Archive for May, 2009

Fred O. Pachón of Select Staffing Inc.  was named Business Insurance Risk Manager of the Year during the 2009 Risk and Insurance Management Society conference in Orlando Florida.   Mr. Pachón is the Vice President of Risk Management for the Santa Barbara staffing company.    


In addition to naming a Risk Manager of the Year, Business Insurance also honored three other individuals in the 2009 Risk Management Honor Roll:


  • Raymond J. Alletto – Vice President – Risk Management, United Rentals Inc
  • Lori Jorgensen – Senior Director , finance-risk management at Microsoft Corp.
  • Gary W. Langdale – Risk Office, Pennsylvania State


One common thread found in the great work that all four individuals have done for their companies is the continual reduction of cost to their organization, be it through effectively identifying potential risk costs with potential customers, to reducing risk costs of newly acquired companies, to modeling potential scenarios and the associated costs.


The risk management department can be viewed as a profit center within an organization because of the plans and programs put in place to avoid missteps as well as properly account for the costs of risk and reap the rewards of the risk that is taken.


Congratulations to the honorees for a job well done.


For further information on those honored, follow this link


Further information can be found in the April 20th issue of Business Insurance.

The H1N1 virus infection (aka swine flu) hysteria has calmed a little.  Across the world we have seen a leveling off of the infection to what appears to be a bit higher than normal influenza levels for this time of the year, and historically, influenza cases drop during the summer months.  This doesn’t mean that we should be complacent about the potential seriousness of this new strain of influenza.  In 1918 the “Spanish Influenza” started in the spring, and diminished during the summer months, only to come back stronger and more deadly in the fall.


This does give your company time to develop a response plan should a pandemic be declared in the fall.  


The Center for Disease Control (CDC) provides excellent information and I will refer you to several specific sites/documents available there.


It is important to develop a plan early and roll it out as the need arises.  In order to plan, you need to understand what the potential impact is on your business.  Identify who are the essential employees and processes that are needed to continue operation.  Project what the impact to your suppliers, and customers.   An excellent checklist to help develop a plan can be found at 


First and foremost, you should concentrate on protecting your most important assets, your employees.  The best to this is through educating your workforce to practice good health habits. 


An excellent source of information outlining good health habits and the steps can be found at  .  In addition to suggestions, there are posters available for downloading and printing. 


One area that is sometimes forgotten is the spread of the germs through contact with common objects.  Reminders to wipe down phone handsets, keyboards, fax, printers and copier machines or other common items should be broadcast, and disinfectant towelettes should be available.


For those employees who interface with the public, monitor their health and strongly urge them to obtain a flu shot.  This protects themselves as well as your customers from exposure to the flu through any interactions with your organization. Additionally you may want to help facilitate flu shots for all employees and family members.  Contact your health service provider for additional information.  One note of caution, there is currently no vaccine that has been developed for H1N1, and anything developed in the short term may not be effective as the virus grows.  Your health service provider can keep suggest the best course of action.


The executive team should consider establishing temporary changes in telecommuting and absenteeism policies to help both maintain a productive workforce, as well as provide an opportunity for your employee to be productive if a child is forced to be at home due to illness or a school closing. 


If you have facilities, customers or suppliers in “red zones” (areas with a high concentration of confirmed influenza cases) that are frequently visited by staff, consider tele or video conferencing as an alternative and employees who are traveling into these areas, or internationally should be aware of how to get updates on travel precautions or restrictions and benefits available if they are quarantined because of the flu.  To keep up to date on the status across the globe, I would suggest monitoring .


Government web sites and media outlets should be monitored for the latest information that is available.  A good site to monitor is which provides the latest information available from the government on the current flu situation. 


By keeping in touch and on top of the influenza information, your company will be positioned to minimize the effects of a pandemic, your employees will be confident in the organizations leadership and your customers will be assured of long term commitment to them by your planning.


One of the possibilities that arose from the Avian Flu outbreak was the opportunity for companies to anticipate how serious long term illness can affect your business both day to day and for the long term.


So, did you build a plan on how to operate when half of your staff is suffering from flu and unable to work? When your credit manager is out and your biggest customer has placed an order that double your exposure and one third over their credit line?  When your primary vendor is unable to ship product because they are unable to manufacture due to staffing shortages?  When your entire customer service department is out ill and unable to answer customer’s questions?


If you did, great!  If not, now may be the time to create a plan to keep your business going while the illness runs its course.   We’ll talk about that in the next posting.