Risk Management in Engineering Company

The provided report examines the principles and aspects of risk management and organisational psychology as they relate to occupational health and safety. It discusses the challenges faced by an engineering company in managing health-related issues among its employees and recommends implementing norms related to health and safety to maintain a secure work environment.

Risk Management &
Occupational Psychology

EXECUTIVE SUMMARY
Risk assessment and occupational psychology is an important concept that is introduced
in the organisation system to minimize risks related health and safety of employees in woe4king
culture. This report highlight various issues that are generated in engineering company in which
workers face various health related problems. It also throws light on action plans that are drafted
to locate problems in effective manner.

Table of Contents
EXECUTIVE SUMMARY ............................................................................................................2
INTRODUCTION...........................................................................................................................1
TASK ..............................................................................................................................................1
Principles of Risk management in relation to occupational safety and health risks ..................1
Organisational culture and psychology ......................................................................................2
Action Plan .................................................................................................................................3
Risk assessment on the basis of legislations, standards and best practice .................................4
Reasons to draft the aims and objectives for safety and health measures by the organisation . .5
RECOMMENDATION...................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Risk management is an essential process that is adopted by management system in order
to minimize the threat and overall hazards that may arise in conducting particular events. There
are different type and nature of risks and there are number of factors that may arise in the
organisation system. This report focuses on developing risk management plan in accordance to
risk assessment and identify best option out of it. There are certain principles of organisational
culture, psychology and human behaviour that has to be properly formulated by the system.
Report highlight the case of an engineering company which have several health and risk involved
in it.
TASK
Principles of Risk management in relation to occupational safety and health risks
An engineering company, which is in a period of high growth as the demand for
engineers is at boom, but due to several problems that are faced by the organisation previously
hence there is difficulty in growing and earning profits. The directors are under pressure in order
to diversify in new markets and the existing team faces problem in relation to change in
strategies and personnel rules (Lam, 2014). It is the duty of health and safety officer to assess the
risk which is conducted in five steps that are discussed below:
 Principle of Risk Identification: It is the duty of manager of an engineering company to
locate areas that give rise of number of hazards. The major area include that electrical
engineers face a wiring mistake and results into shock that cause health hazard to them.
There are other situation that involve mechanical engineer cause his finger hurt due to
unprotected motor (Beck, 2013). There is lack of presence of safety shoes and hard hats
which is mandatory for every worker working in organisation. This has been put upon
focus by health and safety officer that risk assessment process must be properly
undertaken.
 Principle of finding out employees facing risk: This involve finding out who is facing the
risk in the organisation system. As per the case study, more risks are faced by electrical

engineers, mechanical engineers and operations mangers who have to come across
several situation that lead to harm.
 Principle of risk assessment: Under this, managers keep record of all the risks that get
raised in the organisation system as it render full information related to risk assessment
and contain all the data related to actions that has been taken to reduce the risks so that it
can be taken as a proof that the assessment process has been carried out.
 Principle of correct action: It is the duty of health and safety officer to make decisions
regarding framing of steps that has to be taken to reduce the identified risk. According to
the case study, proper training should be imparted to all mechanical and electrical
engineers to work according to set norms and principles.
 Principle of review and management: After performing all the four above steps, the last
step involve reviewing the risk assessment procedure so that proper working process
must be executed in the organisational system. It also include that all instructions that are
given by safety manager must be followed by every worker in then organisation. If the
need arises to introduce new machinery and equipments it must be installed in the
organisation (Benedict, and Zivadinov, 2011).
From the above formulated steps of risk management it can be concluded that every
employee working in the organisation must be safe and secure so that no health issues must rise
that may hinder their performance.
Organisational culture and psychology
The organisational culture of an engineering company is not complex as it is a period of
high growth (Hoge, 2011). But due to trouble that occur in past is hindering their performance in
respect of growth and earning profits. As admission of new CEO, he focused on diversifying the
existing business so that there are number of changes that occur in strategy and personnel that
poses huge pressure of leaders to execute it in proper manner so that sustainable growth could be
accomplished. Thus, the risk in introducing changes arises in organisational system. Due to
adoption of new project to build and install a new processing plant, there is a lack of space for
the control systems hence, there is a risk of limited space in infrastructure and future
maintenance. On the other hand, various employees faces hazard while working that include
wiring mistake that lead to a nasty shock and lack of safety equipments. The major risk faced by

the workers related to health hazards and level. Thus, it is the responsibility of the organisation to
introduce such culture that promote safety of individuals.
According to the case study it is the responsibility to the CEO for combination of health
and safety to tendered bids for work process. He is responsible for assessing the safety issues so
that employee can work in conducive working environment. The leadership theory that can be
applied in this organisation is contingency theory that define that leaders must play important
role in motivating their team members so that they could work in accordance to set rules and
regulations and lead to the achievement of final goals and objectives in conducing manner. As it
is facing many problems related to working process hence, it is indispensable to make them
motivated in order to achieve the set targets in particular time period (Burke, 2013).
Action Plan
Objectives Plan of action Benefits Material
resources
Time period Monitoring
strategy
Reduction of
Risks while
working.
Management
have to
provide proper
training and
development
programmes to
the workers
Reduction of
health issues
of employees.
On the job
training
1-1.5 months Observation of
employees
while
working.
Recruitment of
potential
candidates
possessing
correct skills
and
knowledge
Proper
recruitment
strategy must
be imposed by
management
system.
Potential and
knowledgable
employees
will be
employed.
Proper
strategy and
rules.
1 Month Reviewing
recruitment
plans
frequently.
Creation of
space for
infrastructural
Expand the
existing
Space for
control room
Infrastructure
materials and
2 Months Proper
functioning of

to build and
install a food
processing
plant
infrastructure equipments work process
Risk assessment on the basis of legislations, standards and best practice
According to the section 19 of the health, safety and welfare at work act 2005 it has been
formulated that every worker or employees working in organisation system must evaluate the
hazard or issues that may occur in the working premises on the same hand assess the various
type of risks associated with it. The management system play a vital role in this respect as they
have to frame proper policies and procedures regarding these guidelines and always ensure that
employee do not get hurt and remain safe and secure. Thus, health and safety manager of an
engineering company must ensure that all the norms that are framed under this act should be
properly implemented. As there are several mistakes that are being made that include wiring
mistake conducted by electrical engineer as he got a nasty shock and mechanical engineer caught
his finger on an unprotected motor. It is important to put focus on these issues properly so that
risks can be minimized at significant level (Chen, 2012).
It is require to draft proper safety statement that involve following all steps and
procedures in correct manner so that creation of healthy environment can be created. There are
basically three reasons that is essential to carry out the risk management process which are as
follows:
 Legal Factors: There is a proper rule and regulation that involve proper visiting of health
and safety authority inspectors at work places and evaluate the working process to
identify lacking area. Hence, if unfavourable events are find out proper assessment is
done that may pose a obstacle in front of them.
 Financial Factors: Ineffective implementation of health and safety measures will lead to
rise in cost related to ill health and accidents. Thus, it is essential to allocate total finance
in effective manner so that extra cost could not be occurred that may hinder the overall
performance of the organisation (Von Krogh, 2012).
 Ethical Factors: It is the duty of management to carry out the work process ethically so
that employees or workers do not get injure in work place. Superiors have ethical duty to

provide full attention on their team ambers so that they could not able to suffer a serious
accident and illness. In order to maintain sustainable market growth and image it is
necessary to full fill all ethical guidelines and rules.
From the above discussion, it can be concluded that it is essential to carry out the risk
assessment process in prospective way so that proper conduction of work could take place that
does not allow any mismanagement in the organisational system. These standards provide base
for carrying out the whole process in effective manner (Grobauer, Walloschek, and Stocker,
2011).
Reasons to draft the aims and objectives for safety and health measures by the organisation
As engineering company is facing many problems and issues related to health and safety
of all workers working there. Thus it become important to formulate certain objectives and aims
for safety and health measures sue to several reasons, that are discussed below:
 It is essential to follow all the rules and regulations that are farmed by the health
standards so that proper functioning of business would take place.
 It is the duty of management to draft standards so that every worker could perform
according to it and actual performance could be measured in order to remain any
deviations that may arise.
 Identification of various types of risks that may either hinder or foster the performance of
the organisation. Proper examination will lead to taking of corrective actions to face such
issues.
 Every managers that are present in organisation must perform their work in coordinated
nature so that every rule regarding health and safety issues could be met out properly
without any hindrance.
From the above discussion it has been concluded that there are several reason in order to
frame aims and purposes for safety and health measures. Similarly, in order to remove the health
related issues that are present in engineering company proper norms and rules must be
formulated to remove any barrier that is directly linked with health problems and issues of
employees. It is require to make employees happy and feel secure so that they can able to
contribute with high productivity and efficient so that best outcome and results could be realised
in set time period (Haimes, 2015).

RECOMMENDATION
From the above case study about engineering company that is growing with sustainable
ratios but is having problems related to health issues of employees that are working there. Thus,
it is important to execute norms related to health and safety of the workers and proper standards
must be maintained. Managers must play proper attention regarding working style so that they do
not face problems related to health issues.
CONCLUSION
From the above prepared report it can be concluded that risk management is an important
process carried by management that impact the organisational culture in many ways. This report
highlight the examination of basic principles and aspects of risk management and organisational
psychology as it is directly connected with occupational health and safety. Report is based upon
the case study of an engineering company that is full of several problems related to health and
safety of workers working there. Thus, it is important to formulate risk management strategies in
order to face these issues effective and efficiently. There are certain standards, legislations that
behave to adopted by organisation system in order to face all issues related to safety measures.

REFERENCES
Books and Journals
Beck, U., 2013. Risk Society Revisited: eory, Politics and Research Programmes. In The
sociology of risk and gambling reader (pp. 68-90). Routledge.
Benedict, R.H. and Zivadinov, R., 2011. Risk factors for and management of cognitive
dysfunction in multiple sclerosis. Nature Reviews Neurology, 7(6), p.332.
Burke, R., 2013. Project management: planning and control techniques. New Jersey, USA.
Chen, L., 2012. Interest rate dynamics, derivatives pricing, and risk management (Vol. 435).
Springer Science & Business Media.
Grobauer, B., Walloschek, T. and Stocker, E., 2011. Understanding cloud computing
vulnerabilities. IEEE Security & Privacy, 9(2), pp.50-57.
Haimes, Y.Y., 2015. Risk modeling, assessment, and management. John Wiley & Sons.
Hoge, R.D., 2011. Youth level of service/case management inventory. In Handbook of violence
risk assessment (pp. 91-106). Routledge.
Lam, J., 2014. Enterprise risk management: from incentives to controls. John Wiley & Sons.
Von Krogh, G., 2012. How does social software change knowledge management? Toward a
strategic research agenda. The Journal of Strategic Information Systems, 21(2), pp.154-
164.