5 Startling Facts About Human Capital Risk

By Lowers & Associates,

Human Capital Risks

People are often referred to as the greatest asset of an organization. While this may be true for your organization, the greater truth is, people also represent an organization’s greatest risks. The actions, inactions, and mere presence or influence of people, present a potential for loss across the spectrum of business activities.

Perhaps no source of risk is more perplexing, hurtful, and damaging than those caused by intentional harmful acts. Consider just a handful of startling facts:

1. 30% of business failures are due to employee theft.

Employee theft costs businesses an estimated $50 billion a year and is rising at a rate of 15 percent per year, according to the U.S. Department of Commerce. The Commerce Department and the American Management Association say that 30 percent of new business failures are due to employee theft and it is believed that 75% of employees steal from their employers at least once. (source)

2. Organizations lose 5% of revenue to ‘fraud from within.’

According to the Association of Certified Fraud Examiners (ACFE), occupational fraud is fraud committed against the organization by its own officers, directors, or employees–an attack against the organization from within, by the very people who were entrusted to protect its assets and resources. In its 2018 Report to the Nations, the ACFE projects that organizations lose 5% of their annual revenue to fraud. Of these cases of fraud, corruption represents one of the most significant fraud risks for organizations, with 70% of such cases perpetrated by someone in a position of authority (managers and owner/executives).

3. Workplace violence is the fastest-growing category of murder in the U.S.

According to OSHA, every year, 2 million American workers report having been victims of workplace violence. The Center for Applied Learning reports that workplace violence incidents have tripled in the last decade and is now the fastest-growing category of murder in the United States. And according to the Bureau of Labor Statistics (2016), fatal work injuries involving violence and other injuries by persons or animals increased by 163 cases to 866 in 2016; workplace homicides increased by 83 cases to 500 in 2016; and workplace suicides increased by 62 to 291. This is the highest homicide figure since 2010 and the most suicides since data collection began in 1992.

4. One in five American adults have experienced sexual harassment at work.

A CNBC survey found one-fifth of American adults have experienced sexual harassment at work. By age group, 16 percent of those ages 18 to 34 said they have been victims, while 25 percent of 50- to 64-year-olds say they have been. What’s more, according to a 2003 EEOC study, 75 percent of employees who spoke out against workplace mistreatment faced some form of retaliation.

5. 80% of active shooter incidents occur in the workplace.

The Center for Applied Learning reports active shooter incidents tripled in the last eight years, with an event occurring in the U.S. once every three weeks; furthermore, workers are now 18 times more likely to encounter workplace violence and an active shooter situation than a fire. According to FBI statistics, of 160 active shooter incidents in the United States between 2000 and 2013, over 80 percent (132) occurred at work.

Where there are people, there are risks. The actions taken by employees and even subcontractors representing your organization have a direct impact on the productivity, safety, and success of your organization. When those actions turn bad, either through negligence or intentional acts, the damage to people, brands, and profits can be significant. What are you doing to identify, prepare for, and mitigate your human capital risks?

  Category: Risk Management
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[SlideShare] A Realistic Look at the Active Shooter Situation

By Lowers & Associates,

active shooter incident risk management

Sadly, the number of active assailant incidents continues to increase, with 40 incidents in 26 states over the past two years. It is more important than ever to consider the risk for your organization, institution or business.

OSHA requires companies to maintain a workplace safe from violence under the General Duty clause. One way to prevent or mitigate a potential loss is to be prepared.

With a thorough understanding, some preventative measures, and some rehearsing, your organization can apply this best practice of preparedness to be better able to effectively predict, prevent, and respond to an active shooter situation on your premises.

Knowledge is power. This is not something to avoid out of fear. With our latest SlideShare presentation you can learn more about the incidents and the perpetrators as well as the steps to being as prepared as possible.

Let us promote safety together. Take action today by reviewing the presentation here:

… Continue reading

Why Hope is Not a Risk Management Strategy

By Lowers & Associates,

Low-probability, high-impact events are something that most individuals and organizations would rather ignore. After all, chances are it won’t happen to you. Serious workplace violence events, active shooter incidents, and other unsavory threats are on the rise but it’s easier to assume it will happen to someone else. We don’t want to think about our own mortality or that of our organizations. Instead, we hope it won’t happen to us, to our employees, to our customers, or to our communities.

But then there are these facts:

  • 18% of all crimes committed occur in the workplace
  • Jury awards in workplace violence cases typically run in the millions of dollars
  • 70% of active shooter incidents occur in business or educational environments
  • Workplace violence is the number one cause of workplace fatalities for women

… Continue reading

[Infographic] Workplace Violence Prevention: What You Need to Know to Build a Safer Workplace

By Lowers & Associates,

workplace violence

The effects of workplace violence are wide and long lasting. Each year millions are affected, from employees to executives, impacting business from productivity to profitability.

Many acts of violence are preventable, with the main responsibility resting in employers’ hands through proactive prevention. When violent acts do occur, having a plan in place can mitigate and prevent escalation.

OSHA requires employers to “provide employees with a workplace free from recognized hazards likely to cause death or serious physical harm.”

Our latest infographic outlines the dimension of this epidemic problem, how far the impact extends, and what to do to predict, prevent, and recover from incidents. Learn how to recognize the stages of workplace violence and the components of an effective prevention program. … Continue reading

Workplace Violence: Who’s to Blame?

By Lowers & Associates,

Workplace violence presents a growing problem for today’s organizations and society at large. With more than 2 million people directly affected and nearly 1000 fatalities each year, violence in the workplace has reached epidemic proportions.

Employers have a stated obligation under OSHA “to provide their employees with a workplace free from recognized hazards likely to cause death or serious physical harm.” But can we really expect an employer to be held liable for the unthinkable?

We can. And frequently, we do.

Employers are held liable for negligent hiring, negligent retention, and negligent supervision–often, even if the alleged conduct of an employee falls outside the scope of the employment relationship. Furthermore, when an employer fails to prevent workplace violence in the face of known or suspected dangers, it may be regarded as “intentional” conduct, which can also result in charges of negligence. (source) … Continue reading