Why Are Risk Assessments Important? (4 Things To Know)

The importance of conducting risk assessments goes far beyond complying with the law. They are an essential tool in ensuring the health and safety of workers in the workplace and protecting them from further harm.

In this blog, we will delve into what risk assessments are, and consider four reasons why they are an important system to have in your business.

What Are Risk Assessments?

A risk assessment is a systematic process of identifying hazards and evaluating any associated risks within a workplace. 

It involves identifying hazards, assessing the likelihood and severity of harm, and implementing control measures to eliminate or mitigate them. 

The goal is to prevent accidents and illnesses by proactively addressing potential hazards.

When completing a risk assessment, it’s important to understand the difference between key terms like ‘accidents’, ‘hazards’ and ‘risks’.

• An accident is ‘an unplanned event that results in loss’
• A hazard is ‘something that has the potential to cause harm’
• A risk is ‘the likelihood and severity of a negative occurrence (injury, ill-health, damage, loss) resulting from a hazard’

If you want information on how to conduct effective risk assessments, you can read our blog on 5 Steps to Conduct Effective Risk Assessments.

That said, let’s now look at four reasons why risk assessments are important:

1. Prevent Potential Harm and Fatalities

Every workplace has hazards that could cause injuries, ill-health, or even fatalities. 

Risks can stem from a whole host of hazards in the workplace. Some may be more obvious to the eye like wet floors or dangerous work equipment, but it’s important to have a comprehensive overview and consider ones that may not be as visual, such as exposure to hazardous substances and fire hazards.

The effect of the hazards present in the workplace can also range widely. While accidents like slips and falls from wet floors are still important to control as they can still result in injury to your workers, correctly eliminating or mitigating certain hazards can save lives.

Don’t look at a risk assessment as a ‘tick-box’ exercise that you get it over and done with. Assessing hazards like fire hazards, prolonged exposure to dangerous materials like asbestos and dangerous work machinery can be the difference between life and death.

2. Prevent Damage to Equipment and Machinery

Not only do risk assessments ensure people remain safe and free from injury, they can also ensure equipment and machinery is being used correctly which can prevent any damage from incorrect usage.

Companies invest a lot of time and money in securing equipment and machinery and a risk assessment helps protect these assets by establishing the correct way to use them.

Preventing the risk of items being dropped and broken, or machinery being broken through incorrect use, can save the business money when it comes to replacing equipment and machinery.

3. Avoid Unnecessary Costs of Poor Risk Management

Accidents and injuries in the workplace are also a financial strain for businesses. 

If employees are affected by work-related injuries or ill-health, they will need to take time off and companies may need to cover sick-pay and the cost of employment cover.

As we mentioned above, there may also be legal fees to cover if the affected employees claim compensation or the HSE issues any fines.

A complete risk assessment will help reduce the risk of employees being absent through work-related injuries and the associated costs, while it can also protect you from potential HSE fines through demonstrating your compliance.

4. Risk Assessments Are Required by Law

One clear reason why risk assessments are important is that companies with five or more employees are legally required to carry out and record the findings of their risk assessments.

Without a document that identifies hazards within the workplace, you run the risk of facing serious legal ramifications. 

Should a severe accident take place in your workplace and the HSE find evidence of negligence, there are significant financial and legal penalties, including prosecution.

Risk assessments can be vital in defending against claims of negligence. They prove your compliance with health and safety laws and demonstrate you’ve taken reasonable steps to ensure your workplace is safe.

If you want to carry out your own workplace risk assessments, the HSE provides useful information that can help you write a risk assessment. You can also read our blog on Common Workplace Hazards and How to Control Them.

We understand that risk assessments can be an expenditure in terms of time and money, and many businesses may be left unsure as to what they should include. 

For SMEs that don’t have the resources to dedicate to training staff in health and safety, a consultant can be a good solution as someone who has the knowledge and experience to ensure your risk assessment is in line with the law.

Training

For specialised training on how to conduct risk assessments, we offer the NEBOSH HSE Award in Managing Risks and Risk Assessment at Work course.

It’s a one-day, introductory level qualification jointly developed with the health and safety regulator for Great Britain, the Health and Safety Executive. It is structured around the Health and Safety Executive’s approach to controlling the risks caused by workplace hazards.

It helps you develop straightforward, practical health and safety risk management skills so you can go beyond risk assessments, to effectively control the health and safety risks caused by hazards in your workplace.

If you are a Manager or Supervisor, we also offer specific training for you with the IOSH Managing Safely® course. It helps both managers and supervisors with not only the confidence to manage risks and conduct risk assessments, but also provides them with the supporting knowledge to tackle key health and safety issues in their workplace.

Consultancy

For some SMEs, it may not make financial or logistical sense to recruit and train staff when it comes to health and safety.

For these businesses, it may be a good idea to consider contracting a health and safety consultant. A consultant can help your business through providing the expertise, knowledge and experience necessary to comply with health and safety regulations, without the need for the business owner to manage them.

You can explore our consultancy packages to see if they’re a good fit for your business.