Why are risk assessments important?

Why is Managing Risk Important?

Managing risk is important because it protects employee health and safety, creates a safe working environment, saves resources and makes sure you are compliant with the laws.

If you stick to your legal duties and plan ahead, your organisation will run efficiently. Most of the time, this involves completing a risk assessment. In doing so, you identify hazards, their risk and consequences of them. As a result, you must implement strategies and measures to control them.

The risk definition is as follows: “the likelihood that a person may be harmed or suffers adverse health effects if exposed to a hazard”.[1] Since risk and hazard are terms often used to mean the same thing, what exactly is a hazard? Well, whereas a risk is the likelihood of harm, a hazard is the source of it. Managing risk requires employers to survey for both hazards and risks.

The Importance of Managing Risk

A dynamic risk assessment  is one of the most important health and safety measures in any business. By constantly monitoring risk while we are at work , you can save resources, boost your reputation and create a safe environment and culture.

Protecting Employees

Effective risk management protects employees and helps to put their mind at ease.

Since the principle responsibility for controlling workplace hazards lies with the employer, workers most of the time don’t want to be thinking about health and safety. This is because they can just focus on their job and being productive.

As a result, managing risk benefits both employer and employee. It enables a good relationship to be built, which can help to create a positive and safe working environment.

Safe Working Environment

Often organisations need to set good examples from the top-down, and then employees will follow them. This will help to create a safe working environment for all.

This can be hard or simple depending on the sector you work in. For example, for less physically taxing jobs in the office, this is much easier than working on a construction site. This is simply because there are more hazards.

A safer working environment is simply a more productive one.

Saves Resources

Planning all your activities ahead always saves you time, and risk management is no different.

Investing resources into preventing injuries and accidents is very cost efficient, and it means you can budget accordingly. It also saves a huge amount of time, as accidents are unexpected and take a while to fix. And as we all know, time is money in an organisation.

If you have less accidents, it can also make your insurance premiums way less expensive.[2] Your organisation doesn’t want to be forking out for huge premiums, so this is just another reason why you must avoid accidents.

Legal Compliance

Finally, managing risks makes sure that you stay compliant with the health and safety laws.

It fulfils your duties under the Health and Safety at Work 1974 and Management of Health and Safety at Work Regulations 1999. They ensure that organisations have “adequate provision… for health and safety at work”.[3]

This means that you avoid any potential financial penalties, or time in prison for more serious offences. Companies do get fined for breaches of health and safety law, so you need to prepare your workplace.

For example, HSE (Health and Safety Executive) imposed a fine on HC-One Limited for £33,350,000 pounds.[4] You need to make sure your organisations don’t suffer the same fate.

You can make sure that your organisation complies with the laws by doing staff training. For more information, you can view an risk assessment

You can make sure that your organisation complies with the laws by doing staff training. For more information, you can view our risk assessment training online. Our course has RoSPA and CPD approval and will prepare your employees for minimising risk.

You can view our online managing risk training course here.

[1] https://www.hsa.ie/eng/Topics/Hazards/

[2] http://flevy.com/blog/how-effective-risk-management-can-save-your-business-money/

[3] http://www.hse.gov.uk/agriculture/topics/risk-assessment.htm

[4] http://www.hse.gov.uk/prosecutions/breach/breach_list.asp?SN=S&ST=B&SF=IS&SV=5