Risk Management Essay: Analyzing Workplace Hazards and Solutions

This essay delves into the critical aspects of risk management within a business environment, emphasizing the importance of proactively addressing potential hazards to ensure organizational stability and employee well-being. It begins by defining risk and its various manifestations, both internal and external, that can impede a company's objectives. The essay then focuses on workplace risks, categorizing them into several types, including hazards related to chemicals, ergonomics, physical conditions, psychosocial factors, and the overall work environment. Each category is examined in detail, with examples and practical solutions to mitigate these risks. The essay highlights the importance of ethical considerations, collaboration with stakeholders, and clearly defined roles and responsibilities in effective risk management. Furthermore, it underscores the advantages of risk management, such as enhanced decision-making and transparency. The essay concludes by outlining the core steps in the risk management process, emphasizing the establishment of context, identification, and assessment of hazards to safeguard the organization's productivity and long-term success.

Running Head: RISK MANAGEMENT 0
Risk Management
Essay
Student
7/3/2019

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Introduction
While introducing new techniques in the business, every organization faces various risks. This
type of risk can be hazardous for the stability of the company. One of the most common business
risks that can be perceived is the threats that are affecting the efforts and performance of the
managers and subordinates in the workplace. Such factors create an unfavorable circumstance
for the company to survive (Glendon & Clarke, 2016). These issues threaten the existence of
employees which results in confusion, chaos, gloominess in the atmosphere of the company.
However, to deal with such issues, the company follows the technique of risk management. The
objective of practicing this management process is to avoid the hazards by identifying and
encountering them. Therefore, the focal point of the essay is on the various hazards that affect
the environment of the workplace and how it can be managed effectively by an organization.
What is Risk?
Risks are the chances of damages from an identified source of the threat that can be planned and
unplanned. In the business environment, the risk is the future threats that might restrain an
organization to achieve its objectives. It is an occurrence of an event, which can cost the
company until the long run. These risks can be identified in the internal environment of a
business like the introduction of technology, increase in the employee turnover as the company is
not providing any assistance in the development of their members (Spacey, 2017). Besides this,
there are also other factors like changes in government policies, an increase in the competition,
and legal obligation, which can adversely affect the working of an organization. Such a situation
can be occurred due to a lack of safety measures and professionalism in an organization. To

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revamp its worse impact, the organization is adopting the strategy where they are identifying
those loopholes and are working to eliminate them (Management study guide, 2019).
Risk at the workplace
In the system of an organization, it can be said as any kind of menace, which may affect the
mental and emotional status of an employee. While operating in the business environment, there
are various unnoticeable factors, which the managers ignore, however, such factors can be pose
as injurious to the health of the employees (Protocol rescue, 2016). Therefore, it is the duty of
every entity to look after the interest of every employee. Attributing to risk, managers must
develop a proper structure to deal with the negative circumstances. While encountering these
problems, it can be observed that such issues are present in very professional and it cannot grow
without taking any risk, therefore such hazard can be avoided instead of eliminating. Even after
taking safety, measures, and precautions there are many risks, which the company cannot avoid,
and results in heavy compensation and jeopardize the reputation (Protocol rescue, 2016).
Examples:
In 2014, the Ministry of Manpower, Singapore published the report of Accident case studies
where the case study1 displayed: While conducting the activities a wounded employee was
assigned to fit the truck petrol container. However, he was facing difficulties in the completion
of the task, as there was a shortage of required ground cable. Due to the unavailability of the
terminal lug of the perfect size for the cable, the worker took a decision to employ the available
devices and through it made a big hole with the machinist file. To deepen the hole, the employee
was using a drilling machine while wearing cotton gloves (Anon., 2014). However, during the
process, his left hand was caught in the drill and his thumb of the left hand was badly hurt. Such
situations could be avoided if on the time he consulted his supervisors and wore good quality

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gloves instead of cotton. Moreover, on the machines, the company must display the procedure
and rules of using the drilling machines so that employees could safely use the machines without
any difficulties (Anon., 2014).
Types of risk at the workplace:
On a daily bases, every organization faces some Hazards that cannot be eliminated but there are
some factors, which managers should not overlook.
I. Utilization of Chemicals (Morrison, 2016)
Working with chemicals can be hazardous to the life of the workers. These materials are used in
the manufacturing procedure of the products. However, when these chemicals are not used
effectively and efficiently and are left in contact with the air, then it can be risky to the health of
the workers. In such conditions, it can be harmful to the health of employees and there is a
possibility of exploding while being exposed to the air, these chemicals can explode in the
environment, which can have a terrible outcome and might create long-lasting impacts on the
workers (Buehler et al., 2017). To avoid such a situation in future, managers must provide
training to the employees, and in the factory outlet, there must be the separate laboratory for the
chemicals workers with the proper equipment's installed and they should be aware what they
should do or not do while encountering any similar situation ahead. Managers must direct the
supervisors while imparting the knowledge regarding the WHMIS, which is Workplace
Hazardous Material Information System, and Safety data sheets.
II. Ergonomic hazards
This type of menace can be discovered in the working atmosphere of building sites where there
is a danger of getting an injury or any health issues, due to the stress of carrying cement and

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bricks cartons. Working on the heights can also pose a threat of falling down. Therefore, an
organization must ensure the protection of the employees by providing the best quality of tools
so that they do not face any issues while employing those tools in their activities. Thus,
management should encourage labor so that they work efficiently and comfortably. They must
introduce exercising sessions for their employees so they can stay fit and health diseases like
musculoskeletal disorders among the workers can be reduced (Glendon & Clarke, 2016).
III. Physical
They are the hazards that affect the physical capacities of an employee. Such menace causes
problems related to health and can result in something terrible. Risk related to the inhalation of
bad air quality, noise pollutions and the effects of harmful radiations has become common in an
organization, which are dealing with oil and gas and building ventures (Protocol rescue, 2016).
To deal with such hazards, business organizations must provide the right devices and tools to
conduct their activities, and along with evaluating and control their performance. In addition,
they should be given on the job training so that they utilize their expertise and knowledge in
performing their job. Moreover, an organization must ensure a healthy and lively environment
for their employees so they can work freely and coordinate their efforts together for the
betterment of the company.
IV. Psychosocial
Discrimination, violence, inequality, exploitation, and awful remarks regarding the skin colors or
nationality in the workplace are some of the psychosocial threats that affect the mental stability
of employs. Psychosocial are the factors, which focus on the interaction among the members of
an organization and how they are presenting their opinions related to a particular topic. All these

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elements create a bad influence on the psychology of the employees. Furthermore, such negative
thought contributes to low working efficiency and affects the personality of an individual. To
break this chain, managers commit to supporting every individual and should empower him or
her to stand for their rights. The company must form a counseling body for the employees so
they can comfortably share their problems related to any stress and depression. The manager
should conduct monthly meeting their team so that can get an idea about what type of challenges
that member are facing, therefore the company can make necessary amendments (Buehler et al.,
2017)
V. Workplace
They are the threats, which are currently operating in the business environment. Such cases can
be monitor in the industries related to oil and mining. However, it is difficult to eliminate this
menace related to the temperature or airing on the workplace. To manage such risk, managers
must plan safety measures. It is a duty of creating a safe working environment for the employees,
therefore, employees must be given training on the machines. They must be taught to work with
proper safety measures.
Risk Management
While conducting business, every type of organization faces unexpected challenges and
calamities such as the natural holocaust, damages due to the robbery, and any kind of a hazard to
the life of the workers and customer. Such issues hamper the productivity of an organization and
ultimately cost the efforts and time of the company.

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To avoid such situations in an organization, management follows the techniques of risk
management. It is a planning procedure where the company performs the analysis of unforeseen
events, which might convert into potential threats. Through this process, leaders can restrain risk
and save their additional cost. Moreover, for effective performance, the company must
implement the management tactics on a regular base and utilize the funds in a fruitful way.
Ethics upon which risk management is based:
To improve and survive in the end, the company adopts the approach of managing the risk.
While operating this management course, there are some of the key areas, which an entity must
put their emphasis on (Managementstudyguide, 2019):
 Integral: It is the essence of the organization. Its presence is very important while
forming any strategies or taking any decisions.
 Performance Appraisal: For consistent growth, it is essential to monitor the
performance of the employees. To evaluate the working system and actions of the
employees, the technique of managing the risk should be so that the company can present
an annual review on the efficiency of the employees and prepare the strategies to improve
the working system.
 Collaboration with stakeholders: In this process, the suggestion of employees,
shareholders, and customers plays an important role. The company must maintain
transparency in its decisions so that every stakeholder must be aware of the futuristic
goals of the company. Moreover, it is the duty of the company to look after the interest of
the shareholders.

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 Roles and Responsibility: It assists the managers to focus their efforts in maintaining
the clarity in the role and duty of the employees. Thus, hazard management empowers an
organization to develop a positive and healthy relationship with the employees.
Importance and Objectives
When the company prepares its goals without considering the risk factors, it is like putting the
cart before the horse. This idiom tells us that when the management is overlooking these
challenging and damaging factors, the company is playing with the integrity of the company as
these factors can become a roadblock in the success of an organization (Hopkin, 2018).
In the business world, the issues related to the unexpected and unplanned event now trolling the
efficiency of the company. To curb its impact the company is now following risk-management in
its business environment. From the last decade, risk management has become an essential part of
the company (Haasan et al., 2017). Through this, unexpected hazards can be minimized at the
right time without encountering any major difficulties. It plays an integral role, as the company
without effective management cannot describe its futuristic goals (Careers in audit , 2013).
Advantages of practicing risk management in an organization:
1. Effective risk management helps an organization in encountering these obstacles that are
affecting the production capacity of the company.
2. This technique of management directs the business organizations to take a decision in the
interest of the company and maintain transparency so that all the stakeholders can contribute to
the decision-making process of the company.

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The procedure of Risk Management
The process of managing the hazards in an organization involves 3 Major steps, which is
followed by an organization to curb the consequences of such threats (Management study guide.,
2019).
 Establishing the context
 Identification
 Assessment
The First Step in the management process is to determine the number of hazards that are
operating in the workplace and to analyze the degree of impacts it has created on the business
environment of the company. In this initial level of management, there are six other stages,
which are practice. They are (Duden, 2018):
 Identification of hazards that are threatening the particular area of operations in the
domain
 Preparation of risk prevention process for the entire organization
 Surveying the degree of risk and are causes of its emergence.
 Formulation of blueprint for the process

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 Analysis of the extent they are impacting the company’s business environment
 To discover an appropriate solution
The next step in this process is to discover the loopholes in the functions of the company and
once it is identified, the company follows the assessment process. In this last stage, the
companies proceed further to analyses the possibility of menace in the near future. This
procedure is more useful when companies deal with the difficulties related to tangible assets.
Moreover, this process of risk prevention can be achieved in various techniques (Pomsassoc,
2019)

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Conclusion
It can be concluded that risk Management has become essential for the effective performance of
the company. Without it, the company cannot identify the unexpected hazards at the right time,
which might cost the company. Risks are unforeseen events that restrain the development of the
company. One of the major causes of such menace at the workplace is lack of professional
environment, breach of the code of conduct, and absence of safety measures. These issues cannot
be eliminated effectively; therefore, the company follows the procedure of risk management in
an organization. This technique helps the business to stabilize its relationship with its entire
member while achieving its futuristic goals.

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