Why Are Risk Assessment Programs Important?

Effective risk management is more important than ever in this age of constant cyberattacks, natural catastrophes, and unexpected emergencies. But risk management isn't about crisis management; it's about figuring out unanticipated risks, analyzing and evaluating them to mitigate and control them proactively. Forrester and the AICPA-CIMA have both released research indicating that businesses throughout the world are facing an increasing number of risks. Given this context, an effective Risk Assessment Program is crucial to any company's approach to the EHS (Environmental, Health, and Safety) program.

Role of Risk Assessment to Identify Potential Hazards 

In contrast to a risk management program, which is a continuous process that involves responding to identified risks for mitigation and control, a risk assessment focuses on detecting hazards and risks in the workplace and assessing it. Risk assessment relies on three main pillars: hazard identification, risk analysis, and evaluation of risks.

By analyzing potential threats, the risk assessment process may ascertain whether the current control measures are enough to protect workers, business continuity, and environmental safety. Risk assessment consists of two main parts:

1. The level of risk based on its impact: What could happen if the risk materializes?
2. Probability of Occurrence: How likely is it that the risk will occur?

In light of health and safety rules imposed by federal and international authorities like the Occupational Safety and Health Administration (OSHA), risk assessments have become too important for companies to ignore. Failure to comply with these rules may result in heavy fines and costs associated with employee injuries and tarnished business reputation.

A robust risk assessment process can offer organizations with several benefits, such as:

• Increased awareness regarding risks in the workplace
• Better understanding of the scope of the risk
• Optimization of control measures
• Thorough documentation of compliance
• Employee safety training and education
• Proper allocation of resources
• Fewer safety incidents in the workplace 

When unexpected events occur, businesses that lack a comprehensive risk assessment strategy fall back on crisis management. Consequences may be disastrous, placing enormous financial and emotional strains on the organization and victims over the long term.

Conducting a Thorough Risk Assessment Process

Several steps must be taken in order to put into effect for conducting risk assessment programs, which includes:

1. Data gathering: Gather data on the nature and severity of prospective risks using means such as task analyses and preventative risk assessments.
2. Setting scope and limits: Define the objectives, parameters, criteria, scoring, and responsibilities of all parties involved in the risk assessment.
3. Risk Identification: Determine the reasons for workplace accidents and the risks you face, dangers you face, and opportunities you have.
4. Risk Analysis: Analyze the identified risks by contemplating possible consequences, controls, and the degree to which they are effective.
5. Risk Evaluation: Compare analytical results to established criteria to evaluate the need for further controls and select appropriate actions.
6. Risk Communication: Make sure everyone involved is aware of and aware of how to deal with the hazards you've identified.

When conducted with all  steps in mind, risk assessments can offer the advantages we mentioned above. However, they are not without their share of difficulties. Our Risk Assessments whitepaper discusses each of these difficulties in detail, but here’s an overview of common misconceptions and challenges

Common Misconceptions:

1. Vulnerability assessment is the same as risk assessment.
2. Audits are equivalent to risk assessments.
3. Risk assessment requires no specialized skills.
4. Risk assessments yield binary results.
5. Risk assessment is solely a compliance checkbox.

Common Challenges:

1. Unstructured approach to risk assessment.
2. Inappropriate metrics for risk measurement.
3. Neglecting known risks.
4. Difficulty in data collection and interpretation.
5. Communication issues.
6. Failing to view risk assessment as an ongoing process.

Comprehensive EHS solutions with in-built risk assessment tools can help firms overcome these obstacles and expedite the risk assessment process. SafetyAmp is one such tool since it takes a comprehensive approach to evaluate and controlling potential dangers. Our services provide users with:

• Predefined risk assessment templates of Job Safety Analysis (JSA) and Job Hazard Analysis (JHA). 
• Access to configurable risk matrices, categorization, and risk libraries,
• Automated reports generation, and 
• Access to data in real-time in customizable dashboards,
• And so much more! 

Download our more comprehensive whitepaper to learn more about risk assessment and its critical function in EHS management. This resource explores the intricacies of risk assessment, the difficulties that arise in implementing a robust risk assessment program, and the ways in which our technology might provide a comprehensive solution.