5 Ways To Improve Risk-Awareness in Your Company

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As companies start expanding their efforts, they can become somewhat risk-averse. It’s important to build an organisation where everybody is able to consider risk and build it into every single decision. This is vital to long-term success, but how do you start to create a risk-aware culture within your company?

Educate Your Employees About Risk

If you want your employees to learn how to manage threats, you have to give them the basic knowledge. Depending on the industry you operate in, there are appropriate parameters to adhere to. Many construction training services can provide relevant training in terms of overall health and safety, but also how to spot certain issues and assess the impact of risk. When you start to cultivate an awareness of risk it will be easier for the stakeholders to see that reducing risk is not just in the best interests of the company, but in the best interests of the workers as well.

Incorporate Clear Communication

Communication is vital, but when it comes to risk communication is not just about it being a one-sided approach but about making sure that it can be reported easily. This is where technology can be a very important component. As far as risk is concerned, if you provide more options for employees to report risks in a timely fashion, it makes it easier for the business to address the concerns and navigate the issues while also coming up with solutions to avoid the problem again. Because if the process of reporting risks is needlessly complex, there will be less likelihood of compliance.

Assign Responsibility for Risk Management

Within a larger organisation, it’s important to identify individuals that are connected to certain risks. For example, in a manufacturing setting, the line manager is more likely able to see the issues on the shop floor and assess the appropriate health and safety risks. When everybody knows who is responsible for what aspect, there is less likelihood of something falling through the cracks. One of the biggest problems is passing the buck, not willingly, but because the assumption is that handling a certain risk is someone else’s responsibility. By assigning responsibilities for these specific risks, it will encourage autonomy and cover every base.

Bring in Incentives

If you want to get people to think more about risk, you will need to think about appropriate incentives to get people thinking regularly about the risks and what they can do to mitigate the risks within their control. For example, you could tie in annual bonuses to achieving certain risk-related targets.

Encourage Compliance from the Top Brass

Leading by example is important if the senior leaders of a company are making decisions that incorporate an awareness of risk; this means people will naturally start to follow their lead. Because organisations, where the leaders are operating with a flagrant disregard, only communicate to the people below that risk is not worth addressing.

If you want to improve risk awareness in your business, these are some key components to consider.