FireMed Consulting Services
Effective risk management is a fundamental business plan for your companies profit margin and quality control.
As an employer, you have a moral duty to ensure the safety of your employees as well as a legal duty of care, to ensure that workers have a safe workplace and are not injured while at work.
If the worst happens and an adverse event has taken place, such as a significant accident, dangerous occurrence or environmental event, it is essential that this be quickly handled and well managed. You also have a number of legal obligations in terms of reporting and notification which need to be adhered to.
The hidden costs of workplace incidents and accidents.
An accident at work many employers focus their efforts on looking at the immediate cause and reacting to ensure operations continue to run smoothly. Rarely do businesses look further into root causes of accidents and the true cost impact of an accident.
It is often assumed that workplace accident costs are recoverable through insurance. This is a dangerous misconception.
Accident and incident costs can be likened to an iceberg: costs that are recoverable are visible, but those that are unrecoverable are hidden below the waterline and are many times greater. The approximate the hidden cost of accidents can be up to 50 times greater than the insured costs. To put this in perspective- an incident at work that initially looks to cost your company R10 000.00 may ultimately cost you R500 000.00
Uninsured costs can include:
- Lost time and productivity
- Sick pay
- Damage, spoiling or loss of product and raw materials
- Repairs to plant and equipment
- Extra wages, overtime working and temporary labour
- Production delays
- Investigation time
- Department of Labour investigations prosecution fines
- Union Strikes and productivity Go-Slows
- Loss of contracts and damage to reputation
- Legal costs for representation and litigation
- Compensation costs to affected parties
- Rejected insurance claims
- Increased insurance premiums.
These hidden costs come directly out of your company`s profit. Furthermore, as accident losses increase, so will a company’s insurance premiums. It is clear that directly and indirectly, accidents reduce profitability.
This principle is known as the “Iceberg Effect.”
There are definitely hidden savings in accident prevention with business success directly linked to effective accident prevention.
Risk control and mitigation are one of the best business investments you can make for your company.
Our Consulting Services
Health and Safety Planning
Effective health and safety implementation does not start on the ground- it cannot be implemented by appointing a “Health and Safety” officer and expecting any results. An effective health and safety plan starts with the companies most senior management and needs to filter downwards.
Many companies surprisingly do not have any form of health and safety plan – and many that do end up with ineffective plans that serve no real purpose.
Often, health and safety planning is viewed as restricting productivity or hindering workflow. If your HSE planning is built into your companies systems as opposed to adding it on as an afterthought, it becomes a seamless integration into your company’s day to day operations.
Effective HSE planning results in effective HSE results.
At FireMed we will assist you in building effective HSE in your companies infrastructure. We do so by using the following steps:
- Policy- Draw up a health and safety policy that’s effective and practical; compile the relevant standard operating policies
- Organize- Determine which departments are accountable for the respective steps and who takes accountability for each section
- Plan- Set a plan in place to get the policy approved and active
- Implement- Steps are taken to get the health and safety plan implemented by the due date
- Monitor- Establish a monitoring system to evaluate how what effects your health and safety policy is having on the workplace.
- Audit- Audit the effectiveness routinely- we advise at least once per annum
- Review- Review your HSE policy and if necessary amend sections.
Allow FireMed to visit your company, review your scope of work and identify where your risks lie. We take a comprehensive review of your company’s portfolio, compare it to “best industry practice”, consider the legal requirements and then give you a comprehensive report of your high, medium and low-risk factors.
Risk Control and Mitigation
Once your companies risks are identified, we work with you to find effective solutions to control and mitigate the risk. Having documented risk control and mitigation processes actioned may give your insurance company an excellent incentive to lower your monthly premiums. Additionally having documented proof of taking all reasonable and foreseeable steps to control and mitigate risks will give your company a sound foundation with any post-incident investigation bodies (e.g. insurances, personal liability claims, financial penalties).
Emergency Response Planning (ERP)
When incidents and accidents occur, an effective plan needs to be activated. This plan streamlines your companies response and thereby control and mitigate the effects. A simple example is how your office staff respond to a small waste bin fire?
Our ERP planning is specific to your company; we review your site, risk profiles, resources and staff competencies and draw up a plan that is practical to implement.
Accident and Incident Investigation
Incidents generally result from a specific sequence of events initiated by immediate and underlying causes. An investigation should strive to identify all the causes and analyze the circumstances surrounding an accident. It is only by completing this process that effective improvements will be implemented.
A detailed investigation is crucial to establish how the accident may have occurred; the factors that may have contributed to it and to ensure measures are put in place to prevent a re occurrence. The investigation is also required to satisfy legal requirements (e.g. some accidents and dangerous occurrences are legally notifiable and have to be reported to authorities).
The details of an accident investigation will enable the company to make improvements to its management system, by reviewing relevant risk assessments, safe systems of work and amend policy and procedures as necessary in order to eliminate a re occurrence of the situation.