Enterprise Risk Management Strategies for Drug and Alcohol Testing Organizations

June 4, 2018

According to the latest Quest Diagnostics Drug Testing Index™ insights, increased use of illicit drugs has driven workforce drug testing positivity to the highest rate in 12 years.

Workplace drug testing has seen rapid growth over the last few decades. Some employers have the facilities to provide drug testing services for their own employees, while others contract with drug and alcohol testing services. Positive drug and alcohol test results can have a significant negative impact on the employee, and there are risk considerations for the employer as well. Likewise, drug and alcohol testing organizations have their own risk exposures and legal liability.

Given the range of potential loss exposures, it is important that the drug testing organization has a comprehensive enterprise risk management (ERM) program in place.

An ERM approach to an organization’s business-decision-making process can help identify and effectively manage interrelated risks across all of the business’s domains that may threaten the successful achievement of an organization’s strategic goals and business objectives.

This article will present some examples of potential risk management strategies across several domains of risk for drug testing services to consider. It is beyond the scope of this article to give exhaustive information on federal, state, or local requirements, or how to perform specific aspects of drug testing services.

Reprinted with permission from DATIA focus Magazine, Spring 2018.