HIP Royal Commission – Risk Registers

Cover of ReportoftheRoyalCommissionintotheHomeInsulationProgramSafetyAtWorkBlog has written previously about the evidence of Margaret Coaldrake to the Royal Commission into the Home Insulation Program (HIP) given at the public hearings and also the occupational health and safety role of risk management and risk registers. The release of the Royal Commission’s final report on 1 September 2014 provides further details on a risk management process that is common to all large projects.

Commissioner Ian Hanger spent considerable time on the issue of the risk register as this was one of the crucial elements in the project’s whole decision-making process up to Ministerial level.

Risk Register

Commissioner Hanger was scathing of the risk management process that not only ignored the risk of worker fatalities but purposely dropped this risk from the register. He was unforgiving in his criticism of Margaret Coaldrake. He criticised her judgement. In working with her Minter Ellison colleague Eric Chalmers:

“it was up to [Coaldrake] to make sure that she and the people working with her were qualified to provide the service that Minter Ellison consultants had been retained to do.” (para 7.11.15)

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Fear of exposure rather than pride in their work

Due diligence” is an established business management concept that only recently came to be applied to occupational health and safety (OHS) in Australia through the Work Health and Safety (WHS) harmonisation process.  It’s credibility comes from the Corporations Act, principally, but also Consumer Protection and, partly, Environmental laws.

iStock_000015900242SmallThe attention given by OHS/WHS professionals and senior executives to due diligence is already changing how workplace safety is managed in a positive way but recently the

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OHS is not all about covering one’s arse

iStock_000005779267_SmallIt is very common to hear people say that the core motivation for introducing or improving workplace safety management is to cover one’s arse (to protect oneself from various legislative and reputational exposures), be that the collective arse of management, the board and executives or the arse of the individual worker.  This is a fundamental misunderstanding of the intention occupational health and safety (OHS) laws and principles yet the fear of reputational damage is a strong motivator of change with which safety professionals should learn to work and, perhaps, exploit, particularly as the traditional methods for corporate embarrassment, the media, are declining.

The most pertinent research on reputation risk as a motivator for OHS change seems to come from the UK’s Health and Safety Executive in 2005. In a summary report on research into compliance, HSE looked at the motivations of employers for change.  It found that reputational damage was one of many motivators and that each was given around the same weight in deliberations but that

“Respondents cite newspaper reports covering serious incidents and requirement to advise customers of incidents as the best way of increasing risk of reputational damage, followed by a requirement to report health and safety in company reports. ” ( page 10)

This change catalyst relies on two increasingly fragile criteria – the media and annual reports.  The media has rarely reported on OHS issues unless the incident

  • has caused major disruption
  • involves a high profile individual or company
  • involves children
  • can be given a party political context.
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Zero Accident Vision and its OHS potential

In 2013 the  Safety Science journal allowed open access to an article that discusses “The case for research into the zero accident vision” (ZAV). The terminology is slightly different but seems compatible with the “zero harm” trend occurring in Australia. The authors acknowledge that

“…. many companies with a good safety reputation have adopted a zero accident vision, yet there is very little scientific research in this field.” (link added)

Although the discussion revolves around experience in Finland and Finland has a unique culture, the concepts discussed are indicative of the ZAV:

  • “accounting for complex contexts;
  • setting up norms, rules and performance indicators;
  • identifying the role of safety climate and safety culture;
  • studying human behavior.”

The authors’ short discussion of context is important as it acknowledges the state of knowledge of hazards and advocates systemic analysis.  It also mentions dealing with ‘normal accidents” in complex settings that leads to either looking for safer substitutes or ‘high reliability theory’ and ‘resilience engineering’. Context is vital but there is also the trap of paying too much attention to context and not enough to the hazard, a situation that can often happen with wellbeing programs. Continue reading “Zero Accident Vision and its OHS potential”

Important safety perspectives from outside the OHS establishment

Real Risk - CoverWhen people mention safety, they are often really talking about risk.  In a similar way, people talk about the absurdity of ‘elf ‘n’ safety when they actually mean public liability or food safety or HACCP.  And when some professionals talk about risk management they mean minimising the cost to the employer or controlling reputational damage.

Recently two books were released that illustrate the limitations of the current Western/patriarchal society’s approach to workplace safety. Dr Dean Laplonge has written about gender and its role in making decisions and Dr Rob Long has written his third book on risk “Real Risk – Human Discerning and Risk“.  Both deserve close reading and that reading should be used to analyse how safety professionals conduct their work, the organisational environment in which they work and the cultural restrictions imposed in their technical education.

Laplonge has written a book out of the extensive research and training on gender issues in the mining industry.  “

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Australian company dumps triple certification as unnecessary

At a recent seminar an HSE Manager of a large Australian company revealed that the company has dropped its support of “triple certification” – external certification to safety, quality and environmental standards. This caused a murmur in the audience as external certification has long been seen as an unavoidable element (and cost) of operating a large business. The HSE Manager explained that the company had assessed all of the resources it provides for certification in light of the benefits it receives and determined that the company could still do well without the external certification.

Certification has been considered as a public and commercial statement of good business management.  Certification is also required as a minimum requirement to qualify for tenders for government works. But certification has also been seen as a costly and disruptive burden.  This perception has strengthened as new regulators have imposed compliance requirements that are usually satisfied through external or third-party audits.  This auditing complexity has sometimes been mentioned in the context of the “red tape” debate.

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“It’s easier but it isn’t easy” – OHS leadership tips from IOSH

The Institute of Occupational Safety and Health (IOSH) recently uploaded a swag of videos to YouTube, ostensibly, to promote its upcoming conference.  One video asks if it is harder or easier to inspire leadership on OHS matters.  Most speakers believe it is easier because:

  • there is a stronger social expectation of higher safety standards,
  • managing people is more inclusive,
  • technology allows more effective communication,
  • leaders are coaches,
  • people have a greater awareness of how to be safe.

Some believe it is harder because:

  • it is more difficult to have faith in corporate leaders,
  • companies have a more complex structure of accountability and responsibility,
  • there is greater cynicism of corporate leaders due to the GFC in 2007.

One speaker at IOSH’s upcoming conference says “It’s easier but it isn’t easy” acknowledging past improvements and future challenges.

The IOSH videos are promoting the conference but there is food for thought in all of them.  Conferences in Australia have tried similar teaser ads (some including the author) for conferences but not to the extent that IOSH has through YouTube.  As safety conferences seem to be fading in both length and influence in Australia, such videos will become rarer but, as with rarity, the content may become more valuable.

Kevin Jones

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