Workplace Violence Prevention for Your Business

In today’s society, incidents of workplace violence are unfortunately a topic of news or conversations across the country.  All businesses are vulnerable to workplace violence no matter how small or large.  The Occupational Safety and Health Administration (OSHA) defines workplace violence as violence or the threat of violence against workers that can occur at or outside the workplace and can  range from threats and verbal abuse to physical assaults and homicide-one of the leading causes of job related deaths.  OSHA reports that approximately two million workers are victims of workplace violence annually.  The impact of a workplace violence incident at a business can not only be deadly, but could destroy or damage employee morale, productivity and even the business itself.

Although there is no specific OSHA regulation that applies to violence in the workplace, under the General Duty Clause of OSHA, employers are required to provide their employees with a place of employment that is “free from recognizable hazards that are causing or likely to cause death or serious harm to employees”.  Therefore OSHA has interpreted this to mean an employer that has experienced acts of violence, becomes aware of threats or intimidation or other potential indicators of workplace violence has an obligation to implement a workplace violence program.  In addition to OSHA’s interpretation, employers could face liability for not taking adequate steps to prevent workplace violence. Victims often sue their employer for not adequately investigating or taking proper action against threats of workplace violence.

In order to reduce the risks of workplace violence, employers should establish and implement a workplace violence prevention program that includes the following:

• Written policy and procedures that communicates “zero” or “no” tolerance toward workplace violence.
• Required training for all employees on early warning signs and “red flags” of behaviors that contribute to workplace violence and how they should respond and report.
• Reporting and tracking mechanisms to capture threats or concerns
• A Threat Assessment/Management Team trained to investigate and take appropriate action.

A comprehensive workplace violence prevention program can be an effective way for employers to educate and prepare their employees. Workplace violence can be prevented when employees have been properly trained and have an understanding of what constitutes an act of violence and how they should respond and report these acts.

Employee Theft Prevention

Employee theft, fraud and embezzlement are also known as occupational fraud and generally reflect the full range of employee misconduct through which businesses lose money. A formal definition of occupational fraud is when someone uses his or her occupation for personal enrichment through the deliberate misuse or misapplication of the organization’s resources or assets.

According to the 2010 Association of Certified Fraud Examiners (ACFE) “Report to The Nation on Occupational Fraud and Abuse,” a typical organization loses 5% of its annual revenue to fraud. Most notably, according to the report, small businesses are particularly vulnerable to fraud because they tend to have fewer internal controls and resources in place to protect their assets, thus increasing their risk and reducing their profits.

In addition to the ACFE’s findings, the U.S. Department of Commerce reports that 85% of all theft and fraud in U.S. businesses comes from employees and not outsiders. It also reports that employee dishonesty costs American businesses in excess of $50 billion annually; the U.S. Chamber of Commerce estimates 75% of employees steal at least once during their employment, many being repeat offenders.

Oftentimes, the person responsible for the theft is a long-time employee who is well-liked and trusted. Sadly, some are even relatives and childhood friends of the owner or manager.
According to Cressey’s Fraud Triangle Theory, there are three factors that, when combined, lead a person to commit occupational fraud. The first is a perceived financial need, the second is a perceived opportunity and the third is the person’s ability to rationalize or justify the illegal conduct. Of the three factors, reducing or eliminating the opportunity for a person to commit fraud is usually the most effective way to reduce risk.

Additionally, there is the 10-80-10 theory, which suggests that 10% of employees will not steal no matter the opportunity, a second 10% will steal no matter what you do and the remaining 80% will steal depending on how they rationalize a given opportunity. Opportunity is the key operative point in this theory, as well.
Many investigations and internal reviews, conducted after a loss, discovered some of the same factors: lack of prevention, awareness, training and internal controls. In fact, the ACFE Report to the nation found that employee education is the foundation to preventing and detecting occupational fraud.

Given the fast pace of today’s business and the focus on running the day-to-day operations, owners and managers often do not have time to be proactive and discover the loss before it’s too late. There is some credence to the saying: “An ounce of prevention is worth a pound of cure.”
As a manager or owner, avoid becoming a victim or another statistic. Take some time to review the checklist below to see how vulnerable your business is. Remember that taking proactive measures now can be your “ounce of prevention.”

Quick Fraud Risk Checklist
- Have you had a risk/security assessment of your business conducted recently to identify risks or outdated security measures?
- Do you have a loss prevention program? Does it consist of more than an alarm system, security cameras and access control?
- Is your business experiencing unexplained losses or inventory shortages? Have profit margins been reduced? Do you have suspicions about theft or potentially dishonest employees?
- If you suspect employee theft, drug usage or other misconduct, do you have the time or resources to investigate or respond appropriately?
- Do you have employee training programs? Do they include security, ethics and workplace violence?
- Do you have a fraud prevention program in place?

This article was recently published in the Columbia Business Monthly. It can be viewed here;

http://www.bizmonthly.com/12_2010/25.shtml

Food Legislation stalls due to constitutional disputes

By Leischen Stelter -  12.07.2010

WASHINGTON—The security of the nation’s food supply took a step forward on Nov. 30 with the U.S. Senate’s passage of the long-stalled bill to modernize food safety programs at the U.S. Food and Drug Administration. However, the bill immediately faced problems when it was discovered that one section of the bill could violate a constitutional provision that calls for any new taxes to originate in the House rather than the Senate, according to The Washington Post.

The House Ways and Means Committee is currently deciding whether or not fees imposed on importers, farmers and food processors for recalls due to contamination are the equivalent to taxes. If so, it would essentially nullify the vote by the Senate. Despite these conflicts and the now uncertain outcome of this bill, there are important measures included that could impact the way food processing plants are secured.

The Food Safety Modernization Act (S.510) is a $1.4 billion bill, among other requirements, would require food producers to develop written food safety plans that would be accessible by the government in case of emergency along with the implementation of a food-tracing system. Eileen Harley, director of federal affairs for the Grocery Manufacturers Association, which has been working on this legislation for the last three years, said that this component of the bill shouldn’t cause many challenges for companies. “Most food manufacturers already have food safety plans in place, but instead this will raise the bar for the whole industry,” she said.

One of the good things from this legislation is that it defines the term “food defense,” said Bill Ramsey, a member of the ASIS Agriculture and Food Security Council, and the bill differentiates between food safety and food defense. “Food safety refers to the science behind protecting food products against unintentional contamination, whereas food defense regards the security that protects products against purposeful contamination,” said Ramsey, who is also the corporate security director at McCormick’s.

In terms of physical security requirements of the bill, Ramsey said the council hopes the legislation will set goals for securing food manufacturers instead of establishing specific standards for equipment. “The legislation should focus on what is needed to achieve food defense rather than the specific tools to achieve it,” he said. Because the industry is so large and diverse, it would be hard for everyone to comply with strict equipment requirements, for example. Large manufacturers may be able to install video surveillance and access control systems because they have more financial prowess, but that’s not true for small- to medium-size producers. “The small manufacturer can’t spend an enormous amount of money on physical security measures and find a different way to achieve the same goals,” he said.

Harley with GMA said that the language in the bill provides flexibility for different size companies. “There’s a lot of flexibility in the bill when it comes to risk analysis, and of course, every food producer is different, but the bill grants flexibility around the construction of food safety plans and what preventative measures they need to put in place,” she said.

However, something that isn’t in the bill is an effort to consolidate requirements as established by the FDA and United States Department of Agriculture (USDA). “Many companies in the industry are regulated by both and there are separate guidelines and plans,” he said. The other challenge is that different companies approach meeting these guidelines differently and some view guidelines more as regulations while others consider them voluntary or suggested guidelines.

And while it is yet to be determined what the final outcome of this bill will look like, Ramsey said it’s important for the industry to adopt a wait-and-see attitude. “Not that we should not continue to build security programs as we know it, but before we start coming up with mass program changes for the industry we need to see what direction the FDA will take,” he said.

Workplace Ethics

Ethics is defined as a system of moral principles that pertain to a group, whether it is cultural, religious or a place of business.  Workplace values can be defined as a code of conduct or expectations about the employee’s behavior or actions in the organization.

Values are the building blocks of any organization.  Workplace ethics include characteristics such as honesty, respect for others, dealing justly with individuals inside and outside of the company, a caring and considerate attitude, as well as good citizenship which includes a regard for the rights of others as well as a positive and enthusiastic attitude about work, and personal responsibility for one’s actions,

Employers must do their part to make ethical expectations clear and trust the employee to deliver.  They also recognize the importance of ethical behavior. The best leaders exhibit both their values and their ethics in their leadership style and actions.  True leadership involves exhibiting the company’s ethics and values in daily actions, whether they are in the workplace or not.

Company management must ensure the work place ethics policy is understood by the employees.  Exposure to multiple training methods over the course of a year has a significantly greater impact on favorable outcomes than does exposure to a single method. Some methods to impart a company’s workplace ethics policy to its workforce include:

• A company must have a written code of conduct for all the employees to know what is acceptable and what is unacceptable behavior.

• Regular discussions or seminars on the subject of business ethics and business etiquette should be presented to all levels of employees.

• Carry out role playing exercises by using real life situations to make the ethics training program interesting and encourage active participation.

A clear and concise workplace ethics policy will promote trust, ensure teamwork, and result in a more productive work environment.

Characteristics of Adult Bully Targets

Adult bullies target their victims in many of the same way children who bully do. While many people think that bullying only occurs amongst children, it can also happen in the workplace among adults.  No matter what the age of a bully, they are opportunistic and tend to prey on people they perceive as a threat or that they dislike because of differences. Adult bullies almost always bully others continuously and when one target leaves, quickly pick another. The following traits are common in adult bullying victims and usually make the bully feel insecure or threatened. Adult bullying can be more of a challenge to handle because it is harder to recognize and not as widely accepted as the bullying that occurs with children.

Adult bullies target people who are good at their job and excel beyond them. Bullies want to eliminate their competition and make their work seem better than it is. While bullying is not acceptable no matter the age of the person doing it, adults will still bully others if they see it as the only way to solve their problems. Adult bullies target people who put them in danger of looking bad in an attempt to sabotage their work.

Adult bullies target people who are popular and well liked as well, especially if they are not too popular them selves. The more well liked and competent a person is, the bigger the threat they are to an adult bully. If an adult bully is seeking attention, they will target people who receive the most attention and try to make them seem less valuable.

Adult bullies target people with differences from themselves, especially those who have high morals and integrity. Adult bullies usually have problems coping with their own problems and are desperately trying to find ways to make themselves look better by targeting other adults who they perceive will not fight back. Adult bullies seek out these people because they are less likely to retaliate against them. Adult bullies target people with vulnerabilities as well, such as inexperienced employees or older employees. If a new employee refuses to join an established clique or act a certain way, adult bullies target them. If new employees do not conform or have new and independent ideas, they also may be targeted.

Adult bullies target employees who have talents, strong friendships, or who are excelling at their jobs because of jealousy and inadequacy issues. Adult bullies feel as though they have to victimize others because they are envious of their talents. Even though it would be easier to just work harder at developing their own talents, adult bullies seek to damage other people instead of working harder themselves.

Employees who have strong relationships with others may be the target of an adult bully because the bully feels left out and is angry that they are excluded. Many adult bullies have had problems forming their own friendships their entire lives.  Adult bullying is often overlooked and misunderstood in the workplace. While bullying among children is more common, adult bullying does take place.

What is Workplace Bullying?

Although bullying is considered something that happens between children at school, it can also happen between adults in the workplace. Workplace bullying is when one employee, or a group of employees, targets another person for ridicule, criticism, and threats. Workplace bullying is more common than many people think and can take on different forms. Many times the person who is being bullied will not try to peruse their bully, because they are unsure what to do.

Workplace bullying, like the bullying that takes place between children, is meant to damage another person either physically or emotionally; in the adult world it is usually emotionally. Victims of workplace bullying are constantly criticized for trivial things and their accomplishments are belittled or overlooked. Victims of workplace bullying are also undermined by the bully at every chance they get. Victims are often the target of false accusations and doubts as well. Even though these accusations and doubts are untrue, a workplace bully uses them to control their victim.

Another form of workplace bullying is exclusion from groups or denial of information about what is going on in the workplace. Workplace bullying victims are often left out of the loop by their bullies and denied access to resources and projects. This occurs because a bully is trying to undermine their victim and make their own work seem better than it is. Victims of workplace bullying are also treated differently than everyone else by the bully, and are subject to stricter rules and different standards. This is done to make it easier for them to fail and seem inadequate.

Workplace bullying can also include shouting, humiliating, and teasing the victim. Workplace bullies will do this to try to damage their victims confidence and make their work suffer. Workplace bullies often set higher standards and unrealistic goals and deadlines for their victims to make them look bad. Workplace bullying victims can also be given excessive work or forced to work an excessive amount of hours under threat of dismissal.

Another common form of workplace bullying is having work stolen. A workplace bully will take the work of their victim and then pass it off as their own to their boss or manager. The victim will usually have no proof that the work is actually theirs and will have no recourse. Workplace bullying victims are also commonly denied of requests they make for time off, even if they are entitled to them. Workplace bullying victims are made to think that they are at fault even though it is the bully who is wrong. Workplace bullies will do whatever it takes to eliminate their perceived threats.

It can be hard to identify workplace bullying and even harder to stop it, keeping a record of bullying interactions and remaining calm is the best way to deal with workplace bullying. Sometimes it will be necessary to take your problems to your superiors, even if you skip over a direct supervisor. Do not accept workplace bullying and do your best to try and stop it.

This is the first post in a series on bullying. Stay tuned for more!

Basics of Workplace Fraud Investigation

There are many ways to begin a fraud investigation, but most professionals know to start with the basics.  A competent fraud investigation needs to determine if fraud has been committed.  The basic steps will establish if there is a case to investigate.

Typically in the past, most fraud cases could be discovered through a review of paperwork, including checks, contracts, and insurance forms.  In today’s electronic age, though, digital files are of the highest concern.  Special software programs can be used to detect unusual activity in a computer system.  Analyzing that software data will alert a trained investigator to problems.

Along with files, investigators will search for physical evidence, from fingerprints to stolen items, including credit cards and cash.  Investigators will need to interview everyone involved in the fraud, including company executives, financial managers, and administrative employees.  Testimony from interviews can be compared to check for inconsistencies.  Background checks will also give investigators a more complete record of employees.

In addition to current information, investigators look at past records.  This may include previous audits or investigations, records of former employees who may have been terminated for suspicious behavior, and security log-in books.  Digital transactions leave behind a trail of digital footprints.  Many criminals do not necessarily understand that digital footprints can be followed.  Many companies use software programs to monitor all keyboard strokes on employees’ computers.

Laying the foundation for a workplace fraud investigation takes time and patience.  Following basic steps to build a case is necessary in order to establish whether fraud has been committed.   Professional fraud investigators use all the tools at their disposal to look at evidence.  Strong documentation of the steps taken in the case demonstrates investigative skill. They know that building a solid case in the beginning of the investigation based on facts will support the conclusions drawn about the situation.

Unemployment Raises Risk of Workplace Violence

A recent shooting at a Reno, NV Wal-Mart emphasizes the necessity for training of managers in the prevention of workplace violence.

From the article;

“In what may be the latest incident of workplace violence relating to potential unemployment, an employee who believed he was about to be terminated from a Wal-Mart Store in South Reno, Nevada opened fire on three supervisory employees at the store he had worked.”

What the article went on further to say dramatizes the need for training in workplace violence prevention. It was all a misunderstanding.

“Wal-Mart officials released a statement on Monday that there were no plans to fire Mr. Gillane. Police Chief Pitts said that it was clear that Mr. Gillane was not summoned to the store to be terminated as suggested in initial news reports, but his arrival at the store was unexpected, as he was not scheduled to report to work on the day of the attack.  Police did confirm that during his interview at the police station, Mr. Gillane did say he had “grievances” and may well have expected to be laid off or terminated.

It was unknown why he chose that day to confront the managers at gunpoint. Earlier reports had suggested the incident was related to a possible retaliation attack due to a firing or planned termination however as more and more facts become known, the motivations behind the attack remain murky.”

As the unemployment situation worsens, increased violence and misunderstandings can only be expected. The article ends with this chilling observation;

“More and more some unemployed are making statements which have been interpreted by some observers to be advocating violent reaction to not only the continued high unemployment but also the lack of a Tier V and continued concerns about the looming vote to regarding unemployment extension when the Congress meets again in Washington. Just last week, the Indiana Unemployment Agency announced that it was deploying armed security personnel at its state unemployment offices to guards against the potential for violence.”

The Maltz Group, Member of Association of Threat Assessment Professionals

The Association of Threat Assessment Professionals (ATAP) was founded in 1992 as a non-profit organization comprised of law enforcement, prosecutors, mental health professionals, corporate security experts, probation and parole personnel and others involved in the area of threat and violence risk assessment. The purpose of ATAP is to afford its members a professional and educational environment to exchange ideas and strategies to address such issues as stalking, threats, and homeland security. The primary focus of this organization is to provide the necessary knowledge, tools, and support to better prepare our membership to handle these types of situations. Our commitment is to expertly address these issues through seminars and training and networking with other professionals working in this field.

Founded in 1992 by the Los Angeles Police Department’s Threat Management Unit, The Association of Threat Assessment Professionals (ATAP) is a non-profit organization whose objective is to learn more about how best to protect victims of stalking, harassment and threat situations. Its mission is to share and facilitate the experiences and techniques of professionals in the field of threat assessment and/or threat management. The organization serves to create both a professional and academic environment where flow of information is fostered in the following areas:

ATAP is a diverse association comprised of professionals such as law enforcement officers, prosecutors, mental health professionals, and corporate security experts. The Association affords its members a professional and educational environment for the exchange of experience and assessment/intervention techniques, which span all areas of case management. ATAP’s ultimate goal is to assist our members in becoming better equipped to protect those in need and manage threatening or high-risk situations.

While these cases have been handled on a daily basis by law enforcement agencies for some time, the increase of workplace violence incidents and terrorism has created a need to combine forces with the private sector. Through the Association’s case study review, perpetrator profiles have been developed, warning signs identified, and preventative measures delineated for victims and others involved in these highly volatile situations.

The benefits of the association in Los Angeles were immediately apparent and the chapter vision was expanded nationwide. Currently there are 11 chapters within the United States.

Certified Fraud Examiner

Before someone may apply for the CFE Exam, they must meet the following requirements:

• Be an Associate Member of the ACFE in good standing
• Meet minimum Academic and Professional requirements
• Be of high moral character
• Agree to abide by the Bylaws and Code of Professional Ethics of the Association of Certified Fraud Examiners

Academic Requirements
Generally, applicants for CFE certification have a minimum of a Bachelor’s degree (or equivalent) from an institution of higher learning. No specific field of study is required. If you do not have a Bachelor’s degree, you may substitute two years of fraud-related professional experience for each year of academic study. For example, if you successfully attended college full-time for only two years, you would need an additional four years of professional experience to qualify for the education requirements.

Professional Requirements
At the time they are certified, they must have at least two years of professional experience in a field either directly or indirectly related to the detection or deterrence of fraud.

The Board of Regents has established the following categories as acceptable fraud-related experience:

• Accounting and Auditing: You may qualify if you have experience as an accountant or auditor (e.g., internal or external auditor), and have certain responsibilities for the detection and deterrence of fraud by evaluating accounting systems for weaknesses, designing internal controls, determining the degree of organizational fraud risk, interpreting financial data for unusual trends, and following up on fraud indicators.
• Criminology and Sociology: Only those professionals with education or research in the fraud and white-collar crime dimensions of sociology or criminology may claim experience under this category. An experienced background in general sociological fields is insufficient.
• Fraud Investigation: Experience in the investigation of civil or criminal fraud, or of white-collar crime for law enforcement agencies or in the private sector, qualifies. Examples include federal, state, or local law enforcement (e.g., IRS, inspectors general, and district attorney investigators). Insurance fraud investigators and fraud examiners working for corporations, businesses, or associations qualify as well.
• Loss Prevention: Security directors for corporations and associations who deal with issues of loss prevention may claim this experience as credit. Security consultants dealing with fraud-related issues also are eligible. Experience as a security guard or equivalent is not acceptable.
• Law: Candidates with experience in the legal field might qualify, provided the experience deals with some consideration of fraud. Examples include prosecuting lawyers, fraud litigators, and others with an anti-fraud specialization.

The Maltz Group are Certified Fraud Examiners. For more information on what a Certified Fraud Examiner can do for you, contact Rick Maltz at;

(443) 745-8478