Risk – it’s a constant presence in our lives. But while it’s true that risks are always present, how we manage and mitigate them serves as the true measure of our operational success.

Welcome to the world of risk management. Here, the goal is clear: identify, assess, and mitigate the array of potential hazards that could occur in your operations. To help you along, we share a list of eight crucial do’s and don’ts for a finely tuned risk management process. And, to top it all off, we share the ultimate tip to help you foolproof your efforts.

DO: Identify, Assess, and Mitigate

When it comes to the risk management process, there are three key steps to follow:

• Identify Possible Risks: Examine internal procedures by engaging various stakeholders to uncover hidden risks, and analyze historical data for trends and patterns.
• Assess their Probability and Potential Consequences: Conduct quantitative analysis and impact assessments, and create a risk matrix.
• Mitigate Risks According to Priority: Develop tailored risk mitigation for each prioritized task, allocate resources accordingly, and monitor the effectiveness of the measures in place.

When executed methodically and guided by established practices, risk management becomes an indispensable ally for any business. It arms you with tools and insights to go through a well-informed decision-making process, taking into account every conceivable risk factor.

DON’T: Only Take a Reactive Approach

Risk Management’s core objective? To minimize the likelihood and potential harm of risks. For this, you need to take a proactive stance – It’s better to be safe than sorry, after all. By acting preemptively and adopting robust safety protocols, organizations can stay ahead of risk.

DO: Rank Certain Risks Over Others

When identifying risks, it is necessary to classify them according to their priority. Which risks are likely to occur imminently? Which carry the potential for the greatest impact? By qualifying risks in this way, you can:

• Focus on Priority Risks: Devote your attention and resources to investigate the risks that demand immediate attention.
• Initiate Preventive Measures: Take proactive steps to avert the risks that pose the greatest threats, implementing preventive measures to mitigate their potential impact.
• Address Likely Risks: Prioritize risks that have a higher likelihood of materializing or those that could result in more severe consequences, without losing sight of all other potential risks.

By taking this systematic approach you will streamline your risk management, gaining the agility to address critical issues while maintaining vigilance over the entire risk landscape.

DON’T: Ignore Previous Insights

Risk assessments deliver valuable insights that enable you to prevent tomorrow’s risks from happening. But, if you fail to act on these observations, your efforts will be wasted. Think of it as knowing there’s an 80% chance of rain but leaving your umbrella at home. The result? You get soaked, and suddenly, that umbrella seems like a missed opportunity. If you had taken preventive measures, you would have stayed dry.

DO: Identify All Potential Dangers

The ideal foundation for Risk Management? Embrace the notion that anything could potentially constitute a danger. carries the potential for new risks to emerge. So, what’s the way forward? It’s pretty straightforward: your first task is to pinpoint every conceivable risk and potential hazard to guarantee the safety of your workers. Next, you must determine proactive actions to prevent the risks from happening or ensure a swift response in the event of an unforeseen incident.

DON’T: Only Focus on Production Safety

Risk Management encompasses both the physical safety and mental well-being of your employees and contractors. Not to mention process safety and production quality. It’s not an “either-or” scenario; it’s about harmonizing both aspects.

To ensure the holistic safety of your workforce, processes, and production lines, you should:

• Identify, assess, and mitigate risks that may jeopardize the well-being of workers or the production process to the greatest extent possible.
• Implement measures to limit identified risks and hazards. This includes evaluating workplace changes for potential new risks.
• Take preventive actions to to guarantee consistent product quality and ensure the smooth flow of processes.

DO: Keep a Clear Overview of All Actions (Preventive and Corrective)

Effective risk management hinges on maintaining a comprehensive record of all undertaken measures and their outcomes. This encompasses not only action items but also documentation of workplace inspections and a repository for photographic evidence related to near-miss incidents.

It’s not just about reacting swiftly to accidents; it’s about doing so in an organized and structured manner, ensuring that every action taken and piece of evidence collected contributes to a robust Risk Management framework.

DON’T: Have an Unclear Process and Divided Responsibilities

Your risk management efforts might fail for one simple reason: the absence of a well-defined process and clear lines of responsibility. When it’s uncertain who bears the ultimate accountability, the actions taken, whether corrective or preventive, become erratic. This not only heightens the risk of hazardous situations within your facility but also places you in jeopardy of regulatory non-compliance.

PRO TIP: Go Digital

The secret to improving your risk management efforts, that ticks all the boxes above, is going digital. By opting for a digital solution, you’ll find that risk management becomes not only more streamlined, but also more logical and in harmony with established procedures and policies.

Here are just some of the advantages of digital Risk Management from TenForce:

• Comprehensive Risk Overview: Identify, assess, mitigate, and categorize all risks, in a single, cohesive overview.
• Efficient Workflows: Experience the ease of logical workflows, including task assignment, follow-ups, and robust reporting capabilities, all seamlessly integrated into your risk management process.
• Transparent Audit Trail: Maintain a clear and indisputable audit trail, offering a meticulous record of actions taken and decisions made.
• Integration Capabilities: Seamlessly integrate your risk management solution with other essential tools, such as reporting, CAPA, and incident management to create a comprehensive EHSQ ecosystem.

And here’s the icing on the cake: TenForce, with two decades of experience serving manufacturing companies in diverse industries, including chemical, food production, and FMCG, has a proven track record in digital process transformation. If you’re eager to explore our risk management solution, get in touch!