Vasiliy I. Nadraga 1 PROFESSIONAL RISKS IN THE SYSTEM OF SOCIAL RISKS: THE CAUSAL ASPECT

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1 272 ДЕМОГРАФІЯ, ЕКОНОМІКА ПРАЦІ, СОЦІАЛЬНА ЕКОНОМІКА І ПОЛІТИКА Vasly I. Nadraga 1 PROFESSIONAL RISKS IN THE SYSTEM OF SOCIAL RISKS: THE CAUSAL ASPECT The paper nvestgates the causal relatonshps of professonal rsks. The cost of njury rsk at work s defned. The model for coordnaton of professonal and socal rsks crtera s offered. Keywords: professonal rsks; socal rsks; cost assessment methods. Василь І. Надрага ПРОФЕСІЙНІ РИЗИКИ В СИСТЕМІ СОЦІАЛЬНИХ РИЗИКІВ: ПРИЧИННО-НАСЛІДКОВИЙ АСПЕКТ У статті досліджено причинно-наслідкові зв'язки професійних ризиків. Визначено ціну ризику травмування на виробництві та запропоновано модель узгодження критеріїв професійного і соціального ризиків. Ключові слова: професійні ризики; соціальні ризики; методи оцінки. Форм. 5. Табл. 2. Літ. 13. Василий И. Надрага ПРОФЕССИОНАЛЬНЫЕ РИСКИ В СИСТЕМЕ СОЦИАЛЬНЫХ РИСКОВ: ПРИЧИННО-СЛЕДСТВЕННЫЙ АСПЕКТ В статье исследованы причинно-следственные связи профессиональных рисков. Определена цена риска производственной травмы, а также предложена модель согласования критериев профессионального и социального рисков. Ключевые слова: профессиональные риски; социальные риски; методы оценки. Introducton. Scentfc and technologcal progress, wth ts clear advantages also causes such negatve socal consequences as rsky professons, ther complexty and quanttatve growth of rsks. The occupatonal employment rsk can be consdered one of the key elements n the theory of socal rsks: f a person loses hs/her workng capacty for varous reasons of ndustral nature, the compensaton nvolves not only the payment of lost ncome but also the rembursement of medcal, vocatonal and socal rehabltaton of the vctm. Moreover, a sharp drop n ncome results n a change of hs/her socal status. The category of professonal rsks s caused by a synergetc effect of the factors actng wthn ndustral socety and market economy. It s expressed n a weak economc protecton of employees n ther workplaces, regardless the man cause of job loss unemployment or loss of physcal capacty to work due to llness, dsablty or retrement age. E. Gdens (2001) states that the problem of occupatonal safety as a global component of socal lfe s not just an abstract ntellectual feld of actvty, t has great practcal applcaton prospects n the lfe of every ndvdual. The group of professonal rsks assocated wth njury danger of ndustral factors mplementaton has an mportant role n the aggregate of rsks. Thus, accordng to the ILO around 6 ths people de daly due to occupatonal dseases and accdents at work. 1 Insttute of Demography and Socal Research of the Natonal Academy of Scences of Ukrane, Kyv, Ukrane. Vasly I. Nadraga, 2014

2 ДЕМОГРАФІЯ, ЕКОНОМІКА ПРАЦІ, СОЦІАЛЬНА ЕКОНОМІКА І ПОЛІТИКА 273 In recent years, the role of rsks management as a tool to mnmze losses and mprove producton effcency s constantly ncreasng, because rsks are actualzed themselves as a result of complcatons of most manufacturng processes. Professonal rsk s assocated wth uncertanty and probablstc characterstcs of object-subject relatonshps: the mpact of man-caused envronment on human, the subjectve percepton of rsk, labor safety, mechansms of socal nsurance and rehabltaton. The urgency of professonal rsks problem s ncreasng due to the ntroducton of new mechansms for compulsory socal nsurance aganst ndustral accdents and occupatonal dseases. Therefore, scentsts have the task to develop theoretcal and methodologcal tools for the evaluaton of the resultng effects from nteracton of avalable levels and types of professonal rsks, subjects of rsk and mplementaton of management decsons. Recent research and publcatons analyss. In January, 2013 the World Economc Forum publshed the report "Global Rsks n 2013" n whch 50 global rsks were analyzed and grouped (Global Rsks, 2013). All rsks were summarzed n 2 groups: - healthcare and overconfdence of manknd; - economc and envronmental problems; - the so-called "dgtal fres". Havng analyzed domestc and nternatonal experence, N. Romas' (2010) offers a method of calculatng the rsk of accdents at enterprses accordng to the statstcs based on severty, ncludng deaths and permanent dsablty. T. Tarova (2012) presents the analyss of age-specfc dstrbuton serously and fatally njured at work employees. It revealed sgnfcant dfferences n age among severely and fatally njured employees and dentfed the age group wth the hghest njury rate. A. Cyna (2012), who explores the problems of socal partnershp of labor protecton n Ukrane, offers several levels of mplementaton of socal dalogue on labor protecton at enterprses, n organzatons and nsttutons. R. Tnto (2011), analyzng the possbltes of socal rsks actualzaton, emphaszes ther non-economc consequences, and provdes a rsk assessment algorthm, whch s based on the assessment of lkelhood and consequences of dentfed rsks and comparng them wth the known threshold value. Unresolved ssues. Analyss of scentfc publcatons has proved the nsuffcency n the research on the causalty ssue for socal and professonal rsks and the need to clarfy the cost assessment methods for professonal rsks. Key research fndngs. Consderng the socal aspect of professonal rsk, t should be noted that ts essental characterstcs s the probablty of nsurance cases occurrence for a partcular professonal group, whch results n ncome loss (t can be ether an accdent at work, or an occupatonal dsease). Occupatonal health s a sgnfcant crteron of economc development of a country, a prerequste of ts populaton socal wellbeng. Health status of workers s a drect reflecton of the degree of effects of unfavorable factors of endogenous and exogenous nature, heredty, excess and qualty of medcal care, n the frst place. Occupatonal dsease means the nablty of human body to adapt to constantly changng condtons of work envronment, occurrng as a result of professonal ACTUAL PROBLEMS OF ECONOMICS #8(158), 2014

3 274 ДЕМОГРАФІЯ, ЕКОНОМІКА ПРАЦІ, СОЦІАЛЬНА ЕКОНОМІКА І ПОЛІТИКА human actvty and specfed by exceptonal or prmarly acton of factors of work envronment, typcal for a defnte professon. Accordng to the Internatonal Labor Organzaton nearly 160 mln cases of occupatonal dseases are recorded n the world annually and economc negatve proft for socety, owng to ths, makes 4 5% of the world GDP,.e. more than bln USD (For the work safety, 2011). The level of professonal rsk for a partcular professonal group can characterze: - the probablty of nsurance cases occurrence; - types and duraton of dsablty; - types of compensaton, a set of medcal and rehabltaton servces. The object of study of the professonal rsks s the workplace where rsky stuaton can have place. The study subject for professonal rsks can be both the statstcs of occupatonal njures, occupatonal dseases and certan professonal rsk factors. The analyses determne the areas of nfrastructure rsk management and preventve measures to them. In the frst half of 2013 the member of the Executve Drectorate of Socal Insurance Fund aganst accdents at work and occupatonal dseases of Ukrane receved 5601 reports on occupatonal accdents, n whch 5740 people were njured, ncludng 751 people who were fatally njured. Organzaton causes of accdents domnate 65.7% (2974) among all the accdents. The number of accdents due to techncal reasons s 13.1% (594) of all the accdents, physologcal 21.2% (969) of all. In 2012, the member of the executve management of the Fund recorded 10,822 (ncludng 648 fatal) vctms of ndustral accdents. Comparng wth the same perod n 2011, the number of nsurance accdents decreased by 7% (from to 10822). The number of fatally njured people decreased by 0.5% (from 651 to 648) (Table 1). These data may show a general trend, but cannot serve as an objectve bass for the formulaton and mplementaton of state polcy measures as to the predcton and mnmzng professonal rsks. Justfcaton of the cost assessment methods for professonal rsks means frst of all the expanson of possbltes to provde consttutonal human rghts to work under the condtons that meet safety requrements. Therefore, t s mportant to estmate losses from workplace njures and occupatonal dseases, takng nto account rsk factors. It wll help determne the sgnfcance of ndces of occupatonal njures and occupatonal dseases n the total loss of the company; evaluate the prce of rsk for company; use the ndces of assessng damages by publc oversght to motvate employers to ncrease the level of safety as well as to justfy the mprovement of regulatory and legal framework on labor safety n the country. Two groups of cost assessment methods of professonal rsks are used nternatonally (Salv, 2004; Wardak, 2008; IPCS Rsk Assessment Termnology, 2004): - drect (they use statstcal nformaton accordng to the selected rsk ndces or ndces of damage wth the probablty of ther occurrence) these ndces are calculated accordng to: the coeffcent of accdents frequency per year per thousand workers; the coeffcent of frequency of fatal accdents occurrence at work; the coeffcent of ndustral njures severty; the ndex of occupatonal dseases; the ndex of njury; the ntegral ndex accordng to the type of economc actvty; АКТУАЛЬНІ ПРОБЛЕМИ ЕКОНОМІКИ 8(158), 2014

4 ДЕМОГРАФІЯ, ЕКОНОМІКА ПРАЦІ, СОЦІАЛЬНА ЕКОНОМІКА І ПОЛІТИКА ndrect methods use the ndces of deflecton of the current controlled condtons from normatve values n ths case, rsks depend on the proporton of unfulflled dractvely prescrbed requrements. Table 1. Comparson of nsurance accdents and the number occupatonal dseases at work n 2012 and n 2011 Number of accdents Number of occupatonal dseases N o. Regons Total (2012) Total (2011) ncludng fatally 2012 ncludng fatally Number of requred documents (2012) Number of requred documents (2011) connecton wth the vctm's death (2012) connecton wth the vctm's (2011) Total n Ukrane Crmea Vnnytsa regon Volyn regon Dnpropetrovsk regon Donetsk regon Zhytomyr regon Transcarpathan regon Zaporzhzhya regon Ivano-Frankvsk regon Kyv regon Krovohrad regon Lugansk regon Lvv regon Mykolav regon Odesa regon Poltava regon Rvne regon Sumy regon Ternopl regon Kharkv regon Kherson regon Khmelnytsky regon Cherkasy regon Chernvts regon Chernhv regon Kyv Sevastopol Source: made by the author accordng to: socal.org.ua (2013). The bass for mathematcal expresson of rsk ndces s ts dstrbuton accordng to the area. Indvdual potental danger n any area characterzes the rsk aganst a certan type of danger for an ndvdual durng the year. The value of ndvdual rsk does not depend on the dstrbuton of enterprse staff or populaton on a terrtory. It only shows the level of potental danger created by a partcular ndvdual for some objectve reasons. Therefore, based on the methodologcal approach proposed by (Henley, 1981), the cost of ndvdual rsk of a person that s at the pont wth coordnates (x; can be presented n the followng way: R = ( ; ). y ) Ε x y F (1) ACTUAL PROBLEMS OF ECONOMICS #8(158), 2014

5 276 ДЕМОГРАФІЯ, ЕКОНОМІКА ПРАЦІ, СОЦІАЛЬНА ЕКОНОМІКА І ПОЛІТИКА The average sze of rsk wll depend on the scenaro and the number of reported fatal accdents at work: N( x; ov y ) F IR = =. (2) N y ) The total rsk can be expressed n the followng way: ov F = RΣ N( x; = IR N. x; y Then the equvalent of economc losses from operatonal rsks s: where the probablty of the scenaro mplementaton; E j (x; the probablty of mplementaton of the nfluence mechansm at the pont (x;; N(x; the number of people who may be at the pont wth coordnates (x;; N the total number of people who are under the nfluence of negatve factors; N the probablty p of negatve consequences f the emergency scenaro s mplemented ; N the number of deaths n case of emergency scenaro p. The well-establshed publc accountng system and summarzng of statstcal nformaton on occupatonal njures operates suffcently to determne the actual or predcted values of frequency or probablty (rsk) of accdents wth fatal consequences and wthout such consequence. Currently there s no relevant nformaton on the value of all losses n the result of occupatonal njures avalable n statstcal sources of publc admnstraton and companes. There s some nformaton about partcular components of losses (nsurance payments to vctms, tangble and obvous enterprse damages etc.), but there s no full pcture of all the losses. Therefore, we can assume that the amount of loss from occupatonal njures (fatal and wthout such effect) conssts of two man groups: nsurance compensaton for vctms and losses of an enterprse that are not the subject for compulsory nsurance. Insurance compensatons are made n legslaton governng lmts on account of nsurance contrbutons of enterprses that are establshed dependng on the class of professonal rsk to whch an enterprse belongs. Therefore, when the rsk prce of nsurance compensatons for vctms s determned, all the costs of the nsurance system should be taken nto account. Informaton on these costs can be found n the annual performance report of the Socal Insurance Fund aganst accdents at work and occupatonal dseases of Ukrane. Years The next objectve s to coordnate the crtera of professonal and socal rsks. The approach, based on the ndex of potental loss of lfe, proposed by (Schofeld, 1993) can be used: АКТУАЛЬНІ ПРОБЛЕМИ ЕКОНОМІКИ 8(158), 2014 = p ESC C N ( 1,2 < p < 2, Table 2. Average monthly nsurance payment per vctm and the rsk cost of njury at work Average sze of nsurance Rsks (frequenc njury, payments per vctm (a member vctm / number of of hs faml, UAH employees (3) (4) Prce rsk, cost per unt of rsk njury at work, UAH (6 months) Source: author s n socal.org.ua (2013).

6 ДЕМОГРАФІЯ, ЕКОНОМІКА ПРАЦІ, СОЦІАЛЬНА ЕКОНОМІКА І ПОЛІТИКА 277 β N (5) max IR = f( N) N, where N max the maxmum number of people lvng under the hazard condtons; IR the maxmum ndvdual rsk; f(n) the frequency of deaths; β the rsk averson factor. It s assumed that there s a maxmum allowable level of rsk that must not be exceeded and a low level of rsk that s beyond ndvdual or socal anxety. These two levels nclude all other levels of rsk that are used to determne the relevant crtera n a partcular country. The area between these two lmts s called the area of acceptable rsk. There s a value here, whch s consdered as a "target level" of rsk. Ths method makes t possble to present the dependency of factor values of rsk averson and the maxmum ndvdual rsk as separate functons for dfferent populaton (N max ), whch experence the effects of hazards. The value of ths method s the possblty of "averagng rsks" and ther spread not only over employees, but also people who lve near hazardous facltes. Conclusons and recommendatons for further research. The analyss has proved the presence of causal relatonshps between professonal and socal rsks. It has also confrmed the compatblty of socal rsk wth the crtera of ndvdual rsk. Despte a wde varety of approaches to occupatonal rsks' cost assessment and ther management, nowadays there s a need to ntroduce the common rsk crtera. It wll make possble to optmze the benefts of socal nsurance aganst ndustral accdents and occupatonal dseases n Ukrane. The area for further scentfc research must be bndng rsk crtera to specfc areas where people are subject to hazardous factors. The crtera can also be used for all hazardous areas, accordng to the cost of ndvdual rsks and the level of expected mortalty of populaton. References: Ромась М.Д. Визначення виробничих ризиків в умовах соціального страхування від нещасних випадків на виробництві // Проблеми охорони праці в Україні Вип. 23. С Таірова Т.М. Аналіз та прогнозування вікової диференціації виробничого травматизму в Україні // Проблеми охорони праці в Україні Вип. 24. С Цина А.Ю. Становлення соціального партнерства та соціального діалогу в галузі охорони праці України // Проблеми охорони праці в Україні Вип. 24. С Gddens, A., Brdsall, K. (2001). Socology. 1st ed. Cambrdge: Polty Press. Global Rsks 2013 // Henley, E., Kumamoto, H. (1981). Relablty engneerng and rsk assessment. 1st ed. Englewood Clffs, N.J.: Prentce-Hall. Internatonal Labour Organzaton (2011). For the work safety // IPCS Rsk Assessment Termnology. Nomenclature for Hazard and Rsk Assessment n the Process Industry, 2004 // Salv, O., Gaston, D. (2004). Rsk assessment and rsk decson-makng process related to hazardous nstallaton n France. Journal of Rsk Research, 7(6): Schofeld, S. (1993). A Framework for Offshore Rsk Crtera. The Journal of the Safety and Relablty Socety, 13(2). Socal Insurance Fund aganst accdents at work and occupatonal dseases of Ukrane, 2013 // Tnto, R. (2011). Socal rsk analyss gudance note // Wardak, A., Gorman, M., Swam, N., Deshp, and e.s. (2008). Identfcaton of Rsks n the Lfe Cycle of Nanotechnology-Based Products. Journal of Industral Ecology, 12(3): Стаття надійшла до редакції ACTUAL PROBLEMS OF ECONOMICS #8(158), 2014