is low, but so is value. The organization has placed too much emphasis on mitigation and avoidance of risks and is therefore bypassing potential investments that could yield a positive return for the organization. This organization is inefficient and may be prioritizing compliance over opportunity.

In the second segment of the diagram, risk management is optimized—the organization is taking on risk up to its risk tolerance level. Organizations in this zone take strategic risks and are less likely to experience severe losses when unforeseen events occur.

Once the high point of the curve has been passed, organizations are in a higher risk interaction zone and must apply both risk and crisis management tools to avoid significant destruction of stakeholder value.

The organization may be facing a smoldering crisis, where risk indicators are known, but management has few tools to adequately address them.

The organization may find itself overly susceptible to unexpected events, increasing the likelihood these events cross the flash point and result in a crisis. In this zone, management should actively seek both risk management tools (e.g., insurance, active monitoring) and crisis management tools (e.g., public relations, increases to reserves). This may provide the organization the ability to pull itself away from the flashpoint where risks are realized and crises occur.

Organizations that have poor risk and crisis management tools, or face unexpectedly severe or swift onset of adverse events, may inevitably find themselves in the crisis zone. In this case the flash point has been crossed and stakeholder value is actively being jeopardized.

Management has no choice but to adopt extraordinary measures to avoid outright failure. Decisions must be both quick and creative to avoid irreversible damage.

JULY 2016 | PUBLIC RISK

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THE RISK-CRISIS CONTINUUM

EXHIBIT 2: INTEGRATED RISK-CRISIS CONTINUUM DESCRIPTORS INTEGRATED RISK-CRISIS CONTINUUM DESCRIPTORS INEFFECTIVE OPTIMIZED SMOLDERING

Excessive emphasis on mitigation and avoidance of risk

STRATEGIC ALIGNMENT

Overly mitigated, spending more resources to mitigate than to incur risk

DATA UTILIZATION

Excessive or incorrect data paralyzes the organization

CATEGORY

RISK EVALUATION PROCEDURES RESOURCE ALLOCATION SYSTEM

Using resources to mitigate risks that have a low likelihood of occurring Procedures lack agility and flexibility; focused on compliance Resources are inefficiently allocated to match level of risk System is largely retrospective and rigid

Taking on measured risk to optimize organizational value

Destruction of enterprise value due to unforeseen or uncontrolled circumstances

Intentionally take risks in pursuit of objectives

Risk awareness does not adjust to actual situational risk

Risk response is not sufficient to mitigate risk to an acceptable level

Data is accessible but may not be used to analyze risk

Data is reactionary; focused on addressing crisis

Reliable, accurate data is accessible and used to analyze risk Risks are managed within the tolerance levels of the organization Procedures are adaptable to allow for measured risk taking Resources are strategically placed to maximize enterprise value System is predictive and guides the user to optimal results

KING COUNTY’S FLASH POINT

With nearly 2 million residents, King County, Wash., is the 13th most populous county in the United States. The county’s operations are diverse and include criminal justice (courts, law enforcement, and correctional facilities), wastewater treatment, solid waste management, public health clinics, parks, and transportation, which includes Metro Transit, the regional public transportation provider. The Office of Risk Management is within the Department of Executive Services and provides risk management services to all branches of county government. The services include enterprise risk management, liability claims administration, self-insurance management and insurance procurement, and management of contractual risk transfer mechanisms.

CRISIS: On the day after Thanksgiving, November 27, 1998, a 60-foot bus was traveling across the Aurora Bridge. At 3:20 PM a passenger shot the bus driver and then himself. The bus traveled 100 feet before plunging off the bridge. The bus fell approximately 50 feet, striking the roof of an apartment building, split in half, and fell two more stories to the ground below. The bus driver was fatally injured when thrown from the bus. Thirty-two of the 33 passengers survived with injuries that varied from minor to catastrophic.

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PUBLIC RISK | JULY 2016

CRISIS

Degradation of enterprise value due to excess risk incurred

Risks are incurred due to ignorance, misperception, or disregard Procedures may be inconsistent, lacking, or misunderstood

Risks compounded by outside variables Procedures are ignored or may be redefined in response to the crisis

Resources are inadequate to address all relevant risks

Focused on incident/crisis response

System is improvised in response to risk

System is reactive and possibly unresponsive

COMPASSIONATE LEADERSHIP: While the usual post-accident activities were occurring, the first priority was to meet the immediate needs of the passengers. King County quickly swung into crisis response mode; it had never experienced a loss of this magnitude. Despite the rapidly deteriorating situation, county leadership elected to take a measured response to the crisis. The County Executive viewed this as a community tragedy, requiring a caring response.

Under the direction of King County Executive Ron Sims and Chief Civil Deputy Sally Bagshaw of the Prosecuting Attorney’s Office, King County adopted a social service approach with outreach to all individuals and families who were impacted by the tragedy. The Executive and the team of King County ambassadors from the legal, risk, and Metro offices made early contact with victims and their loved ones to offer support.

A CARING RESPONSE: Passengers were offered $25,000 toward out of pocket medical payments for up to one year, and $5,000 toward personal property damage.

Every passenger was assigned a “case worker,” a contact person in the Risk or Legal office to assist with reimbursement requests for medical and property damages, filing a claim with the State of Washington’s Crime Victim’s Compensation Fund, and providing referrals to other resources as needed.

At the time of this loss, King County was self-insured for the first $2.5 million per loss, and purchased liability insurance up to $100 million in limits. The insurance companies were contacted and agreed to immediately fly to Seattle to discuss how to proceed. The insurance executives agreed with the County’s approach to this loss: outreach, compassion, community support, and apology. This strategy was novel at the time and was outside the comfort zone for King County and its insurance partners, but there was consensus for compassionate leadership.

King County disputed liability, but wanted to establish a claims process to provide an opportunity for passengers to be heard, and to reimburse passengers, some of whom were permanently disabled, toward their injury, medical, and wage loss damages. The reinsurers were consulted and agreed to support a mediation process to compensate passengers.

A TRANSFORMATIONAL REACTION: Twenty-four passengers pursued claims to final settlements; two refused settlements and filed lawsuits. The lawsuits were dismissed on Summary Judgment, were appealed, and the dismissal was affirmed. The court ruled the accident was unforeseeable as a matter of law, and that King County was not liable under either a negligence or civil rights theory.

VALUE PRESERVATION AND CREATION IN THE FACE OF A TERRIBLE CRISIS: This tragic event could have had a destructive impact on King County’s reputation, relationships with insurers, and transit operations. King County was beyond the flash point and in the crisis zone of the risk-crisis curve. Yet instead of destroying value, King County’s integrated risk and crisis management approach sustained and arguably increased enterprise value while navigating through a difficult crisis. Not only were the risks actively mitigated immediately following the crash through a compassionate response, transparent communications, and active involvement of insurers, but the response to the Aurora Bridge bus tragedy transformed King County’s approach to catastrophic losses and is the model it uses today.

The total cost to King County and insurers was over $6 million.

Had King County taken a traditional approach to this loss with an aggressive defense to dispute liability and damages, the costs to defend and potentially pay some or all of the 24 claims would have far exceeded that amount.

As a result of the decisions made by the leadership of King County following this tragic accident, King County takes an approach to significant claims for which the county is liable that is unique among its peers, and includes: • • • •

Apology and early outreach to victims and their families Compassionate leadership Early involvement of insurers Internal consensus among leadership, risk, and legal, and with external insurance partners

This approach may seem too risky, but King County has found it adds value to its residents and the county, keeping risks from reaching the flash point.

THE PATH FORWARD

Organizations can learn from King County by visualizing the relationship between risk and crisis management and developing a practical approach the organization can use to monitor where it is on the risk-crisis continuum. In an acute crisis, there isn’t time to test potential responses and make minor adjustments. The organization has to go into response mode and make rapid decisions about how best to reduce the impact of the crisis on stakeholders and the organization’s survival potential.

King County found itself in an acute crisis almost 18 years ago. The compassionate, risk-aware decisions made by County leaders immediately after this crisis pulled King County back from the crisis zone toward the risk optimization zone. The creativity and innovation employed to respond appropriately and compassionately to this community tragedy continues to inform the county’s response to severe losses to this day, and has resulted in continued preservation of the perceived value of King County’s government in the eyes of its residents.

Jennifer Hills is the director of risk management for King County, Wash.

Greg Wallig is the Public Sector Business Risk Services Leader and US Advisory Leader – Shared Services for Grant Thornton LLP. Lauren Pashia works for The Boeing Company.

JULY 2016 | PUBLIC RISK

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Playing it Safe Are Your Community Playgrounds Adequately Protected?

BY KENNY SMITH, CSP

T

here is no better joy for a child than a playdate at a local playground. As families spend their days outdoors during the spring, summer and fall, local governments should feel confident in the safety management of their community playgrounds. According to the U.S. Consumer Product Safety Commission (CPSC), between 2001 and 2008, more than 200,000 preschool and elementary children received emergency department care for injuries that occurred on playground equipment. Of those injuries, 51 percent took place on a public playground.

It is important to be aware of not only the hazards at hand, but also the means in which you can approach securing a reasonably safe playground for the community at large. Playgrounds should be a balance of risk and safety. There should be risk involved for children to test their limits and muscles, build confidence and even learn personal interaction. However, unnecessary risk can and should be prevented through design, warnings and adherence to standards of operation.

JULY 2016 | PUBLIC RISK

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PL AYING IT SAFE: ARE YOUR COMMUNIT Y PL AYGROUNDS ADEQUATELY PROTECTED?

Falls are the leading accident frequency type associated with playground equipment. A national survey of 760 playgrounds revealed that 87 percent had insufficient surfaces including rocks, grass, cement, brick and stone.

To ensure your community’s playground is up to par, use an appropriate surface such as unitary (rubber mats) or loose fill (sand, gravel, shredded wood) per the CPSC’s guideline or the American Society for Testing and Materials’ (ASTM) voluntary standard. By including proper surfaces, the seriousness of an injury can decrease significantly. Although, keep in mind that no surface or playground for that matter is injury proof.

In terms of severity, entanglement of clothing in or on equipment is the leading type of accident and may result in hangings and other asphyxiations. Other hazards that are commonly known on playgrounds include broken or missing rails, overcrowding of equipment, entrapment—openings should be too small to admit a child’s body or large enough to permit free passage of a child’s head, banned or outdated equipment, lack of signage, unsupervised children, burns from overheated equipment and trip hazards. There

are many actions that can be taken to prevent those unnecessary risks at your community’s playground. Be proactive; don’t wait until an accident happens.

In order to ensure your community’s playground is up to par and you are doing everything you can to reduce unnecessary risk, it is imperative to perform inspections based on how much the playground is used and the routine wear and tear on the equipment. Without adequate maintenance, playgrounds are an invitation to the unnecessary risk we want to avoid. We encourage a three part inspection process:  Inspect the equipment thoroughly upon completion of installation.  Inspect based on the usage of playground equipment. Inspections can occur on a high or low frequency basis. High frequency inspections are completed daily or weekly because of high and/or heavy usage and are designed to spot problems or hazards quickly and allow for prompt maintenance to resolve the issue. Low frequency inspections occur monthly or quarterly. With any with any inspection, be mindful of the need to repair or replace planned obsolescence.

 Regardless of the equipment usage, conduct an annual inspection. Annual inspections are in-depth evaluations that re-evaluate compliance of all components and identify long term changes that need to be addressed at the playground.

If a hazard or damaged piece of equipment is spotted during an inspection it should be repaired immediately. When maintenance repairs and inspections occur, remember to keep documentation. Documentation can save your public entity from being responsible for an injury that occurs on site. Keep records of purchases, repairs, inspections, warranties and any correspondence related to the playground.

Additionally, it is a good idea to keep pictures and videos of the equipment on file.

Here are some other risks that should always be on the radar during installation of equipment and during inspections:  Banned Equipment: Before installing any piece of equipment, check with the CPSC to ensure it has not been banned or deemed dangerous. During low frequency inspections, this should be routinely checked

Of the 200,000 injuries that occur yearly on playgrounds, most could be prevented if playgrounds simply followed

safety standards. Remember, taking the time to protect the children who use the community playground will, in the long run, also protect your public entity.

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PUBLIC RISK | JULY 2016

to ensure the playground meets the voluntary standards. If you determine a piece of equipment on your community’s playground is banned, have it removed immediately.  Overcrowding of Equipment: This can be easily avoided during installation of the new playground equipment by creating a safe distance of six feet between all pieces. Six feet is considered a fall zone − the space located under and surrounding play equipment.

Playground equipment that is placed too close together creates congestion and leads to kids falling and hitting other equipment instead of the appropriate playground surfaces. This typically leads to more serious injuries.  Trip Hazards: Trips can be just as serious as a high fall injury. Be on the lookout for trip hazards during high frequency inspections. Trip hazards can be created by, but are not limited to, cracks in the sidewalk, ripped ground covers and broken pieces of equipment.  Rails: During both low and high frequency inspections, make sure to check for broken, corroded, or missing rails. Open platforms high up from the ground are an invitation for injuries because it is an easy way for children to fall off. Replace or fix rails immediately upon notice. Also, if you are installing new playground equipment or notice current equipment lacks rails in high areas, do not hesitate to have them installed.  Choking and Entanglement Hazards: These hazards can be created in various ways such as spaces between railings and bars. When installing equipment, ensure railings and bars are placed close enough together to prevent children from sticking their head through the space and risk getting trapped. If trapped, a child could potentially choke to death.

 Signs: There are multiple signs that can be put up at your community’s playground to eliminate or help prevent unnecessary risk.

Some ideas for signs include, but are not limited to: a. Supervision: Signs should be posted that adult supervision is needed at all times.

Due to the fact that playgrounds are a risk-inviting area, children do not always know which equipment is age appropriate.

It is also important to have adults on hand in case of an accident. b. Age Limits: Playground equipment should be properly marked if it is only appropriate for specific age groups. Young children playing on equipment built for older children is a hazard. A 3-year-old lacks the coordination of a 10-year-old and, therefore, it should be easily visible for the supervising adults to tell which equipment is appropriate for their children. It is important that the community playground accommodates all age groups with separate areas in which to play. Keep in mind, this applies to adults too! c. Hard or Sharp Surfaces: If the playground happens to be above a harder than usual surface, mark it with a warning.

The same goes for equipment that may stick out, or have an unsmooth edge.

Whether this means marking it with a bright color or a sign, all hazards that can cause injury should have a warning or notice visible on or near them.

organizations that you can stay connected with to ensure your playground is safe every day of the year. A few notable ones include: • The International Play Equipment Manufacturers Association (IPEMA) offers product certification for play equipment and surfaces.

• The National Program for Playground Safety (NPPS) works with communities on the national, state and local level to ensure playgrounds are not only safe but high quality.

• The National Recreation and Park Association (NRPA) sponsors the Certified Playground Safety Inspector certification and is, “dedicated to promoting children’s right to play in a safe and challenging play environment.”

• Consumer Product Safety Commission (CPSC) – Public Playground Safety Handbook • American Society for Testing and Materials – F1487 Public Use Playground Equipment Of the 200,000 injuries that occur yearly on playgrounds, most could be prevented if playgrounds simply followed safety standards. Remember, taking the time to protect the children who use the community playground will, in the long run, also protect your public entity.

Kenny Smith, CSP, is the Risk Control Manager for OneBeacon Government Risks.

Although the above are great steps to take for your community’s playground now, it is important to stay up-to-date with current voluntary standards and guidelines all year round. There are many resources and

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How to Prepare Your Proposal in Advance of RFP Release

BY THOM NEWMAN

T

hat time has come once again when you must go out to bid for your workers’ compensation or property and casualty claims administration program.

Unfortunately, what some entities do to prepare for the every three-to-five-year renewal may do more harm than good. So, here are three things entities do to

prepare for an upcoming proposal that are counterproductive, and three ways to prepare that can help you decide best.

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HOW TO PREPARE YOUR PROPOSAL IN ADVANCE OF RFP RELEASE

THREE WAYS TO PREPARE FOR A PROPOSAL THAT ARE COUNTERPRODUCTIVE: REHASHING THE PAST PROPOSAL. If you write the proposal without determining what has changed in your program over the past three-to-five years, it may not be complete, and it certainly will not be optimized to make an informative decision. Preparing to write a proposal does not mean writing to go faster or to be simply compliant with purchasing’s RFP requirements (timing, contract terms, etc.). It means writing to make sense of what is important in your workers’ compensation program. There may be sections of your proposal that are routine and do not or will not need to change (settlement authority levels, caseloads, etc.), and there may be sections where you think nothing needs to change. It’s the latter proposal sections that you might be better off spending the time thinking about how to optimize in writing; this will help you best understand what the TPA has to offer. Examples of this may be enhancements in risk management information systems,

MSA updates, imposed pharmacy benefit management regulations, and more.

You might think rehashing past content will make the proposal completion go faster.

However, what you are probably doing is creating a path of least resistance that TPA’s will take to respond. In other words, you may get a “canned” response without sufficient details. Instead, you should be thinking what it will take to make the best decision for your injured worker and his or her recovery, being compliant, and have the best access to claims details and analytics for informative decision making.

NOT MAKING YOURSELF AVAILABLE AHEAD OF RELEASE. Knowing what you are about to undergo and structure in your proposal may be helpful by having a discussion with a TPA. Arranging for time to meet before proposal release, rather than the question and answer process in the early, time-limited stages after release, can help you better organize your thoughts on paper. There can be a huge disconnect if what you are rehashing in writing

is not in line with what TPA’s can offer as part of the response process. In other words, you may be selecting the wrong TPA’s to participate. Also, making yourself available before the proposal process can reduce any errors or misinformation otherwise not caught in the final presentation process, or worse, after contract signing. Expert analysis and industry insight by the claims administrator can help both parties make a decision if they should proceed together.

PREPARING YOUR SCORING HEAVILY ON PRICE. Don’t. Your workers’ compensation claims program must not be run as if it were a commodity; people who have a vested interest in your risk management program must run it. A TPA worth its weight does not see its customer as a commodity. Pricing it with an all is equal attitude can hurt your outcome by costing you more in the end. A weighted heavy pricing score will make it more likely that the TPA will describe the service either without all the details or by “throwing the kitchen sink” into their response. Either way, the TPA may not be presenting the whole benefit of their solution compared with your needs.

The key takeaway here is that the things that are best to do to prepare for a proposal do not involve making proposal writing easier. They involve making proposal writing clear, instructional and focused… While the final words come in the form of a signed agreement, it’s never too early to choose your questioning wisely, lest you suffer the time, cost and humiliation for choosing unwisely.

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PUBLIC RISK | JULY 2016

THREE WAYS TO PREPARE FOR A PROPOSAL THAT WILL HELP YOU DECIDE BEST: RECOGNIZE THE POINTS YOU WANT THE TPA TO MAKE. Ask the proper questions and sometimes ask them twice. You want to be able to not only write a comprehensive proposal but also, reinforce through repetitiveness what sections of the proposal are most important to you.

What matters most may be included in a questionnaire, but you may also suggest the TPA discuss these matters in a methodology section or response to a scope of services agreement.

Also, allow the TPA to address how they can assist you best. You can do so by allowing them to differentiate themselves from the field and explain what their value proposition may be. The key takeaway here is clarity in questioning and instructions is best to prepare for the rest of the process. After all, you do not want the wrong finalists in your presentation.

INVOLVE ALL PARTIES AFFECTED

BY WORKER’S COMP. Before drafting a proposal, it would benefit you to include as many reviewers as possible to discuss areas of concern for injury claims. Parties involved in the review process may include loss control and safety personnel, department/division managers or supervisors, each of whom is intimately familiar with lost time woes and the causes behind the injuries. These key personnel may provide valuable insight. What claims investigation approaches are you going to take? What staff will you offer us? Who pursues subrogation? What is your return-towork methodology? These are things you must be able to articulate before you start writing about them.

In addition to pre-proposal preparation, key reviewers will benefit the final decision if they sit on a panel to review the proposal responses. You should position everything against everything; your requirements against the TPA’s willingness to comply; price against value; clarity over canned response, etc. The better you can join forces, the more likely your decision to choose the best presentation finalists and ultimately the best TPA for your workers’ compensation program.

REQUEST A SUFFICIENT LIMIT TO THE RESPONSE. You should consider your time and the time of your reviewers when drafting a proposal. You may have to review four, five, six or more responses at one time and within a particular, time-limited schedule.

If you ask targeted questions and limit the responses to a few sentences, you are likely to get a more clear response to that question.

Additionally, placing a limit on the total number of pages is another consideration to keep the responder focused. Many proposal responses require exhibits and unlimited exhibits go in the appendix for proper fallback review. If you try to figure out every response without proper questioning and format requirements, you’re just asking for a disaster because each page will spawn confusion that ends with thumbing through all pages to find the response you expect. The more you can do to limit the proposal response before the RFP is released, the better your chances of being

able to verify your program match the TPA’s offering before the deadline clock forces you to choose finalists and plan schedules.

The key takeaway here is that the things that are best to do to prepare for a proposal do not involve making proposal writing easier. They involve making proposal writing clear, instructional and focused. It also involves capturing what matters most to your program, how and who articulates your line of questioning in writing, how you want the responders to clarify positions/processes and how you’re going to analyze your responses.

While the final words come in the form of a signed agreement, it’s never too early to choose your questioning wisely, lest you suffer the time, cost and humiliation for choosing unwisely.

Thom Newman is a marketing analyst with Alternative Service Concepts.

We are grateful to the men and women who serve our communities.

They deserve the best. MIDLANDS provides world-class protection for the schools, emergency services and government entities that protect and serve our communities. Comprehensive and tailored coverage with innovative risk management solutions for single risks and group risks.

800.800.4007 | midlandsmgt.com | publicentity@midman.com

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Further your public sector risk management education without leaving the office!

This Webinar series features top presenters delivering risk knowledge to your desktop!

PRIMA’S 2016 RISK MANAGEMENT

WEBINAR SERIES PRIMA WEBINARS ARE FREE FOR MEMBERS! Visit www.primacentral.org today to register for individual Webinars or for the entire program!

J U LY 1 3 | 1 2 : 0 0 P M – 1 : 3 0 P M E ST RISK, HR AND LEGAL INTERACTIONS FOR THE NEW RISK PROFESSIONAL SPEAKER: Terri Evans, Risk Manager, City of Kingsport, TN DESCRIPTION: Risk management interacts with almost all departments in any entity, but many of our functions and responsibilities cross paths with those of the human resources and legal divisions. During this Webinar, the presenter will discuss the intersection of risk management, human resources and legal divisions.

AT T E N D E E TA K E AWAYS :  How to determine your role in the organization  Understanding your responsibilities as a risk professional and how they relate to the various departments  Being knowledgeable about what is important to HR and legal  Steps to becoming a positive catalyst in your organization W H O S H O U L D AT T E N D :  Risk managers  Human resources professionals  Claims managers  City managers  City/county counsel  Pool administrators

For more information, or to register, visit primacentral.org/webinars.

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