The construct and enforcement of occupational health and safety programs is based on collaboration between leaders, management and supervisors, and the workforce. If policy, programs, and procedures are developed from identified hazards and cost for implementation calculated by Return On Investment (ROI) strategy; the cost savings plays an important role in long-term viability and sustainability of the organization. A rank order of the risks based shows where the greatest ROI can be made which will increase profits, productivity, and overall performance.
Table related business value to various occupational health and safety functions
As expected compliance risk along with profits, productivity, and cost containment are closely associated with providing shareholder and stakeholder value
Business value can be measured in cost per output for training, reducing compliance training, increasing productivity, cost containment, increasing brand and image, reducing waste.
But how do measure business value if there is a history of mishaps, near-misses, lost days away from work, restricted days from working, medical and healthcare costs, legal liability.
Eighteen categories were submitted by the HR group and the subset of personnel were identified through information provided by each Department Head and documents related to the operation and process within each group.
Some information was extracted based on historical research and findings. There was some overlap of job categories between groups such as drilling and well intervention.
The organization was positioned to reduce overhead and subcontract many of the routine operations to qualified contract support.
In some cases, company personnel and subcontractors performed the same work tasks. Hence, it was important to use the concept of control banding to define the hazards and quantify the risk similarly between both workforces.
A wire diagram is a good management tool to better understand the process of risk governance focused on all types of occupational health and safety hazards.
Risk governance is a collective understanding of risk identification, risk appraisal, risk assessment, risk management, and risk communication
The wire diagram helps leadership better understand the need for review and intervene when risk tolerance is unacceptable or where risk attitude or risk appetite exceeds desired acceptable thresholds.
The task-based risk assessment corroborates performance with training and education, evaluation by audits, inspections, and checklists, and helps identify gaps related to human and systematic error.
Chart defines the consequences for the current state of affairs or the inability or unwillingness to take corrective action.
Definitions were created to describe the risk levels for personal injury, occupational safety, and occupational health in relation with the outcome on brand, reputation, and corporate image.
The likelihood of occurrence was defined by the relationship the level of consequence.
Probabilistic values were calculated and assessed based on each determination.
Definitions for low, medium, high, urgent, and extreme risk were defined.