Navigating the choppy waters of risk is arguably the single most important skill that an organisation requires to succeed. After all, there's no such thing as a straight-line path to success.

Not all risk is bad. In fact, companies simply would not be founded if entrepreneurs were not willing to take on the challenge of risk management. We often bundle safety and risk management together as something a bit negative: something to be challenged, something to be confronted, something to be overcome.

I look at it a different way. I think many risks are good, many risks are positive. And we should be approaching safety and risk management from that perspective: we should be trying to achieve success. Not trying to avoid failure.

It's from this positive perspective that I have developed my safety and risk SUCCESS model.

These are the seven factors you must consider to drive your business forward, to capitalise on the positive side of risk, whilst at the same time ensuring the safety and wellbeing of your staff, clients, and other stakeholders.

There is an inextricable link between excellence in safety and risk management and the results your business can achieve. Good safety and risk is good business.

Set quantifiable inputs and outputs

Understand root causes; avoid the superficial

Calculate your total cost of risk

Create a performance flywheel

Engage with your partners

Spell out the consequences (good and bad)

Start quickly; improve gradually; perfect never

Set quantifiable inputs and outputs

Evaluate your success with indicators that are leading and lagging; measurable and manageable.

Understand root causes; avoid the superficial

Mile-wide, inch-deep is no way to manage safety and risk.

Calculate your total cost of risk

Investment in safety and risk requires a true understanding of all associated costs.

Create a performance flywheel

Managing safety and risk is a cycle: feedback, learn, improve, empower, repeat.

Engage with your partners

Create holistic risk partnerships with everyone that touches your business.

Spell out the consequences, both good and bad

Celebrate the fruits of labour together but remove bad apples quickly.

Start quickly; improve gradually; perfect never

Risk is an infinite ocean: don’t blink, dive in, keep swimming.

Why should this be a priority?

In a famous example which brings this to life, Paul O’Neil became chairman of Alcoa in 1987 and his overarching focus was prioritising worker safety.

Whilst many naysayers questioned this approach, what he proved over his tenure was that safety and risk management success is a noble objective that everyone can understand, and everyone can get behind.

Moreover, once we do that, it brings huge performance and economic benefits.

During Paul O'Neill's time at Alcoa, the number of lost workdays per 100 employees fell to 0.2 from 1.86.

Consequently (this is what he would say), its market value increased from $3 billion in 1986 to $27.53 billion in 2000, while net profit increased from $200 million to $1.48 billion.

Safety and risk management SUCCESS is a journey that is rewarding, impactful and profitable.

Who's ready to pack their suitcase and get started?

Here's how to start:

Take the Safety & Risk SUCCESS Scorecard