RISK MANAGEMENT

INTRODUCTION
TOPIC 1
DEFINITION

 Risk management is the process of identifying, assessing and

controlling threats to an organization's capital and earnings.
 These risks stem from a variety of sources, including financial
uncertainties, legal liabilities, technology issues, strategic management
errors, accidents and natural disasters.
IMPORTANCE OF RISK

 Reason 1: Crucial for Planning

 Believe it or not, risk management strategy plays an important role in planning
for the future. Through an increased awareness of hazards, and therefore
possible risks, your department can create a strategy that effectively controls
hazards and risks moving forward.

 Reason 2: Informed Decision Making

 Risk management in health and safety is a great tool for forward-thinking. Not
only can you plan better with a more informed understanding of risk, but you
can also make quicker decisions across business operations due to available
the data. With more information, decisions can be made with more confidence.
CONTI…

 Reason 3: Safer Work Environment

 Greater visibility and awareness of risks within the workplace allows your
employees and EHS department to proceed with appropriate training that will
ensure safety.

 Reason 4: Demonstrates Leadership

 Risk management allows the implementation of a proactive risk management
strategy. Such a strategy helps demonstrate to employees that leadership is
serious about protecting both their physical and mental health. This will in turn
help strengthen employee loyalty, retention and motivation
CONTI…

 Reason 5: Improved Employee Engagement and Productivity

 Employees will always appreciate a safe working environment. Employees may feel
encouraged by their employer’s dedication to providing and maintaining a safe
working environment. This can translate to increased engagement and productivity.
Your employees will be less likely to leave as a result of negligence on the part of the
organization.

 Reason 6: Improved Communication

 When risk management is carried out correctly, the organization should have a good
understanding of how the business is working together when it comes to health and
safety. Forming a strategy can help you find gaps in your communication, which can
then be strengthened. Strategies should prioritize visibility, which will stimulate
communication