Managing Risky Business

Managing Risky Business

When managers realize the staggering cost of not having strong risk management practices in place, it quickly gets their attention.

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January 2, 2020

With all that a business owner or manager must worry about each day when they check their cell phone or laptop to read email, review sales and operational reports or review their meeting schedule for the day, it’s no wonder that risk management can sometimes fall through the cracks. 
 
However, when managers realize the staggering cost of not having strong risk management practices in place, it quickly gets their attention.
 
At the opening session of the recent PestSure Safety and Loss Prevention meeting, Dylan Romo, a senior consultant with Jurgiel Associates, shared methods for “stacking the deck” to secure the best outcomes when it comes to reducing the risk of accidents in their businesses.
 
“Risk is the probability, likelihood or ‘chance’ of an accident occurring to one of your employees in the course of their duties,” said Romo. “By ‘stacking the deck’ you improve your odds by controlling hazardous exposures or the things that can cause harm and the interactions between the employee and the hazard.”
 
Romo said outcomes are determined by causal factors that are the result of the conditions – how things are right now, the environment and circumstances – and actions that are arranged in a timeline.
 
What is involved in creating and sustaining a successful risk reduction program in your company? Romo said it involves a three-prong approach:
1. Risk Awareness – Knowing the hazards and exposures that could cause harm
2. Risk Evaluation – Having a strategy to determine which hazardous exposures to control
3. Risk Control – Taking the appropriate actions to prevent, mitigate and eliminate the risk
 
Romo said companies must do the work and establish a mechanism that proactively tackles assessing and mitigating risk. “You can’t wish accidents away and you need to be able to see what lies behind your employees’ motivation, so you can incentivize and hold them accountable when it comes to practicing good safety behavior,” added Romo.