Managing and Measuring Risk

Managing and Measuring Risk

All organisations must manage the risks and challenges it faces. Different organisations face different risks but ultimately if the risks aren't properly managed the organisation may fail of a competitor may identify how to manage those risks and turn them into their advantage.

Organisational risks include:-

  • Brand protection
  • Cashflow
  • Profit margins
  • Staff management
  • Knowledge protection
  • Health and safety

Health and safety spans all industries and professions, which means that the subject is vast and complex. Safety legislation has to consider and make provisions for the variety of industries across the United Kingdom.

In order to achieve this, health and safety has to include a multi-disciplinary approach and incorporate knowledge from many backgrounds, such as engineering, chemistry, physics, biology and psychology to name but a few.

There are three main factors, which you should consider when effectively managing your health and safety and these are moral, legal and financial reasons.

Moral- Employers have duty of reasonable care towards those affected by the undertaking. It is also deemed socially moral for organisations to seek to reduce accidents and injuries, including the pain and suffering of employees in the pursuit of financial gain. Morally it is not acceptable to put employees at risk or to expect them to risk life or limb for the organisation to make money or to achieve its goals.

Legal- Legal reasons for having good safety management systems are that it helps ensure compliance, which in turn makes enforcement action, such as notices and prosecution lead to fines and imprisonment, less likely to occur. Controlling the risks effectively within the workplace also prevents serious injury, which reduces the likelihood of civil claims from those seeking compensation for losses or injuries.

Financial- An effective health and safety management system assists in avoiding the cost of repairing/replacing damaged plant and equipment and the need to hire additional equipment. It also avoids costs, such as additional labour.

Effective health and safety can improve production and product quality, and boost motivation within the workforce. This helps lower the staff turnover rate and to save on such costs as retraining and job advertising. In turn, a motivated workforce and improved productivity have a positive impact on the organisation’s image and reputation.

Due to the different aspects involved within health and safety, their can be competing and conflicting demands.

For an organisation to be successful, it must balance earning and spending, profit and loss. Equally, health and safety standards aim to ensure suitable provision is made within each organisation to ensure that in the pursuit of gain, the employer is not exposing its workforce to situations that could endanger them and lead to loss of life or impact on their health.

Managing health and safety in the workplace or organisation doesn't have to be difficult. Simple measures and involvement of those affected will go some distance to managing the risks at work.

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