Module III:

Asset/Property,
Contractor, Management
Control and Tools
 Discuss the property damage
and its type.

Discuss the management of

contractor.
Element
Objectives
Identify importance of risk
management.

Explain the formula for Total

Injury/Illness case rate.
 • Property damage is defined as
some harm that is inflicted
upon someone’s property as
the result of another person’s
negligence, willful destruction
Property Damage of that person’s property, or by
an act of nature.
• Flooding caused by a hurricane
is an example of property
damage caused by an act of
nature.
3
 • Loss of Use
Types of Loss in
Property Damage • Physical Injury to tangible
properties.
 Organizations Property Damage

• Property damage typically involves

physical damage to tangible property or
loss of use of tangible property.

• Tangible property-can be touched or felt

like a building or computer monitor.
Contractors are responsible for their
own health and safety and the health CONTRACTO
and safety of others who might be RS
affected by their work activities.
Contractor - a person or organization
engaged to undertake certain work on
behalf of a client but not under the
client’s direct supervision and control. CONTRACTO
RS
Client - a person or organization who
engages a contractor.
 • The designers, manufacturers,
importers and suppliers of the items
SUPPLIERS,
and substances form the “supply
MANUFACTURERS
chain” and they have
AND DESIGNERS
responsibilities relating to the health
and safety of their products.
 Selection of the right
contractor. (PCAB & DO 174
License)

The way that a client

manages Planning of the work.
contractors can be
broken down into Co-ordination of the work
the following key between client and
areas: contractor.
Monitoring of the work to
ensure that the contractors
are working to the agreed
health and safety standards..
 A copy of their health and Examples of risk
safety policy. assessments.

Membership of a
Criteria for Selecting The qualifications and
training records of staff.
professional organization or
certified body.
the Right Contractor

Records of maintenance
Names of previous or
and test for plant and
current clients.
equipment.

Records of enforcement
action taken by authorities
against them. Proof of
Accident history records.
adequate resources, such
as access to specialist
safety advice.
 Planning the Work

• Information must be exchanged between the

client and the contractor.
• The client should tell the contractor about the
hazards and risks in the workplace, and the
contractor should tell the client about the
hazards and risks created by the contract
work. In this way the work can be planned so
that everyone is kept safe.
 Co-ordination of the Work

• The client and contractor must co-ordinate

their work carefully so as not to conflict.
• There may be several contractors working on
site at any one time and the activities of one
person/organization must not cause a hazard
for another in the area
 Monitoring the Work
Arrangements must be made by the client to
ensure the contractor complies with safe working
practices. These arrangements should include:
• Having a signing in and out procedure.
• Ensuring that the contractor provides a named
works foreman.
• Carrying out site induction training for all
contractor workers.
• Controlling high-risk activities with a permit-to-
work system.
 Damages
• Classified as economic and non-
economic.

Damage Control Compensatory Damages

• The amount of compensatory damages
is meant to reflect the losses the
claimant has suffered.
 Special Damages

Two Types of
Compensatory
Damages General Damages
 Punitive Damages
• Are awarded to punish, to signify
disapproval and to deter the defendant
and others from carrying out similar
conduct to that which harmed the
Damage Control claimant in the future.
• It is based in state law, statute and
exemplary damages.
 Management failure to recognize the
problem

Injury oriented habits are difficult to

Factor change
Influencing
Damage Acceptance of reported damage
occurrence
Control
Implementation Work-reporting relationships of staff
advisor
program
Inadequate capability of staff advisor
 Limiting the Damage
• Methods of damage control are necessarily
linked to the situation, so it is naturally
difficult to offer specific ways to contain
damage for all circumstances.
• In some cases, media relations may help
resolve a crisis situation. In some situations,
resolution and damage control may be
achieved within hours, while others may
take years to bring a recovery.
 Limiting the Damage
• Damage control should immediately
address situations that involve loss of life,
threaten human life, create a sense of
panic, offer special vulnerability to the
media, or entail moral offenses, such as
kickbacks, bribes, or conspiracies.
Risk
• Risk is the combination of the likelihood of
a hazardous event occurring and the
consequence of the event.

Organizational Risk
Managemen
• Organizational risk is a potential for losses
t Control
due to uncertainty. It is a term for risk at the
top level of an organization that includes
material strategic, reputational, regulatory,
legal, security and operational risks.
Imagine that you own a warehouse distribution
company. The warehouse is an old building, and
the roof is in need of some repair. You’re
concerned about poor weather, since this could
damage the building and its contents. In these
circumstances, rain would certainly be a threat to
the building and its contents. A few moments of
rain, sleet or snow wouldn’t make any difference, Case Study
but a long downpour would be much more of a
problem. So the question you have to ask is ‘how
likely is it to rain?’ If you decided to do nothing
about the roof, and one night it did rain, the
extent of the damage would depend on the
contents of the warehouse and their value.

21
 PURE RISK

Types of
Business Risk
SPECULATIVE RISK
 Pure Risk
• Pure risk is a type of risk that cannot be
controlled and has two outcomes: complete loss
or no loss at all.
• There are no opportunities for gain or profit when
pure risk is involved.
• Pure risk is generally prevalent in situations such
as natural disasters, fires, or death
• These situations cannot be predicted and are
beyond anyone's control.
• Pure risk is also referred to as absolute risk.

23
 Understanding Pure Risk
• There are no measurable benefits when it
comes to pure risk. Instead, there are two
possibilities.
• On the one hand, there is a chance that
nothing will happen or no loss at all.
• On the other, there may be the likelihood of
total loss.
 Personal risks

Types of Pure
Risk Property risks

Liability risks
 Speculative Risk
• Speculative risk is a category of risk that, when
undertaken, results in an uncertain degree of gain
or loss.
• All speculative risks are made as conscious
choices and are not just a result of uncontrollable
circumstances.
• Since there is some chance of either a gain or a
loss, speculative risk is the opposite of pure risk,
which is the possibility of only a loss and no
potential for gain.

26
 New Technologies

Source of
Risk Technological Applications

Social
Risk Risk management is the process of
Management identifying, assessing and controlling
threats to an organization’s.
 Creates a safe and Increases the stability of
secure work business operations
environment for all staff while also decreasing
and customers. legal liability.
Importance
of Risk Provides protection
from events that are Protects all involved
Managemen detrimental to both the
company and the
people and assets from
potential harm.
t environment.

Helps establish the

organization's insurance
needs in order to save
on unnecessary
premiums.
 Establish context
Risk identification
Risk management
strategies and
Risk analysis
processes
Risk mitigation
Risk monitoring
Communicate and consult
 Risk avoidance

Risk reduction
Risk management
approaches
Risk sharing

Risk retaining
 In order to manage health and safety
successfully there needs to be some
measure of performance. Health and
Management Safety Performance Measurement is a
Tools critical part of the management system.
 Asses the effectiveness and appropriateness of
health and safety objectives and arrangement.

Measure reward and success

The purpose of
performance
measurement Use the result as basis for making
include to: recommendations for a review of current
management systems.

Maintain and improve health and safety

performance.
 Engineering and Failure Modes
Analytical and Effect
Some Approach Analysis

Management
Tools
Fault-Tree Accident/incident
Analysis Analysis
 Incidence Rate

• Incident rates are lagging indicators

measure the occurrence and frequency
of events in the past.
• They help you identify what happened,
but they are not useful in telling you
why it happened.

35
 Total Injury/ Illness
Incidence Rates

• It includes all injuries or illness that require

medical treatment, fatalities.

36
 • First aid treatment is the first
medical treatment administered
to a sick or injured person before
professional medical help is
First aid sought.
treatment • This kind of treatment can be
performed by anyone with a
knowledge of administering first
aid.

3
7
 • Medical Treatment Injury” shall
mean an injury which does not
result in a disabling injury but
Medical which requires first aid and
Treatment medical treatment of any kind.
Injury • Does not include preventive
medicine (tetanus toxoid
vaccine) and medical diagnostic
report with negative
results/findings.
 1056.03 : Measures of Injury/Illnesses
Experience
(1) Disabling Injury /Illnesses Frequency Rates
Formula for • The disabling injury/illness frequency rate is
based upon the total number of deaths,
Incidence Rate permanent total, permanent partial, and
temporary total disabilities which occur
during the period covered by the rate.
Old Frequency • The rate relates those injuries/illnesses to
Rate the employee hours worked during the
Computation period and expresses the number of such
injuries/illnesses in terms of a million man-
hour unit by the use of the formula:
The frequency rate shall be rounded to the nearest two decimal places.
 1056.03 : Measures of Injury/Illnesses
Experience
(2) Disabling Injury / Illness Severity Rate –
Formula for • The disabling injury / illness severity rate is
based on the total of all scheduled charges
Incidence Rate for all deaths, permanent total and
permanent partial disabilities, plus the total
actual days of the disabilities of all
Old Frequency temporary total disabilities which occur
Rate during the period covered by the rate.
Computation • The rate relates these days to the total
employee-hours worked during the period
and expresses the loss in terms of million
manhour unit by the use of the formula.
The severity rate shall be rounded to the nearest whole number.
 1056.03 : Measures of Injury/Illnesses
Experience
(3) Average Days Charged per Disabling
Formula for Injury
Incidence Rate • The average days charged per disabling
injury/illness expresses the relationship
between the total days charged and the
Old Frequency number of disabling injuries/Illness. The
Rate average may be calculated by the use of
the formula:
Computation
 1056.03 : Measures of Injury/Illnesses
Experience
(4) Total Injury/Illness Incident Rate
Formula for • Is based on the number of recordable injury
and illness cases occurring among 100 full-
Incidence Rate time equivalent (FTE) workers over one year.

Old Frequency
Rate The 200,000 figure in the formula represents the number of hours 100 full-time-
Computation equivalent (FTE) employees working 40 hours per week, 50 weeks per year would
work and provides the standard base for calculating incident rates.
The choice of 200,000 is not entirely arbitrary. A fulltime worker typically works
approximately 50 weeks per year at 40 hours per week. Thus, the number of hours
worked per year per worker is approximately:
40 hours/week x 50 weeks/year = 2,000 hours/year
(200,000 hours represents the number of work hours spent by 100 workers in year:
100 workers x 2,000 hours/year/worker = 200,000 hours/year
 Any work-related fatality (24 hours).
 Any work-related injury or illness that
results in loss of consciousness, days
away from work, restricted work, or transfer
to another job.
Recordable
 Any work-related injury or illness requiring
medical treatment beyond first aid. Note
Injuries/Illne
that employers must report any ss
amputation, loss of an eye, or inpatient
hospitalization of a worker to DOLE or its
state counterpart within 24 hours.
 Any work-related diagnosis of a
significant injury or illness by a healthcare
professional, such as cancer, chronic
irreversible diseases, fractured or cracked
bones or teeth, and punctured eardrums.
 There are also special recording criteria
Recordable
for work-related cases involving: Injuries/Illne
 Needlesticks and sharps injuries; ss
 Medical removal;
 Hearing loss; and
 Tuberculosis.
 All work-related fatalities
 All work-related in-patient
hospitalizations of one or more employees.
OSHS defines in-patient hospitalization as a
formal admission to the in-patient service of a
hospital or clinic for care or treatment.
Reportable
 All work-related losses of an eye
Injuries/Illne
ss
 All work-related amputations. An
amputation is the traumatic loss of a limb or
other external body part. Amputations include a
part, such as a limb or appendage, that has
been severed, cut off, amputated (either
completely or partially); fingertip amputations Reportable
with or without bone loss; medical amputations
resulting from irreparable damage; amputations
Injuries/Illne
of body parts that have since been reattached. ss
Amputations do not include avulsions (tissue
torn away from the body), enucleations (removal
of the eyeball), de-gloving’s (skin torn away from
the underlying tissue), scalping’s (removal of the
scalp), severed ears, or broken or chipped teeth.
 Loss Causation Model “Loss Causation
Model” History, Theory & Application
Loss Incident Before a loss occurs (Injury, illness,
Causation damage, loss in process), there are series
Model of events that take place with a root cause
that begins this series of events.
 Injury Incidence Rate

Illness Incidence Rate

Total Injury/Illness Fatality Incidence Rate

Incident rate include
Lost-Workday cases incidence rate (LWDI)
the following:
Number-of-lost-workdays rate

Specific-hazard incidence rate

 Relevance to OSH

Relevance to management
Key Performance
Indicators for OSH
Lagging indicators

Leading indicators
 Lagging • Measure loss events that have
indicators already occurred.

5
0
 The most • incidents or near misses
important OSH (including those with the
potential to cause injury, ill
lagging indicators health, or loss);
are: • complaints about work that is
carried out in unsafe or
unhealthy conditions
Examples of • the percentage of productive
positive planned workdays realized (i.e.
97% productive work days as
lagging opposed to 3% sickness absence);
indicators • the number of hours worked (by the
are: total work force) without lost time
injury;
• the number of working days since
the last accident;
• employee satisfaction (survey).
 • Involve precursors that may lead to
an accident, injury or disease.
• They focus on improving health and
safety performance and reducing the
Leading probability of serious accidents.
indicators • They can be used to monitor the
effectiveness of the health and safety
management systems before
accidents, incident and failure
happen.

5
3
 • the percentage of managers
with adequate OSH training;
• percentage of workers with
adequate OSH training;
Examples of • percentage of management
leading meetings wherein OSH is
addressed;
indicators:
• percentage of management-
worker meetings wherein OSH
is addressed;
• number of management visits
to the shop floor where OSH is
addressed;
 • percentage of business partners
(suppliers, contractors, etc.) evaluated
and selected on the basis of their OSH
performance or a widely accepted OSH
Examples of certificate;
• number of workplace inspections or
leading scores of workplace inspection systems
indicators: such as ELMERI or TR Observation;
• frequency of (observed) (un)safe
behavior;
• number of OSH audits performed;
• percentage of OSH projects/activities that
are finalized on time;
 • percentage of OSH suggestions or
complaints where feedback is given to
those reporting within two weeks;
Examples of • number of ‘precursors’ or ‘early warnings’
recognized (that precede serious safety
leading problems’;
indicators: • prevalence of certain health problems,
e.g. as outcomes of health checks or
health surveillance;
• Work Ability Index (predicting the
likelihood of early retirement);
• safety climate (survey).
 • Risk on an organizations are divided into
pure risk and speculative risk.
• Lagging Indicator measure loss events that
already happen
• Leading Indicator focus on improving OSH
PERFORMANCE and reduce probability of
Summary serious accidents.
• Risk management is the process of
identifying, assessing and controlling
threats to an organization's.
• Loss Control Manager used appropriate
management tools for measuring OSH
performance.
Maraming Salamat Po