Risk Consulting Insights into risk management and loss prevention - IF'S RISK MANAGEMENT MAGAZINE - Large enterprises
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IF’S RISK
Risk Consulting
MANAGEMENT
MAGAZINE
01/2021
Insights into risk management and loss prevention
4
Hot work continues
to cause major fires
8
Why trusted
partnerships are
valuable
18
Accident
investigations
drive safety
improvements
Content Editorial p
4 8 12 Kicking off
2021
B
ehind the coronavirus
headlines, travel restric-
tions and vaccine related
news, businesses continue
to face traditional risks. In
this issue of Risk Consulting, we look
at the challenges that companies
face in their daily operations.
4 Hot work continues 8 Why trusted 12 Mitigating Fire is still the ‘hottest’ topic
when it comes to everyday risks.
to cause major fires partnerships snow load risks Read the article on the various risks of government authorities, the effi- of topics, from General Employee
are valuable relating to hot work. Working with ciency of public healthcare, and the Safety to Successful Remote Work,
an open flame continues to be a adaptability of people were all put to these courses have been devel-
major risk for companies, and it is the test. Undoubtedly, the past year oped to help you both identify and
important to establish and enforce will be one of extensive study and manage risks in various scenarios
14 Managing Cargo 16 The way we fly has 18 Accident practices that prevent accidents and reflection. and settings. On page 18, we bring
risks and losses changed investigations losses from happening. Did you know How well did we adapt to highlights from the recently released
drive safety that routine tasks can also be the change? What worked and what did Accident Investigation training.
most dangerous? not go as planned? By actively eval- Be sure to also regularly check If
improvements We also reflect on how trusted uating some of the lessons from the Login, as new features are continu-
partnerships bring benefits to both past year, we now have an opportu- ously being implemented to further
the client and the insurer. Bringing nity to establish and implement new support our clients in their daily
22 Webinar: 23 Short news in If’s Risk Engineers early on to a practices into our risk management work.
The future of cyber project allows our experts greater work. This, in turn, will help increase Last but not least, the If News
opportunity to mitigate any risks and safety and preparedness if we find newsletter is back, providing the
prevent potential losses. Working by ourselves in similar circumstances latest monthly insights and news for
your side, we are better positioned in the future. As 2021 kicks into gear, Large Enterprises, sent directly to
to help ensure that projects are it is important to grow from our your email – visit if-insurance.com to
delivered safely and successfully, experiences and consider; what can learn more.
providing additional support to your we do differently this year?
project team.
EXPANDING DIGITAL OFFERING
LESSONS LEARNED FROM 2020 As a client, you have 24/7 access to
In 2020, companies and societies our new Learning Hub in If Login.
around the world faced arguably Visit the Risk Management Library to
the most challenging year in recent benefit from training courses devel-
history. In just a few months, the oped exclusively for our clients and Poul Steffensen
resilience of businesses, the power partners. Covering a broad range Head of BA Industrial, If
Publisher If, Nittyportti 4, Espoo, FI-00025, Finland, Production If Creative Agency
+358 10 19 15 15, www.if-insurance.com Printing Newprint
Editor-in-Chief Kristian Orispää Change of address industrial.client-service@if.fi
Project Editor Carita Hämäläinen-Tallgren ISSN 1459-3920
Communications Specialist Caroline Bødkerholm Cover Photo Getty Images
Art Director Ero Tsirika
If P&C Insurance, contact information
Disclaimer This publication is and is intended to be a presentation of the subject matter addressed. Although the authors have undertaken all Finland: +358 1019 15 15 Sweden: +46 771 43 00 00 Norway: +47 98 00 24 00 Denmark: +45 7012 24 24 France and Luxembourg: +33 142 86 00 64
measures to ensure the correctness of the material, If P&C Insurance does not give any guarantee thereof. It shall not be applied to any specific Germany: +49 6102 710 70 The Netherlands and Belgium: +31 10 201 00 50 Great Britain: +44 20 7984 7600 Estonia: +372 6 671 100
circumstance, nor is it intended to be relied on as providing professional advice to any specific issue or situation. Latvia: +371 7 094 777 Lithuania: +370 5 210 89 25
2 Risk Consulting magazine · 01/2021 · 3
GETTY IMAGES
PROPERTY
C
laims data gathered over the years exposes According to Pekka Sarpila, Head of Risk Manage-
a costly and dangerous trend, which contin- ment Services Finland at If, “We have many examples
ues from one year to the next. On construc- of well-prepared hot work tasks, where careful prepa-
tion sites around the world, inexperienced ration helped to prevent a fire from spreading, thanks
workers and contractors looking to cut to capable workers planning for potential risks. Unfor-
corners continue to place companies under significant tunately, we have also examples that are the opposite.
risk, when hot work tasks are executed incorrectly, Number one priority must always be to prevent a fire
resulting in expensive property damages. from starting. If that happens, something has already
Hot work continues Working with an open flame, for example when
heating, welding, cutting/soldering, or when carrying
out maintenance, repairing or installation work, all of
which generate an excess amount of heat, posing risks
gone wrong.”
WHERE IS YOUR PERMIT?
Install a control system to all hot work tasks to in-
to cause major fires
that must be considered before the work begins. crease clarity and transparency into who is allowed to
Matti Koskenkari, Risk Engineer at If, highlights, conduct hot work. As an example, issuing s Hot Work
“In general, working methods that use an open flame Permit, unique for one single work task, to control that
or can generate excessive heat or sparks pose a risk the work is performed as safely as possible.
By Matti Koskenkari, Pekka Sarpila and Kristian Orispää of a fire event. Special attention needs to be paid to Note that all hot work, conducted either by your
roofing work. Hot work should never be carried out in own workforce or by external contractors, should
direct contact or in close proximity to constructions, be controlled by using the same strict procedures. If
Fire losses resulting from errors made and risks taken i.e. roofs, sandwich panels etc., containing combus- available, safety training should always be completed
tible insulation.” by persons, whether they are your own or external.
during hot work are all too commonplace. Failure to Despite local regulations, industry standards and Note that a certificate (sometimes called a “hot work
on-site guidelines, it is common to find that these card”) received after this training is not equivalent to
implement the simplest safety measures can result in are often ignored, too limited in scope, and/or they a Hot Work Permit.
expensive claims, impacting business operations from feature little to no control measures.
KNOW YOUR PARTNERS AND CONTRACTORS
project delays to, in the worst case, loss of life. WHAT ARE THE ALTERNATIVES? There are excellent contractors and then there are
First, check whether hot work can be avoided. Is there contractors who are not as competent as they should
a safer method, for instance machining or joining? Is it be. Make sure you know who is working on your site
possible to move the object in question to a workshop or project. Always use contractors who are capable
or outside to be completed at a safe distance? When and experienced with hot work. This will help you
hot work is undertaken in a non-designated area, manage the risks and protect your property, as well
typically outside a dedicated workshop, it needs to be as minimize losses. If you are unsure, consider hiring a
controlled carefully. Combustible materials and flam- supervisor to manage the risks involved with hot work.
mable liquids, dust and waste should be removed. Use capable and competent trainers, with the
necessary certificates and accreditation to train your
CAREFUL PLANNING TO LIMIT FIRE INCIDENTS staff and contractors’ employees.
A common error is to neglect the protection of hidden
spaces, such as wooden constructions, ventilation ACCESS GRANTED
and extraction ducts and pipes, when beginning hot Ultimately, management is accountable to what is hap-
work. Such areas should always be protected when pening on their site. They should therefore have a vested
necessary. Make sure that all hot work equipment interest in appointing the competent person(s) with the
is in good working condition and approved for use. authority to issue permits for hot work. These can be the
Where is the nearest fire-extinguishing equipment? Is fire officer, the maintenance manager or comparable,
it easily accessible and is it adequate for the pur- capable staff member. They should have experience and
pose? Do your workers know where this equipment is training in the risks associated with hot work (e.g. safety
located? Regularly check that the sprinkler system is training) and be of a suitable status to ensure compliance
fully operational.
4 Risk Consulting magazine · 01/2021 · 5
HOT WORK FIRE EXAMPLES
• An employee ignores hot work How-to guide for
permit protocol and decides to
undertake a hot work task without
a permit. The employee takes a
hot work permits
coffee break, failing to organise
the required fire watch. A spark Some considerations
with the procedures in place. The If there are automatic fire pro- ROUTINE TASKS CAN BE THE
ignites plastic insulation, causing a
fire that resulted in a claim costing
and practical tips
issuer of the permit should not be tection systems, such as sprinkler MOST DANGEROUS tens of millions (EUR).
the same person who will carry out protections triggered by smoke de- In many building or installation pro- The Hot Work Permit should be valid for one work shift
the actual work. tectors, or smoke detection systems, jects (i.e. the installation of new ma- • Failing to move components only. It is good practice to ensure that the hot work is
The plant responsible personnel installed in a hot work area, these will chinery etc.), hot work is performed outdoors for welding, resulted terminated two (2) hours before the end of a working
and the person/company carrying need to be disconnected for the dura- almost on a daily basis. In these in sparks igniting a warehouse, day, in order to have staff available to conduct an
out hot work should perform a tion of the hot work task. During hot cases, it is possible to issue a Hot which burned to a total loss, inspection of the area.
hazard assessment (e.g. Safe job works these systems in the relevant Work Permit that is valid for several costing over one million euro, The Hot Work Permit should be completed with
analysis) before writing the Hot areas are disconnected, i.e. impaired, days, but it is not recommended to with severe disruptive impact on an adequate amount of copies. One copy should be
Work Permit. The safety precautions to avoid false alarms. In cases where use a permit for more than a week. company operations. retained by the issuer, who may wish to inspect the
based on this assessment should be automatic fire protection systems are However, the work conditions need site of the work or perform spot-checks to ensure
clearly specified in the permit. switched off for more than 24 hours, to be revised by either the permit is- • Hot work carried out during de- that the conditions have been met. The second copy is
If P&C Insurance needs to be in- suer or another qualified person, e.g. molition works in an old produc- handed to the person responsible for carrying out the
AT THE END OF THE DAY formed of the impairment in advance. the shift leader, each morning or at tion and utility building caused a work. The third copy could be delivered to the security
The affected area should be watched One thing that must not be over- the beginning of each work shift. This fire. Large amounts of water used department, to the gatehouse, or if applicable to the
continuously during the work. After looked, is to reconnect the impaired revision needs to be documented in to extinguish the fire severely control room of the relevant production area.
its completion, the area should be automatic sprinkler protections and the permit (date/time, signature). damaged a critical electrical room
monitored as long as specified in smoke detection systems. During hot Even for experienced workers, hot located in the vicinity of the fire, Keeping the communication lines open is important.
the Hot Work Permit, but for one work these systems in the relevant work always poses a risk, and should causing a sudden temporary total Some best practices include, but are not limited to, the
(1) hour at a minimum, to ensure area are disconnected, i.e. impaired, be planned and executed with care shutdown in a large industrial following:
that it is safe. The fire watch should to avoid false alarms. As a part of the and attention, even when it is con- park area. • It is recommended that, upon completion of the
have received the safety training control process, it is important to ducted daily. hot work, the expiry of the fire watch period and
mentioned above. ensure that these extinguishing and • Careless use of an open flame the reinstatement of all fire protection installations,
detection systems are reconnected during hot work on a roof ignites should be communicated in a timely manner to the
after the completion of the hot work. the wooden construction under- permit issuer.
Other fire protection installations must neath the felt, as well as behind a • Hot work permits should always be signed-off only
be reinstated as well. wall structure, leading to a mas- after this fire watch period is over and completed.
sive fire. Furthermore, extinguish- • The issuer is recommended to always inspect hot
ing water causes damage in the work locations when the work has been completed.
residential building. The construc- This is an important step in the process, which is
GETTY IMAGES
tor’s subcontractor is found liable commonly overlooked, but critical in the prevention
for the damage. of property loss. For example, the incorrect handling
of equipment after a hot work task has been com-
“Regardless of adequate hot work pleted, is easily spotted with a simple inspection.
permit procedures, and even when • The issuer should also confirm the completion of the
all precautions have been taken to hot work by adding a new signature to his/her copy
mitigate potential fire hazard expo- of the permit.
sures caused by the hot works, it is • If a permit is issued late in the day, arrangements
essential to also ensure that there is should be made to ensure that the authorised
always an adequate amount of first personnel are available to sign the copy at the time of
aid fire extinguishing equipment, as the completion of all the aforementioned measures.
well as competent personnel to use
this equipment, available in hot work One signed copy of each permit should be filed by the
places. This helps to ensure that if permit issuer for future reference.
a fire breaks out during or straight
after the hot works, it can be effec-
tively extinguished immediately in its
very early stage,” Matti Koskenkari
concludes.
“Hot work needs to be controlled,
no matter who is carrying out the
task. Special training is a prerequi-
site in many countries.
6 Risk Consulting magazine · 01/2021 · 7
ESSITY
CLIENT
Why trusted
partnerships are
valuable
A
s a leading global hygiene and health
ESSITY
company, Essity is dedicated to improving
By Ottmar Zeizinger, Lars Freymann and Kristian Orispää well-being through its products and solu-
tions, which are essentials for everyday
life. From baby care products to hand
If P&C Insurance has a relationship with Essity that goes soaps and professional hygiene products, Essity is one
of the world’s largest suppliers of popular brands for
back several decades, as an insurer, reinsurer of the essential daily personal care, consumer tissue and
Essity captive and as a risk management service provider. professional hygiene products and solutions.
At their Kostheim mill Essity produces tissue
Recently, the Kostheim plant in Germany, which produces products, mainly for the highly competitive German
market. Sales is not directly to the end user, but to
tissue products was expanded to meet increasing demand the largest consumer market chains and some other
distributors.
for Essity products. If Risk Engineers were actively involved As such products have a high ratio of volume com-
in the planning and delivery stages of the project to help pared to value, storage requires large and expensive
warehouse capacity, either at the manufacturers
our valued customer, collaborating to manage risks together site or at the customer site. Therefore, buffer stock is
limited to a few days of production only, which cer-
for the safest and most reliable results. tainly increases the risk of supply chain disruptions If's Risk Engineers assessed the possibility of prop-
in case of any production problems. At the same time erty damage, and especially the business interruption
production machines are of such a nature, that seri- risks. This resulted in several recommendations to be
ous damages cannot be repaired within short times. implemented during the construction phase and final
The impact on the business interruption risk start-up of production. Such work is done in several
could be substantial and maintaining uninterrupted, phases, with an increasing level of detail, to ensure reli-
reliable production is therefore of vital importance able operations. Local presence to the construction site
for Essity. proved to have a positive impact allowing If to meet the
project team whenever needed. Knowledge of Essity’s
TISSUE PLANT EXPANSION IN KOSTHEIM, business, awareness of expectations from Essity Group
GERMANY Risk Management and local legal jurisdiction has been
Essity initiated a large project valued at more than a prerequisite for effective consultation regarding risk
100 million euro, to extend an existing plant. The control.
project, planned to run over 2-3 years, included the The basis for all consultation has been the Essity
installation of production equipment, including one corporate loss prevention standards, established
large tissue paper machine, alongside warehouses and technical standards, as well as key capabilities and
various modifications to the plant’s infrastructure. know-how from If’s Risk Engineers, accumulated over
Altogether this project accounted for a substantial decades of focused work in this respect, as the pulp &
share of the company’s turnover and had to assure paper represents one of If’s core client industries.
the competitiveness of Essity in the local market.
Such complex projects involve multiple parties, both UNCOVERING POTENTIAL RISKS
external and internal, all providing specific fields of ex- Generally, in any major project, overall assessment of the
pertise, ranging from production, building construction, risks is important. Essity introduced a concept with tools
fire protection to insurance just to name a few. and processes for an overall risk assessment for some
The project team was supported early in the pro- years ago to ensure that all types of risk are assessed in
ject by the local Risk Engineer from the nearby German the project. The chosen risk management providers are
Branch Office of If P&C Insurance. This support is a a central part of this assessment with their expertise on
part of an ongoing collaboration between Essity Group industrial loss prevention, and with a holistic, business
Risk Management and If, If being one of Essitys chosen interruption perspective. Rather than just installing pro-
risk management service providers. The risk engineers duction equipment, Essity as an organisation realizes the
supported Essity in delivering the new facility in a safe importance to also consider other aspects, for example
and efficient way. relating to infrastructure, to make sure nothing is missed.
8 Risk Consulting magazine · 01/2021 · 9
LOSS PREVENTION CONSULTATION According to the initial project the business interruption risk of this accepted by the project team. The “An important recommendation TRANSFORMER LOSS PREVENTION
DURING LARGER PROJECTS: plan, two new main transformers large paper mill to an acceptable first and most important objective by If was conduction of an actual live AND PROTECTION
were to be located close to the ex- level.” of business interruption risk reduc- water discharge test. Also in this case,
• Know, trust and respect one another isting main power plant. When con- From this perspective the value ing measures had therefore been the discharge test let to the need of • Analyse business interruption risk
sulted, If’s Risk Engineers assessed of an operating transformer is concluded to be the prevention of some final modification to achieve impact for each individual unit and any
• Make a commitment for long-term the overall risk situation, revealing immeasurable, the threat includes damage to both transformers at the best lost control impact of the units grouped together.
success (when the project has ended, the potential business interruption losing business, impacting employ- the same time. For this to happen, extinguishing system.” Lars states.
the relationship continues) • Determine, control and analyse pre-
risk, in case of a fire at any location ees, potentially shutting down the we required a scenario where a
ventive maintenance and the expected
• Understand the client’s business, in this area being not acceptable. factory completely in the worst-case fire in one transformer spreads to EFFECTIVE LOSS PREVENTION
remaining lifetime of each unit. E.g. gas
both financially and technically It became evident that the scenario.” the other one. The existing sepa- As Ottmar says; “You have to know the
in oil analysis conducted periodically
output of the entire new production Ottmar states that, “As observ- ration consisted of some distance client and understand what is going
• Have a sound basis of technical loss provides an excellent basis for planning
facility is dependent upon these ers, we looked at the equipment and partly a concrete wall, but an on at their production or warehouse
prevention skills, but know your of maintenance measures and replace-
transformers. Should anything go installed on the site from a different analysis proved that this was not sites. You also have to understand the
limits and be prepared to involve ment planning.
wrong with the transformers, the angle. We were not considering the enough to prevent the risk, where broader business circumstances, such
others when needed business interruption risk would be installed equipment from a delivery for example an oil fire could result as the corporate structure, the insur- • Transformers must be included in
• It was very beneficial, as it was the case substantial. perspective but a 'bird-angle view' in an explosion which spreads to the ance concept, and the client’s market. plant wide thermographic surveys (IR
in this project that the risk engineer As soon as the issue was un- which allowed us to see the project second transformer. Our involvement is about giving clients scanning).
can speak the local language! covered, all parties joined in working from outside to recognise a serious “Sounds simple, but this turned a higher chance to succeed, by taking
• Different fire risks related to dry and
together to find a solution, mak- business interruption risk. This war- out to be rather difficult,” says Lars an outside-in view of projects such as
• Be ready for surprises and changes oil-cooled transformers must be taken
ing use of all the competence and ranted raising concerns and pushing Freymann, Senior Risk Engineer at this. If you look at a single recommen-
in resourcing into account.
expertise in the team. The resources partners to reconsider the installed If P&C Insurance. Adequate trans- dation for transformer risk reductions
• Step back, look at issues from a bird’s required to mitigate the business solution from an operational loss former protection requires a sub- on a list of many recommendations for • Critical units must be fire (explosion)
eye view. interruption risk to an acceptable prevention angle.” stantial water supply, which is usually an individual plant or even worse for a separated from other critical prop-
level was efficiently activated by the Supporting our customer in provided by the sprinkler network, corporation with many plants all over erty, this can include other electrical
• Never stop asking questions team effort. recognising the issue with the but unfortunately was not easily the world, it only tells part of the story.” transformers, switchgear, production or
“
transformers, explaining the potential warehouse buildings.
TACKLING THE TRANSFORMERS business interruption risk, required
According to Ottmar Zeizinger, Risk opening up new discussions while the
For larger units, the surrounding should
Engineer at If P&C Insurance, “the conglomerate of experts was already Recommendation by If was providing be reviewed in all three dimensions. The
two new transformers at Kostheim overloaded with work to complete
were built in accordance with all the main extension project on time. a fire protection system to control a radius necessary could be as large as 50
meters.
requirements and standards, as Generally, oil cooled public grid fire and prevent fire spread from one
was the separation between the transformers of such magnitude are
two units.” Ottmar explains, “the very reliable, but if they break down, transformer to the second one. • Emergency planning includes e.g. safe
transformers were planned and major repair work or delivery of a shut down procedures, spare units,
constructed right and completed new unit can take 12 to 18 months. In replacement times.
as required by German regulations the common risk formula R (risk) = P
• Fire risk assessment includes for example:
and EU standards. Leading partners (probability) x I (impact), “P” is low,
and expert engineers did everything but “I” is considered to be extremely accessible for this application.” Lars Lars concludes, “At larger indus- - Type, age, size, location of unit
correctly. What If P&C Insurance high, due to very long recovery time continues, “However, together with trial sites, we at If P&C Insurance try
- Oil/water spread: pits below,
added to the equation, was that we and total shut down of a major pro- local power plant and fire protection hard to not just insure the finan-
drainage,
knew this is not enough to reduce duction. This was understood and personnel we finally were able to cial impact of an incident, but we
work out an effective and afforda- support our clients by long-term - Steel grates above pit and below
ble solution. Design criteria were oriented loss prevention services. unit acting as flame arresters?
forwarded to a sprinkler contractor, Only if all parties involved have the
• Fire control systems may consist of
who installed the system under the chance to learn about each other
adequate pressurised water spray
IF
safety supervision of power plant and are motivated to add their own
systems at various levels and especially
employees.” competences, then the chance for
above the unit.
One of the major specifications a good business success is given for
issued by If's Risk engineers was the insured and for the insurance • A full-scale flood test to confirm proper
the proof of the installation by way carrier. Let’s pull on the rope in the hydraulic design and positioning of the
of appropriate full discharge tests. same direction.” nozzles.
Though this is not a costly exercise at Rolf Mohr, Essity Kostheim -
• For a transformer located inside
all, contractors and electricians are Department Manager Power Plant
buildings fire detection may consist of
hesitant to complete these tests. For states, ”Since we have identified the
aspirating smoke detection systems.
example, electricians are concerned risk of a major business interruption
Outside units may be monitored by
with electrical short circuiting due to and have taken care of adequate loss
robust heat sensitive detection systems.
water discharged via special nozzles controls, I can sleep far better.”
at meaningful pressures.
10 Risk Consulting magazine · 01/2021 · 11
From left: Lars Freymann/If, Rolf Mohr/Essity, Kostheim, and Ottmar Zeizinger/If
GETTY IMAGES
LOSS PREVENTION
Mitigating snow load risks FOLLOW THE WEATHER FORECAST
If the weather forecast indicates that a lot of wet
snow will fall in a short period of time, then it can
represent a significant risk. Snow followed by rain will
Another concern has to do with old buildings, as
added weight from PV panels on the roof, increases
the demand on the structure of the building. It is im-
portant to evaluate the guidelines for your PV panels
By Oddmund Bleie, Stefan Nyberg and Caroline Bødkerholm increase the amount of water, which will ultimately in respect to snow loads.
affect the weight per square meter. Conducting a thorough risk assessment of your
When there is already a substantial snow load on buildings and property located in snow prone areas
The cold months are here, and with them come snow, wind, rain the roof, predictions of further snowfall in weather will help you to develop relevant mitigation actions
forecasts serves as an important warning. The wet and plans. Further, this will help to secure your
and ice. Even though accidents happen all year round, there are snow can increase the weight on the roof to a level business and personnel for the potential risks relating
where the risk of collapse shouldn’t be ignored. to snow loads on rooftops. At If Insurance, we work
several incidents that specifically occur during the wintertime. by your side to support you in your risk management
WATCH FOR POCKETS OF SNOW work to help prevent losses.
Large amounts of snow can accumulate into wind
pockets in sheltered areas, for example on flat roof-
tops, behind chimneys or between heating, ventilation
F
and air-conditioning equipment installations.
ollowing heavy snowfall, the rooftops of build- A frozen drainage system can cause snow and ice More and more companies are powering their op-
ings are often loaded with snow. The weight of to build up on the roof. To avoid this, consider install- erations with solar panels that are placed on the roof
wet snow can be three times higher than that ing heating in the drainage system. This is especially of the building. Therefore, it is important to consider
of dry snow. Snow can cause damage to the important in geographical areas where the tempera- how the photovoltaic (PV) system in combination with
rooftop, which in turn can lead to damages in ture frequently varies from below freezing to a milder heavy snow load can affect a building structure.
the building even business interruption, for example if temperature. One thing to consider is that PV panels on low-
a location needs to be closed down for repairs. rise commercial and industrial buildings
In this article, Senior Claims Adjuster, Oddmund PUT A TEAM TOGETHER can change the patterns of the
Bleie from If in Norway and Risk Engineer Stefan Who will you call if your production facility, ware- wind flow and the snow
Nyberg from If Sweden, share their knowledge on how house or office building is covered with snow, and do accumulation.
to prepare your business for the winter. you have the necessary equipment when snow needs
to be removed?
WHAT’S YOUR PLAN? Snow removal is often a job for professionals, who
First and foremost, you need to have a plan. This plan are trained to remove snow safely, utilising profes-
should not solely cover the necessary steps after an sional methods. Apart from posing a significant risk
accident has happened, it should also include all the of personal injury, unloading may actually cause
preventive actions, that will help to reduce the risk more damage when done incorrectly. If the load on
significantly. the building becomes increasingly uneven during
unloading, the entire building can collapse. Unskilled
MAKE A RISK ASSESSMENT OF YOUR BUILDINGS workers may also damage the roof when removing
A massive snow load can pose a significant risk that snow, causing water to enter the building.
may compromise building structures. Consider the Skilled personnel will also consider the risk of
stability of your own buildings and third party build- potential risk caused to pedestrians, parked vehicles
ings in other locations that are a part of your supply and other property when removing the load on the
chain. Even though, your storage facility may be a roof. Taking appropriate measures during this activity
rented space from a third party, it is in your interest are critical to protect human life and
to understand any potential risks. property.
Ultimately, any damage to the structure can affect
your business if something happens to your inventory.
Ask yourself the following questions during your in-
spection: What is the structural integrity of the roof?
Is it an old building? Has the structure weakened over
time? Is the drainage system functional?
12 Risk Consulting magazine · 01/2021 · 13
GETTY
CARGO
Managing Cargo
risks and losses WHENEVER YOU ARE ON RISK, IF P&C INSURANCE WILL
COVER YOUR GOODS, NO MATTER THE LOCATION.
By Rikard Sahl, Tommi Haglund and Kristian Orispää
Protecting your goods in transit, or in intermediate
storage in conjunction with an insured transit, from
loss or damage is vital. If's cargo risk specialists
assist clients to manage cargo-related risks and
issues, as valuable and oversized equipment is
prepared for transport, shipped and then stored in
locations around the world. The cargo risk management there are still gaps in the insurance
service can also include advising solutions available. That is why we
on operational risk management have improved our current offer-
questions (excluding legal aspects), ing, which has resulted in an even
as well as the suitability of chartering broader cover.
I
of a specific vessel, lashing, loading-
f Insurance cargo risk specialists According to Tommi Haglund, and discharging operations onboard The new insurance solution offers:
regularly support clients with “this additional service can include vessels, railway, trucks and trailers. • Intermediate storage/extraordi-
their marine cargo activities. risk management services, storage nary storage during transit when
From warehouse surveys to high area or harbour surveys, as well INTRODUCING COMBINED the ordinary course of transit is
and heavy transport projects, as project or individual transport PROPERTY & CARGO INSURANCE interrupted
Tommi Haglund and Rikard Sahl consultation. When needed, we give For many manufacturing and • Goods and/or merchandise and/
support clients in managing risks recommendations to make sure the wholesale businesses, the supply or property intended for shipment
relating to their cargo and transpor- cargo is transported and stored chain is an instrumental part of daily covered during:
tation operations. Sometimes, such safely and securely.” operations. The ability to control, - Loading process
reviews are required as part of the “When we talk about large monitor and optimise the transport - Await the commencement of
insurance policy. This can include, and complicated shipments, these of goods is vital in order to maintain the transit
for example, barge shipments and types of activities require specific a competitive and cost-efficient - After arrival at the destination
vessel checks. knowledge and capabilities.” Tommi business. While small changes in the until promptly unloaded
As Cargo risk specialists, Tommi continues. Shipments are not booked supply chain might be possible to • Business interruption cover
and Rikard, who are both master years ahead, there can be last min- manage, a breakdown of the supply during transit for delayed, lost
mariners with background in the ute adjustments to schedules and chain would have a serious impact or damaged raw material and/or
international shipping industry, work plans, complexities relating to the on the company’s future. semi-finished goods.
together with clients to review and movement of high and heavy trans- If P&C Insurance has studied
evaluate the plans for cargo projects port makes each project unique.” the current support for your supply Contact If to hear more!
and operations. Utilising their Rikard Sahl, continues, “we chain risk, and we have found that
extensive experience and know-how conduct quite a lot of risk surveys,
of common pitfalls in marine cargo over 100 during a normal year, and
transportation can further secure not only relating to project cargo.
these risky and costly activities. An- Physical and desktop risk surveys
other example which can trigger the involve a broad range of factors that DID YOU KNOW?
requirement to contact If experts must be considered, from potential As a Marine Cargo insurance client, you have access to Cargo Loss Prevention
includes cases where the policy natural hazard risks during the jour- info sheets to benefit your shipping and transportation operations with top
limits are exceeded. ney and storage, to protect the cargo tips and advice.
from start to finish.”
14 Risk Consulting magazine · 01/2021 · 15
GETTY IMAGES
TRAVEL
The way we fly
A
ccording to IATA, the International Air
Transport Association 1), since the out-
break of the COVID-19 pandemic, there
has changed
have been millions of flights. Despite this,
the number of onboard transmissions
remains very low. Passengers are advised to practice
good personal hygiene, to wash their hands regularly
By Henrik Rahm and Kristian Orispää as well as take the needed precautions that will help
lower the risk of transmission, for example by using
Whether you are a business traveller or taking a journey face masks for added protection during the flight.
Every traveller needs to be aware of the risks
for personal recreation, the way we travel has changed. involved when travelling. According to Henrik Rahm,
Nordic Head of Employee Benefits, “With the contin-
There are some notable changes to preparing for travel, ued spread and mutation of COVID-19, international
travel has changed significantly. Flights are limited
considerations to take into account while in your travel and some destinations are no longer accepting inter-
destination, and actions that need to be taken after your trip. national travellers without a negative COVID-19 test.
Keep in mind that local authorities in your destination
country may impose restrictions, such as border clo-
sure, with very short notice, which may result in your
trip being cancelled completely.”
“It is also important to check the latest COVID-19
information and travel restrictions for your desti-
nation regularly before departure, utilising reliable
government sources for information. Last but not
least, know what your insurance covers with respect
to the COVID-19 pandemic.”
In 2020, some people found themselves placed
into forced quarantine in foreign countries. Abrupt
restrictions by local authorities interrupted holidays
and caught out business travellers, as governments
sought to contain the spread of the coronavirus. Many
travellers were unable to return home from their
journey abroad. This generated added hotel costs and
accommodation fees.
In these situations, it is important to follow the
advisories issued by local authorities.
• Follow the local advice on how to avoid infection risks.
• Stay in your hotel room or follow instructions if you
are moved to quarantine facilities.
• Be prepared that you may be tested for the corona-
virus, and potentially hospitalised abroad.
• If this happens to you, contact your travel agency,
airline and insurance company as soon as possible
to discuss your situation.
Henrik Rahm highlights that, “Worth pointing out
is the responsibility of the employer and their duty
of care obligation, to protect the health and safety of
their employees, even though they are covered by an
insurance. During these uncertain times, it is impor-
tant that employers really reconsider if it is required
to travel abroad.”
1) Source: IATA
16 Risk Consulting magazine · 01/2021 · 17
UNSPLASH
EMPLOYEE BENEFITS
While lifting a pallet with a
forklift, the load slipped and fell
onto the factory floor. Luckily
there were no persons injured,
although a co-worker was close to
the accident scene observing and
assisting in the lifting. The pallet
and the product were damaged.
D
espite advances in safety and risk man-
agement, accidents and incidents happen.
The outcome from an accident can vary
greatly - sometimes almost identical chains
of events can result in totally different
outcomes. This can lead to misunderstandings with
regards to the indications minor incidents and near
misses give us: instead of being single unfortunate
events, they should be understood as something that
can happen again, and often have the potential to
cause more serious outcomes or losses.
AN ACCIDENT IS AN EXPENSIVE WAY TO LEARN
For long, it has been understood that accidents need
to be investigated, in order to prevent them from
happening again. In the best case, we can identify
some simple and effective improvements to ensure
safe and disturbance-free work. Sometimes the
corrective measures need to be targeted to multiple
different issues. In any case, each accident should also
Accident investigations be considered as a possibility to learn and improve
safety and risk management.
When an accident happens in the workplace, an in-
drive safety improvements
vestigation may be required by national legislation. In or-
der to ensure learning and that improvements are made,
a thorough investigation is for minor cases, especially if it
is obvious that they hold the potential for a major loss or
By Salla Lind-Kohvakka accident. Sometimes, they can expose hidden risks and
threats that require immediate actions.
18 Risk Consulting magazine · 01/2021 · 19GETTY IMAGES
MANAGING RISKS BEFORE AND minor cases with no or very little conveyor. As removing the block- dents are grounded in near misses,
AFTER AN ACCIDENT harm, it is quite common that the age according to the agreed safety and the less serious accidents have
Safety management can be divided accident-preventive measures are instructions would cause remarkable a link to the serious ones. Thus, fo-
into two categories: reactive and extremely simple or focusing only on delays in production (and impact cusing and removing the near misses
proactive. the most obvious cause. daily KPI’s), it was an established will have a reductive impact on the
• Reactive management refers to This highlights the importance practice to keep the line running and more serious accidents.
conducting an investigation after of avoiding hasty conclusions and remove the blockage with a wrench Over the years, this model has
an accident. This includes for simplifying the outcome of the or hammer. This behaviour resulted remained almost the same, and
example, compiling information investigation, for example “…to in an accident, where an employee’s Heinrich’s theory has been proven to
and reporting statistics. prevent this from happening again, hand was trapped between the be valid in practice. After a century,
• Proactive safety management re- let’s be more careful.” Although blockage and the conveyor, leading this theory and the pyramid model
fers to implementing wider safety this is a commonly introduced to injuries. The indirect losses, in- still underline why gathering near
measures based on investigation improvement, it has very little or no cluding production downtime follow- misses and safety observations is so
findings, for example in other efficiency in practice. ing the accident, were significant. important – they are indicators for
locations with similar conditions. Instead of focusing (and relying) In this imaginary example above, something that can cause much big-
on human performance only, a we could just report on the timeline ger loss next time, unless managed
It is important that the investigations better option is to list actions that and capture what happened, define effectively.
are conducted systematically and are targeting both organisational some new work practices and install Hazards and hazardous con-
with an open mind. As a result, inves- and technical matters. In reference some safety devices, such as a shield ditions should be identified and
tigation findings can be applied to to the example, the outcome should or automatic stop when blockages reported actively. This is a continu-
improve safety in several locations or be "...to prevent this from happen- occur. However, in order to ensure ous process, that should take place
functions, instead of only addressing ing again, work practices and risk key learnings, there is an obvious every day. A good practice is that all
the actual accident scene. assessment need to be revised. Also, need for analysing causes and conse- employees identify hazards (includ-
the adequacy of technical safety quences much deeper. With this small ing hazardous conditions) as a part
“
of their everyday routines. This is a
question of safety culture, combined
with knowledge of the working con-
ditions and tasks.
Accidents have multiple causes HOW TO CONDUCT A GOOD
INVESTIGATION?
and underlying contributors. Accident investigation should aim
to define the preventive measures
holistically, so that improvements
can be targeted to safety and risk
management, as well as to technical
details and work practices.
In order to help our clients to
WHAT ARE WE REALLY in the location has to be ensured, description only, we can already see enhance their accident investigations,
LOOKING FOR? which means new security meas- that there are some obvious deficien- If has published a thorough training in
Accident investigation aims to an- ures will need to be implemented." cies in work practices, safety culture our Learning Hub. The training gives
swer the three main questions: what A common issue is that the and supervision, in addition to the a detailed overview to theories, prac-
happened, why did it happen, and investigation focuses on merely defective technical safety issues and tices and to some investigation models.
how do we prevent it from happening documenting the case, instead of maintenance of the conveyor. The training is targeted especially for
again in the future. These questions searching for a more coherent chain risk managers and occupational health
also direct the person conducting of events with causes and conse- THE IMPORTANCE and safety personnel. The training is
the investigation to remain objective, quences. There can be many reasons OF NEAR MISSES useful for anyone interested in acci-
where the overall aim is not to for this; sometimes there may be In the 1920’s, U.S. scientist H.W. dent investigations and conducting
identify whether someone is guilty. lack of time to be allocated for a Heinrich (1886-1962) made his them.
Accidents have multiple causes thorough investigation and report- famous approach to understand
and underlying contributors. Sticking ing. Also, accidents can be such rare why accidents happen, and how they
to the most obvious ones will only tell events that no investigation routine could be prevented. He came up with DID YOU KNOW?
a part of the story - it is important to has been established for those a pyramid model, which illustrates If you are an If client visit the
look further and deeper. How would it who conduct each investigation the relation between near-misses, Learning Hub to access this
change your mindset if you looked for in practice. The overall aim of the less serious accidents and serious training course, and many more.
explanations, instead of causes? investigation can also be unclear. accidents. In this model, the peak of
These can lead to outcomes that will the pyramid represents the rarest
LESSONS LEARNED? not provide much information for cases, i.e. the serious accidents, and
Many companies have a well-defined effective safety improvements. the number of cases increases the
investigation process with good in- lower we go while the severity of
structions in place. Still, it is common PRODUCTION LINE EXAMPLE these are reduced.
that accident investigations result The production line was often The point of the pyramid is to
in vague outcomes. Especially with jammed with the materials on the illustrate, that the most serious acci-
20 Risk Consulting magazine · 01/2021 · 21NEWS
Short news
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news regarding products and services every month? Simply subscribe to If News
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we see new types of threats from an
increasing number of attackers, all
the time.
He notes that, "In the early days,
we were fighting kids who were
writing viruses for fun. Today we, and
you, are fighting against organised
crime, foreign nation states, intelli-
gence agencies, foreign militaries,
extremist groups and activists or
hacktivists, and more."
Insiders, hackers and Mikko Hyppönen further raised
the questions; How are we going to
tackle cybercrime in the future? August Ramsay Foundation
government attacks
What are the trends that are shaping The August Ramsay Foundation promotes loss prevention work in companies
our industry? insured by If P&C Insurance Ltd (publ), Branch in Finland. The Foundation also
A panel discussion followed the supports practical and theoretical research by students within loss prevention
presentations, hosted by Kristine and insurance. Awards are granted to persons and communities in Finland that
Birk Wagner, Nordic Head of Under- have been taking part in loss prevention work. For details, check the website
By Caroline Bødkerholm
writing at If that were well received (in Finnish). if.fi/augustramsay
by our approximately 400 partic-
Cyber attacks are on the rise, both in intensity and frequency. Many companies ipants. If’s Head of Digital Risks
& Cyber, Mikko Peltonen, joined
are focusing on their IT security infrastructure and training employees to help in the panel discussion. He notes
that, "Digitalisation is an important Appointments
prevent potential attacks. enabler, playing an important role
for businesses, individuals and for
society as a whole: However, we are
O
only seeing the tip of the iceberg
n the 19th of January, In his presentation, Mark Anthony when it comes to what the future will
If Insurance hosted a Fiedel talked about the role of the hold for cyber and IT security."
webinar ‘The future of CFCS, and focused on the different Mikko Peltonen leads the newly
cyber-crime’. We were reasons why hackers attack, as well established Digital Risks and Cyber
proud to introduce, as highlighted the risk of cyber espi- unit within If’s Industrial BA. The unit
Mikko Hyppönen, global cyber onage. He explained that, “espionage oversees Nordic underwriting and
Timo Rüll, Sofi Alverstrand,
security expert from F-Secure, and attempts happen every day, however risk management of If Industrial's cy-
Senior Risk Engineer, Head of Employee
Mark Anthony Fiedel, Head of the unlike criminals, foreign states and ber insurance portfolio. He explains,
GE Benefits, SWE
Analysis department in the Danish their intelligence agencies don’t want that “Cyber insurance is not a silver
Centre for Cyber Security (CFCS) their crimes exposed in the news.” bullet solution, rather one more tool
as our key speakers in the webinar. In Mikko Hyppönen’s presenta- in the toolbox in the fight against
Presentations focused on the future tion, he emphasized that the security cyber criminals.”
of cybercrime and espionage. landscape never stands still, and that Mikko Hyppönen, F-Secure “The cyber security landscape
never stands still.
22 Risk Consulting magazine · 01/2021 · 23Don’t miss the next issue
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