Expert Insights: Key Points on Risk Management
Posted on July 12, 2022 | in Operational Risk
VelocityEHS talks about key points on risk management.
Some of the key points to a risk management program are sort of making sure that your organization has sort of the rationale in place for what risk you’re managing. Make sure that you have people that are accountable for each step of it. Make sure that your risk management program has links between not just the risk policy but the organizational goal and objectives, whether that’s being greener, more sustainable, being safer, making more money, whatever it may be, you can use risk management programs to identify places where you can improve and reduce risk.
I think you also need to make sure that your organization has a commitment to resource the risk management program. That can be physical resources – whether you’re paying for more safety protocols, barriers, things to put in place – financial resources, as far as making sure that you’re putting enough commitment to resourcing your risk management program. That’s physical resources, so that’s making sure that your workforce has things in place that will prevent them from falling subject to hazards, or being safer, or maybe even putting something in place to be a greener, more sustainable business.
You need to make sure that they have human resources in place, so that you’re putting effort into training your workforce, providing additional personnel in areas where maybe they’re operating in a more risky environment.
And then also, make sure that your organization knows how they’re going to manage how this risk performance is tracked. How are you measuring risk performance? How are you reporting it? And then, finally, what are you doing to review and improve your risk management programs.
Once all those things are in place, you’ll see how that risk management program – how important it is, and how much it’s actually improving business overall.