4 Reasons to Have Training for Risk Management

4 Reasons to Have Training for Risk Management

Why spend time and money on ongoing training for risk management? The answers are quite simple, but many! To save time and money, protect your reputation, maintain trust, avoid bankruptcy, prevent injuries, and protect human lives, among others.

In 2020, JPMorgan paid a $250 million fine for inadequate management of risk controls. Ponemon Institute’s 2011 study revealed companies lose an average of $332 million in brand value the year after a data breach. An estimated 98,000 preventable deaths yearly occur due to medical errors in U.S. hospitals. These are alarming statistics that show the costs of not following best practices around risk management.

Definition of Risk Management

Training for risk management is critical. But what exactly is risk management? It’s a process that prepares employees to recognize hazards and risks in order to prevent loss. A hazard is a source of potential harm. Risk considers the probability that hazards will cause harm to employees, customers, and/or the company. A risk is the likelihood of harm. Harm is caused by the hazard.

Types of Workplace Risks

Becoming aware of your organization’s risks is the first step toward risk management. Specific risks may fall into several types of risk categories. For example, a poor customer service experience could go viral on social media, negatively affect your brand reputation, and result in significant financial costs.

By no means is our following list of categories and types of potential workplace risks all-inclusive. But it can help get you started with your own planning and risk rating. You will see training opportunities in every example.

Physical Health and Safety Risks

Human Resources Compliance Risks

Employee Mental Health

Criminal Risks

Operational Risks

Brand Reputation Risks

Natural Disasters / Pandemics

4 Reasons to Have Training for Risk Management

All the real-life scenarios discussed above clearly show why training for quality risk management and risk analysis is critical. The idea is to get all employees involved. Encourage them to be more aware of risks, look for opportunities to mitigate those risks, and raise issues with their manager so the company can take action.

If you don’t invest in risk management, it doesn’t matter what business you're in, it’s a risky business.” - Gary Cohn, widely known as the smartest, best prepared play-by-play announcer in baseball

#1: Increases Risk Awareness

Effective training in risk management helps to increase risk awareness throughout your company. With a better understanding of risk management principles and an increase in their own situational awareness, employees will start to look at things differently. They may start recognizing hazards and risks.

For example, they may be more likely to notice a piece of metal sticking out from an endcap and report it to their manager. Or inspect their ladder before climbing to the roof. Or remind their co-worker to wear their safety glasses. Or review the HR guidelines before they interview a new job candidate, so they don’t ask any inappropriate or illegal questions. The opportunities for improvement are all around us.

#2: Improves Risk Response

Training helps establish a risk-based approach to thinking and can empower employees to proactively raise red flags to managers. In turn, managers can use the tools they learned in training to develop strategies and processes to take action to mitigate risks with ongoing operations.

#3: Shows Commitment

When employees see their company investing time and money in training around risk management, it makes a difference. Employees recognize that the company is watching out for the safety and security of the employees, customers, and the business. Ideally, employees will feel more engaged and empowered to speak up and participate in the risk management process.

HSI recently asked employees to take training in ergonomics. Many of us are working from home, so this was a great reminder to watch our posture, adjust hand placement, and take time to walk around and stretch. Spending a few minutes watching this training course was a simple reminder to all of us about the risks to our health from working on the couch or slouching at our desks.

The video below shows how to mitigate the risk of tendinitis, muscle strains and carpal tunnel syndrome, and other musculoskeletal disorders.

#4: Deepens Management Support

“The problems we have today cannot be solved by thinking the way we thought when we created them.” - Albert Einstein

Manager support and buy-in are critical for the success of any training program. Managers must approve the time to be spent on risk management training, which may take employees away from their daily tasks for a short period of time.

Once management sees the benefits from more risks identified, more completed risk assessments, new risk mitigation policies implemented, and corrective actions being taken, support for training should deepen.

As management teams see the return on investment, they should continue to invest time and money in ongoing training for risk management. The tangible rewards might include reduction in machinery repair costs because of improved maintenance, decreased safety incidents, fewer HR claims, and ongoing antivirus maintenance, not to mention higher morale and productivity.

HSI Can Help

HSI offers a wide variety of off-the-shelf programs for your diverse needs and experience levels. Several key topics include courses specifically about risk management, related soft skills, HR compliance, and safety.

Safety Management System

HSI offers even more than training. Our combination of risk management and safety training, along with HSI’s on-demand safety management system helps safety, human resources, and operations leaders train and develop their employees. It also helps workers keep safe and meet operational compliance and regulatory requirements. Our safety management system is an all-in-one platform that can track your company’s EHS, OSH, & WHS use-cases, employees, suppliers, contractors, vendors across all your locations, devices, and workplaces. HSI also has an EHS software platform, and risk management is one of the modules.

The COVID-19 pandemic taught us many life lessons. One of the critical ones without a doubt is the true value of risk management. It all starts with proper risk management training to improve skills and give employees the knowledge to manage risks. Just think how things may have been different, if only…


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