Every business, no matter the industry, is likely to encounter risks during its operations. Risks are a reality of modern business that employers and employees alike should be well aware of.
Risk management refers to a plan detailing the risks present within the business and how those will be minimized, if not eliminated, for the safety of the company and its workforce.
This is why more companies are now investing time and money in risk management solutions (rms) to help them minimize the negative effects of those risks for their business. Follow the below guide on choosing a risk management solution right for your company.
Defining the Risks
There are various ways to define risks in your company. Risks are specific to your business’ working environment or condition. Risks are typically divided into three categories: Environmental, Health, and Safety (EHS).
Environmental risks cover a broader set of hazards. It is anything potentially threatening to any living organism within an organization’s environment, brought on by activities that produce hazardous waste, wastewater, and air emissions.
Health risks are also a primary concern in the workplace, especially if your business uses or manages waste or harmful chemicals. Safety risks are among the most common hazards that may disrupt your operations. This includes working conditions that can injure an employee through faulty equipment or poor working environments.
Incidents that happen in your business, such as injuries and illness, are also considered risks. Keeping track of incident reports enables your business to pin down points for improvement.
It is important for businesses to define these risks within their respected fields in order to keep the environment clean, and to keep their employees healthy and safe.
Finding the Solution
Your company should strive to build a robust risk management system that meets compliance regulations set by the government. More than that, however, preparing a sound risk management plan helps your company avoid work-related accidents from happening.
By identifying risks and planning ahead, you’re able to save both manpower and money. Having a risk management plan will challenge you to prepare solutions as a precaution for the future.
Challenges of Risk Management
An effective risk management plan can be tough to develop, and even harder to implement. Companies face the daunting task of ensuring that its risk management system is thorough and consistently implemented.
Here are some challenges that businesses experience when putting their risk management plans into action:
- Lack of a united approach to risk management across operations
This is brought upon by ineffective employee training, outdated procedures, and a lack of continuous risk management implementation. No matter how good your risk management plan is, it will still be useless if employees are unaware of it.
- Improper risk identification
There are businesses that fail to do evaluations correctly, and instead, simply breeze through the risk identification process. Building a strong and effective risk management system requires the company to conduct a thorough assessment of its potential hazards.
- Absent risk-aware culture within the business
Without promoting a risk-aware culture in the company, employees may refrain from pointing out hazards because of lack of understanding. Business leaders and employees should work together to determine risks present in the workplace, and welcome thoughts on how these risks can be lessened or eliminated.
The key to solving these conflicts is to employ an efficient and transparent risk management system from assessment to implementation. Using reliable risk management tools is a good first step to achieving a streamlined risk management process.
How Does Risk Management Solution Work?
Custom software is available to automate almost any business process, and risk management is no different. Risk management software helps businesses keep track of the various aspects of regulatory compliance and risk assessment.
Risk management software is equipped with the forms and tools needed to accurately collect data on every incident or risk present in the company. This data is analyzed to find out if the business is indeed able to comply with regulations and if risks are contained or eliminated. Risk management software can deliver specific solutions according to the business’ needs.
Instead of keeping track of events on paper, you can opt for a risk management software that includes a streamlined incident management system. Days are lost and productivity is lessened when injuries or illnesses render your employees unable to work. A risk management software can show you trends on these incidents, allowing you to make the necessary changes to lessen them.
In addition to keeping your employees safe, it is also imperative to ensure that your business activities don’t harm the environment. The mark of a good business is its capability to enrich its community in the long run. That cannot be done if the company fails to comply with environmental regulations concerning waste disposal and preserving clean air and water.
A risk management software containing a comprehensive environmental compliance system can help you identify any regulation that you may be missing and quickly set it right. This will not only improve your community and workplace but also save you from legal repercussions.
A safe workplace leads to increased productivity among employees. By implementing a risk management software in your company, you can identify risks and prepare for them.
Things to Consider Before Investing in a Risk Management Solution
Proper planning goes a long way when investing in a risk management solution for your company, as hasty decisions can result in subpar implementation.
Before you invest in a RMS, determine first your business’ risks and needs. Depending on the risks that you’ve assessed from your business and the regulations that you need to comply with, you need to choose a risk management solution that covers all of your needs.
Long-term maintenance is another key factor in choosing a risk management solution. You don’t just implement a risk management plan once, then forget all about it as soon as the hazard is eliminated. Risk management is a continuous process, and you’ll need the same dedication from your risk management solution provider. Choose a risk management solution that you see your company using for years to come.
Lastly, remember that the aim of every risk management solution should be to keep your business and employees safe. Find a risk management application that reflects this goal and can be customized according to your unique business situation.
Features to Look for in a Risk Management Application
Whether it’s your company’s first time looking into a RMS or you’re in the market for a new one that can fulfill your needs better, it’s good to have a clear vision of what features you should look for.
Green Quadrant® EH&S Software 2016 (Global), a study conducted by research company Verdantix, listed some of the top features that buyers look for in a risk management software. Here are some that made the top of their list.
- User-Friendly Interface
The easier to use, the better. In Verdantix’s study, 93% of buyers said that a user-friendly interface is very important to them when choosing a risk management application. Businesses should look for a software with an interface that is easy to navigate for all employees, including non-technical users.
- Comprehensive Platform
Customers find it easier to integrate risk management applications to their workflow if it comes with multiple modules for environmental, health, & safety regulations. A comprehensive platform allows the software to be used for various types of risk assessments.
Customers want a software that empowers its users to make changes and configure the system to their liking. The ability to change forms and update the system keeps the software aligned with the business’ workflow.
Manage Risks Your Way
In the end, what matters most when looking for a risk management software is to find one that best suits your current business setup. Hence, find an application that you can seamlessly integrate into your workflow.
Keep in mind that risk management is an ongoing process, and your risk management solution should reflect that. Choose your risk management software with long-term plans in mind so that you’ll be able to reap the benefits in the long run.