What is involved in managing risks?

Management commitment

Effective risk management starts with a commitment to health and safety from those who operate and manage the business or undertaking. You also need the involvement and cooperation of your workers, supply chain partners, and other businesses you work with. Management commitment is about demonstrating you are serious about health and safety and influencing other duty holders in the workplace. To demonstrate your commitment, you should: − get involved in health and safety issues so that you understand the hazards and risk associated with your operations − consult workers and other duty holders on the hazards and risk, and how to control them − invest time and money in health and safety − ensure you and your workers clearly understand health and safety responsibilities and have the knowledge and skill to do tasks safely, and − apply health and safety values and behaviors to your own work practices. A step-by-step process A safe and healthy workplace does not happen by chance or guesswork. You have to think about what could go wrong at your workplace and what the consequences could be. Then you must do whatever you can (in other words, whatever is ‘reasonably practicable’) to eliminate or minimize health and safety risks arising from your business or undertaking. This process is known as risk management and involves the four steps;

− Identify hazards—find out what could cause harm. − Assess risks, if necessary—understand the nature of the harm that could be caused by the hazard, how serious the harm could be and the likelihood of it happening. This step may not be necessary if you are dealing with a known risk with known controls. − Control risks – implement the most effective control measure that is reasonably practicable in the circumstances and ensure it remains effective over time. − Review hazards and control measures to ensure they are working as planned. This process will be implemented in different ways depending on the size and nature of your business or undertaking. Larger businesses and those in sectors where workers are exposed to more or higher risks are likely to need more complex, sophisticated risk management processes

Determining what is ‘reasonably practicable’

Deciding what is ‘reasonably practicable’ to protect people from harm requires taking into account and weighing up all relevant matters, including: − the likelihood of the hazard or risk concerned occurring − the degree of harm that might result from the hazard or risk − knowledge about the hazard or risk, and ways of eliminating or minimizing the risk − the availability and suitability of ways to eliminate or minimize the risk, and − after assessing the extent of the risk and the available ways of eliminating or minimizing the risk, the cost associated with available ways of eliminating or minimizing the risk, including whether the cost is grossly disproportionate to the risk. Many hazards and their associated risks are well known and have well established and accepted control measures. In these situations, the second step to formally assess the risk is unnecessary. If, after identifying a hazard, you already know the risk and how to control it effectively, you can implement the controls without undertaking a risk assessment. Risk management is a proactive process that helps you respond to change and facilitate continuous improvement in your business. It should be planned, systematic and cover all reasonably foreseeable hazards and associated risks.A PCBU must consult, so far as is reasonably practicable, with workers who carry out work for the business or undertaking and who are (or are likely to be) directly affected by a health and safety matter. This duty to consult is based on the recognition that worker input and participation improves decision-making about health and safety matters and assists in reducing work-related injuries and disease. How to manage work health and safety risks Code of Practice Page 9 of 39 The broad definition of a ‘worker’ under the WHS Act means a PCBU must consult, so far as is reasonably practicable, with contractors and sub-contractors and their employees, on-hire workers, outworkers, apprentices, trainees, work experience students, volunteers and other people who are working for the PCBU and who are, or are likely to be, directly affected by a health and safety matter. Workers are entitled to take part in consultations and to be represented in consultations by a health and safety representative who has been elected to represent their work group. Consultation with workers and their health and safety representatives is required at each step of the risk management process. By drawing on the experience, knowledge and ideas of your workers you are more likely to identify all hazards and choose effective control measures. You should encourage your workers to report any hazards and health and safety problems immediately so that risks can be managed before an incident occurs. If you have a health and safety committee, you should engage the committee in the risk management process as well. 

Consulting, cooperating and coordinating activities with other duty holders 

WHS Act section 46 Duty to consult with other duty holders

The WHS Act requires that a PCBU to consult, cooperate and coordinate activities with all other persons who have a work health or safety duty in relation to the same matter, so far as is reasonably practicable. There is often more than one business or undertaking involved in the same activities or who share the same workplace who may each have responsibility for the same health and safety matters, either because they are involved in the same activities or share the same workplace. In these situations, each duty holder should exchange information to find out who is doing what and work together in a cooperative and coordinated way so risks are eliminated or minimized so far as is reasonably practicable. For example, if you engage labor hire workers as part of your workforce you share a duty of care to these workers with the business that provides them. In these situations, you must discuss the hazards and risks associated with the work and what precautions will be taken with the labor hire firm. Never assume that someone else is taking care of a health and safety matter. Find out who is doing what and work together with other duty holders in a cooperative and coordinated way so risks are eliminated or minimized as far as reasonably practicable. When entering into contracts you should communicate your safety requirements and policies, review the job to be undertaken, discuss any safety issues that may arise and how they will be dealt with. Remember that you cannot transfer your responsibilities to another person. 



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