Written on 27 October, 2017

Workplace risk: why you need to mitigate risk for better performance

If you’re a business leader then you know how important it is to identify and reduce risk wherever it occurs in the organisation: it’s just good business sense. But did you know that businesses that take a holistic approach to risk management are likely to be more productive and profitable due to less downtime and fewer liabilities?[1]

Some risks are obvious and easily mitigated but others can be harder to discern. You need to take a proactive approach to identifying and managing risk to protect your business.

Start with a risk profile

To make sure your organisation is operating as effectively and safely as possible, you should start by assessing the risks. Your risk profile is unique to your organisation. It depends on the kind of work you do, your physical workplace, the level of safety and other training you provide, and the potential repercussions of an incident.

You should use this information to develop a risk matrix that identifies what the risks are, how likely they are to occur, and what the fallout is likely to be.

For example, if you operate heavy machinery, a workplace injury could be serious or even life-threatening. But if you run an office environment, workplace injuries are more likely to occur because of bad ergonomics or repetitive stress; they’re unlikely to require immediate first aid or hospitalisation.

And if you have employees working remotely, it’s important to remember that you need to manage their risk too. So it’s important to set mitigation plans accordingly.

Ask the experts

When it comes to risk management, we often don’t know what we don’t know. That’s where expert advice can be invaluable. Experienced risk management experts can quickly uncover the hidden risks in your organisation and offer ways to mitigate them, which can save your business a lot of money and time.

Getting expert advice doesn’t have to be expensive or difficult, even if you run a small business.

Make a plan

With the best will in the world and all the right preparation, accidents can still happen. You need to ensure that part of your risk management process included putting the right insurance policies and levels of cover in place.

You also need to have a process to follow if an accident does happen. That plan should include everything from the responsibilities of the first responders to the incident to how to manage the resulting insurance claim. It should include all the relevant phone numbers and contact details of the people that can help your organisation in case of an incident.

If you’ve worked with a risk advisor to mitigate workplace risks and set up the right insurance coverage, they’ll often attach a proven claims provider to your business to help you navigate the complex claims process. Their expertise means you get the best chance of a successful claim and can also help get injured workers back to work sooner through specialist rehabilitation services.

Best of all, these services are paid for under the normal workers’ compensation or general insurance policies your business has in place.

Managing risk effectively is no longer a concern only for large enterprises. Small- and medium-sized businesses must also identify and mitigate risks to ensure their ongoing viability. You can get a competitive edge by working with a specialist risk advisor. It can also help lower the costs and disruption associated with incidents, help you attract and retain the best talent, and let you focus on improving business performance.

For more information on how we can help you manage risk in your workplace, contact us today.

[1] https://www.pwc.com/us/en/risk-assurance/risk-in-review-study.html