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The AMA Handbook of Due Diligence by Andrew J. Sherman, William M. Crilly

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SECTION 18
SECURITY AND SAFETY
Intr
oduction
As indicated previously, the organization of the subject matter in this document will not necessarily follow
that of the entity under investigation. Security and safety have been combined herein since they have several
elements in common. For this reason there is an increasing trend in industry toward combining these two
activities to not only improve their effectiveness but to reduce the overhead associated with maintaining two
separate organizations.
Security
And Safety Organization - Form 18-01
Form 18-01 provides for describing the organization of the security and safety functions as they currently exist
within the entity.
Only rarely will either of these two functions report to the chief executive or chief operating officer.
Therefore, their compensation will be included within the organization to which they currently report.
Potential Security Pr
oblems - Form 18-02
Form 18-02 provides for the identification of the major security problem areas and the recent security breaches
that have been experienced.
Potential Safety Pr
oblems - Form 18-03
Form 18-03 identifies some of the most common safety hazards to which employees are exposed. Placing a
check mark in the appropriate right hand column will indicate those hazards to which the entity’s employees may
be exposed. Space is provided to add additional potential problem areas and to record recent safety incidences.
See Section 16 for the insurance considerations related to the safety area.
Other
Security And Safety Matters - Form 18-04
The questions posed in this form are self-explanatory.
WHAT TO LOOK FOR
Are the identified security risks generally in line with those experienced by other members of
the entity’s industry?
Does the number of security breaches appear excessive? If so, what is required to bring them
within manageable levels?
WHAT TO LOOK FOR
Do the two organizations appear to be adequate to meet the entity’s needs in these areas?
Does there appear to be an opportunity to reduce overhead expenses by combining these
two activities?
DUE DILIGENCE HANDBOOK 18-01
497
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SECURITY ORGANIZATION
ENTITY Form 18-01
499
REF.
PREPARED BY REVIEWED BY
REVISION DATE SECTION PAGE
SECURITY ORGANIZATION CHART
Organization Reports To: _________________________________________ Total Personnel: _________
SAFETY ORGANIZATION
SAFETY ORGANIZATION CHART
Organization Reports To: ________________________________________ Total Personnel: __________
POTENTIAL SECURITY PROBLEMS
ENTITY Form 18-02
REF.
PREPARED BY REVIEWED BY
REVISION DATE SECTION PAGE
500
POTENTIAL SECURITY PROBLEM AREAS SECURITY ACTION PLAN
HISTORY OF SIGNIFICANT SECURITY BREACHES - LAST THREE YEARS
DATE PROBLEM RESULT
POTENTIAL SAFETY PROBLEMS
ENTITY Form 18-03
501
REF.
PREPARED BY REVIEWED BY
REVISION DATE SECTION PAGE
POTENTIAL SAFETY PROBLEMS POTENTIAL
PROBLEM
NOT
APPLICABLE
Use Of Hazardous Materials:
Inflammable - Ordinarily Not Explosive
Inflammable - Potentially Explosive
Toxic Gases - Containable Within Plant
Toxic Gases - Subject To Emission From Plant
Corrosive Liquids - Small Laboratory Quantities
Corrosive Liquids - Large Quantities Used In Production Processes
Use Of Potentially Hazardous Processes Utilizing:
Very Hot Liquids
Steam
Other Hot Gases
Molten solids
High Pressures
Hot Equipment And Facilities
Operation Of Potentially Hazardous Machinery:
Presses
Machine Tools
Cutters/Shears
Drills
Operation Of Potentially Hazardous Vehicles:
Fork Lift Trucks
Cranes
Earth Moving Equipment
Other Potentially Hazardous Activities:

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