Overview: Not all risks are bad. For example, buying another company has many inherent risks, but the reward might be worth the risk. When it comes to risk analysis, risk management plans should be able to recognize all risks, both good and bad. Then, the next step in the risk assessment process should be to decide how likely the event will be to affect the workplace and decide what should be done to mitigate or cultivate those risks, formulating the plan in a risk management policy.
According to FEMA, almost 40 percent of workplaces that have to close because of an emergency never open again, with 25 percent of the rest closing within a year. To counteract this, employers should have a business continuity and risk management plan to ensure that important business functions, such as payroll, are able to continuously be run even when the building itself is closed. To keep employees safe, employers should also have specific emergency plans for any workplace disaster, whether manmade or natural, that has a realistic possibility of happening in the workplace.
There are numerous types of insurance to benefit businesses, from ransom insurance to general liability insurance, and an employer who is practicing good business risk management will also make sure that they are insured in all the areas that might realistically affect them.
Trends: Among the many concerns that employers should take into account when performing a risk assessment is the likelihood of violence in the workplace, and within this topic fall gun laws. Knowing state gun laws, including a recent increase in laws allowing employees to keep guns in their locked cars even on employer property, and planning accordingly will help protect the workplace from shootings.
Author: Ashley Shaw, JD, Legal Editor
HR and legal considerations when creating and implementing risk management plans. Advice on eliminating bad risks and optimizing good risks.