Geoff hoad, director Workplace health and safety

1. Platinum Sponsor
NATIONAL CONFERENCE & EXHIBITION 2014
Silver Sponsor Bronze Sponsor
Risk Manager of the Year
Award Sponsor
Conference and Exhibition Partners

2. WORK HEATH & SAFETY
EXPECTATIONS OF ENTERPRISE
RISK MANAGEMENT
GEOFF HOAD, DIRECTOR WORKPLACE HEALTH AND SAFETY
OCTOBER 2014

3. WHEN TONY HAYWARD BECAME CEO OF BP IN 2007 HE VOWED TO MAKE SAFETY HIS TOP
PRIORITY.
IN 2010 THE DEEPWATER HORIZON OIL RIG EXPLODED AND 11 LIVES WERE LOST.
IT CAUSED THE WORST MAN MADE DISASTER IN HISTORY.
Photograph AFP/Getty Images
Strictly confidential Page 3 Page 3

4. “Nothing is more important to us than the safety of our
• If managing safety is all about managing risk, then why does risk management regularly overlook
safety?
• Safety is often absent on the risk radar.
• Risk Managers take different approaches to Safety as an element of risk.
• Avoidance (Not become involved).
• Reduction (Assume the risk is being managed by someone else).
• Sharing (Check that insurance is in place for Workers Compensation and Public Liability).
• Retention (Accept and include in the organisation’s risk register).
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people”…. Really?

5. Enterprise
Risk
Financial
Risk
Market
Risk
Operational
Risk
So Where Does It Fit?
• It depends upon the organisation’s risk
outlook.
• If the focus is very broad, it can get missed as
being ‘too detailed’.
• Enterprise, Market and Financial Risk rarely
include the consequential losses associated
with Safety.
• Operational Risk seems logical but too often
“Operation” refers to the technical nature of
the business and the business continuity
issues related to business disruption.
• In short, there is no easy place to include
Safety in the Risk Pantheon.

6. But What Could Go Wrong???
• In enterprise risk management, a risk is defined as a possible event or circumstance that can
have negative influences on the enterprise in question.
• Safety is the judgment of risk. Something is judged safe when the risk is deemed acceptable, it
does not mean that there not any risk, just that the risk can be mitigated or controlled to an
acceptable level.
• Many corporate cultures support risk taking, especially when there is a compelling financial
opportunity.
• Disasters happen from flawed ways of doing business that permit risks to accumulate.
• Believing that past non-events predict the future (“Forgetting to be afraid”).
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7. Page 7
Take The Test
Risk Insight &
Transparency
Risk Appetite Risk Related
Decisions
Think “Titanic”.
Unsinkable ship so no
need for lifeboats for all.
Drive down into the
detail.
What else is necessary
beyond what we are
doing?
Risks omitted because
they don’t fit the
organisational approach
to identification of risks.
If a risk is “Operational,
or Financial” then what
does that really mean?
Risk Management is not
intuitive.

8. • Explore a wider range of risks, don’t be constrained by what you have always done.
• Evaluation of the organisation’s true risk position, have you covered all the potential exposures?
• Quantify the real consequences the risk presents.
• Map risks across the business and understand that they will vary according to the business unit.
• Recognise the risk and don’t normalise the result.
• Consider Safety as a risk issue. You may not decide it is important enough a risk to include, but
evaluate it anyway.
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Enough Already!
What Do You Want Us To Do?

9. • Remember, the worst outcomes happen very rarely, but they do happen.
• The consequences will go further than you could imagine.
• Causes are not singular – Think Air Crash Investigation.
• Judging and making decisions can be flawed.
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Conclusions

10. Page 10

11. NATIONAL CONFERENCE & EXHIBITION 2014
Thank you.
Platinum Sponsor
Silver Sponsor Bronze Sponsor
Risk Manager of the Year
Award Sponsor
Conference and Exhibition Partners