IRMI Update—Issue #130
An E-mail Newsletter for Risk and
Insurance Professionals
ISSN: 1530-7948
February 8, 2006
In This Issue
Colleague,
According to the federal Centers for Disease Control and Prevention
(CDC), between 5 and 20 percent of U.S. residents get the flu each
year. Of those, more than 200,000 are hospitalized for flu-related
complications and 36,000 of them die. If 15 million workers get
the flu this winter, that translates into a cost of nearly $20 billion
for U.S. employers.
The Congressional Budget Office recently estimated an avian flu
pandemic could infect 30 percent of the U.S. population, 2 percent
of which would die. Economic costs could reach $675 billion, and
the economy would be plunged into a serious recession. Since it
is in schools and workplaces that flu spreads and causes immediate
and serious disruption, employers and schools are essential participants
in managing these risks.
The Disability Management Employer Coalition (DMEC), an employer-based
organization that provides training, tools, and peer support to
optimize workforce productivity through absence, productivity, and
health management, recently announced the results of its 2005 Flu
Survey.
Some of the findings of DMEC's 2005 Flu Survey:
-
80.3 percent of respondents say their employers
provide employees access to flu shots either at
the workplace or a local clinic
-
89 percent of respondents say fewer than half
of employees receive flu shots
-
59 percent of respondents are discussing how
they would handle a potential avian flu pandemic
-
34.4 percent of respondents are waiting for information
from the CDC on how to handle a potential avian
flu pandemic
At IRMI, we've offered free flu shots to our employees for many
years and, as with the survey, only about half of our staff takes
us up on the offer. Given that more than 35,000 Americans die from
the flu every year, this has always amazed me. Nevertheless, I think
this practice has substantially reduced absenteeism at our company.
Of course, the specter of an avian flu pandemic is very sobering.
Business continuity plans must be adjusted in contemplation of the
likely consequences. How will you keep your business running during
a large scale medical catastrophe where transportation systems are
shut down, communities are quarantined, and those who are not ill
are afraid to come into contact with others?
What does your company do to manage the risk of employee absenteeism
from influenza? Do you have experience, good or bad, with free vaccination
programs for employees you would like to share? Do you have any
practical suggestions for adjusting business continuity plans to
handle pandemic risks that you can share with your fellow readers?
[See
reader comments].
Our first Tech-eRisk seminar is a month from now. Though the
San Francisco location is nearing capacity, we still have space
at all three locations. For more information about this cyber risk
management seminar check our seminars website.
Have a great day.
Jack
Jack P. Gibson, CPCU, CRIS, ARM
President
IRMI
New Daylight Saving Rules Affect Computers—Beginning
in March 2007, the United States will extend Daylight Saving Time
(DST) by 4 or 5 weeks each year. Instead of "springing ahead" on
the first Sunday in April, DST will begin the second Sunday of March.
And instead of "falling back" the last Sunday of October, DST will
end the first Sunday of November. These changes were signed into
law by President Bush on August 8, 2005, as part of the Energy Policy
Act of 2005, but have failed to attract much attention, probably
because few have considered the ramifications of these changes on
today's computer-driven industries.
Many computers, and an increasing number of "smart" devices,
are designed to automatically adjust their internal clocks for DST.
The DST algorithms, however, are based on the current DST rules
and may not function properly in March 2007. For industries in which
computer time accuracy is important, such as the financial industry
and the medical device industry, it is critical that companies take
stock of how the new DST rules may affect them. Companies are advised
to conduct computer, contract, and litigation self-examinations.
These examinations may lead companies to upgrade or replace computer
systems, recall, or replace products, and enhance their contractual
protection against liability.
Consider the following questions to help gauge your organization’s
potential exposure:
-
How does the company currently go about adjusting
its system clocks for DST?
-
Which of the company's systems automatically
adjust themselves for DST?
-
Which of the company's computer and device clocks
must be accurate for our business?
-
How does the company go about upgrading and patching
its computer software?
-
What computers outside of the office do the company's
systems interact with, and what information is available
about those computers?
-
Do any of the products the company produces or
use automatically adjust for DST?
-
Can those products be upgraded, and how? When,
in relation to March 2007, will be the appropriate
time for those products to be upgraded or replaced?
-
What do the company's warranties say about issues
like this?
-
What do the company's contracts say about issues
like this?
-
Is expanded DST good or bad for our business,
and does the company want to take any type of action
in response?
The answers to these questions may help form a basis for a plan
of action to deal with the upcoming DST changes.
By: Hillel Parness
Counsel, Brown Raysman Millstein Felder & Steiner LLP
New York
(212) 895-2211
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