Risk Management is the Foundation of Good Health and Safety Management

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Risk Management is the Foundation of Good Health
and Safety Management

• By Neil Budworth

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What is Risk Management ?
Risk management is the human activity which
integrates recognition of risk, risk assessment,
developing strategies to manage it, and
mitigation of risk using managerial resources
Wikipedia
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Risk Management

• Recognise
• Evaluate
• Control
• Monitor

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Risk Management - Recognise
Film Clip
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Cost - BP Share Price Comparison Post Texas City
BP Incident - March 2005 15 workers 170 injured
Baker Report
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Recognition - Getting the Priorities Right !
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Risk Management Isnt New ! A Brief History of
Health and Safety Law Legislation as a Framework
for Risk Management

• If a builder constructs a house for a man but
  does not make his work strong with the result
  that the house ... collapses and so causes the
  death of the owner ... the builder shall be put
  to death
• Hamorabi, Emperor of Babylon, c 1750 BC
• Wikipedia

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Legislation Following Case Law

• Edwards V National Coal Board 1949
• Edwards was killed when an unsupported section
  of a travelling road in a mine gave way. Only
  half the length of the whole road was shored up.
• Risk balanced against sacrifice
• So far as is reasonably practicable
• Implied Risk Assessment

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Legislation Following accidents

• Flixborough 1974
• Led to
• The Notifications of Installations Handling
  Hazardous Substances Regulations.
• Sevesco 1976
• Led to
• European directive followed in the form of
  Control of Major Accident Hazard Regulations.

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Development of BRM and CSR
management systems Turnbull guidance controls
assessment corporate social responsibility
(CSR) socially responsible investing (SRI)
financial insurance internal audit brand and
reputation IT and Ecommerce business
continuity
fire security environment business recover
y
liability people products property
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What do You Say to that ?
Conkers !
The Difference Between Hazard and Risk
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Risk Management

• Recognise
• Evaluate
• Control
• Monitor

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A Current Trend ?
Risk
Management
Avoidance
Hazard
Identification
Management
Reaction
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Trivial or Non Trivial Risk
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STOP OR NOT?

• Major new process has been introduced. The
  machinery is not guarded and the chemicals have
  not been assessed. There is strong financial
  pressure to run the process.

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STOP OR NOT?

• Bonzo the clown is performing at local authority
  children's party. There is concern that some of
  the children may be allergic to latex.

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STOP OR NOT?

• A local authority wants to introduce hanging
  baskets. There is concern that the lamp posts
  will not take the weight.

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STOP OR NOT?

• A company introduces ice skating which is being
  used as a team building exercise. There have been
  4 lost time accidents with the last month.

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STOP OR NOT?

• School trip to a rural village in Ghana

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Balancing Risk
Normally Managing the Most Likely Scenario
BUT
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Balancing The Risk

• Financial
• Fines
• Prosecution
• Loss

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Balancing The Risk

• Non Financial
• Morale
• Reputation
• Employer of choice
• Aging workforce

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What changed ? The risks we see or the risk we
tolerate ?
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What changed ? - Or nothing ?
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Summary

• Risk management is the foundation of good health
  and safety management
• But
• The management of risk is under threat
• Risk Avoidance and Hazard Reaction
• Our challenge to educate about sensible risk
  management

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HSE Myth of the Month
The myth Kids must wear goggles to play
conkers The reality This is one of the oldest
chestnuts around, a truly classic myth. A well
meaning head teacher decided children should wear
safety goggles to play conkers. Subsequently some
schools appear to have banned conkers on health
safety grounds or made children wear goggles,
or even padded gloves! Realistically the risk
from playing conkers is incredibly low and just
not worth bothering about. If kids deliberately
hit each other over the head with conkers, thats
a discipline issue, not health and safety.
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HSE Myth of the Month
The myth Every possible risk needs a safety
sign. The reality Using too many signs just
guarantees no one will read any of them.
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The myth If a pupil is hurt the teacher is
likely to be sued The reality The duties lie
with the employer. In the last 5 years no
teacher has ever been sued.
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Sensible risk management is about

• Ensuring that workers and the public are properly
  protected
• Providing overall benefit to society by balancing
  benefits and risks, with a focus on reducing real
  risks
• both those which arise more often and those with
  serious consequences
• Enabling innovation and learning not stifling
  them

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Sensible risk management is about

• Ensuring that those who create risks manage them
  responsibly and understand that failure to manage
  real risks responsibly is likely to lead to
  robust action
• Enabling individuals to understand that as well
  as the right to protection, they also have to
  exercise responsibility

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Risk management IOSH reality checklist

• 1. Get together
• Work together
• 2. Be aware
• Of rights and responsibilities
• 3. Think about the real world
• Solutions should be sensible, cost-effective,
  proportionate no red tape.
• 4. Take a positive approach
• We enable we dont stop
• We want to save life not stop it!

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Sensible risk management is not about

• Creating a totally risk free society
• Generating useless paperwork mountains
• Scaring people by exaggerating or publicising
  trivial risks
• Stopping important recreational and learning
  activities for individuals where the risks are
  managed
• Reducing protection of people from risks that
  cause real harm and suffering

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Conclusion

• Risk management is the foundation of good health
  and safety
• (or is health and safety the foundation block of
  good risk management ?)
• Core principles
• Recognise
• Evaluate
• Control
• Monitor

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Conclusions

• Recognition is Important
• True risk management realistic evaluation of
  the risk
• Or in some cases identification of the worst case
• Managing or controlling the risk
• Our role
• Educating people about risk management
• And about sensible risk management

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Thank you - Questions