Understanding Risk Management: Operation, Ordination, And Best Practices

The Importance of Risk Management in Organizations

Question:

Discuss About The Operation And Ordination A Code Of Practice?

This policy applies to the organization’s employees, officials, guests, and suppliers to facilities under the control of the organization. The policy is also applicable to all the existing and forthcoming activities, and new opportunities.

Depending on the need, additional risk management policies and procedures should be created to address specific aspects of the organization’s operations, for instance, financial management. In the event of such an occasion, then such policies and guidelines should adhere to the general guidelines as provided in the Organizations Risk Management Policy.

Risk is the possibility that a dangerous outcome (death, harm or sickness) might occur when subjected to a hazard (Work Health and Safety Regulation, 2011).

Risk is considered and rated by taking into account two features:

1. Likelihood (L) or Probability of occurrence; and
2. Consequence (C) of occurrence.

Thus, Risk (R) = Likelihood (L) x Consequence (C). (Paape & Speklè, 2012).

Likelihood is a theoretical account of possibility or occurrence.

Consequence is the result of an action, being a loss, harm, disadvantage or benefit.

Risk Control is the initiative to initially eliminate health and safety risks away from the worker as much as possible, and if the converse, reducing the risks as much as possible. Hazard elimination will consequently eradicate the hazard related risks.

Risk Assessment is the procedure of assessing and comparing the degree of risk alongside scheduled suitable risk levels.

Risk Management is the utilization of a management system to risk and comprises determination, evaluation, alleviation, and review.

Risk Owner is the individual(s) in charge of managing risks and is typically the individual unswervingly in charge of the strategy, activity or action that is associated with the risk.

Risk management is a significant administrative and organizational function.

The organization is predetermined in its methodology to risk management, weighs the risk management costs alongside the expected gains, and embarks on contingency planning in the event of realization of dire risks (Marcelino-Sádaba et al., 2014; NSW Health, 2016).

It is the fundamental duty of the organization to safeguard the health and safety of its employees and any other person while at work. The duty of ensuring health and safety demands that the organization manages risks (Gallagher & Underhill, 2012).

By removing health and safety risks away as much as is possible; and

If contrariwise to remove the risks, by reducing those risks as much as is reasonably practicable.

The determination of that which is ‘reasonably practicable’ to safeguard individuals from injury demands balancing of given issues, such as the possibility of risk taking place and the level of injury that would be as a result, and then deciding on the reasonable action based on the situations. (Protecting People and Property, n.d; AS/NZS ISO 31000:2009).

A commitment to health and safety from the Board of Directors of the organization

The integration and collaboration of the employees of the organization

Employee consultation alongside their representatives is a must in each stage of the process of risk management. Based on the expertise, knowledge, and information of its employees, it is possible for the identification of all hazards and the most effective risk controls chosen (Chapman, 2011; NSW Treasury, 2012).

Steps Involved in Risk Management

The workers of the organization are required to adhere to safety guidelines and procedures, and they will commit themselves to this if they are incorporated in the crafting of these safety instructions, comprehend their significance and operation (Code of Conduct, 2015).

Workers are encouraged to report any risks and health and safety issues promptly so that the hazards may be ascertained and alleviated before accidents arise (Work Health and Safety Consultation, 2011).

The process of consultation should be aided by communication tools such as:

• E-mail to all or specific staff
• Printed communication
• Group discussions with representatives
• Notice boards
• Reports
• Intranet

An individual can multitask or a single duty can be handled by more than one person at the same time

Position	Designation/Task
Board of Directors	Responsible in ensuring that the organization adheres with the WHS Act and Legislations
Management	CEO Exercise due diligence to ensure that all work is free from risk both to workers and guests Ensures as far as much as possible, that: ·         The workplace is safe ·         Risk free plants and fixtures
Workers	Adherence with Risk Management Policy Support the implementation of risk management systems

The organization does all that which is reasonably practicable to prevent its staffs, clients, and guests from any harm at the workplace (Work, Health, and Safety, 2013).

Risk management involves four steps: (Safe Work Australia, 2011; Pritchard, & PMP, 2014).

This involves ascertaining the cause of injury. The identification of hazards entails ascertaining the circumstances that could injure workers. The hazards can be caused by the physical work surrounding, the equipment in use, and, the manner in which the tasks themselves are carried out.

These hazards can be found by inspecting the place of work, through consultation with workers, examining existing information, cross-examine record and data of occurrences.

This is the understanding of the possibility of a hazard and its level of harm. This stage helps to ascertain:

• The severity of the risk
• The effectiveness of the current control measures
• The type of action to mitigate the risk

Risk assessment can be carried out by first determining the level of harm likely to occur, then determining how the hazards may result in injury, and then ascertaining the possibility of the harm occurring which can be rated as, certain to occur, very likely, possible, unlikely, and rare (Arias, & Stern, 2011).

This involves the adoption of the most effective control measure according to the situations. Under risk control, the workers and their representatives unswervingly affected by hazard and decision after that must be consulted. Their experience is significant in the choice of the most effective procedures, and their integration will raise the acceptance level to any change necessary for their job performance (Olson, & Wu, 2015).

The choice of risk control hazards and risks is dependent on the situations and nature of the risk. The methods of risk control can be classified beginning with the highest degree of protection and dependability to the lowest. The hierarchy of control is as follows:

1. Hazard elimination
2. Hazard substation

III.    Hazard isolation

1. Use of engineering controls
2. Use of administrative controls
3. Use of personal protective equipment (PPE)

This ensures that implemented measures are in operation as expected. The controls effected to safeguard the health and safety of workers should be observed and reviewed frequently and not when an accident occurs. Review should be done when there is a noticeable change at the place of work, the presence of ineffective risk control measures and the occurrence of an accident (Work, Health, and Safety, 2013).

The development of all the risk management policies, procedures, and schedules of the organization are by various federal and state legislation. For instance the Work Health and Safety Act 2011, the Model Work Health and Safety Regulation 2011, and workers compensation Act 1987.

The health and safety standards are developed alongside the health and safety committee, and they are binding to any worker. Additionally, both workers and employers enjoy legal right and duties under the work health and safety, workers compensation, and injury management legislation.

To ascertain whether the implemented health and safety procedures are functional, they need to be monitored and reviewed often. Similar methods used in the beginning to identify initial hazards can also be applied to check controls (Hopkin, 2017). The following questions should guide you through the review process:

• Are the control measures effective in implementation?
• Are their new problems as a result of the control measures?
• Is the identification of all hazards complete?
• Is the job safer as a result of the new changes?
• Are workers adhering to the new safety directions?
• Have the workers received training on workplace safety?
• Are workers incorporated in risk identification, assessment, and reporting?
• Is there an improvement in the frequency and severity of accidents?

If there are problems during the review process, then return to the process of risk, cross-examine your data and make additional decisions accordingly.

To ensure that the control measures adopted remain effective, the following actions should be adopted:

• Accountability of health and safety – supervisors and manager, have to provide resources to minimize hazards
• Frequent review – effective risk control is common where there is regular work review
• Effective communication – low-risk levels when risk control measures are communicated in the appropriate way
• Current training and proficiency – competent supervisors will offer effective training to ensure workers work safely
• Current information on hazard and risk evaluatio

References

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