Operational Risk Management – a timeless book, sadly

For several years now Mark Abkowitz’s book “Operational Risk Management” has been sitting on my “to-read” shelf.  Given my recent wish for a case study approach to leadership and given the Fukushima nuclear issues, the book caught my attention.

Books that analyse disasters are far superior to watching real-time disasters because the distress is minimised, the analysis can be dispassionate and time can provide a more detailed context.  (The quickness of production of some of the books about the BP/Gulf of Mexico suffered from the curse of topicality)  Books provide a distance that the constant exposure to “disaster porn” does not.

Operational Risk Management looks at many at many disasters from the last 30 years but the disasters are not only industrial and process disasters, although Chernobyl and Bhopal are covered. Continue reading “Operational Risk Management – a timeless book, sadly”

Election excitement masks OHS confusion

The Liberal Party of New South Wales won last Saturday’s State election in a landslide.  The New South Wales employer associations are jubilant but the jubilation masks some confusion over OHS reforms.

The new NSW government is being urged to act promptly on OHS reform issues particularly by the Australian Institute of Company Directors (AICD) and the NSW Business Council but the media statement of the AICD illustrates the confused understanding of the national OHS reforms. It says

“Reforms should include reducing the burden on business of excessive regulation, re-committing NSW to participate in the national reform of occupational health and safety laws and reducing the excessive liability burden imposed on company directors by state legislation.”

“The new government must move decisively in its first term to reduce unnecessary regulation and red tape, which is strangling business.”

It is acknowledged that the introduction of new OHS laws will substantially increase the need for paperwork in order to produce the evidence required to support compliance, due diligence and positive OHS duties on managers. It seems impossible to achieve OHS reforms with also accepting the increased documentation. Continue reading “Election excitement masks OHS confusion”

Managerial OHS walk-arounds and D&O liabilities

The latest edition of The National Research Centre for Occupational Health and Safety Regulation’s newsletter lists two new working papers, one from Andrew Hopkins and one from Neil Foster.  Both should be obligatory reading.

Hopkins discusses how to increase the value of the “management walk-arounds” an increasingly common key performance indicator for senior executives.  Hopkins, naturally, uses the Deep Water Horizon case as an illustration of the flaws in the process but walk-arounds should not only be for large projects.

Hopkins shows that the VIPs had an inadequate understanding of safety.  They identified the slips, trips and falls hazards rather than asking questions about the potential major hazards of the facility.  This is a common trap for managers and safety professionals, for those with suitable OHS skills, and one that needs to be actively countered.  Continue reading “Managerial OHS walk-arounds and D&O liabilities”

Rotting fish, safety leadership and wizards

In business, government and public authorities, CEOs and executives regularly resign during periods of controversy.  Within the 24 hours of each other in 2010 two prominent Australian executives resigned – Brian Waldron and Russell Rees.  Waldron because the rugby league team, Melbourne Storm, his previous CEO appointment, was found to have operated unethically during his time at the top.  Rees resigned because, he said it is the right time to leave, however there had been serious questions put in a Royal Commission about his handling of the events in Black Saturday bushfires when over 170 people died.

The dominant mantra in occupational safety management is that safety cannot be improved without leadership from the executives.  Australian safety conferences are laden with mentions of leadership.  Leaders have the potential to inspire, although some stay on for too long.

The leadership sellers in the corporate marketplace (some not dissimilar to wizards) are all pushing the positive benefits of leadership.  But there are good leaders and bad leaders.  There are inspirational leaders and there are selfish leaders.  There are those executives who lead in positive directions and there are those who lead organisations and others astray.  There are some people who are not suited to being leaders at all. Continue reading “Rotting fish, safety leadership and wizards”

The How, How likely and How much of workplace safety

I return to the observation Ken made in his article, the obs about the most successful safety places where

“…safety is driven at the shop floor level and led by a committed team of senior executives who can be relied upon to show it by their actions and not just words.”

Of course, at first blush this is about ownership, commitment etc.  But I get the impression that it’s something even more fundamental and that’s about pragmatism.

I’m not sure OHS-World is so good at How, How likely and How much: the things that I’d suggest cut-to-the-chase on defining pragmatism.

In contrast, we seem to get all caught up in What and Why as if that is enough to motivate good safety performance.  What manifests itself as interminable reports of all the horrible safety failures and the injuries that accompany them.  For mine, the only What in this context is a What that matters to the punter.  Did something go wrong in a way and situation that is completely relevant to the punter, so it can be used to look for similar potential at the punter’s place?  The Why I’m referring to is why a punter should fix stuff, specifically in the context of fixing stuff ’cause it’s the right thing to do or ’cause ya can get busted.  Continue reading “The How, How likely and How much of workplace safety”

Understanding people is understanding safety

SafetyAtWorkBlog reader Ken Malcolm submitted this comment in response to Yossi Berger’s article of 21 March 2011 but I think it warrants a post of its own:

It is often said two safety professionals never agree however I do agree SA law has been ineffective.  However let me explain why I think this way.

I am in Victoria, in the business of making sustainable changes in the workplace.  I am convinced that prescriptive legislation does not cut it when you want to improve safety, as Lord Robens recognised.  All you get are thicker law books and people less willing to read them.  In most businesses I consult to, they have a problem and the problem is quite simple.  They have excellent systems but nobody is implementing or enforcing them; or the employees are just not following them. In many cases they have an eager OHS Manager with perfect sets of graphs and records; he or she is busily tracking failure.  What they can’t do is drive a culture change.  BTW, safety culture is what you get when the boss isn’t there.

The requirement to find hazards and manage them according to the unique circumstances of the work environment and of the persons within it, does affect culture if this process is supported by senior execs and fostered or encouraged properly.  Laws that encourage that approach are desirable.  With regards to getting tough, fear motivation does not achieve lasting change and with a normalisation of deviance, greater risks are tolerated by degree until people are climbing on safety rails to clean equipment 6 metres from the ground.  Continue reading “Understanding people is understanding safety”

One person’s red tape is another’s due diligence

Australian business is soon to be required to apply the concept of “due diligence” to occupational health and safety.  One would have expected the agency that is coordinating the changes to provide detailed guidance on what is expected from “due diligence”.  That is not the case and so, inevitably, lawyers have stepped in (some stepped in some time ago).

Part of the due diligence obligation is that it is necessary to “verify… compliance with the business’ safety obligations” and this is unavoidably achieved by audits and subsequent paperwork.  In fact, paperwork is a vital element of support for “evidence-based decision-making”.  So it is with some concern that one sees the New South Wales WorkCover Authority is number three on the NSW Business Chamber’s list of “top 5 red tape offenders”(?), released on 9 March 2011 . Continue reading “One person’s red tape is another’s due diligence”

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