Employment practices liability insurance is available to provide businesses with a form of risk transfer. With the insurance, the business can transfer at least part of the cost of risk to another source. Reviewing employment policies to avoid the chances of an employee lawsuit is considered risk mitigation. Taking advance action to consider potentials for risk and prevent problems from occurring is part of risk avoidance. Being familiar with chances of risk and creating a financial buffer against future costs is considered risk acceptance.

Coordination of benefits rules require that the insurance plan listed as primary will be charged first, and any residual charges will be processed by the secondary payer.

When change is introduced, there is likely to be some initial decline in performance, which is known as the "J curve." Employees of ten react to change with resistance and rejection. As a result, productivity declines. If the change initiative is managed well, then employees will come to accept the change, and performance will ideally increase above the initial level.

WHILE some version of each of these options may occur during the human resources representative's response to the situation, the critical first step to any unclear situation is to collect pertinent information and facts that illustrate what is actually happening. Reviewing the company handbook is dependent on a clear picture of what actions the supervisor took that may or may not have broken company policy. If Sally did not feel comfortable going to her supervisor right away, there may be more at play than just the questionable documents; by fact-finding first the representative can determine what communication, if any, may need to happen betv;een Sally and her supervisor. Reaching out to the CEO may or may not be appropriate based on the size of the organization; alerting the correct organizational leader(s) may be an important step, depending on the results of the initial fact-finding investigation.

In the PAPA model, this risk falls in the adapt category because the event is approaching slowly but surely. The organization is certain that it is going to happen but has time to adapt to the circumstances.