Risk Analysis
Posted 02-03-2010 at 11:40 AM by SMART-H&S-Solutions
Focusing on workplace safety, because that is what SMART Health & Safety Solutions offers on a daily basis, one can also apply risk analysis to almost all facets of the business operation, from new projects, improving techniques, processes and general conditions. Indeed, it may be that a considered judgement has been made to perhaps relocate to another area, in the hope perchance that easier access to motorways, access to new staff, clients etc will bring about major changes and eventual rewards.
I have been involved in many diverse projects over the years, and not withstanding of course that initially it is usually a safety based commission. As with many clients though, one tends to see the business operation with a fresh pair of eyes and on occasions I have witnessed some ‘differing’ methods employed in the hope of maintaining or improving profitability and well-being within an organisation.
One such event occurred purely by chance whilst auditing the safety standards of a company. Initially my remit was solely restricted to the safety commitment of the business, but as so often happens – areas link, or cross-over. I happened to see a particular process of interest, one of which the company had considered closing down; I asked if they objected to me making a couple of suggestions. They were at the outset reluctant, but with some moderate persuasion and an offer to look at this particular process for free – I set to work applying general risk analysis. To cut a rather lengthy story short, within six months it became the most profitable area the company had worked in since initial se-up in 1988. It now employs twenty staff working all round the UK offering a service to industry that was initially deemed to be a failure. Whilst there was a considerable amount of safety analysis, it was not restricted to this element, and with some careful consideration and robust recommendations (which I admit did include some moderate investment) the organisation decided to run with my risk analysis proposals. One should therefore not be constrained into thinking the phrase ‘risk-analysis’ is limited exclusively to Health and Safety in the workplace. And yes, I received a sizeable bonus for my input. ‘Spratt to catch a Mackerel’ springs to mind I hear you thinking! Moi? No never.
Risks can be both foreseeable and unforeseeable. In each case however, perceptive directors & managers are equipped with some means of dealing with them. Many risk management plans address only foreseeable risks and fail to address the unforeseeable ones, hence the organisation quickly falls into the trap of becoming a repetitively reactive one. For that reason, planning must include a degree of schedule, cost, and scope margin. The most effective way to manage risk is to adopt a process that systematically deals with the overall problem of uncertain events and conditions that might affect overall or eventual objectives.
The health and safety policy of a business can only be considered if all participants have calculated and assessed the likelihood and nature of the risk in the workplace. Risk management is a twenty-first century buzz word – but in no means a new discipline. More and more businesses and organisations recognize the need to identify risks within them so that they can be eliminated, controlled or mitigated. It is important to exercise risk mitigation when it affects people, the environment, and one’s business, to name a few. Risk avoidance cannot make the potential of even greater loss from happening go away.
The question is, as a manager, how would I know which particular sets of risks need a special level of attention? Given incomplete resources, how would I know which particular types of risks need to be prioritised and addressed?
When installing bespoke safety management systems I always include a risk matrix. This is a risk assessment tool which exposes aspects of risks that could be subjected to some form of ranking. The matrix will contain ranges of consequence and likelihood. A risk matrix shows the manager and the decision maker a clearer view of what the risk is, what is involved (in terms of practical changes, costs, behavioural adjustments, and the like), and what amount of time can be afforded given the severity and probability of the risk event. It can help a manager visualise, in a prearranged manner, the risks he or she faces in quantitative and qualitative terms – and plan to make a more conversant decision when the circumstances dictate. In the majority of cases I find a quantitative system to be the method of choice.
The work of an organisation and the equipment used – frequently changes to improve efficiency as the turnover of work increases. When any characteristic of work changes in the workplace we are then charged with the duty to consider the implications on the workforce.
A risk analysis and appraisal can lessen the prospect of ill health or physical risk in the future. Often reducing staff or improving productivity by implementing new machinery can alleviate physical problems – but bring about psychological problems leading to increased stress in some cases. Good in house risk assessments can allow the staff and the workforce to discuss and apply best practice to render better productivity without significant risk to the workforce.
Using outside risk assessment need not be expensive. If in house costs are set against potential fee cost, outside consultants can sometimes bring a fresh perspective to solving problems. The mix of ideas can also be a major benefit of using third party assessors in the workplace.
In any event a rational safety strategy cannot be formulated without elementary knowledge of the impact of risk in the workplace you may control. Whether your risk assessment is expensive or low cost, the need for careful scrutiny of the modus operandi employed to reduce risk in the workplace – will always work out to be cheaper than a personal injury claim if you are unfortunate enough to be considered errantly negligent.
I have been involved in many diverse projects over the years, and not withstanding of course that initially it is usually a safety based commission. As with many clients though, one tends to see the business operation with a fresh pair of eyes and on occasions I have witnessed some ‘differing’ methods employed in the hope of maintaining or improving profitability and well-being within an organisation.
One such event occurred purely by chance whilst auditing the safety standards of a company. Initially my remit was solely restricted to the safety commitment of the business, but as so often happens – areas link, or cross-over. I happened to see a particular process of interest, one of which the company had considered closing down; I asked if they objected to me making a couple of suggestions. They were at the outset reluctant, but with some moderate persuasion and an offer to look at this particular process for free – I set to work applying general risk analysis. To cut a rather lengthy story short, within six months it became the most profitable area the company had worked in since initial se-up in 1988. It now employs twenty staff working all round the UK offering a service to industry that was initially deemed to be a failure. Whilst there was a considerable amount of safety analysis, it was not restricted to this element, and with some careful consideration and robust recommendations (which I admit did include some moderate investment) the organisation decided to run with my risk analysis proposals. One should therefore not be constrained into thinking the phrase ‘risk-analysis’ is limited exclusively to Health and Safety in the workplace. And yes, I received a sizeable bonus for my input. ‘Spratt to catch a Mackerel’ springs to mind I hear you thinking! Moi? No never.
Risks can be both foreseeable and unforeseeable. In each case however, perceptive directors & managers are equipped with some means of dealing with them. Many risk management plans address only foreseeable risks and fail to address the unforeseeable ones, hence the organisation quickly falls into the trap of becoming a repetitively reactive one. For that reason, planning must include a degree of schedule, cost, and scope margin. The most effective way to manage risk is to adopt a process that systematically deals with the overall problem of uncertain events and conditions that might affect overall or eventual objectives.
The health and safety policy of a business can only be considered if all participants have calculated and assessed the likelihood and nature of the risk in the workplace. Risk management is a twenty-first century buzz word – but in no means a new discipline. More and more businesses and organisations recognize the need to identify risks within them so that they can be eliminated, controlled or mitigated. It is important to exercise risk mitigation when it affects people, the environment, and one’s business, to name a few. Risk avoidance cannot make the potential of even greater loss from happening go away.
The question is, as a manager, how would I know which particular sets of risks need a special level of attention? Given incomplete resources, how would I know which particular types of risks need to be prioritised and addressed?
When installing bespoke safety management systems I always include a risk matrix. This is a risk assessment tool which exposes aspects of risks that could be subjected to some form of ranking. The matrix will contain ranges of consequence and likelihood. A risk matrix shows the manager and the decision maker a clearer view of what the risk is, what is involved (in terms of practical changes, costs, behavioural adjustments, and the like), and what amount of time can be afforded given the severity and probability of the risk event. It can help a manager visualise, in a prearranged manner, the risks he or she faces in quantitative and qualitative terms – and plan to make a more conversant decision when the circumstances dictate. In the majority of cases I find a quantitative system to be the method of choice.
The work of an organisation and the equipment used – frequently changes to improve efficiency as the turnover of work increases. When any characteristic of work changes in the workplace we are then charged with the duty to consider the implications on the workforce.
A risk analysis and appraisal can lessen the prospect of ill health or physical risk in the future. Often reducing staff or improving productivity by implementing new machinery can alleviate physical problems – but bring about psychological problems leading to increased stress in some cases. Good in house risk assessments can allow the staff and the workforce to discuss and apply best practice to render better productivity without significant risk to the workforce.
Using outside risk assessment need not be expensive. If in house costs are set against potential fee cost, outside consultants can sometimes bring a fresh perspective to solving problems. The mix of ideas can also be a major benefit of using third party assessors in the workplace.
In any event a rational safety strategy cannot be formulated without elementary knowledge of the impact of risk in the workplace you may control. Whether your risk assessment is expensive or low cost, the need for careful scrutiny of the modus operandi employed to reduce risk in the workplace – will always work out to be cheaper than a personal injury claim if you are unfortunate enough to be considered errantly negligent.
Total Comments 0
