Navigating the New Normal – Strategies for Public Safety, Public Entities, and Risk Pools

Mitch Javidi, Ph.D., Nancy Bohl-Penrod, Ph.D. Sam Spiegel (Ret. Chief), and Jeff Kingsfield

The "new normal" for public safety and cities, shaped by post-pandemic realities, evolving social landscapes, and rapid technological advancements, presents a complex set of challenges for risk pools. Risk pools, collective insurance arrangements that spread risk across multiple public sector entities, are integral to the financial health and operational stability of municipalities, public safety organizations, and other governmental bodies. As cities and public safety entities navigate these uncharted waters, adapting to new risks while maintaining essential services is paramount.

This white paper outlines the key challenges public safety and city risk pools face in the new normal and presents actionable strategies for effectively addressing each challenge.

1. Increased Claims and Costs

Key Challenges

• Health-Related Claims: The COVID-19 pandemic's lingering effects have led to increased health-related claims, particularly those related to mental health services, long-term healthcare needs, and pandemic-related liabilities.
• Workers' Compensation: Public safety officers and city workers have faced higher risk exposure, leading to increased workers' compensation claims. The long-term health impacts of COVID-19 also contribute to this rising cost.

Strategies

1. Enhanced Data Analytics: Implement advanced data analytics to identify claims trends and proactively manage high-risk areas, reducing overall costs.
2. Wellness Programs: Invest in comprehensive wellness programs for public safety personnel to reduce long-term health-related claims and improve overall workforce well-being.
3. Alternative Funding Sources: Explore alternative funding mechanisms, such as grants and partnerships, to offset rising insurance costs and ensure sustainability.
4. Risk Sharing Agreements: Develop and strengthen inter-municipal agreements for shared risk, reducing the financial burden on individual entities.

2. Cybersecurity Threats

Key Challenges

• Increased Cyber Attacks: The rise in remote work and digital services has led to a surge in cyberattacks, including ransomware and data breaches. Cities and public safety organizations are prime targets due to the sensitive nature of their data.
• Cost of Cyber Insurance: The cost of cyber insurance has risen sharply due to increased claims, making it a significant challenge for risk pools.

Strategies

1. Cybersecurity Training: Provide regular, mandatory cybersecurity training for all employees to reduce human-related risks and strengthen the first line of defense.
2. Incident Response Plans: Establish and regularly update incident response plans to mitigate cyber-attack effects and minimize damage quickly.
3. Multi-Layered Security: Implement multi-layered cybersecurity measures, including encryption, firewalls, and continuous monitoring, to protect against a wide range of threats.
4. Cyber Insurance Coverage: Regularly review and update cyber insurance policies to ensure adequate coverage in response to evolving threats and emerging risks.

3. Civil Unrest and Liability

Key Challenges

• Protests and Civil Disobedience: Increased civil unrest, protests, and tensions with law enforcement have resulted in higher liability claims for property damage, personal injury, and law enforcement actions.
• Litigation Risks: There is a growing trend of litigation against public safety entities, which increases legal expenses and requires robust liability coverage.

Strategies

1. Community Engagement: Foster strong community relationships through engagement initiatives to reduce tensions, build trust, and mitigate potential liabilities.
2. Crisis Management Protocols: Develop and practice crisis management protocols for handling civil unrest to minimize liability and ensure a coordinated response.
3. Legal Support Services: Provide legal support to public safety officers to help them navigate the complexities of new accountability laws and reduce litigation risks.
4. Enhanced Training: Provide ongoing de-escalation and crowd management training to reduce the risk of excessive force incidents and associated liabilities.

4. Natural Disasters and Climate Change

Key Challenges

• Frequency and Severity of Disasters: Climate change has led to more frequent and severe natural disasters (wildfires, floods, hurricanes), increasing property damage claims, and the financial strain on risk pools.
• Infrastructure Resilience: Aging infrastructure and the need for climate resilience have increased the cost of maintenance, repairs, and insurance.

Strategies

1. Disaster Preparedness: Invest in robust disaster preparedness and response plans, including regular drills and community education, to reduce the impact of natural disasters.
2. Climate-Resilient Infrastructure: Prioritize investment in climate-resilient infrastructure to mitigate the impact of natural disasters and reduce long-term costs.
3. Insurance Policy Review: Regularly review and update insurance policies to reflect the increased risks associated with climate change and ensure adequate coverage.
4. Mutual Aid Agreements: Strengthen mutual aid agreements with neighboring jurisdictions to share resources and coordinate response during disasters.

5. Economic Uncertainty

Key Challenges

• Budget Constraints: Economic challenges, including inflation and reduced tax revenues, have strained city budgets, leading to reduced funding for risk pools and higher insurance premiums.
• Pension Liabilities: The financial health of pension funds, particularly for public safety personnel, is a growing concern, impacting the fiscal stability of cities and risk pools.

Strategies

1. Cost-Sharing Initiatives: Implement cost-sharing initiatives across municipalities to reduce individual financial burdens and increase economic stability.
2. Long-Term Financial Planning: Develop long-term financial planning strategies that account for potential economic downturns and ensure the sustainability of risk pools.
3. Revenue Diversification: Encourage cities to diversify revenue streams to reduce reliance on a single funding source and enhance financial resilience.
4. Pension Reform: Advocate for pension reform to ensure long-term financial sustainability and reduce liability for cities.

6. Public Safety Workforce Challenges

Key Challenges

• Recruitment and Retention: The recruitment and retention of public safety personnel are increasingly difficult due to the challenging work environment, which can lead to potential understaffing and higher overtime costs.
• Mental Health and Wellness: The mental health of public safety officers has become more prominent. More resources are needed to address these issues, which are contributing to increased claims and insurance costs.

Strategies

1. Retention Incentives: To improve workforce stability, introduce retention incentives such as bonuses, career development programs, and mental health support.
2. Recruitment Campaigns: Launch targeted recruitment campaigns that emphasize the value and benefits of public safety careers to attract new talent.
3. Work-Life Balance Initiatives: Implement work-life balance initiatives to reduce burnout, improve job satisfaction, and enhance overall workforce well-being.
4. Cross-Training Programs: Develop cross-training programs to ensure flexibility in workforce deployment, reduce overtime costs, and enhance operational efficiency.

7. Evolving Legal and Regulatory Landscape

Key Challenges

• Police Reform and Accountability: Changes in laws and regulations regarding police conduct and accountability have increased scrutiny and liability, impacting risk assessments and insurance premiums.
• Compliance Costs: Compliance with new regulations, such as those related to workplace safety and public health, increases operational costs for cities and public safety organizations.

Strategies

1. Compliance Audits: Conduct regular compliance audits to ensure adherence to new regulations and reduce the risk of penalties and legal liabilities.
2. Policy Updates: Regularly update internal policies and procedures to reflect laws and best practices changes, ensuring all staff is informed and compliant.
3. Legal Education: Provide ongoing legal education and resources for public safety personnel to stay informed about new regulations and reduce non-compliance risk.
4. Engagement with Lawmakers: Engage with lawmakers and policymakers to advocate for realistic and manageable regulatory changes that balance public safety needs with operational realities.

8. Social and Technological Changes

Key Challenges

• Technology Integration: Integrating new technologies (e.g., body cameras, drones, AI) requires significant investment and poses new liability challenges, such as data privacy concerns.
• Social Expectations: Changing public expectations regarding transparency and accountability in public safety increases the pressure on cities and their insurance arrangements to adapt and mitigate risks.

Strategies

1. Tech Integration Strategy: Develop a clear strategy for integrating new technologies, including training and privacy considerations, to minimize risks and maximize benefits.
2. Public Transparency Initiatives: Implement public transparency initiatives to build trust, meet social expectations, and reduce liability risk.
3. Pilot Programs: Pilot programs test new technologies before full-scale implementation to identify and mitigate risks and ensure smooth adoption.
4. Stakeholder Collaboration: Collaborate with stakeholders, including the community and technology providers, to ensure the smooth adoption of new tools and technologies.

2020-2024 Lessons Learned - Imperatives From Recent Focus Group

On July 18, 2024, a virtual focus group was convened by Dr. Mitch Javidi, bringing together 15 seasoned risk managers (random sample representing participants from different US Regions) to discuss the critical lessons learned since the onset of the COVID-19 pandemic. This diverse group of professionals, representing various municipalities and public safety organizations, engaged in a comprehensive dialogue to identify the key imperatives that have emerged over the past four years. The insights generated from this discussion have been synthesized into the following strategic takeaways designed to guide risk pools, risk managers, and city leaders as they navigate the challenges of the "new normal."

1. Adaptability and Agility in Crisis Response

• Lesson Learned: The pandemic underscored the importance of adaptability and agility in response to rapidly changing circumstances. Rigid plans and processes proved inadequate in an unprecedented global crisis.
• Takeaway: Encourage the development of flexible emergency response plans and decision-making processes that allow for quick adaptation to new information and situations. Regularly update and practice these plans to ensure readiness.

2. Importance of Data-Driven Decision Making

• Lesson Learned: Relying on accurate, real-time data was crucial during the pandemic for making informed decisions about public health measures, resource allocation, or communication strategies.
• Takeaway: Invest in robust data collection and analysis systems. Ensure that risk managers and city leaders have access to real-time data to make informed decisions, particularly during crises.

3. Resilience Through Diversification

• Lesson Learned: Entities that diversified their resources, supply chains, and revenue streams fared better during the pandemic. Over-reliance on a single source of income, supplier, or resource proved risky.
• Takeaway: Encourage the diversification of revenue streams and supply chains. Risk pools should consider diversified insurance products to spread and mitigate risks effectively.

4. Enhancing Cybersecurity Infrastructure

• Lesson Learned: The shift to remote work and increased digitalization highlighted vulnerabilities in cybersecurity. Cyber attacks increased dramatically, impacting public safety operations and municipal functions.
• Takeaway: Strengthen cybersecurity measures, including regular training, multi-layered security protocols, and updated incident response plans. Emphasize investing in cybersecurity infrastructure to protect sensitive data and operations.

5. Mental Health and Workforce Wellness

• Lesson Learned: The pandemic placed significant strain on mental health, particularly among public safety personnel and city workers. The impact on mental health directly affected productivity, morale, and overall workforce stability.
• Takeaway: Prioritize mental health and wellness programs. Risk managers and city leaders should implement comprehensive wellness initiatives that include mental health support, stress management resources, and access to counseling services.

6. Interagency and Public-Private Collaboration

• Lesson Learned: Collaboration between agencies and public and private sectors was crucial in managing the pandemic’s challenges. Those who fostered strong partnerships could mobilize resources and respond more effectively.
• Takeaway: Build strong relationships with other agencies, community organizations, and private sector partners. This collaboration can enhance resource sharing, communication, and coordinated responses in future crises.

7. The Necessity of Financial Reserves and Contingency Planning

• Lesson Learned: Municipalities and organizations with adequate financial reserves were better equipped to handle the economic disruptions caused by the pandemic. Contingency planning proved essential for maintaining operations.
• Takeaway: Encourage the establishment and maintenance of financial reserves and contingency funds. Ensure that risk pools and city budgets include provisions for unexpected events to sustain operations during crises.

8. Public Communication and Transparency

• Lesson Learned: Effective communication with the public was a significant factor in maintaining trust and compliance with public health measures. Transparency about risks and decisions helped manage public expectations.
• Takeaway: Develop robust communication strategies that prioritize transparency and timely updates. Use multiple platforms to reach diverse audiences and provide clear, consistent messaging during emergencies.

9. Leveraging Technology for Continuity of Operations

• Lesson Learned: Technology played a critical role in ensuring continuity of operations, from remote work to virtual meetings and digital service delivery. Entities that quickly adapted to technological solutions were able to maintain essential services.
• Takeaway: Invest in technology that supports remote work, digital services, and virtual communication. Ensure staff are trained to use these tools effectively to maintain operations during disruptions.

10. Community Resilience and Support Systems

• Lesson Learned: Communities with strong social support systems and mutual aid networks were more resilient during the pandemic. Community engagement and support played a vital role in recovery.
• Takeaway: Foster community resilience by supporting local networks, encouraging volunteerism, and building solid relationships with community organizations. Risk managers should consider community support as part of broader risk management strategies.

11. Health and Safety Protocol Evolution

• Lesson Learned: The pandemic required the rapid development and implementation of health and safety protocols, which evolved as new information about the virus emerged. Organizations that were quick to adopt and adapt these protocols maintained safer environments.
• Takeaway: Establish a framework for continuously evolving health and safety protocols based on the latest public health guidance and scientific research. Regularly update training and communication to reflect changes.

12. Supply Chain Resilience

• Lesson Learned: Disruptions in global and local supply chains had significant impacts, particularly on essential goods like PPE and medical supplies. Organizations that had diversified suppliers or local alternatives were better positioned to manage shortages.
• Takeaway: Develop a supply chain resilience strategy that includes diversified sourcing, local alternatives, and stockpiling critical supplies. Risk managers should regularly review and stress-test supply chain vulnerabilities.

13. Remote Work Policies and Infrastructure

• Lesson Learned: The rapid shift to remote work exposed the need for clear policies, infrastructure, and support systems. Organizations that already had flexible work arrangements in place were able to transition more smoothly.
• Takeaway: Develop and formalize remote work policies, ensuring they include clear guidelines on productivity, security, and communication. Invest in the necessary infrastructure to support remote work in the long term.

14. Equity and Inclusion in Crisis Response

• Lesson Learned: The pandemic disproportionately affected vulnerable populations, highlighting the need for equitable access to resources and support. Risk management strategies that overlooked these aspects faced more significant challenges.
• Takeaway: Equity and inclusion should be integral to crisis response planning. Consider the needs of vulnerable and underserved populations in all aspects of risk management, from communication to resource allocation.

15. Continuous Learning and Improvement

• Lesson Learned: The pandemic underscored the importance of continuous learning and improvement. Organizations that fostered a culture of learning, openness to feedback, and adaptability were better able to respond effectively.
• Takeaway: Promote a culture of continuous learning within organizations. Conduct after-action reviews post-crisis to capture lessons learned and improve future responses.

16. Interoperability of Systems and Services

• Lesson Learned: The effectiveness of response efforts was often hampered by a lack of interoperability between different systems and services, such as health data systems and emergency response networks.
• Takeaway: Focus on enhancing the interoperability of systems and services across agencies and sectors. This includes data sharing, communication platforms, and coordinated service delivery.

17. Mental Resilience and Crisis Leadership

• Lesson Learned: Crisis leadership became a crucial factor in managing the pandemic’s challenges, with leaders who demonstrated mental resilience, empathy, and clear communication being more successful.
• Takeaway: Train leaders in crisis leadership skills, emphasizing mental resilience, clear communication, and empathetic decision-making. Leadership development should include preparing for high-stress scenarios.

18. Legal and Regulatory Flexibility

• Lesson Learned: The pandemic necessitated rapid legal and regulatory framework adjustments, sometimes requiring temporary suspensions or modifications of existing rules.
• Takeaway: Advocate for legal and regulatory frameworks for flexibility in crises. Develop pre-approved emergency protocols that can be quickly enacted to address unforeseen challenges.

References

1. National League of Cities (NLC). (2021). The Future of Public Safety: Exploring the New Normal for Cities. National League of Cities Report.
2. International City/County Management Association (ICMA). (2022). Managing Risks in the New Normal: A Guide for Local Governments. ICMA Guide.
3. Federal Emergency Management Agency (FEMA). (2020). Building Resilient Infrastructure and Communities (BRIC) Program. FEMA BRIC Program.
4. Cybersecurity & Infrastructure Security Agency (CISA). (2023). Cybersecurity Best Practices for Local Governments. CISA Best Practices.
5. The Pew Charitable Trusts. (2021). State and Local Pension Funding: The Current Status. Pew Research on Pension Funding.
6. McKinsey & Company. (2021). Reimagining Public Safety for the New Normal. McKinsey Report.
7. National Association of Counties (NACo). (2022). The Role of Counties in Disaster Resilience and Climate Adaptation. NACo Report.
8. American Society for Public Administration (ASPA). (2023). Evolving Legal and Regulatory Challenges in Public Safety. ASPA Journal.
9. Harvard Kennedy School of Government. (2021). Building Trust in Public Safety: Strategies for Community Engagement. Harvard Kennedy School Research.
10. National Institute of Standards and Technology (NIST). (2022). Guidelines for Integrating Emerging Technologies in Public Safety. NIST Guidelines.