According to the Bureau of Labor Statistics, U.S. businesses spend $170 billion a year on costs associated with occupational illnesses and injuries (AIHA, OSHA).
We view safety and risk as management functions with similar principles that apply to organizational operations and production. Managed effectively, safety can improve operational efficiency, boost production, and reduce costs while improving the quality of the work environment for all employees.
Our team of Certified Safety Professionals and Certified Industrial Hygienists take a holistic approach to safety and enterprise risk management. We believe proactive initiatives, planning and education are key essentials to a successful safety culture. We bring our client’s environmental health and safety needs into compliance with OSHA requirements and provide the tools necessary to prevent workplace accidents and injuries before they occur.
What is risk management?
Under the Work Health and Safety Act 2011 (WHS Act) persons conducting a business or undertaking have a primary duty to manage risks to health and safety by eliminating them as much as is reasonably practicable.
This responsibility is for employers, the self-employed, principal contractors, those who manage or control a workplace, as well as designers, manufacturers, importers and suppliers of substances or structures used for work. The responsibility extends to all companies under the WHS act.
Small and large companies can struggle to enact strong risk management programs. There may be disagreement about the value of risk management plans or difficulty arriving at a consensus on risk strategies among different departments. People may have trouble identifying enterprise risks, strategizing remedies, assigning ownership of responses, and monitoring results.
A systematic approach to efficiently managing workplace safety and health risks involves several elements. Risk management includes governance of the organization’s health and safety procedures, policies and protocols. It requires solid knowledge of the laws and regulations under which the organization operates. An effective risk and hazard management methodology identifies hazards that pose risks to workers and resolves them before they cause injury or illness. Prevention is always better than the cure!
If a safety incident does occur, rapid response is the best course of action. Quick cleanup and removal of the safety hazard is imperative, and further steps should be taken to help ensure that the incident is not repeated. In some cases, it is necessary to report incidents to authorities.\
Additionally, employers are responsible under the WHS act to aid in recovery if a worker is injured on the job. This is usually addressed under the rehabilitation management system.
Benefits of Risk Management
According to The Wall Street Journal, companies that employ strong risk management practices have better operating performance and less stock price volatility. Other benefits are that banks may more readily increase a credit line and insurance brokers can customize coverage options based on details outlined in a risk management plan.
Managing hazards in the workplace prevents workplace injuries and illnesses. Identifying them before they happen allows you to plan and improve your ability to respond. Employees are more confident knowing ahead of time what policies and procedures to follow in any potential adverse situations.
Risk Management as an Opportunity
Effective risk management reduces the number, type and severity of adverse events. But risk management is about more than preventing harm and responding to incidents. It is also a way to discover company strengths and opportunities for improvement. Proactive risk management in the hands of G2 professionals is an excellent way to find opportunities to improve processes and procedures. It also helps in making more informed decisions about the company’s future.
G2 offers clients risk assessments, health and safety audits, safety training, behavioral-based safety and training as well as fire and life safety. With G2’s contract safety services, clients enjoy peace of mind knowing that the health, safety and compliance aspects of their business are taken care of by experts.
Risk Management Plan
G2 develops a risk management plan to fit an organization’s specific needs. Our highly trained and experienced risk management consultants evaluate the safety structure and needs of your business and partner with you to create an organic plan that adapts to your business’s changing needs.
A quality plan should include the following information:
- Identify your risks. You must make a detailed list of the safety risks in your workplace. Prioritization of the severity of risks needs to be accounted for. Some risks are simply minor irritations while others are serious safety hazards.
- Minimize or eliminate risks. Once risks are identified, create a plan to eliminate potential risks in the workplace.
- Identify employee responsibilities in case an incident occurs.
- Determine and plan recovery contingencies.
- Communicate and teach the plan to each person it applies to. When employees know what they should do and what they are in charge of when an incident occurs, speedy cleanup, removal and recovery can take place.
Principles of Risk Management
The International Organization for Standardization (ISO) is an independent, non-governmental organization with a membership of 163 national standards bodies. ISO brings together experts to share knowledge and develop voluntary, consensus-based, market relevant International Standards that support innovation and provide solutions to global challenges. ISO identifies the following principles of risk management and recommends that risk management should:
- create economic value – resources expended to mitigate risk should be less than the consequence of inaction
- be an integral part of organizational processes
- be part of decision-making process
- explicitly address uncertainty and assumptions
- be a systematic and structured process
- be based on the best available information
- be tailorable
- take human factors into account
- be transparent and inclusive
- be dynamic, iterative and responsive to change
- be capable of continual improvement and enhancement
- be continually or periodically re-assessed
Risk management programs provide real economic value and make companies stronger. G2’s safety, environmental and engineering experts can skillfully plan your enterprise risk management strategies from start to finish. With G2 as your “Go To” partner, you can rest assured that you understand all your business’s strengths and weaknesses and are consistently improving. Contact us today to create a specialized plan and enjoy peace of mind knowing your business is running on solid ground.