Insight Risk Systems: Risk Management is Good for Business
what is The business case for safety? specifically, does risk management provides a measurable return?
YES! risk management helps to avoid loss.
Every year, thousands of workers in Canada are injured or killed on the job. According to the Association of Workers’ Compensation Boards of Canada (AWCBC), in 2022, there were 348,747 lost time injuries, 626 workplace fatalities from harmful substances, and 993 workplace fatalities of which 33 were young workers aged 15-24.
The cost of injuries in Canada was estimated to $29.4 billion in 2018. This includes direct costs of $20.4 billion arising from health care expenditures and indirect costs of $9 billion associated with reduced productivity from hospitalization, disability and premature death.1 Workplace incidents are expensive: the associated losses of production loss, absenteeism, medical cases and compensation equate to 4–5% of the annual global gross domestic product (GDP); more than twice Canada’s 1–2% annual GDP growth rate.
risk management also enables better fit to work processes and sustained, optimized performance.
Research on 18 case studies of workplace safety initiatives show an average increase of 82% in safety performance, 66% in productivity, 44% in quality, and 71% in cost benefits.
Companies with mature risk management systems are valued as much as 25% higher. Despite this, only 3.4% of organizations have mature processes to actively identify, evaluate, and manage their risks.
To discuss how you can analyse the gaps in your company’s risk management system, contact us: Dr. Lianne Lefsrud, P.Eng., CEO, Insight Risk Systems. 780.951.3455 or lianne.lefsrud@insightrisksystems.com
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