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Risk management is defined as a process that includes the four managerial functions of planning, organizing, leading, and controlling an entity's activities to minimize the adverse effects of accidental losses at a reasonable cost. Ultimately, reducing or controlling losses is a managerial responsibility and risk management techniques must be integrated into all policies, procedures, and work practices on a day-to-day basis. Risk management/safety specialist, through their functional authority, can only assess and identify hazards and recommend appropriate corrective action(s). Only management, through the supervisory function, can
Probably the most important influencing factor, in achieving the objective of reducing or controlling organization's losses, is managements demonstrated support for the risk management program. Realistically, this does not mean a "yes" or "will do" to everything proposed or recommended; but, it does mean that reasonable consideration be given and appropriate action taken on viable proposals or recommendations. This support and commitment can be further demonstrated through implementation of fair, consistent, policies and procedures and holding supervisors at all levels of the hierarchy accountable for the fair and consistent application of these policies and procedures. Furthermore, this commitment should be clearly communicated in an agency policy statement and supervisory role and responsibilities for risk management and safety delineated in position statements or job descriptions. The duties and responsibilities should identify risk control techniques that can be quantified and performance measured against an established criteria. Education and training, both initial and periodic, should be implemented and supported by management as an important component of the organization culture. Accomplishing a task effectively and efficiently is also synonymous with safe accomplishment of the task. Each agency should have and should integrate risk management and safety as an integral component of a new employee orientation program. This is a phase where all new employees will generally formulate a perception, perhaps a lasting perception, of the employers commitment to them as a valuable resource and sets the tone and expectations for a safe and healthy work environment. Training, especially dedicated periodic training, does involve a cost to the organization. However when taking into consideration the multi-millions of dollars paid out for workers' compensation injuries in any given fiscal year, the cost of education and training is a small investment in preventing current and future injuries that, as is historically evident, are only prone to feed and further escalate these costs. Accountability, commitment, and training are attributes that are key if a program is to be successful and effective in the long-term. The education and training modules that will follow will focus on the covered state agencies' loss experience data with the primary objective of identifying and categorizing these hazards so that specific risk control techniques can be implemented to reduce or control these hazards. Implicit in each of these modules will be the presumption that each agency has the mentioned support and commitment of management. |
