Fact Sheet:  Risk Management

Have you managed your risks?

In September 2001 the NSW Government introduced a new OHS Act and Regulation.  A very clear object of the OHS Act is to ensure that risks to health and safety at a place of work are identified, assessed and eliminated or controlled.  The OHS Regulation expands upon this provision through broad obligations relating to the processes of hazard identification, risk assessment and control.   

It will be extremely difficult for employers to offer a defence to breaches of OHS legislation if they cannot demonstrate that they have put in place appropriate and effective measures to control the risks of accident and injury in the workplace through the processes of risk management.   

Although the provisions for risk management were enacted in September 2001, WorkCover extended a period of grace of 12 months to allow workplaces time to adjust to the new legal requirements and to put in place system that meet the required standard.  The period of grace for employers who employ 20 or more people, came to an end on 1 September 2002.  The honeymoon is over.  Workplaces, other than small workplaces must demonstrate to WorkCover, if required, that they comply fully with the legislation. 

The processes of risk management are not new to the majority of workplaces.  However, the OHS Regulation provides an indication of the type of hazardous situations that must be identified (and consequentially controlled) as well as when this process is undertaken.  By way of example the Regulation notes that all foreseeable hazards arising from plant, substances, work premises, and work layout must be identified.  The presence of hazards arising from work practices and systems of work including psychological hazards and fatigue related hazards are also mentioned.   

It is not unreasonable to conclude that psychological hazards captures issues such as stress, harassment and bullying at work.  In fact the list of hazardous situations in the Regulation is not exclusive.  The reference to any “foreseeable hazard” effectively captures any work situation which may cause harm.   

The Regulation is also quite specific about the control measures that need to be applied.  The Regulation establishes a hierarchy of control which will provide the test for appropriate and effective workplace solutions.  In the event of an accident or injury at work any WorkCover investigation will naturally explore the higher level controls and will require an employer to demonstrate why a particular control measure was adopted. 

The processes of risk management extend to every work situation.  They are, on the surface, quite onerous but should be seen by leading edge employers as a genuine opportunity to improve safety and to meet a legal requirement.  When used in tandem with the consultation provisions the processes of OH&S risk management provide employers with a powerful management tool.