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
web site.
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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