When it comes to what happens in the Board Room, financial risk management is often top of mind. However, according to Emeritus Professor of Management at the University of NSW, Michael Quinlan, it is just as important to have someone with health and safety expertise on the board.
There is a significant overlap between financial and health and safety risks. If there are major health and safety incidents, it can pose a significant financial risk to an organization. Therefore, Board Members have responsibility for financial AND health and safety decisions made by the organization, which is a key element of being an Officer under the WHS Act.
The Board and Execs may not even be aware of the actual decision-making views at the workplace level. This is why it is essential to have someone with health and safety expertise available. Quarterly and annual reports alone are not enough to satisfy board reporting and due diligence of these positions.
Directly and regularly observed risk management can often be translated to “I’m sorry there isn’t the budget”, “operations can continue without the right equipment”, rather than “We will work it into the budget for September, can you schedule us in on the 1st?” or “can you get us a plan together, how can we get there”. Safety Partners are passionate about people and, therefore regularly negotiate and align with the needs of businesses and fit into a structure and ‘make it work’ because we are good at what we do and want to show what we can achieve. Honestly though – are we asking too much of people to know and follow the law?
Professor Quinlan has observed workplaces with a culture where people feel free to raise problems because they know they will be dealt with effectively. Managers must have response plans to reported issues because if they do not, people will stop telling them anything. Those who adequately respond often agree on how to deal with issues, but there is also potential for positive and respectful disagreement and add the most value in that it is important to know about the things people may not want to know!
While Professor Quinlan believes that penalties should not be the only motivator, he says that the first time a director of an organization is charged with industrial manslaughter and dragged up through the courts, it will cause a sea change. We are seeing this already in the states that have implemented changes – are you ready?
