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Accenture announced preliminary findings of their 2013 Global Risk Management Research Infographic study.

Business executives were asked to identify the biggest risks their organization faced over the next two years. Two numbers in particular stood-out. 62% of executives said Legal Risks are one of the biggest challenges facing their organization, and 38% said Reputational Risk.[1]

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Managing these challenges are difficult, as Accenture also notes that organizational risk management spending has dropped from former peaks. This is not surprising as Zurich previously reported that many organizations who report the need for a full time Chief Risk Officer simply do not have one.

One established practice for reducing both legal and reputational risk is to more effectively screen contractors and suppliers to ensure that they are insured and safe. Outsourcing the function of safety screening is more common than ever. The cornerstone of an effective vendor safety-screening program should at the very least verify that vendors meet the following:

  • Compliance with OSHA Safety Standards
  • Compliance with EPA Risk Management Program Rules
  • Analysis of OSHA injury and illness incidence rates
  • Analysis of Experience Modification Rates

If your organization is not currently screening vendors for the above four vectors, you cannot guarantee that your business is effectively working to prevent both legal risks and reputational risks, both of which are directly related to vendor and contractor safety and performance.


[1] www.accenture.com/globalriskmanagementresearch2013

Topics: DEFAMATION, EMR, ERM, insurance, LEGAL, LITIGATION, RISK, SAFETY, TORTS, Uncategorized, VENDOR

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