How to Measure Your Operational Safety
62% of organizations have experienced a critical risk event in the past three years. Yet only 36% of organizations have a formal enterprise risk management program in place. In fact, 57% of senior-level executives rank “risk and compliance” as one of the top two risk categories they feel least prepared to address.
While some level of risk is inevitable, using an operational safety assessment process can help keep your business running smoothly and safely. Keep reading to learn more about what you can do to protect your business and employees.
What Is Enterprise Risk Management?
Risk management requires finding ways to protect your company from unexpected events that could negatively impact your reputation or your bottom line. It involves three major components.
- Identifying risks
- Analyzing and responding to risk factors
- Determining how to deal with them
Enterprise risk management (ERM) is an organization’s overall approach to managing risk. ERM may have different definitions, but all involve identifying and managing risks that affect your strategic goals.
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The Growing Complexity of Risk Management and Compliance
Risk management and compliance are not new concepts for businesses. However, with the advent of technology, these processes have grown more complex.
As the world becomes more interconnected, it’s easier for companies to expand globally and increase international competition. This makes it increasingly difficult to manage risk in a single location. Instead, companies need a global perspective on risk management and compliance.
How to Measure Your Operational Safety
Risk management is an integral part of doing business. Companies that ignore risk management may be exposed to dangers on many levels, including legal and financial. Therefore, identifying, analyzing, and effectively managing risks is crucial to your success.
A 3-Step Process to Assess Operational Safety
If you’re ready to analyze your operation’s safety level, start by taking these three steps.
- Identify risk factors. One easy way to do this… Ask “What if” questions for each previous incident. For example, consider what might happen if a lab worker accidentally uses an old version of a chemical compound. Perhaps it would simply fail to produce the desired result. But it could also cause an accident that harms employees or damages equipment.
- Assess potential consequences. After identifying potential risks, assess how they affect employee health and well-being. While efforts to reduce risks should focus on protecting people from harm, you must also consider how much time and money you could lose if accidents occur. Remember to think about both short-term and long-term impacts.
- Develop a risk management plan. The final step is to create a plan to reduce or eliminate risks and minimize future problems.
Identifying, assessing, and developing an effective plan for managing risks can help minimize danger to both your company and your employees.
Have Questions About Enterprise Risk Management? McClure Ergonomics Can Help
If you’re ready to protect your business and your employees, we’re here to help. Whether you have questions about risk management technology—or you’d like to schedule a safety audit—let us know.
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