Risk Management in the Workplace: A Comprehensive Guide
Risk Management Definition
Risk management involves taking practical steps to protect people from real harm and suffering. This must be approved by the company’s board of directors and outlined in a document titled “Health and Safety Management Plan.”
Health and Safety Management Plan
This plan defines how risks associated with work will be identified, analyzed, and managed. It includes:
- Company identification information
- Company’s organizational structure
- Organization of production
- Company’s prevention organization
- Policy, objectives, and preventive targets
Risk Assessment
A risk assessment is a thorough examination of the workplace to identify things, situations, or processes that may cause harm, particularly to people. Once identified, the likelihood and severity of the risk must be evaluated, and measures should be taken to effectively prevent or control the harm from happening.
Assessments should be conducted by a competent team. Staff should always be involved, including supervisors and workers. Risk assessment is the process where the employer:
- Identifies hazards and gathers them on a checklist.
- Analyzes and evaluates the risk associated with each hazard.
Risk Management Organization within a Business
The regulation of risk management services (RD 604/2006) establishes that the employer can choose among different risk management organization modalities:
Employer Retains Ownership
This modality can be adopted when:
- Companies have a maximum of 10 workers (25 if the company has only one workplace) and the activity carried out by the company is low hazard.
- The employer works regularly in the workplace and has suitable training capabilities.
Appointment of the Employee(s)
The employer may appoint one or several workers whenever:
- The workers possess training capabilities according to the tasks they must carry out.
- The company is not obligated to create its “In-House Risk Management Service.”
- The employer does not retain ownership of the risk management organization.
In-House Prevention Service
This modality must be chosen under certain conditions:
- The business must have more than 500 employees.
- Businesses with between 250 and 500 employees which perform activities with a special danger.
This modality must be carried out by trained workers and with the necessary resources. An annual report and scheduling of activities must be drawn up and made available to the competent authorities.
External Risk Management Service
A specialized enterprise provides this service externally. A good example is “mutual insurance companies.” The enterprise providing the external risk management must be accredited by the labor administration.
There is an obligation for a company to contract this service:
- When the internal designation of one or two health and safety delegates is not enough to carry out the risk management activity needed.
- When the company is not obligated to create its own in-house risk management service.
Companies that do not hire an external risk management service for all their activities must have their risk management system audited every 5 years or whenever the labor authority requires it. The most common resource for both micro-enterprises and small enterprises is an external risk management service, while in-house risk management services are much more common among larger companies.
Joint Risk Management Service
A joint risk management service can be adopted when:
- Different businesses belong to the same industry.
- The businesses perform their activities in the same building or a specific geographic area.
There must be a consultation with the workers’ representatives of every business concerned.
Workers’ Representatives in Health and Safety (H&S) at Work
According to Law 31/1995, employee representatives for H&S matters fall into one of two categories: prevention delegates and/or H&S committee members.
Health and Safety Delegates
H&S delegates are designated by and among personnel representatives. The number of H&S delegates in a company depends on the number of employees.
The key roles of the H&S delegates are:
- Collaborate with the management board to improve risk management in the company.
- Promote cooperation among workers to apply H&S regulations.
- Represent the workers for all decisions regarding Article 33 of the LRPL.
- Control and survey the fulfillment of H&S regulations.
The guarantees of the H&S delegates are:
- If a serious infringement has been committed regarding an H&S delegate, the workers’ council and the rest of the delegates have the right to be heard.
- Time devoted to information and training in H&S is always considered as part of the working day.
Health and Safety Committee
With regards to the H&S Committee, the law states that this body must exist in all companies or workplaces with 50 or more employees. This H&S committee is a joint body composed equally by workers’ H&S representatives (delegates) and employers.
The responsibilities of the H&S Committee are:
- Participate in the elaboration, implementation, and evaluation of risk management plans.
- Promote initiatives regarding measures for effective response and suggest the improvement of existing deficiencies.
Self-Protection Plan
It’s a system of control and security management to prevent and control risks over persons and goods.
It’s mandatory by law for:
- Education facilities, health centers, care facilities (nursing homes, disabled housing…)
- Manufacturing industries, storage, and distribution centers
- Transport and energy companies
- Public shows and amusement parks
This plan shall be a periodically updated document to adapt to changes through three main action guides:
- Evaluation of risk situations
- Make an inventory of the existing resources
- Establish the route action to be taken
Emergency Action Plan
A wide variety of emergencies, man-made and natural, may require a workplace to be evacuated. These emergencies include fires, explosions, earthquakes, hurricanes, etc. An emergency action plan (EAP) is a written document whose purpose is to facilitate and organize employer and employee actions during workplace emergencies. It is compulsory for all businesses. It must include:
- Identification and classification of emergencies
- Protocols for emergency action
- Identification of emergency response teams
Evacuation Plan
An emergency evacuation plan is part of the emergency action plan. An emergency evacuation is the rapid and immediate movement of people away from the threat or hazard. Evacuation drills must be carried out at least once every twelve months.
Labor Risk Management Agencies
The National Institute for Safety and Hygiene at Work
Its guiding mission is to analyze and research work conditions, promoting and supporting good work conditions. It collaborates and transmits information to the European Union institutions.
n Union institutions.