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Quote of the Month
“Risk comes from not knowing what you’re doing.” Warren Buffett
Risk management and why you should do it.
The process of identifying risks, assessing risks and developing strategies to manage risks is known as risk management. It’s important to allocate some time, budget and resources for preparing a risk management plan, incorporated into the risk management plan are risk assessments.
Risk assessments are very important as they form an integral part of an occupational health and safety management system.
They help to:
- Create awareness of hazards and risk.
- Identify who may be at risk (e.g., employees, cleaners, visitors, contractors, the public, etc.)
A risk assessment is the combined effort of:
- Identifying and analysing potential (future) events that may negatively impact individuals, assets, and/or the environment (i.e., risk analysis); and
- Making judgments “on the tolerability of the risk on the basis of a risk analysis” while considering influencing factors (i.e., risk evaluation).
Put in simpler terms, a risk assessment analyses what can go wrong, how likely it is to happen, what the potential consequences are, and how tolerable the identified risk is. As part of this process, the resulting determination of risk may be expressed in a quantitatively or qualitative way. The risk assessment is an inherent part of an overall risk management strategy, which attempts to, after a risk assessment, “introduce control measures to eliminate or reduce” any potential risk-related consequences.
It is important that risk assessments are created and reviewed on a regular basis to maintain their integrity. Involving employees in the development and review process is a vital communication component and will allow a crossover of knowledge.
If you would like some help in creating or reviewing your business risk assessments, please contact Compliance Lab.