Business Pulse

More documents

Recommendations

Info

Guest Column: Risk Management Don C. Brunell | Past President, AWB Don Brunell retired in January 2014 after 28 years as president of the Association of Washington Business. Formed in 1904, the AWB is Washington’s oldest and largest statewide business association. Its roster has more than 8,100 members representing 700,000 employees, serving as both the state’s chamber of commerce and the manufacturing and technology association. Membership includes major employers like Boeing and Microsoft, but 90 percent of AWB members employ fewer than 100 people. More than half of AWB’s members employ fewer than 10. For more about AWB, visit www.awb.org. Putting risk in perspective Where there is life, there is risk. That’s not some insightful quotation, it’s just a fact. We’re exposed to risk from the moment we get up in the morning – slip and fall, dog bite, traffic accident, lightning strike. We can manage risk, we can minimize risk, but we cannot eliminate it. That fact used to be accepted as common sense, but in today’s society, people have come to believe that any degree of risk is unacceptable. In fact, trial lawyers have won lawsuits, not because their clients were injured, but because they feared they might be. Why does this matter to you? When government tries to ensure a virtually risk-free environment, it imposes regulations that are needlessly punitive and costly. We pay those costs through higher prices and lost jobs. Case in point: estimating environmental risk. There are two common ways to calculate risk. One method is easier and cheaper; the other is more accurate. Most government agencies use the first one. It’s called the “deterministic” method. This method is easier for agencies to use because it’s simple and it doesn’t require a lot of data. The only problem is it’s less accurate. It tends to overestimate risk. But that’s not all. Regulators routinely take that overestimated risk level and compound it by adding an additional layer of buffer – “just to be safe.” As a result, you end up with regulations that are far more restrictive and costly than necessary to provide protection. A recent study by HDR Engineering estimates that imposing these standards in Washington would cost local governments, ports, ratepayers and businesses billions, with little or no environmental benefit. Last November, the Washington Department of Ecology announced that it will likely use this method as it updates the state’s Fish Consumption Level – one factor in a complex formula that determines our state’s water quality standards. That’s a problem. Ecology’s starting point on this issue was extreme to begin with. They wanted to use the same FCR that Oregon used, one which resulted in water quality standards that are virtually impossible to meet because the technology to comply doesn’t exist, and may not for decades. In some cases, the allowable levels are so low they can’t be measured with existing technology. A recent study by HDR Engineering estimates that imposing these standards in Washington would cost local governments, ports, ratepayers and businesses billions, with little or no environmental benefit. Despite that, Ecology still plans to use this less accurate method to calculate environmental risks. There is a better way. It’s called the probabilistic method, as in “probabilities.” It’s more comprehensive, more precise and more accurate. This method analyzes large amounts of data and thousands of variables in order to calculate a range of exposures and risks across various populations and circumstances. The result is a more nuanced, realistic picture of environmental risk. Think of it this way: When you walk out of your house, there’s a risk you could get struck by lightning. Lightning strikes occur every day somewhere on the globe. But how likely is it that it will happen to you? That’s the question that is better answered by the probabilistic method. 100 | BUSINESSPULSE.COM
Ecology has used the probabilistic method, and the EPA says it provides the best basis for decision-making. “Because the results of the refined risk assessment show the range of possible environmental impacts and which ones are most likely to occur, they provide a better basis for decisionmaking.” If that’s true, why isn’t Ecology using it now? Good question. It’s a question being asked by the members of the Northwest Pulp & Paper Association, who recently submitted a report to Ecology on the probabilistic method prepared by ARCADIS, a global leader in environmental engineering and risk assessment. NWPPA has asked Ecology to use the more accurate probabilistic method as the agency updates our state’s water quality standards. Let’s hope they listen. Way To Go Start-Up Business of the Year Fellow Finalists! We are proud to be in such good company. The Laundromat For Busy People. 360.656.5621 q-laundry.com LegalShield Plans > Small Business > Individual Plans At LegalShield, small businesses beneet big. We believe every business and individual should have access to affordable, quality legal coverage. Some of our small business services include: • Legal consultation on unlimited matters • Business law expertise • Contract and document review • Debt collection assistance • Legal correspondence • Trial defense services Contact Randall Sheriff, your Whatcom County representative for details! (360) 306-9474 or www.rjsheriff.legalshieldassociate.com “The best thing about having the legal plan is the peace of mind it brings in knowing that I have the legal coverage I need in case of a crisis or legal problem.” - Page Cole WHATCOMBUSINESSALLIANCE.COM | 101
Page 1 and 2:
28TH Whatcom Business Person of the
Page 3 and 4:
What An SBA Preferred Lender Can Do
Page 5 and 6:
THE STYLE REVOLUTION BEGINS For tho
Page 7 and 8:
Whatcom County ... ... the heart of
Page 10 and 11:
Leading Off At our most recent WBA
Page 12 and 13:
Business Profile: Hempler’s Hempl
Page 14 and 15:
Business Profile: Hempler’s Idaho
Page 16 and 17:
Business Profile: Hempler’s sausa
Page 18 and 19:
Business Profile: Hempler’s watch
Page 20 and 21:
Business Person of the Year From le
Page 22 and 23:
Business Person of the Year Finalis
Page 24 and 25:
Page 26 and 27:
Page 28 and 29:
Page 30 and 31:
Start-Up Business of the Year Final
Page 32 and 33:
Page 34 and 35:
Page 36 and 37:
Page 38:
Small Business of the Year Finalist
Page 42 and 43:
Page 44 and 45:
Page 46 and 47:
Lifetime Achievement Award: Dan Was
Page 48 and 49:
Lifetime Achievement Award: Dan Was
Page 50 and 51: Lifetime Achievement Award: Dan Was
Page 52 and 53: Where Are They Now? Since then he h
Page 54 and 55: Where Are They Now? Rud Browne (Fil
Page 56 and 57: Where Are They Now? Small Business
Page 58 and 59: Industry Report - Golf In Whatcom C
Page 76 and 77: Philanthropy: Mt. Baker Chapter Red
Page 82 and 83: Personally Speaking: WWU President
Page 84 and 85: • Education: B.S., Master’s, an
Page 88 and 89: “We Got It” Service is our Spec
Page 96 and 97: Guest Column: Minimum Wage Law Erin
Page 98 and 99: Guest Column: Free-Market Environme
Page 102 and 103: Guest Column: Lean Business Randall
Page 104 and 105: Guest Column: Water Rights Ken Mann
Page 106 and 107: Guest Column: Water Rights Roger Al
Page 108 and 109: Whatcom Business Alliance Fostering
Page 110 and 111: Ask the Experts: Life in the Tech L
Page 112 and 113: free for personal and commercial us
show all

Business Pulse

Create successful ePaper yourself

Delete template?

Save as template?