A “Risk Peril” is the technical term that I use to describe the five different types of hazards that can befall a business. There are basically two groups, these are “Risk Cause” and “Risk Hindrance.” These are not just broad categories, but rather specific ones too. Each type of hazard has specific ways to cause problems.
A “Risk Cause” is something that is out of your control and usually what you are really concerned about. They can happen at any time. They may be caused by a change in the market, inflation, natural disasters, or even political events.
Examples include terrorist attacks, accidents, poisonous mushrooms, floods and fires. If something unpredictable like this ever happens, you can anticipate huge losses for the business because of it.
The second type of danger that you have to look out for is “Risk Hindrance.” This is more common and is what keeps many businesses from going under.
They are called “Risk Causes” and are things beyond your control. Examples of risk causes are competition, illness, consumer demand, natural disasters and many more.
If something unpredictable like this ever occurs, you can expect major losses for the company.
There are ways to defend against hazard in many ways. You can do everything right and still have some losses.
Some companies go with the insurance route. It’s the easiest way to protect a company, but you’re stuck paying high premiums.
The other option is the proactive approach. We call this “control-oriented” business management. It focuses on solving the problem, minimizing the risk and covering the hazard should it occur. That’s a long way away from being an insurance agency!
Some examples of “control-oriented” management are installing fire detectors and closed circuit television video monitoring (CCTV).
Both of these can help reduce loss by 90% or more.
Many businesses also hire a safety manager to help in this area. Their job is to make sure all employees follow safe practices at work.
Those practices include not using tobacco products where possible and wearing appropriate clothing and personal protective equipment where it’s required.
Another example is waste management. Businesses don’t think about this as a critical function, but they should! Waste contains contaminants that can be dangerous if not removed.
A waste removal company removes this contamination and puts it out for recycling or disposal. A good waste management company is a great investment for a business.
Risk Propositions, though they sound complicated, really aren’t. When you understand the basics, you can put them together and keep your staff and operations running smoothly.
It doesn’t matter how big or small your business is. Small companies face more hazards than large ones. They need to plan for those hazards and know how to deal with them.
Safety is something everyone wants to practice and follow. But, it’s not always easy. We all know there are hazards in the work place.
The only thing that makes them different from “normal” hazards is they’re placed in unusual positions. You must be aware of each one and have a plan in place to handle any and all of them.
When you use a CQC camera or CCTV, or a third party employee to monitor the cameras, you don’t have to worry about “lost” evidence.
You always know what’s going on in your establishment. It also gives you peace of mind, even if something tragic does happen.
When you have a system in place, you don’t have to wait until it breaks to make an investigation. That could mean the difference between life and death in the workplace.
Risk Propositions are very important when it comes to avoiding the dangers of health and safety. A business should always try to avoid “risky” working conditions.
In order to do this, business owners should always have a plan for “hazard identification.” You can also make plans in place, ahead of time, for any unexpected emergencies that may occur. No matter where you work at, there are always hazards that can present themselves at any given time.
Prevention is always better than cure. You should always know how to identify risk. The more you know, the easier it will be for you to adjust your working routines to reduce your risk exposure.
Always take precautions to minimize risk. This will help to keep your work place running smoothly, and keep your employees happy. It will also allow you to do business with less stress.