Here’s five reasons why you should be systematic with your risk mitigation
The Collins Dictionary would have us know that if there is a risk of something unpleasant, there is a possibility that it will happen.
Being immersed in the world of Risk Mitigation & Risk Assessment, we are here to tell you five ways in which mitigating risks in an efficient and systematic manner is integral to building a healthy business.
1. It will actually save you time
It’s not uncommon for a risk assessment to be regarded as a paper-heavy chore, wherein at the end of a month, the designated employee/business-owner would put pen to paper to record risks and assign solutions.
If this process is tedious, viewed as a waste of precious few hours or detrimental to productivity, your employees will be less inclined to report new risks. If the focus is on a quick and easy to use risk mitigation system, your employees will ensure nothing gets missed.
2. Enhanced Employee Efficiency
We’ve all heard the phrase that “happy workers are productive workers.” We’re here to tell you that it’s not just a feel-good saying, as it’s backed by hard numbers.
According to a Forbes report, “Happy employees are also good news for organisations: The stock prices of Fortune’s ‘100 Best Companies to Work for’ rose 14% per year from 1998 to 2005, while companies not on the list only reported a 6% increase.”
3. Building a Thriving Business with Productive Procedures
Whilst being a legal requirement for any business with excess of five employees, effective risk mitigation is a step towards a safe workplace environment.
A good business practice in itself, the thorough identifying and combating risks will help prevent health issues, accidents and fatalities. Apart from giving rise to potential health/life threatening situations, overlooked risks can hamper a business with lost productivity, compensations, fines or even higher insurance claims.
4. A Risk Assessment is a Legal Requirement
The new guidance issued by the U.K. Health & Safety Executive specifies that during risk assessment, only significant findings need be recorded. The guidelines do emphasise upon the importance of controlling the identified risks. It’s however suggested explicitly that businesses should identify the hazards, think about who might be harmed, evaluate the risks, and record your significant findings, then review your risk assessment.
5. A Stitch in Time shall Save you Nine (The Financial Reason)
Speaking strictly from the viewpoint of financial viability, it’s worth noting that the sentencing for not sufficiently mitigating risks and thereby allowing accidents to happen in the workplace is strict in the UK.
One such example is from September 2018, when a major company was fined north of £750,000 after an employee suffered fatal burns when his clothing was ignited by sparks. Commenting on the verdict, the HSE Inspector said that the tragic incident could have been avoided with preventive measures beforehand, and that a risk assessment is central to that process. (Source: click here)
As we go on underscoring the multitude of benefits of conducting an efficient risk mitigation system, it gets clearer and clearer that it’s not an activity to be taken lightly. It’s certainly more cost efficient to have a thorough risk assessment procedure in place, rather than having to suffer the consequences- none of which are an appealing prospect!
It turns out our middle school teachers taught us right- Prevention is indeed better than a cure.
Before you go:
Risk Memo is a risk and damage reporting, task management and risk assessment mobile app.
With Risk Memo your team can:
- report risks straight from their phone
- assign control measures as tasks
- effortlessly read, update and sign assessments
Click here if you’d like to learn more about Risk Memo.
Sources: click here