Risks are everywhere. It’s the truth that taking risks can ignite better results and good consequences but all the risks are not good for the organization. The factuality can’t be denied that every organization has to face both the share of risks internally and externally. Along with the SWOT analysis, there are certain threats in the organization and these threats are considered as the risks.
The threats or risks appear or exist in the organization in different forms such as data abduction issues, legal liability, accidental issues, natural catastrophes, financial uncertainties, losses, employee dissatisfaction, and many more. Any hazards that bring obstacles to the company's tasks or reputation can be considered risks. These risks invite great blunders in the organization, employees, and its brand and reputation too. Hence, in any organization, risk management is important. In a dilettante term, risk management can be referred to as the process of identification, analysis, and control of the risks/threats to the organization.
There is a facility for insurance and accidental protection for the employees in case of any illnesses, or accidents. Along with a fine and balanced workspace for the employees, one of the major goals of Human Resources aka HR is to minimize the risks of the organization and act immediately with the possible solutions. In large organizations, there is the formation of a committee or department that sees the overall risk management in the organization. The department works on the safety and health of the employees, understands and identifies the employees and the risks associated with the safety and smooth operation of the organization, and also the measures to be taken for tackling the threats of the organization.
As risks jeopardize the mission and vision of the organization, there should be mitigation of risks as soon as they get discovered. Immediate actions should be taken for mitigating the risks.
Some risks can be avoided that may not hamper the organization. Some risks can be reduced with immediate action. While some risks can be shared with the other employees or departments that can be easily solved by them while some risks can be retained. For example, if the risks don’t affect the operating profit or the risks would disappear over time, such risks can be retained.
There are many kinds of risks that may come as sensitive topics in the course of Risk management and Worker protection in any organization. They can be :
Like the customers are the assets of any business, employees are the engines to run any organization without whom, no business can run smoothly. When employees don’t feel safe working in the organization, they may quit. For instance, if they face harassment and discrimination, it lessens their motivation to thrive in that particular organization and they may leave which may increase the cost of the burden of hiring new employees. Risk Management and Work Protection are important because:
Enhances employees’ dedication: Safe and secure work environment makes the employees work in a hassle-free environment thus enhancing employee loyalty towards the work and organization.
Secures the business costs: Due to physical risk coverage like Insurance facilities and accidents, employees tend to feel motivated and it protects the business costs of retention and hiring. Also, if the risks such as legal liability, and strategic management issues are handled earlier, it reduces further costs.
Improves organizational profit: As the risks are controlled and analyzed earlier, the obstacles caused due to such risks can be lessened saving the expenses of extra costs of risks removal.
The organizations can face different types of common risks as enumerated below:
Health safety and security of employees, employers, vendors, and clients.
Technical failures, database errors
A decline in the performance and profits of the organization
Rise in the competitors
Fall in the demand for the product
Conflict and grievances of the clients and employees
In fact, proper risk management ensures worker protection. Hence, risk management is of the utmost importance to any organization whether big or small, IT company or banking institution, sole trading concern, or Joint-stock company. The steps that can be taken for the proper risk management and worker protection are:
1. There should be the identification of potential problems. For this, there must be a setup of a team that conducts regular training or meetings addressing the areas of concern involving any kind of organizational risks.
2. The Human Resources of the organization should establish the Unique Employee Value Proposition (EVP) by investing in risk assessment and analyzing the areas of risks that each employee of the organization falls under.
3. There should be an environment in the organization for the hiring of experts that can provide enough advice and expertise in risk management.
4. Creating a healthy environment with the active engagement of the employees to improve safety is also an option.
5. Controlling the situations and designing the potential solutions for the improvement of hazards with expertise and backup plans.
6. Reviewing the former risks and upgradation of the strategies for future incomings of the risks is a must.
7. Also, the organization should be aware of fiduciary responsibilities such as paying taxes on time, maintenance of technical aids timely, creating policy statements, etc.
Risk management and worker protection are vital considerations not only for big giants but small businesses too. Both organizations and employees should be aware of workplace risks from minor workplace accidents to big financial liabilities. Implementation of safety protocols along with compliance with existing rules, laws, and regulations that safeguard employee wellbeing and mitigate the possible risks need to be done.
To sum up, risk management is a daily chore that needs to be identified, analyzed, controlled, reviewed, and upgraded time and again.