10 Reasons Why Risk Management Matters for All Employees
Many people in the workforce view risk management as something that only applies to safety professionals. However, risk management is a crucial element of any successful business, and all employees have a role to play in minimising workplace risks. Here are 10 reasons why risk management matters for all employees:
1. Risk management helps to create a safe work environment.
By identifying and assessing risks, employees can take steps to avoid or mitigate potential hazards before they result in injuries, illnesses, or property damage. Creating and following safe work procedures is one of the most effective ways to prevent accidents and incidents in the workplace.
Now, post pandemic, many employers are considering long term hybrid work models due to their benefits. To preserve the full benefits of the hybrid model, it’s important for organisations and individuals to make sure that the work from a home environment is as safe as working from the office or worksite. Click here for more information on managing risk when working from home.
2. Risk management can help to reduce workers’ compensation costs.
Workers’ compensation insurance rates are generally based on the number and severity of claims filed by a company’s employees. By reducing the number of workers’ compensation claims, a company can lower its insurance rates and save money on premiums. In addition, by preventing accidents and incidents, a company can avoid the cost of lost productivity due to injury or illness.
3. Risk management can improve employee morale and retention.
A safe work environment is typically a happy work environment. When employees feel like their safety is valued by their employer, they are more likely to be engaged with their work and less likely to look for new opportunities elsewhere.
4. Risk management can save lives.
No one wants to think about the worst-case scenario, but preparing for it through risk assessments and emergency planning could mean the difference between life and death in an emergency situation.
5. Risk management can prevent legal liability.
Companies can be held liable for failing to take reasonable steps to protect their employees from foreseeable risks. By taking steps to identify and assess risks, companies can minimise their exposure to potential lawsuits.
Safety Champion supports businesses to capture records of their risk management activities. The evidence collected within Safety Champion will supports business leaders to demonstrate due diligence should a future need arises. Click here for more information on due diligence.
6. Risk management can reduce business interruption costs.
If a company experiences an accident or incident that results in loss of production, it will incur additional costs to make up for the lost time. By implementing risk-reduction measures, companies can avoid these costly disruptions.
7. Risk management can improve customer satisfaction.
Customers want to know that the products they buy are safe and that they won’t be put at risk by using them. By ensuring that products are safe and minimising the potential for accidents and incidents, companies can provide their customers with peace of mind
8. Risk management can improve business continuity planning.
No company is immune from disruptions, but those that have well-developed continuity plans are better prepared to weather them. By identifying risks ahead of time and taking steps to mitigate them, companies can ensure that their operations will not be adversely affected by unexpected events
The Safety Champion Risk Management Module supports businesses to document known hazards by facilitating the risk management process.
Documenting risks, hazards, current controls, and planned actions in this module allows an organisation to capture, clearly communicate, plan, and monitor risks and hazards, enabling compliance and consistency across your businesses.
Additionally, this process will guide businesses to explore, consult and agree on the risk controls measures that your business has in place, or intends to establish, to protect those who may be impacted by your operations – which may include employees, contractors or visitors.
9. Risk management can enhance your company’s reputation.
A company’s reputation is essential for attracting customers, partners, investors, and top talent. A commitment to safety and risk reduction demonstrates that a company is responsible and cares about more than just making money.
10. Risk management is required by law in some industries.
In some industries, such as healthcare and construction, companies are required by law to implement risk-management programs. Failure to do so could result in hefty fines or even jail time for company executives.
The Safety Champion Risk Management Module provides a clear way for your business and management to manage their legal obligations; whist more importantly, ensuring that foreseeable hazards remain front of mind and controlled.
Implementing an effective risk-management program benefits both employers and employees alike. By taking steps to identify hazards and mitigate risks, companies can create safer workplaces, save money on insurance premiums and workers’ compensation claims, boost morale and employee retention rates, and avoid legal liabilities.
To find out more about our Risk Management Module or to request pricing, please click here.
[image source: Image by mindandi on Freepik]
