Health and Safety Practices: more than just good risk management

~ Courtesy Santam

General good risk management is essential and everyone’s responsibility, whether it’s at factories, offices or business premises. It protects staff, reduces losses, can reduce cost of insurance and ensures adherence to regulations.

It’s important for clients to be aware that managing risk and safety in the workplace will help avoid injury, liability claims and business interruption. The South African Occupational Health and Safety (OHS) Act has a specific section for risk management to promote a safe, clean and healthy working environment that reduces the likelihood of accidents and unsafe practices in the workplace.

We unpack the main benefits of best risk management practices.

HOW TO SAFEGUARD EMPLOYEES

Employers have a duty in terms of the OHS Act to ensure the safety of employees. Good risk management requires a systematic approach, training, proper communication and formalised systems, which are regularly reviewed and improved.

Health and safety management systems need to be embedded in all organisations and these are coupled with understanding all the risks within the industry involved. Examples of some measures to ensure safety are the following:

• Proper training in fire-fighting and procedures to be followed is essential, along with ensuring proper access to the equipment, through compliant signage and correct placement of equipment.
  Good risk management will ensure:
  1. Quicker access to fire-fighting equipment
  2. Better trained staff
  3. Clear escape routes.
• If a property requires a compliant sprinkler system due to the nature of the risk, this assists with the primary function of such system, which is to save lives. An ASIB-approved system that has been tested and is functioning properly is an important tool to save lives and also protect property.
• Good extraction systems are important in industries that produce fumes, which could be both toxic and/or flammable. A lack of such systems can be detrimental to the health of employees, but also contribute to or exacerbate a fire.
• Proper demarcation systems are important to ensure staff are always aware of areas that potentially are dangerous or have processes or operations requiring additional protective gear. Demarcation ensures safe zones are easily identifiable.

ENSURING SAFETY OF CLIENTS

Good risk management also impacts on the safety of the public, especially in the retail sector. Slip-and-trip incidents are numerous and can be costly, especially as litigations following such incidents are on the increase.

Poor risk management can result in serious injury or death to members of the public (especially children, frail or weak persons), which is why business owners must always ensure good housekeeping standards.

Here are some examples that could affect clients:

• Cluttered floor spaces can lead to customers tripping, being injured and instituting legal action. To ensuring such scenarios are avoided, it is essential that all areas are managed in terms of tidiness and demarcation.
• Areas involving any hazardous products, for example chemicals, should always be supervised by qualified staff to ensure customers are not exposed unnecessarily. Business owners must also always consider where fires can occur and follow the fire safety precautions listed previously.

DAMAGE TO PROPERTY

The lack of risk management often leads to increased hazards, because items that should not be near one another end up causing major problems. An example is keeping large quantities of flammable liquids in an operational or production environment. This adds to risk of injury, death or loss of property.

Since good risk management introduces good operational practices and discipline, it also usually results in a better response to a crisis. Many situations, which have resulted in major loss, could have been prevented if proper systems were in place.

CONSEQUENTIAL LOSS

Good risk management practices could also avoid the following kinds of consequential loss:

• Emotional and financial suffering of families of workers who are injured or killed.
• Permanent disablement of workers, which has a profound impact on them and their families.
• Permanent disablement of workers, which has a profound impact on them and their families.
• Loss of market share.
• Loss of skilled employees due to competitor action following a lengthy loss.
• Loss of customers (permanently or temporarily) and loss of supplier base.
• Contract breaches due to the loss occurring, resulting in penalties.
• Depending on the circumstances, potential lawsuits.
• Business interruption, both in terms of financial loss and loss or reduction of human capital.
• In some cases, businesses never recover and end up in liquidation, with dependants of the business suffering equally.
• While business interruption insurance is effective, it only provides for the financial aspect.

If you would like more information on Business Liability Insurance, speak to one of our knowledgeable brokers today. Simply email us at info@dwdv.insure or call us on 014 592-1077.