The following article as appeared in Safety Center Inside Safety Newsletter Vol 12, Issue 9 October 2012 is posted.
The article is written by
By Ann Richey, ARM-P
Risk Management Director
City of Ontario, CA
Risk Management (according to Wikipedia) is defined as the identification, assessment and prioritization of risks, followed by coordinated and economical application of resources to minimize, monitor and control the probability and/or impact of unfortunate events. Safety Management is the identification and mitigation of hazards, through proper training, correct equipment and engineering controls. In other words, Risk Management assumes bad things will happen so it puts appropriate responses in place, and Safety Management strives for the elimination of accidents altogether.
So, which approach is correct? The answer is they both are correct. As a former Safety Manager from 1991 to 2002, and a Risk Manager from 2002 to present, I have found there are a vast variety of unanticipated events with unfortunate repercussions, and there truly is no way to prevent or even predict all of them. Having said that, I still hold firmly to the belief that employees can work injury-free and accident-free if provided the correct equipment, training and working conditions. The Risk Management approach is very different from Safety Management, and depending on the size of the organization, it may take two people to maximize their effectiveness.
Risk Management looks at situations from a dispassionate, objective, global viewpoint. Safety is just one of many components of Risk Management. Risks, or losses, will happen - so you need to decide whether you will transfer that risk, insure it, or mitigate the cost. An effective Risk Manager works closely with department heads to develop contracts requiring a Certificate of Insurance so that if something does go wrong, you have the ability to successfully reject or transfer the claim over to the contractor. For losses where it is not possible to transfer the risk, then the necessary insurance coverage must be in place. An effective Risk Manager always looks for better ways to insure, from reviewing limits and deductibles, to purchasing coverage as part of a pooled program. When things go terribly awry and you are handling a lawsuit, Risk Managers strategize with legal counsel whether to pursue mediation, arbitration or try the case and weigh the benefits and drawbacks of each.
Safety management, on the other hand, is more intimate. Effective safety management means getting involved with the using departments, so you are able to view the workplace through their eyes. Then you apply your knowledge to their work environment and come up with ways to work more effectively and with far fewer accidents. Creating a working safety program that is meaningful and practical is just one of the ways good safety managers make their mark on using departments. Another is being a resource for employees who might have safety concerns and do not feel comfortable reporting their concerns to their supervisor. Providing training, monitoring the working environment and equipment to give intelligent feedback to management is crucial to achieving lower injury rates without spending money unnecessarily. Safety management requires constant involvement, physical presence and ongoing feedback.
For further information on Workplace Safety training, please contact Quen or Kei at 916-366-7233. Want to sign up for a class, click here for more info.
