Managing EHS Business Risk: Why Risk Management
According to the National Safety Council, there were 158,725 preventable work injuries in 2019. The cost was $171 billion (USD). For business owners and executives who are responsible for managing the bottom line and increasing competitiveness, managing EHS business risk is too important for it not to be a priority.
Risk management, the process of identifying, evaluating, managing and mitigating risks, must include environmental health and safety (EHS). To manage EHS business risk, however, business leaders need to build a safety culture. This commitment to a safe workplace is an important part of corporate social responsibility. It requires identifying and mitigating risks before they happen rather than simply meeting requirements.
Smart business leaders take a proactive approach by building a culture of safety and treating EHS as a core business function. They implement expert systems that help them to manage a full spectrum of business risks while pursuing larger company goals such as quality and productivity. Instead of a compliance program or a program that just restates the regulation, you can integrate EHS management solutions into strategic business plans.
Proactive vs. Reactive Approaches
Too many businesses take a reactive rather than a proactive approach to EHS. They see safety as overhead – something that they have to do instead of as a potential value driver. In turn, these companies fail to appreciate that there are risks of significant costs associated with non-compliance, employee injury or illness, property damage, product losses, and business interruptions.
Companies that take a reactive approach to safety focus on minimum compliance. They respond to emergencies and treat the symptom of a problem rather than addressing the root cause. As companies become more proactive in their approach, they begin to recognize and control hazards. Through planning and implementation, injury and incident rates decline. A truly proactive approach provides the greatest benefits of all.
Executing with Technology
Moving from a reactive to a proactive approach requires domain expertise backed by the right technologies. Smart safety systems use a versatile cloud-based platform to deliver real-time information in a structured, hierarchical, easy-to-find way. Businesses do not have to develop their own expensive applications or find just the right solution for their industry. For employees, safety information is conveniently available via web browsers and mobile devices instead of in outdated, printed binders that sit on dusty shelves.
Taking the Next Step
Developing the right expert system is important because managing EHS risk is about adding business value. Business leaders that take this proactive approach will improve the bottom line and strengthen corporate social responsibility. EHS Risk Management, LLC combines today’s technology with safety expertise to enable you to create a sustainable risk management solution.
James M. Testo CIH, CSP, President
EHS Risk Management, LLC
The EHS Risk Manager is a business value proposition that reduces costs and supports your company’s performance. The EHS Portal provides a real-time process for managing and implementing your company’s policies and procedures. To learn more, email Jim Testo at [email protected].
The EHS Risk Manager is a business value proposition that reduces costs and supports your company’s performance. The EHS Portal provides a real-time process for managing and implementing your company’s policies and procedures.
To learn more, email Jim Testo at [email protected].