Risk Governance

 

Many occupational and/or environmental health and safety professionals are not aware of term or concept of risk governance. Risk accompanies change, which is accompanied by the potential for benefits and opportunities. Better risk governance enables companies, organizations, and other entities along with industry, government, associations, and society to collectively benefit from change while minimizing the negative consequences associated with risk. The governance of global occupational health and safety risks requires cohesion between all stakeholders to collaborate on the business value associated with protection of the workforce, public and community, and the environment.

 

Governance refers to the actions, processes, values and traditions by which authority is exercised and the decisions made to improve the betterment of society and humanity. Risk governance, as it relates to occupational and/or environmental health and safety, to the policies, programs, and standard operating procedures that are constructed and championed to ensure that every worker, person residing within the community, and ecosystem within the environment are protected against the cause of illness and disease and the safety and protection of all at-risk individuals. The emergence of new and creative technology and a more deeper understanding of science, engineering, and mathematics associated with occupational and/or environmental health and safety can improve our current understanding of risk governance principles and how to capture and analyze authoritative data to determine if risk appetitie is acceptable or intolerable for all types of business and industry. The framework for risk governance includes the following:

 

(1) Pre-Assessment is the warning mechanism by which the occupational health and safety management system identifies a gap within the policy, program, or procedures which affects the workforce, public, or environment. It also provides a mechanism of best practices to ensure the gap remains closed and unbroken.

 

(2) Appraisal combines the science used in the risk assessment of a hazard and its quantitative probablistic outcome to systematically make sound decisions based on the current body of knowledge.What is known about an occupational health and safety hazard is equally as important what is unknown about the hazard and related hazards. Hazard identificatipon and hazard operability studies are important tools in the appraisal process.

 

(3) Characterization and Evaluation is the risk assessment process by which scientific data and a through understanding of political, ethical, religous, social, economic, and other factors are considered in determination of the risk and its impact for action or inaction on all stakehoders. The level of risk can vary by industry, occupation, training and education, and the importance of the business case and value has on these confounding factors. It is important for all stakeholders to evaluate the risk as acceptable, tolerable (requiring some mitigation) or intolerable (unacceptable) requiring immediate stand down, intervention, and change management. Risk registers along with the construct of a strategic management plan can provide a platform to characterize the rank order of risk and the basis for providing the best return on investment.

 

(4) Risk Management are the actions and remedies taken by leadership based on a complete and thorough risk assessment of all occupational and/or environmental hazards identified during inspection, audits, and surveys of workplaces and job tasks. Wherever possible, intolerable or unacceptable level of risk should be reduced or transferred to reduce liability, litigation, and costly compliance requirements.

 

(5) Risk Communication provides a basis for shared knowledge of industry hazards and their level of risk. It is also provides a dashboard for communicating the decisions make regarding policy, programs, and procedures to all stakeholders in order to improve contract support and performance of the downstream supply chain. Socially responsible business and industries will market these business values upstream to improve market share along with brand, image, and reputation. Risk communication also provides civil society with the understanding of risk and participate in the governance process.