Earlier this month after the CICA conference in Orlando, I visited my mother, who lives in the area, for a few days.

Risk management, always a focus of mine, came up a several times. In fact, we had a few opportunities to witness first-hand the real meaning of risk management and its implications. First, during a heavy downpour, we stopped at a popular sea-side cafe for dessert. People were tracking water into the entryway and soon the staff pulled out a mop. The wet mop was ineffective and unfortunately the floors were made of potentially slick ceramic tiles—a recipe for disaster. Then they pulled out a standard bright yellow “caution, wet floors” sign. Good so far. But then they placed it in a location and angle that made it impossible to see when entering the restaurant. Not so good.

It was another instance where a potential and obvious danger was being overlooked. In this case, the wait and kitchen staff were left to make important decisions about safety—a decision that should have been anticipated and overseen by management. Unfortunately, scenarios like this are so commonplace they are taken for granted. But these are the things that can drive up insurance costs—liability and workers' comp for starters.

The next risk management oversight was also in a restaurant, one my mother frequents. During a meal there, her friend ordered hot tea. When it was served, Mom observed it was a different type of container than usual. It was glass, with a plastic neck and no pour spout. After only a few seconds, her friend discovered the container was too hot to hold and it had to be put down.

Anyone remember the famous spilled-cup-of-hot-coffee at McDonald's? We recognized the potential for disaster here and again had an opportunity to discuss risk management.

A few days later when I was back at home, my mother called me with an update. She had been back to the restaurant—again her friend had ordered hot tea and again it was served in the potentially unsafe carafe. When they mentioned their concerns to the waitress, she shrugged. She said she realized the container was a hazard, but that her hands were tied. She said any attempts to notify management would fall on deaf ears. The waitress hesitated and then asked Mom to send an e-mail to the chain's home office.

Mom returned to her house, got out her Apple laptop and wrote an e-mail. In it, she said she described the container and its potential for injury. She underscored her point by saying she hoped the e-mail would be forwarded to both their management and risk management departments (like daughter like mother?). She later received a reply that her e-mail was being forwarded to the company's upper management and risk management departments for review.

Will the e-mail help? Maybe, but it can't hurt. This is another example of a small, seemingly inconsequential decision made by a large chain, probably without much thought to safety. Just one mishap, however, could mean possible injury to a customer and most likely a lawsuit.

It's also unfortunate that the waitress felt her concerns would be ignored. This brings to mind the popular new TV show, Undercover Boss, which I've mentioned before. I think the show is doing a lot of good because, if nothing else, it's pointing out how upper management is often clueless to the day-to-day operations—and the hazards present—in their companies.

Special Reports /

Tempest In A Teapot, Risk Management Style

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