On the morning of November 5, 2003, Kristi Fries, an employee at Maverick Metal Stamping, an auto parts supplier now closed in Mancelona, Michigan, reached to remove a part from a 110-ton stamping press. Example: There are things that insurance money cannot change, such as serious injury, disability and death, as well as OSHA fines, lawsuits and damage to a company’s reputation. Although no one claimed that the closing was connected to the fatality, it’s easy to connect the dots.ĭon’t treat insurance as a substitute for risk control. In 2014, the on-the-job death of an employee resulted in an OSHA investigation, and the company was fined $558,000 for violations. This is likely what was happening at Grand Rapids Plastics, which closed its doors in 2016 after its largest customer, Fiat Chrysler, canceled its contract. Another example is allowing workers to bypass lockout/tagout procedures to save time. Example: Using a grinder wearing safety glasses but not the face shield seems reasonable until the grinder wheel explodes in your face. The good news is that it had a $5 million umbrella, so the bank was willing to lend it the money.Ĭonsider the likelihood of upcoming events and their potential impact. During this time the business was expanding and needed bank financing. Fortunately my client won in court and nothing was paid, but the case took two years to settle. I’m often asked: “How much umbrella liability insurance is enough?” I tell the story of a client who had a visitor to his office slip and fall. Example: An umbrella is relatively inexpensive compared to the potential cost of a large lawsuit, even one without merit, because it may affect the company’s ability to borrow money to expand. There are things that insurance money cannot change, such as serious injury, disability and death, as well as OSHA fines, lawsuits and damage to a company’s reputation.ĭon’t risk a lot for a little. It looks like we agents have a lot of work to do. Despite this scary number, roughly seven out of 10 businesses don’t carry EPLI. According to the Equal Employment Opportunity Commission, over 84,000 employment practices actions were filed in 2017. Example: If your business cannot afford a $100,000 loss, then going without employment practices liability insurance is a bad decision. As part of the course, I was required to memorize the six rules of risk management, which was wise advice.ĭon’t retain more than you can afford to lose. It was one of the best things I ever did, because it helped me go beyond the traditional discussion about insurance coverage, which is to start with cost prevention (safety, wellness), then cost containment (work comp claims management, health care case management) and finally insurance. Several years ago I earned the Certified Risk Manager designation from The National Alliance for Insurance Education & Research. We identify baseline glycated hemoglobin level, body mass index, and fasting blood glucose as three key factors among 18 biomarkers to differentiate treatment assignments, and demonstrate a successful control of the risk of hypoglycemia in both the training and testing data set.īenefit Risk Analysis Hypoglycemia Machine Learning Neyman-Pearson Lemma Personalized Medicine.Risk Management THE RULES OF RISK MANAGEMENT Design and build a risk management process around these six rules Lastly, we apply our method to a randomized trial of type 2 diabetes patients to guide optimal utilization of the first line insulin treatments based on individual patient characteristics while controlling for the rate of hypoglycemia events. We conduct extensive simulation studies to show satisfactory risk control when maximizing the clinical benefit. We present algorithms that can be easily implemented by any off-the-shelf quadratic programming package. We derive the theoretical optimal treatment rule under the risk constraint and draw an analogy to the Neyman-Pearson lemma to prove the theorem. In this work, we propose two approaches to identify personalized optimal treatment strategy that maximizes clinical benefit under a constraint on the average risk. Thus, to guide individualized clinical decision making and deliver optimal tailored treatments, maximizing clinical benefit should be considered in the context of controlling for potential risk. An "optimal" treatment that maximizes clinical benefit for a patient may also lead to concern of safety due to a high risk of adverse events. Pharmacotherapy may exhibit distinct efficacy and safety profiles for different patient populations. Individualized medical decision making is often complex due to patient treatment response heterogeneity.
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