Risk Management Is a Crucial Function for any Company

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Any company operating today, from the tiniest mom and pop shop to huge multinational conglomerates, needs to have policies that address risk management solutions. Any company that has employees can run into problems regarding employee safety as well as the safety and well-being of the customers who buy their services and products.

Nearly 5,000 workers were killed on the job in the U.S. in 2014, with about 20% of those fatalities occurring in the construction industry. Though workplace fatalities are more common in hazardous occupations such as construction and manufacturing, they can occur in just about any business. In addition, there are about three million non-fatal workplace-related injuries and illnesses each year, which makes it important to for companies to have risk management solutions in place for situations where employee health and safety are threatened. For example, many companies require all employees to participate in a formal employee safety program that involves things such as how to operate a fire extinguisher and how to provide basic first aid. Many companies also require their employees to participate in annual fire, severe weather and even terrorist attack drills. Such efforts may be perceived by some as simply legal cover to mitigate liability, but many employees — about three-fourths — feel that being safe and secure in the workplace as important.

Another area where risk management solutions are important for businesses is in the area of products. Having a defective product that causes illnesses and/or injuries can be a huge issue for a company. Not only is there the liability issue involved and the potential to be hit with millions of dollars in damages, but there also is the hit to the company’s public perception that is likely to result. Using inspection software to automate and better track inspection data is one way companies can better manage product risk and catch potentially damaging errors and defects ahead of time.

One additional area where companies must manage risk is in their environmental compliance. Companies in many industries can run afoul of environmental laws unintentionally. Using environmental software or health and safety software can help track emissions and other potentially damaging environmental issues such as waste production.

Whatever your business and whatever the size of your company, it’s important to make sure you manage risk.

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