5 ways to reduce the risk of an incident on your site

5 ways to reduce the risk of an incident on your site

If you manage a construction site, you’ll know that managing risk is a huge part of any project. However, this can be easier said than done when there are plenty of moving parts.

Government research shows that in 2019, 182 Australian workers were fatally injured while working, compared with 144 workers in 2018. Amongst the industries that had the most injuries and fatalities were Transport, Agriculture and – you guessed it – construction.

If you manage a construction site, or look after any aspect of workplace safety for your organisation, it’s always useful to brush up on your incident and risk management skills. To help, we’re running through the top 5 ways to reduce the risk of an incident on your site.

Educate Your People On Incident Risk

Risk increases when employees don’t understand the dangers of their environment, and often the only way to bridge that knowledge gap is by educating them yourself. Realistically, health and safety is one of the last things on the average contract workers mind, but it’s so important. One of the first steps in reducing the risk of an incident on your site is educating your people.

Often an effective learning management system or LMS can be very helpful in keeping track of the modules that people have completed and having a record in one place. Training people on health and safety best practices will help to reduce the risk of an incident on your watch.

Perform Regular Inspections

Having a handle on the level of risk is important, and regular inspections to see how your risk level is holding up is essential. Without constantly checking in and going over the hazards that are present on your site, new risks can crop up and cause issues.

Having a risk register that you can refer back to is very important and helps to remind everyone of incidents that have occured in the past and the potential weak spots where an incident may occur in the future.

Take A Risk Management Approach

On many sites, the policy is just ‘wait until something happens and then enforce safety measures’, however often that’s when incidents occur. Taking a risk management approach may seem boring or over the top, but having this attitude will help you reduce the risk of incidents on your site.

A risk management approach means that you actively seek out the risks and measure the likelihood of an incident occurring so that you can prevent them in the first place. This risk management attitude should have a trickle down effect from the top project managers and stakeholders to the day to day construction workers.

Once You Have Identified Risks, Make A Plan

Once you have identified the risks of an incident on your site, make a plan of attack to ensure that they don’t occur. This safety plan should be well documented and readily available for everyone to access.

A list of preventative measures should be implemented, and you may need to check in with your teams weekly or even daily to make sure that everyone is on top of these risks and doing everything they can to reduce the risk of an incident on your site.

Ensure That Your Tools And Protective Gear Are Up To Scratch

Aside from human error and negligence, one of the main causes of incidents on sites is when there is an error with equipment or protective gear. It is important that your business has an allocated individual to check the safety of tools and protective gear to keep your people safe.

Task Management software can help to ensure that everyone is on top of these tasks and keeps a record of when checks have been carried out.

For more information on how to reduce the risk of an incident on your site, head over to our contact page and get in touch.

 

How To Create A Risk Management Plan For Your Project

How To Create A Risk Management Plan For Your Project

When you’re managing a project, having an effective risk management plan in place is essential. Not only will an effective plan protect your people from unnecessary risk, it will ensure that you remain compliant and are doing your best to keep your workplace safe.

In emergencies, a risk management plan can stop things escalating and getting out of hand, as well as putting your mind at ease prior to an incident occurring. Take a look at how to create a risk management plan for your project in our handy article.

What Risks Could Take Place?

The first stage of any risk management plan is assessing what could actually happen. Once you’re more aware of the risks that are present, you can start to plan and prepare for them. Sometimes this process takes thought, as risks can be quite hidden. However, ensuring that you know what series of events could be putting your business at risk is a sure fire way to minimise them.

To uncover the risks that your business faces, there are some questions you need to ask yourself, and your staff. These are:

  • What might happen in this environment?

The environment is often one of the most common areas of risk. Take into account what your people have to do within the work environment and identify any dangerous areas where risk could be heightened.

  • Who would be at risk?

If something were to happen, who could be at risk and how are they protected at present? Are they aware of the risks that they face at work? Could more be done to educate your people on the risks within the environment? 

  • What would the impact be if the worst case scenario did happen

If something terrible did happen, it’s important to work out what the worst case scenario would be and how you would manage it if it did happen. Impact is an important indicator of how urgently you need to manage that risk.

  • What is the probability of this risk happening?

Within your project, it is good to predict the probability of the risk and whether the likelihood of it happening is imminent. If so, you’ll need to take immediate action, however in most cases the risks are not imminent and therefore you can create a risk management plan to prepare ahead of time.

  • Mitigation: how can you mitigate the risk?

There will be things that you can do to mitigate the risk to your people and your business. You may assess whether you have adequate training, software and staff to manage risks within your business.

  • Contingency: can you reduce the impact?

If you can’t mitigate the risk, you may be able to reduce the impact. There will be a level of risk that you simply can’t avoid, however you should be able to minimise the impact if that risk were to happen.

Discover The Assumed Risks And Exposure

Exposure needs to be considered within the risk management plan – that is, the amount of risk you can’t avoid. This can also be described as threat, liability or severity. 

By figuring out the assumed risk you can work out the costs vs costs savings of implementing certain risk solutions. Assumed Risk is reduced to a dollar value which is then used to calculate the profitability of the end product.

This is often a simple cost vs. benefits formula. You might use these elements to determine if the risk of implementing the change is higher or lower than the risk of not implementing the change.

Create A Risk Management Plan In 10 Steps

Once you have those risks assessed, it’s time to get on top of the risk management plan for your project. Here’s how.

Step One: Define The Project

Define the project, your objectives, and the risks that come with each objective. You should measure your risk in terms of impact and mark the risk and impact in terms of high medium and low.

Step Two: Ask People What Risks They Face

If you’re creating a risk management plan, it’s likely that you’re not on the ground facing the risks day to day. In order to cover all bases, you will need to collaborate with the people who face the risks. Ask people who are familiar with the project what the risks are and how they feel risks could be mitigated.

Step Three: Look At The Consequences

With a risk management plan, the idea is to always plan ahead. What would happen if the risks materialised? Planning this out will ensure that when/if something does happen, you will have a plan in place and be aware of the consequences and the potential spiral effects.

Step Four: Assign Probability Of Risk

Which risks are most likely to come true? For each risk element on your list, determine if the likelihood of it actually materialising is High, Medium or Low. 

Step Five: Assign Impact

In general, assign Impact as High, Medium or Low based on some pre-established guidelines. 

Step Six: Determine Risk For The Element

Often, a table is used for this. If you have used the Low, Medium and High values for Probability and Impact, the top table is most useful. If you have used numeric values, you will need to consider a bit more complex rating system similar to the second table here. It is important to note that there is no universal formula for combining Probability and Impact; that will vary between people and projects. 

Step Seven: Rank The Risks

List all the elements you have identified from the highest risk to the lowest risk and compute a total risk. 

Step Eight: Develop Mitigation Strategies

Develop mitigation strategies that reduce the possibility that a risk will materialise. 

Step Nine: Develop Contingency Plans

Contingency is designed to reduce the impact if a risk does materialise. Again, you will usually only develop contingencies for High and Medium elements. 

Step Ten: Analyse The Effectiveness Of Strategies

How much have you reduced the Probability and Impact? Evaluate your Contingency and Mitigation strategies and reassign Effective Ratings to your risks.

An Effective Risk Management Plan

This is a very simplified version of the process that you might go through to create a risk management plan for your project, however it should help to point you in the right direction.

For more information,  you can take a look at our risk management solutions that help you assess and register risk.

 

Incident Reporting In The Workplace: A Step By Step Guide

Incident Reporting In The Workplace: A Step By Step Guide

So you’ve encountered an incident in the workplace? The initial response is usually one of panic, but an incident reporting system and response plan can help ease that sense of stress. There’s a few things that you are required to do in order to make sure that the incident is reported quickly and accurately, however a surprising amount of businesses get this wrong.

Ultimately, reporting an incident properly can be the difference between making a major legal error and conducting yourself properly. It’s essential that you know how to deal with an incident at work and educate your team to respond properly.

To help you out, we’ve put together a step by step guide to incident reporting to keep you on track the next time something happens on site.

What are the four main types of incidents?

People often think that an incident has to be a big, catastrophic event. This isn’t the case. Incidents can also refer to the events where nothing much happens but they are indicative of a bigger problem that could lead to incidents in the future.

The four main types of incidents are:

  • Near misses
    Situations where people could have been injured, but, luckily nothing came to pass.
  • No harm events
    Operational risks that all staff across an organization should be made aware of.
  • Adverse events
    Adverse events are related to medicines, medical devices, and vaccines.
  • Sentinel events
    Sentinel events are unexpected events that result in any type of harm

1. Take action

As soon as an incident happens, the natural reaction is for people to panic. To quell this response, it can be helpful to have allocated team members who take responsibility for acting in the event of an emergency.

This action might be anything that is necessary to minimise damage – be it calling emergency services, getting medical attention or containing spills or leaks as much as possible. Whatever the incident – it is important that appropriate action is taken straight away.

2. Report the incident

The next step is arguably the most important and ‘official’ of all the steps and ensures that the immediate manager and any authorities are informed about the incident. You need to make sure that it is immediately reported so that people can remain protected from any knock-on damage that might occur. 

An incident report will likely also include reporting the incident to the applicable authorities in order to act in like with statutory requirements. It is essential that the following are reported to authorities by law:

  • Fatalities
  • Injuries that require hospitalisation
  • People exposed to chemicals
  • Major spills or environmental hazard

3. Ensure the incident documentation is safe

Once you’ve reported the incident in the most effective and legal way, the next stage is to make sure that the documents are kept safe.

This is where an incident reporting system comes into play in order to store and manage all documents associated with the incident. All documents should be stored in a secured centralized repository as opposed to the usual paper-based safety statement that many businesses still use.

Paper-based reporting systems can cause administrative issues for medium-sized businesses and make it impossible for businesses to report incidents as they occur. With a paper-based approach, the onus is on employees to complete this work and any lapse could result in significant fines and/or legal wrongdoing.

4. Investigation – assess root causes

After looking at prevention and how to better report incidents and manage them in the short term, it is essential that your business looks at the root causes and carries out investigation.

The idea behind root cause analysis is to identify any underlying issues that might cause further problems in the future.

Once you’ve assessed the root cause, you can then effectively 

5. Develop corrective actions

Incident reporting can be categorised into lagging actions and leading actions. The lagging actions refer to the times when an event happens and the response lags behind, whereas the leading actions ensure that you are one step ahead and are prepared for the next incident when it happens. Corrective actions look at what could have been done better in order to pre-empt and protect against the next incident.

Lagging actions are:

  • Near-misses – events where no actual harm occurred.
  • Accidents resulting in personal injury
  • Equipment or property damage

These are all examples of lagging indicators – you’re looking in the rear-view mirror, reporting what happened and seeing what you can learn from it.

Leading actions are:

  • Safety walkthroughs – you can study the length and frequency of walkthroughs.
  • Training effectiveness and the frequency that training takes place.
  • Management safety meetings and the frequency with which they occur.

Leading indicators are more like looking out of the windshield and seeing what problems could arise. Some organizations view near-misses as leading indicators, although they are events that happened and just didn’t lead to actual harm or injury. 

In the event of an incident, many businesses report in hindsight and then forget all about it. This doesn’t allow the incident to be investigated and worked upon in order to refine a better response.

Looking at the corrective actions that could be taken to better predict and prevent these kinds of incidents occurring is an essential part of an incident reporting process.

What Next?

Incident reporting is the first step in a much longer process. Reporting is usually thought of as what happens after an accident, dangerous condition, injury or near-miss has taken place. However, the real challenges begin once you start looking at why the incident occurred and assess what can be done to prevent these incidents in the future.

To help you with this, an incident reporting system is one of the best ways to stay on top of all workplace incidents and make it easier for your people to report accurately.

5 Benefits of an Enterprise Risk Management Solution

In most cases, companies only think of using an Enterprise Risk Management (ERM) software for managing their organisation’s Health and Safety whenever an audit is coming up and they want a fast way to get on track and ensure they are still compliant with international standards.

However, this shouldn’t be so. Enterprise Risk Management (ERM) simply means measures taken by key stakeholders to make sure the conditions and procedures of operation of an establishment are ultimately and strategically protected to the highest degree possible.

Risk protection tradition has evolved greatly over the years. Taking data-reliant organisations as a case study, various solutions have been proffered to the menace of hacking. Latest solutions involve the use of configured software in ensuring the safety of acquired data.

Benefits of Risk Management Solutions

ERM solutions have redefined the way risks are managed in organisations around the world, bringing along unique benefits. It has noticeable effects in terms of quality and quantity. Let’s check out five unique benefits that come with the usage of ERM solutions.

1. Increase Urgency assigned to Risk Management Culture: most of the times, the majority of staffs within the organisation are aware of the basic risks involved but no serious measure is taken to beef up security. Adopting the ERM solution gets them talking about risks and how they can move further above the awareness level to the mitigation level.

This automatically promotes safety and risk management culture across the organisation. Getting the entire staffs talking does not only provide additional information to top officials pertaining to risk awareness. It also gives them further insight as to tackling them and better decisions are made by the set committee.

2. Access to A Well-Structured Risk Identification Process: risk identification can only be helpful when it comes with all the right information needed to take decisive action.  ERM solutions do beyond identifying risks. It is structured to perform analysis that accesses the level of seriousness of identified risks. This help ERM managers improve their focus on risk mitigation. Additionally, it helps to identify emerging risk factors and other important variables such as level of seriousness, and many more important factors.

ERM solutions also output its reports in a brief, timely and improved format. Making it possible and easy to perform a synergy with other relevant risk data. These data, which may be from external sources are used to obtain an aggregate result for a better decision-making process.

3. Increased Sensitization and In-Depth Outlook on Risk: ERM solutions are incredible guides in ensuring safety in organisational activities. They are quick to point out little changes in an organisation’s activities that have risk inducing potentials.

Beyond modification, acceptance, and avoidance which are the traditional elements of risk management, ERM solutions also help in creating and expanding industry for experts in performing top notch examination of risk practices.

4. Judicious Utilization of Available Resources: manual risk management can be time-consuming. This has been confirmed by organisations yet to adopt ERM solutions. On the other hand, adopting risk management solutions doesn’t totally relieve your organisation of risk management responsibilities. It still requires monitoring and crucial decision making on the part of designated stakeholders.

However, ERM solutions bring about great relief. Time spent in manual risk management is then diverted to other productive sectors of the organisation, thereby reducing redundancy and increasing productivity.

5. Ensure Highly Coordinated Regulation and Compliance Level ERM data are used to identify and monitor set and regulated controls in an organisation. Also, mitigation procedures are monitored to ensure nothing disrupts compliance. There have been several reports of data reliant organisations requesting, testing and using data generated via ERM solutions. This is sole as a result of the high level of coordination and compliance of ERM solutions.

Adopt Our ERM Solutions Today

You can never go wrong by protecting your organisation. Adopt our Enterprise Risk Management (ERM) solutions today and be sure of fewer worries concerning organisational safety. Our ever-dynamic software has been helping businesses and other organisations to manage and improve safety and compliance for over a decade. Our Software possesses awesome functions, coupled with a simple and flexible interface.

You can begin by signing up for a free trial and see how our software can make your organisation a safer one.

 

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How to Successfully Implement an Enterprise Risk Management System

4 Risk Management Checklists Every Safety Manager Should Know

Risk management is a powerful instrument used for distinguishing and limiting hazards that exist in the working environment. Once recognised, a portion of these hazards can be eliminated. Others can be controlled somewhat while giving you expanded command over risks that post dangers to your employees.

When managed appropriately, this checklist can turn into a rule for your organisation as it achieves compliance; decreases work environment stress and hazards and expand in efficiency and productivity. Contingent upon your industry and type of business, you may need to make changes to these things. With that said, let us start with the checklists.

 

Checklists#1 – Identification of Risks

The initial phase of risk management is to recognise the hazards that should be controlled. This ought to incorporate the circumstances, areas and physical things that could make hurt individuals – whether those individuals are your clients, your specialists or guests.

Common risks that might be uncovered include items in the physical work environment, equipment, chemicals, or other structural issues. Do not limit your search to the questions you can physically see, however. Things like excessive noise, fumes and high or low temperatures can also create unsafe working conditions.

One of the best and simplest ways to recognise hazards is to ask the majority of your employees. They work intimately with hardware and apparatus that you may never contact. They know a lot about their environment, and their info is vital concerning risk management.

 

Checklists#2 – Assessing Identified Risks

When you have identified potential hazards, it is an excellent opportunity to assess every one of them. You will have to decide how serious each risk is and whether you have any current control estimates that could be compelling in limiting or eliminating it.

With this data, you can figure out what move you should make to control the risk. Now you can likewise organise the work in front of you. Which risks request the is most urgent? Which ones can hold up a while?

 

Checklists#3 – Taking Control of the Risks

Keep in mind that the best control measures are those that eliminate risks. If it is not conceivable to dispose of them, limit them to its barest conceivable state. Be imaginative as you look for methods by which to eliminate or reduce risks. Now and again, a single control may not be as viable as a mix of various restrictions that cooperate to limit the risk. As you survey your list, you will see that a few risks are quite easy to control and therefore can be managed immediately. Others may take time with arranging, conceptualising and strategising.

Remember that risk management is anything but a one-time assignment. Employees change, your working environment changes and you get new gear and innovation over the long haul. Along these lines, risk management ought to be a continuous venture. Numerous Australian organisations find that they can keep up successful risk management by booking appraisals all the time to refresh any new risks and assess their advancement.

 

Checklists#4 – Tackling Risk Management

With your endeavours devoured continuously to the management of your business, risk management can appear to be a weight that is more inconvenience than its worth. In all actuality, nonetheless, that lessening your risk will spare you time and cash later on when you don’t need to manage mishaps and mischief to your profitable employees.

If the possibility of risk management feels difficult, get some assistance. Our OHS programming makes risk management considerably less demanding, providing you with thorough risk management checklists, compliance-prepared standard procedures and easy correspondence between colleagues. There is no compelling reason to reinvent the wheel. You can utilise our checklist to deal with your risk, wellbeing and security commitments.

Get a free trial of our software to see the benefits firsthand, and get in touch with us if you have any further inquiries.

4 Big Reasons Why Manufacturing Companies Should Enhance Operational Risk Management

There are distinctive sorts of risks, even though many are intertwined: financial risks, reputational risks, operational risks, store network or outsider risks, consistency/ legal risks, and others. Numerous individuals see operational risks through the perspective of security management: improving specialist and process wellbeing prompts more gainful tasks while the alleviation of operational risks – made by inappropriately maintained (or malfunctioning) gear or by the nearness of work environment dangers – diminishes injuries and ailments.

For manufacturers, it is essential to see the link amongst security and operational risk management. In any case, the method of reasoning for improving operational risk management goes past well-being. There are a few compelling motivations to enhance operational risk management. We share four of the essential ones in this post, which are supported by Aberdeen survey results.

1) Accomplish Financial Objectives

Numerous manufacturers see the connection between mitigating operational risks and improving profitability. In any case, Best-in-Class associations have the foreknowledge to go above and beyond and furthermore observe the link with financial execution. According to an Aberdeen overview, 52% of respondents said they have to decrease the effect of operational risks on business objectives. Furthermore, 42% of Best-in-Class organisations adjust operational information to financial information to comprehend the economic impact of unfavourable occasions.

2) Increase and Enhance Coordinated effort

The fruitful accomplishment of financial objectives speaks to a hard, quantifiable advantage. Implementing an operational risk management framework likewise brings its advantages, for example, increased participation and coordinated effort. According to a similar Aberdeen review, 47% of respondents recognise viable cooperation crosswise over practical divisions as a necessity to execute an operational risk management system, which prompts the joint management of risks. The execution of a functional risk management system gives the incentive and impetus to associations to likewise enhance cross-utilitarian joint effort.

3) Institutionalize Risk Appraisal

Best-in-Class manufacturing associations comprehend that the fruitful moderation of operational risks improves the probability that corporate targets will be met. To effectively relieve operational risks, similar strategies, techniques, and risk evaluation approach must be connected to the organisation. By improving operational risk management, the Best-in-Class accomplish more noteworthy institutionalisation in risk appraisals and somewhere else. 54% of Best-in-Class manufacturers have traditional risk evaluation forms over the undertaking. That figure is 36% for every other producer, meaning the Best-in-Class are 50% more inclined to institutionalise risk evaluation forms.

4) Manufacture a Culture of Risk Mindfulness

In the Aberdeen overview, 41% of manufacturers said they have to construct a risk mindfulness culture all through the association. By improving operational risk management, organisations establish the following frameworks that prompt risk mindfulness:

  1. Increased and enhanced the joint effort
  2. The institutionalisation of risk evaluations

Through a culture of risk mindfulness, manufacturers set up more prominence into operational risks and control measures, and integrate a risk mindset in day-to-day assignments, in this way additionally reducing operational risks and their effects on corporate and financial goals.

Beakon software can enable you to have a bird’s eye view of your entire safety management program. Take advantage of a free trial today and start enjoying the benefits of using software to fast track your incident reporting, injury management, issuing permits to work et al.

Top Reasons Why You Need To Link Incident and Risk Management Together

It does not make a difference what industry your organisation operates. There are a few advantages of connecting an incident database to a risk register. In this post, we feature the benefit of combining the two incidents and risks and the experiences that such an association can bring.

Incident Management and Risk Management

Successful companies utilise incident management software to catch and report incidents and unfriendly occasions. Incidents include near misses, and also, mishaps that brought about fatalities, wounds, ailments or property harm. A few companies additionally empower their workers to report incidents remotely and in the field through a mobile application.

Another reasonable step many successful companies leverage is the use of risk management software to enhance the way toward recognising, surveying, relieving and observing all risks all through the venture. Risk programming is more powerful than spreadsheets to keep up and refresh a risk register that incorporates all risks and controls.

Advantages of Connecting Both Risk and Incident Management Together

While there are individual benefits related to combining both incident and risk management software, yet there are significantly more prominent advantages when both of them are connected. More specifically, four kinds of significant insights can be accessed through this connection. These are:

1) Incidents help to recognise already obscure risks. Each time an incident happens, you should check whether a comparing risk was already distinguished. If not, at that point the new risk ought to be investigated and assessed. If there are numerous comparative incidents, it might demonstrate a pattern is indicating a noteworthy risk.

2) Incidents (in)validate the probability of risk. As a significant aspect of a risk assessment, you have decided the likelihood of an unfriendly occasion. Since an incident is a risk that has emerged, the number of incidents can enable you to check if the possibility you have built up is as yet substantial, or if it should be refreshed.

3) Incidents (in)validate the seriousness of risk. As a feature of a risk assessment, you have additionally decided the severity of the effects of an antagonistic situation. The results of an incident compared to a particular risk can enable you to confirm if the seriousness level you have built up is even substantial, or if it should be refreshed on the off chance that it was overestimated or disparaged.

4) Incidents help to assess the adequacy of controls. By a wide margin, the most critical advantage of connecting incidents and risks is the way it can determine the viability of controls. On the off chance that there are numerous antagonistic occasions of a similar sort related to a particular risk, it might show that the control isn’t compelling. The invert is likewise valid. For instance, if 3-5 unfavourable occasions were ordinary every year for a particular risk, yet “just” one happened, it might show that the control is more viable than initially thought.

The four things above ought not to occur in separation. For instance, numbers #2, #3 and #4 will cooperate. The adequacy of control will be assessed by considering any progressions to the probability and seriousness of the effects of an unfriendly occasion. Changes to the remaining risk may likewise evaluate the adequacy of the control.

Conclusion

One major takeaway from this article is the need to create a way for both incidents and risks to be fully integrated into one robust EHS Management software that works seamlessly together. This guarantees a consistent trade of information between various applications and capacities, including information on incidents, risks, and controls.

Luckily, Beakon’s all-in-one software has this capability. You can take advantage of a free trial today. Try our software free, and we are sure the ease of use and fantastic interface will make keep using it for your safety management needs.

 

6 Stages to Empower an Operational Risk Management Program

Manufacturers are known to have established different safety measures that have demonstrated great accomplishment in lessening work-related incidents over the years. In any case, reducing manufacturing risks is not enough to mitigate operational dangers. This article explores six crucial stages to empower a thorough, institutionalised functional risk management program:

Stage 1: Build up Possibility Arrangements and Heightening Methodology

Risk management is a continuous procedure for the duration of the life of a producer. As a piece of recording and forestalling risk, decreasing the likelihood of unfriendly occasions requires setting an alternate course of action that is built up through organisation approach and incorporates a progression of activities or acceleration strategies if any incident happens.

Stage 2: Institutionalize Risk Evaluation over the Undertaking

Manufacturers must characterise their penchant for risk in a way that records for workforce security, resource management, ecological effect, and business suggestions. To some degree, risk evaluation is emotional given the individual perspectives of an occasion. Setting up a strategy that expels this inclination will enable the whole association to comprehend the seriousness of risk levels.

Stage 3: Adjust Innovation That Accommodates Your Company Culture and Procedures

Add arrangements that are anything but trying to utilise and incorporate with your present procedure. Remember that any new method will require preparing, which ought to be viewed as an essential piece of the combination. Utilize reproduction to decrease blunders and empower usefulness that fits with the current procedure.

Stage 4: Adjust Operational Information to Financial Information

Comprehend the monetary effects of unfriendly occasions by adjusting operational and money related information. What matters for a manufacturing company is to stay productive, which implies understanding the financial impact of different situations. With this comprehension of the operational connect to money related effect, makers can get ready and ideally keep the economic harm of an unfriendly occasion.

Stage 5: Completely Focus on the Procedure

This progression is vital if you need your methodology to be a long haul. A fruitful usage of a viable operational risk management program requires buy-in from top management directly down to partners.

Stage 6: Keep Everybody In agreement

Keeping everybody in your association on top of it is critical. Correspondence crosswise over Research and development gatherings, outsider sellers, and assembling will guarantee achievement.

Conclusion

You can use Beakon’s safety management software to manage every aspect of your organisation safety program. Take advantage of a free trial to get started today, and start enjoying the benefits of using software to manage your company’s safety management programs.

Risk Register Systems: Everything Project Managers Need To Know

Project managers are accustomed to facing risks whenever they undertake a new project. It is their job, however, to find ways to mitigate these risks. For project managers to tackle these situations effectively, they use risk management processes and frameworks. One of the most essential components of a risk management framework is the risk register.

What is a Risk Register System?

A risk register system also referred to as a risk log, can be used to track and deal with issues as they arise in real-time. Project managers create risk register systems at the early stage of a new project to help them identify, assess, and manage risks down to an acceptable level through a review and update process.

How does a Risk Register System work?

As we have described above, the risk register is a logbook used to identify, access and manage risks. It is a part of several risk assessment tools, and the way it works is not complicated. Its purpose is to record every detail of all the risks associated with a project along with the risks identified, the analysis of those risks and proposed plans to mitigate those risks.

Project managers can view the risk management database as a management tool for monitoring the risky aspects of any project within the risk management framework. The project manager is also responsible for ensuring that the risk register is updated as often as necessary.

List of Risk Management Processes

You can expect several risk management processes in a risk register. As a matter of fact, the risks that are recorded in the risk log are the driving factor for these risk management processes as specified in the PMBOK Guide.

Perform Qualitative Risk Analysis Process

This is the process of prioritising risks for additional analysis or action. This is done by estimating the probability of the risk occurring and its likely impact. One of the benefits of this process is that it helps project managers reduce the level of uncertainty in their projects and only focus on high-priority risks.

Perform Quantitative Risk Analysis Process

This process, on the other hand, focuses on analysing the effect of the risks identified in the objectives of your project. While there are several benefits to this process, the most important one is that it produces quantitative risk information that helps in making better decisions. This enables project managers to reduce project uncertainty in their projects.

Plan Risk Response Process

This is the process of enhancing opportunities while reducing threats to project objectives. One of the benefits of this process is that it tackles risks based on priority, thus inserting resources and activities into the overall budget.

Monitor and Control Risk Process

This is the process of executing risk response plans, tracking the risks identified, monitoring all residual risks, and determining new risks. Also, this process helps with evaluating the risk management’s effectiveness across the entire project.

Conclusion

One of the best things project managers can look forward to when it comes to managing their project risks is the ability to use technology. First, technology can be used for the entire risk management process. Beakon’s risk management software, risk assessment tools and risk register system are all part of an all-in-one system that helps top companies remain safe and efficient. Grab a free trial today.

 

 

 

 

 

 

 

 

How to Develop a Risk Management Plan

How to Develop a Risk Management Plan

Developing an effective Risk Management Plan can help keep small issues from developing into emergencies. Different types of Risk Management Plans can deal with calculating the probability of an event, and how that event might impact you, what the risks are with certain ventures and how to mitigate the problems associated with those risks. Having a plan may help you deal with adverse situations when they arise and, hopefully, head them off before they arise.

1- Understand how Risk Management works. Risk is the effect (positive or negative) of an event or series of events that take place in one or several locations. It is computed from the probability of the event becoming an issue and the impact it would have (See Risk = Probability X Impact). Various factors should be identified in order to analyze risk, including:

  • Event: What could happen?
  • Probability: How likely is it to happen?
  • Impact: How bad will it be if it happens?
  • Mitigation: How can you reduce the Probability (and by how much)?
  • Contingency: How can you reduce the Impact (and by how much)?
  • Reduction = Mitigation X Contingency
  • Exposure = Risk – Reduction
    • After you identify the above, the result will be what’s called Exposure. This is the amount of risk you simply can’t avoid. Exposure may also be referred to as Threat, Liability or Severity, but they pretty much mean the same thing. It will be used to help determine if the planned activity should take place.
    • This is often a simple cost vs. benefits formula. You might use these elements to determine if the risk of implementing the change is higher or lower than the risk of not implementing the change.
  • Assumed Risk. If you decide to proceed (sometimes there is no choice, e.g. federally mandated changes) then your Exposure becomes what is known as Assumed Risk. In some environments, Assumed Risk is reduced to a dollar value which is then used to calculate the profitability of the end product.

 

2- Define your project. In this article, let’s pretend you are responsible for a computer system that provides important (but not life-critical) information to some large population. The main computer on which this system resides is old and needs to be replaced. Your task is to develop a Risk Management Plan for the migration. This will be a simplified model where Risk and Impact are listed as High, Medium or Low (that is very common especially in Project Management).

 3- Get input from others. Brainstorm on risks. Get several people together that are familiar with the project and ask for input on what could happen, how to help prevent it, and what to do if it does happen. Take a lot of notes! You will use the output of this very important session several times during the following steps. Try to keep an open mind about ideas. “Out of the box” thinking is good, but do keep control of the session. It needs to stay focused and on target.
4- Identify the consequences of each risk. From your brainstorming session, you gathered information about what would happen if risks materialized. Associate each risk with the consequences arrived at during that session. Be as specific as possible with each one. “Project Delay” is not as desirable as “Project will be delayed by 13 days.” If there is a dollar value, list it; just saying “Over Budget” is too general.
5- Eliminate irrelevant issues. If you’re moving, for example, a car dealership’s computer system, then threats such as nuclear war, plague pandemic or killer asteroids are pretty much things that will disrupt the project. There’s nothing you can do to plan for them or to lessen the impact. You might keep them in mind, but don’t put that kind of thing on your risk plan.

6- List all identified risk elements. You don’t need to put them in any order just yet. Just list them one-by-one.
7- Assign probability. For each risk element on your list, determine if the likelihood of it actually materializing is High, Medium or Low. If you absolutely have to use numbers, then figure Probability on a scale from 0.00 to 1.00. 0.01 to 0.33 = Low, 0.34 to 0.66 = Medium, 0.67 to 1.00 = High.
Note: If the probability of an event occurring is zero, then it will be removed from consideration. There’s no reason to consider things that simply cannot happen (enraged T-Rex eats the computer).
8- Assign impact. In general, assign Impact as High, Medium or Low based on some pre-established guidelines. If you absolutely have to use numbers, then figure Impact on a scale from 0.00 to 1.00 as follows: 0.01 to 0.33 = Low, 0.34 – 066 = Medium, 0.67 – 1.00 = High.
Note: If the impact of an event is zero, it should not be listed. There’s no reason to consider things that are irrelevant, regardless of the probability (my dog ate dinner).
9- Determine risk for the element. Often, a table is used for this. If you have used the Low, Medium and High values for Probability and Impact, the top table is most useful. If you have used numeric values, you will need to consider a bit more complex rating system similar to the second table here. It is important to note that there is no universal formula for combining Probability and Impact; that will vary between people and projects. This is only an example (albeit a real-life one):
Be flexible in analysis. Sometimes it may be appropriate to switch back and forth between the L-M-H designations and numeric designations. You might use a table similar to the one below.
10- Rank the risks. List all the elements you have identified from the highest risk to the lowest risk.
11-  Compute the total risk: Here is where numbers will help you. In Table 6, you have 7 risks assigned as H, H, M, M, M, L, and L. This can translate to 0.8, 0.8, 0.5, 0.5, 0.5, 0.2 and 0.2, from Table 5. The average of the total risk is then 0.5 and this translates to Medium.
12- Develop mitigation strategies. Mitigation is designed to reduce the probability that a risk will materialize. Normally you will only do this for High and Medium elements. You might want to mitigate low risk items, but certainly address the other ones first. For example, if one of your risk elements is that there could be a delay in delivery of critical parts, you might mitigate the risk by ordering early in the project.
13- Develop contingency plans. Contingency is designed to reduce the impact if a risk does materialize. Again, you will usually only develop contingencies for High and Medium elements. For example, if the critical parts you need do not arrive on time, you might have to use old, existing parts while you’re waiting for the new ones.
14- Analyze the effectiveness of strategies. How much have you reduced the Probability and Impact? Evaluate your Contingency and Mitigation strategies and reassign Effective Ratings to your risks.
15- Compute your effective risk. Now your 7 risks are M, M, M, L, L, L and L, which translate to 0.5, 0.5, 0.5, 0.2, 0.2, 0.2 and 0.2. This gives an average risk of 0.329. Looking at Table 5, we see that the overall risk is now categorized as Low. Originally the Risk was Medium (0.5). After management strategies have been added, your Exposure is Low (0.329). That means you have achieved a 34.2% reduction in Risk through Mitigation and Contingency. Not bad!
16Monitor your risks. Now that you know what your risks are, you need to determine how you’ll know if they materialize so you’ll know when and if you should put your contingencies in place. This is done by identifying Risk Cues. Do this for each one of your High and Medium risk elements. Then, as your project progresses, you will be able to determine if a risk element has become an issue. If you don’t know these cues, it is very possible a risk could silently materialize and affect the project, even if you have good contingencies in place.