Risk Management Report: Leadership and Mitigation Strategies

This report provides a comprehensive analysis of risk management within the context of a construction company, specifically using Bardsley Construction Limited as a case study. The report begins with an introduction to the importance of risk management in organizations, emphasizing health, safety, and environmental risks. It then delves into a detailed risk assessment, identifying various hazards such as electricity, airborne toxins, unintended collapses, material handling issues, noise, slips, and working at height. Furthermore, the report examines risks associated with the company's reputation, finances, and legal liabilities. Following the risk assessment, the report outlines various mitigation options, including safety awareness programs, the use of personal protective equipment (PPE), adequate training, and the implementation of safety committees. The report also offers advice on managing risks through effective communication, consultation processes, and the crucial role of leadership in fostering a safety-conscious environment. Finally, it emphasizes the importance of monitoring and review strategies to ensure the continuous effectiveness of the risk management program. The report concludes by summarizing key findings and recommendations for improving risk management practices within the construction company.

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10-1-2018

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Contents
Introduction......................................................................................................................................3
Context.............................................................................................................................................4
Risk assessment...............................................................................................................................4
Health, safety, and environmental risks.......................................................................................4
 Electricity..........................................................................................................................4
 Airborne fibers and toxins.................................................................................................5
 Unintended collapse..........................................................................................................5
 Material handling..............................................................................................................5
 Hand and vibration syndrome...........................................................................................5
 Noise.................................................................................................................................6
 Slip and trips.....................................................................................................................6
 Working from height.........................................................................................................6
The risk associated with the reputational area.............................................................................7
 Negative publicity.............................................................................................................7
 Employees trust.................................................................................................................7
The risk associated with a financial area of the company...........................................................7
 Decrease in profits............................................................................................................7
 Increase in expenses..........................................................................................................7

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The risk associated with a legal area of the company.................................................................8
 Corporate Manslaughter and Corporate Homicide Act 2007...........................................8
Risk mitigation options....................................................................................................................8
 Safety awareness...............................................................................................................8
 Use of appropriate PPE.....................................................................................................8
 Adequate training..............................................................................................................8
 Use of protective equipment.............................................................................................9
 Electric safety awareness learning....................................................................................9
 A separate health and safety or risk management committee must be set........................9
Advice on managing the risks including communication and consultation processes..................10
Monitoring and review strategies..................................................................................................11
Conclusion.....................................................................................................................................13
References......................................................................................................................................14

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Introduction
Risk management plays a vital role in any organization since the challenges faced by the
business can include sustainability risk in business, and health, safety, and environmental risk in
the workplace. The risk involved can hamper worker health as well organizational risks are
involved in it. In an organization, the risk is the main cause of the uncertainty that is why
companies are focusing more on the anticipated risk involved and mitigate or manage them
before they occur or affect business operations. The ability of an organization to identify the
risks and manage them before occurrence is risk management (Rubio, 2014).
In the report, the discussion includes on risk assessment and mitigating it using a real-life
example. For this discussion, the case study selected is of a construction company that is
“Bardsley Construction Limited.” Where the role of leadership in managing risk, through
effective communication, and the consultation process would be advised. Moreover, the
importance of monitoring and review process by leadership would be given due relevance.

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Context
As mentioned above, the “Bardsley Construction Limited,” it is a construction company
where the report will assess risk and ways to mitigate them. It is a medium-sized company based
in England and operates in the social housing, public sectors, and private housing development.
Since the company is involved in building, the risk involved related to health, safety, and
environment increases for the workers and the organization as well. The rates of accidents were
quite high for the firm but since 2017, the frequent has notable decreased, but have various
challenges involved. The company is describing how a change in the attitude of management of
safety and health are key factors in work security and increase in productivity level
(HealthandSafety, 2018).

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Risk assessment
Health, safety, and environmental risks
 Electricity
(Source: (NBS, 2018)
One of the risks involved is with people working near cables and power lines. The
risk is of electrocutions, the reason may be the electricians working are not qualified for
this job, as if plumbers, joiners, and decorators could be carrying electric work
(McMakin, 2018).
 Airborne fibers and toxins
Another risk found at construction place due to kick up of dust to an extent. There are often
fine, invisible, a toxic mixture of harmful material and fibers that can have a negative impact on
the lungs, a consequence of diseases like asthma, silicosis, and chronic obstructive pulmonary
(Kabli, 2014).

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 Unintended collapse
The chances of trenches and excavation collapse are the major risk to people causing injury,
where precautions must be taken and planned before the work has been started. The risk is
generally associated when partially completed construction of a building that is demolition works
or scaffolding collapse (Titarenko, 2017).
 Material handling
At the site, equipment and materials are moving constantly around whether using lifting
equipment’s or manually. It involves a high risk of injuring people carrying out the work and
others as well (Taroun, 2014).
 Hand and vibration syndrome
Health risk includes in using some machines that can cause vibrations in arms and hand,
which can cause this syndrome (Alcumusgroup, 2018).
 Noise

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(Source: (NBS, 2018)
Use of machines and equipment does cause a high amount of noise, which is
largely hazardous to the people in and around the construction site. Repetitive noise can
also cause long-term problems related to hearing and can cause more accidents due to
dangerous distraction (Ahn, 2015).
 Slip and trips
Since diverse ranges of activities are involved at the construction site the risk of a slip, falls,
and trips occur almost on daily basis (Kuchta, 2017).
 Working from height
Works in building construction involve work at height, or demolition work, make workers
work at height. Injuries and fatalities involved with this factor have a large amount of risk of
accidents every year (Islam, 2017).
The risk associated with the reputational area
 Negative publicity
The accidents influence organization image in a negative way, it could also hamper the deals
with the client. Clients before giving the contract to the company would think twice due to more
often issues of the company (Kuchta, 2017).
 Employees trust
Due to the increase in the rate of accidents, poor reputation of the company in the market
would resist employees to join the company. Other employees working will also be afraid and
would not be able to work more effectively (Islam, 2017).

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The risk associated with a financial area of the company
 Decrease in profits
Due to the increase in the accidents and risk involved, the productivity of the organization
would decrease which will at the end impact the profits of the firm (Ahn, 2015).
 Increase in expenses
The expenses would be increased due to the happening of any uncertainty in the organization
in the form of material loss, or human resource loss. It would eventually affect the profits of the
firm (Taroun, 2014).
The risk associated with a legal area of the company
 Corporate Manslaughter and Corporate Homicide Act 2007
An offense will be committed under this act, by organizations senior management in case of
breach of the duty of care towards organization employees, which results in death. The
maximum penalty could be imposed on the company (HSE, 2018).
Risk mitigation options
The risk evaluates and assessed can be reduced with some options. These risk mitigation
option in the constriction business involves:
 Safety awareness
Safety awareness is essential for employees to make them understand how to prevent
hazardous for the personnel, this is used especially if a person is working at height. Moreover,
there are academies providing e-learning to raise organization and employee’s awareness, the
risks and its control techniques (Jahn, 2018).

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 Use of appropriate PPE
Personal protective equipment, these will protect the employees against health and safety.
These include equipment’s like helmets, eye protection, safety footwear, safety harnesses, high
visibility clothing, eye protection, gloves, and respiratory protective equipment (RPE). (HSE,
Risk at Work - Personal protective equipment (PPE), 2018)
 Adequate training
With regard to manual and material handling, adequate training could reduce the chances of a
mistake and can mitigate the risk involved in material handling. It could also include a test to be
carried out, in order to ensure competency. Moreover, training must be recorded for verification
purposes (Pinho, 2015).
 Use of protective equipment
The equipment and machine must be regularly checked if it is working properly because
many times the reason for accidents is damaged machines or inappropriate working of machines
and equipment. The employer must assure that the equipment used in the process are protective
and properly working, along with on the job training of using those machines and equipment
(Dawood, 2015).
 Electric safety awareness learning
The major risk is involved with employees working with electric work, for which a safety
awareness program must be conducted. Including knowledge related to electricity and to prevent
electrical shocks the precautions should be taken and understood by the employees through the
program. Moreover, only a trained professional must be hire and allowed to do electric work in
an organization (Dawood, 2015).

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 A separate health and safety or risk management committee must be set
To make sure the crucial issues are addressed and safeguard against effort and time being
wasted on unnecessary bureaucracy and trivial risks. A committee must be set in the
organization, which is responsible for taking care of risk involved, the environment in which
workers are working, and analyzing activities which can involve risk. In other words, risk
management should be considered as a separate and major activity of the organization,
conducted by a separate specialled team (Pinho, 2015).
Advice on managing the risks including communication and
consultation processes
Leadership plays an important role while managing risk in the organization. What all a
leadership should do for effective risk management includes:
 Communication is the biggest problem, which is believed to be accomplished. Leaders
must tell their employees what they are doing, talk to the reprehensive of workers, make
them indulge in risk assessment and explain how they can reduce risk. Make them
participate and realize that they are also accountable for the same (McMakin, 2018).
 Schedule regular breaks into the workday, consult your employees, and assure that they
are taking small regular breaks. Since, the mind must be relaxed to work more
efficiently, and the chances of the conduct of mistakes increase, with the occupied or
tired mind. Leaders must schedule breaks for their employees, like tea breaks, and lunch
breaks (McMakin, 2018).
 Encourage frank discussion and conversation, mental health must be treated at the same
level as of physical health. To address this issue the leaders must do a frank conversation

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with their workers and try to be proactive while providing an employee to talk to the
manager or leader. This simple action can help to prevent any worker to reach the crisis
point (McMakin, 2018).
 Hold mandatory safety meetings and toolbox talks. Starting every day with a quick
safety meeting, which involves day’s plan, reviewing proper safety measures, and
worksite changes. This could be done to ensure if workers are known to appropriate
responses and procedures and make them realize the relevance of following in the
workplace (McMakin, 2018).
Monitoring and review strategies
 Work of leadership is not over with planning risk management or implementation of a
risk management program. The controlling is also necessary which includes monitoring
the risk management and reviewing timely in order to assure security (Kim, 2015).
 An appropriate strategy and decision have to take to conduct the regular review. Risk
assessment is a continuous event that will change with a change in the work environment
 Leaders must ensure that the system of risk management is linked and maintained to all
other system and programs of the organization.
 Since the habit of workers do not change instantly with the implementation of the
program, leaders must find an approach to sustain the focus to make the change as second
nature of habit
 It is important to conduct and use evaluation as a mode to measure which parts of the
interventions were fruitful and which were not, and to get what works finest for the
specific launch. Moreover, to ensure if the risk was reduced or not and more hazardous
are not created, assessment of control measures must be done (Kim, 2015).