But with a clear, systematic approach your business can develop a robust risk management plan.
The first step to any risk management plan is identifying the hazards. These will be different for each company, but can be broadly defined as:
Each of these areas will have its own unique set of hazards that present your company with potential risks.
Based on these hazards, what are the risks your company faces? In identifying the risks it might be worth brainstorming with relevant staff, reviewing all aspects of the business and work systems to identify where your company could be exposed to risk, developing ‘what if’ scenarios and researching the data relevant to your company including injury rates, insurance claims and death rates.
Once you’ve outlined the potential risks, next you have to fully evaluate them.
Through this process you need to fully assess the likelihood of each risk, its individual consequences, and whether there are acceptable and unacceptable levels of risk to your company. By following these steps you’ll be able to identify your company’s priority areas for action and how each risk should be treated.
Once your risks have been identified you need to develop ways to plan and prepare for them, reduce them, or eliminate them all together:
Risk management is an ongoing process. Your plans need to be periodically reviewed to ensure than they remain responsive and up-to-date with your identified risks. But your company also needs to scan for new and emerging risks that could present any potential headaches for your business.
It’s important that at every stage of the process you’re communicating with your company and its management team. Often they will be the ones to decide on the action your company will take to address its risks. If they’re fully aware of the risks your organisation faces they can make informed decisions about the best ways to address those risks.
Work Safety Hub is an approved provider of the WorkSafe Victoria OHS Essentials Program. This initiative offers eligible medium sized businesses a free safety consultation and action plan. Our safety consultants are available to work with your business to assess your specific risks and review the plans and policies you have in place. If you’re an eligible medium sized business, this service can be delivered at no charge.