Implementing Risk management to ensure worker protection
What is Risk Management (RM)
RM is a process of identifying, analyzing, evaluating, treating, monitoring, and communicating risks associated with
any activity, function, or process in a way that will enable organizations to minimize losses and maximize
opportunities.
Identifying risks in an organization
Internal risks: Safety, health, and security of the employees, the vendors, and visitors, third-party contractors, the managers, and the business owners. These risks include fire hazards, robbery attempts, water contamination, pest-related issues, and technical failures etc.
External risks: Risks that happen in the outside world, which affect the profits and performance of an organization. A rise in competition, a global economic slowdown, a fall in demand, etc.
Risk management process
According to Ndwiga et al. (2012), reduction of risks is done through monitoring and controlling through the standard set of policies to ensure minimization of risks.
1. Identifying
Identifying things in the workplace that have the potential to cause harm and may negatively influence a specific organizational process or project. E.g. evaluating: productivity levels, rates of absenteeism, separation rates/turnover, exit interviews, worker engagement/morale, customer feedback, peak/seasonal demands, and analyzing incident reports and data trends
2. Risk analysis (Assess)
Once the risks have been identified, assessing their severity, frequency of occurrence, etc., to minimize the chance of an accident taking place in the future
3. RM Plan
A document prepared to foresee risks, estimate impacts, and define responses to risks.
4. Implement RM actions
Process of putting a strategic plan of managing identified threats and exploiting opportunities into action
5. Re-evaluate and control
Involves re-assessing and re-strategizing of current risks and hazards where the existing response may inadequate.
Advantages and disadvantages of RM process
Figure 2: A&D of
RM; Source: Web
Conclusion
When an organization is aware of the risks and hazards and is prepared for them, it can confront any obstacles more easily and quickly find a solution. By implementing a risk management plan and considering numerous potential hazards or events before they occur, the organization can be more confident in its business decisions and operate more efficiently to ensure worker safety.
References
Gakure, R.W., Ngugi, J.K., Ndwiga, P.M. &Waithaka, S.M. (2012). Effect of credit risk management techniques on the performance of unsecured bank loans employed by commercial banks in Kenya. International Journal of Business and Social Research, 2(4), 221-236.
CGE: Risk management
Available at: https://www.cgerisk.com/solutions/manage-your-barriers/
Accessed [26.07.2021]
Agreed. The aim of Risk Management is to identify what could go wrong, i.e. finding what can cause injury or harm to workers, and to decide on proper safety control measures to prevent work accidents and occupational diseases and implement them.
ReplyDeleteThank you for your valuable comments Oshadha.
DeleteAgreed with your point Jackson. Risk management is important in an organization because without it, a firm can’t possibly achieve its objectives for the future. If a company defines objectives without taking the risks into consideration, chances are that they will lose direction once any of these risks hit the organization.
ReplyDeleteIt is important to recognize that many factors influence risk management. Public values, politics, economics, legal issues, and technical concerns can all influence the risk-management process locally or nationally . In some cases, external influences force over-conservative risk-management decisions and actions; more often, these influences, especially fiscal constraints, lead to less than optimal risk-management decisions and actions. Thank you for sharing this valuable information...
ReplyDeleteThank you for your valuable comments Mihirani.
DeleteHi Jackson. There are also some responsibilities of employers to ensure their workers are safe. Avoiding violence and harassment in the workplace. Informing your workers of all the health and safety hazards at the job site. Setting up safe work practices and ensuring these practices are followed. Providing safety equipment and training.
ReplyDeleteThank you for your valuable comments Parami.
DeleteIt is important to identify the risk involve in the business operation and having a plan to manage the same. As you mentioned both internal and external risk factors cover and it is important that the risk related to the human resource to be manage in advance. The employees should given better knowledge about these risk factors and train and educate them should implemented.
ReplyDeleteThank you for your valuable comments Sunith.
DeleteOrganizations need to consider all risks throughout their work and incorporate risk management into all planning and decision-making. Human Resource Management plays a crucial role in managing Risk. Risk management is a cycle. That means it is not something that is tested in the “to do” list but a work in progress. Having a risk management system in the sense an organization is aware of and understands the risks to which they have been exposed.
ReplyDeleteThank you for your valuable comments Rukmali.
DeleteRisk management is an important process because it empowers a business with the necessary tools so that it can adequately identify and deal with potential risks. ... Moreover, the management will have the necessary information that they can use to make informed decisions and ensure that the business remains profitable.
ReplyDeleteRisk management specialists are in charge of dealing with unintentional losses of property, income, liability, and employee injuries. When it comes to dealing with the different risks that their firms confront, risk management experts are well-versed in the concepts of avoidance, loss prevention, loss reduction, and retention. Typically, the risk manager looks to the safety department or safety manager to handle that issue.
ReplyDeleteThank you for your valuable comments Nadeeshan.
DeleteRisk management is a very broad concept which has gained a lot of consideration in the recent times because of its importance in almost every profession. This area is very important which the Board of Directors of every organization are obliged to undertake in to provide the necessary safety for human and financial resources. Large organizations mostly have formed a committee, team or department's risk management to take care of the process of risk management. Nevertheless, during the risk management process, every employee in the organization is obliged to play its part in all the stages for instance; compliance with policies and procedures, risk identification and reports to complete, but this is particularly linked with the financial risk assessment (Elsie Omolara, 2010).
ReplyDeleteThank you for your valuable comments Umesh.
DeleteRisk is involved in every job, industry starting from white color, professionals, SME's everywhere there is a risk involved in the engaged business. Thereby managing them is pivotal and company's do have their separate Risk Management Team designed to mitigate same. The main objective of the risk team is to Foresee and Identify the potential risk involved in carrying out particular task or business and workaround the best solution to mitigate the risk involved in same. This cannot be done through Artificial Intelligence as human brain is required to resolve uncertain ambiguity situation.
ReplyDeleteFor instance in Bank's, there is a Risk Department that involves in every aspect of the bank business. For example, for new product to be launched to the market, the risk department has to be evaluate possible risk that the bank could face despite launching and give approval to launch same. Thank You.
Thank you for your valuable comments Arun.
DeleteThe effective systematic control of dangers improves worker fitness and protection, as well as productiveness. removing and controlling risks in the place of work enables to: prevent and reduce the number and severity of place of job accidents, illnesses and associated prices sell and enhance worker health, well-being and capability to work, and
ReplyDeleteThank you for your valuable comments Bhashitha.
Delete