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Posted By Rakesh Maharaj
Hi Gang!
I am currently writing a paper entitled ‘Corporate Governance and the Safety Practitioner’. My findings are largely based on past research undertaken by academics. I am in the process of concluding my paper and it has become very clear that it lacks empirical evidence.
In order to support/dispel some of my conclusions, I am interested in your thoughts on how you, as safety professionals (or similar) assist your employers or client organisations (if at all) in complying with the principles of Corporate Governance or contribute to the process of integrating control of workplace hazards (risks) into the business risk register in compliance with the process of internal control recommended by the Turnbull Report.
Nil responses are also appreciated.
Kind regards
R
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Posted By Ian Waldram
Have you looked at the IOSH Technical guidance on Business Risk Management? - all theory I know, but it does show some linkages.
Within IOSH itself, there is an annual process.
The senior management team identify our key business/reputation risks and rank them for consequence and likelihood, and these include OSH hazards - which are not too many as most of the activities are office-based, with some business travel. Their draft is then reviewed jointly with audit committee (who are all IOSH member volunteers) and the agreed version becomes a summary paper for Council (again all IOSH members, but also Trustees, responsible in law for all aspects of the charity's operations) who debate it as necessary. Usually not much comes up at that stage as the process has been in place for a few years. I realise this is an unusual example, but it does show how a particular group of OSH professionals (most with other managerial skills too) can contribute. Also note that the role of IOSH Council as Trustees will change later this year - but I'm confident a similar process will continue, involving the new Trustees.
I would propose something similar if I was employed in a business, but am now retired. I have managed to guide another large charity (income ~£40m) towards a similar annual review, using the Australian Standard 4360 'Risk Management' as a guide, because it includes OSH issues holistically in its checklists. Prior to this recent move, the charity had completed a single BRM review led by auditors, with no process for annual review and updating.
Final example is from CAA a few years ago before Turnbull was mandatory. They told me they used a risk identification and management process (+ paperwork) that was exactly the same from Board level to shop floor. This had been implemented with assistance from their internal OSH advisors.
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Posted By ken mosley
For what it is worth I can only give details of what happens in my own organisation.
Each head of department ie. legal, insurance, H&S, IT, HR, accounts etc produce an internal governabce report twice per year. The key factors to bear in mind when complying with the requirements of Turnbull is the identification of risks that could have a major impact on the operational function of the business. So in terms of H&S it tends to address the broader issues. For example the jailing of a director or an unlimited fine arising from a breach of H&S law. This requires me to review our policies and the efficacy of their application. It is far less to do with RAs for specific tasks and more to do with ensuring effective control measures are in place to prevent threats to the body corporate.
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Posted By George Wedgwood
In two previous roles, I helped in the preparation of the CG review and prepared the numbers and detailed comment for the Board to approve. For most of the larger plcs, you will find that a H&S Practitioner is behind the numbers and details in such reports.
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Posted By Rakesh Maharaj
Ian, Ken, George and others who have emailed me direct offering examples of integrating H&S with BRM - these have been gratefully received!
I think that Ken has succintly summed up the motivation for many MDs to incorporate H&S in their CG initiatives - thanks Ken.
George, whilst I agree with you that in many cases H&S Practitioners are behind the numbers and details of such initiatives, the very fact that they DO get involved interests me!
I accept that my original posting could have been clearer, but for those of you involved in the CG process:
(1) Who within your company was the driver for H&S input into CG, management or the practitioner?
(2) What skills did you employ in providing this input (other than those taught on formal academic and non-academic H&S training programmes); and
(3) How important do you think it is to have an appreciation of business management to constructively contribute to the company's CG initiative?
Many thanks to you all in advance.
Regards
R
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Posted By ken mosley
Rakesh,
With reference to your three specific questions on corporate governance I would give you the following responses.
1. In my organisation CG was initially driven by the parent company directors reacting to the recommendations of the stock exchange and the guidance of the institute of chartered accountants. Before Turnbull it was Greenbury and Cadbury.
2. I would suggest that the required skills to carry out this exercise are the fundamentals of risk management. The differentiation between pure and speculative risk and the application of risk avoidance, transfer, acceptance (with/without knowledge) and reduction.
3. It is crucial to have an extensive appreciation of business management to be able to effectively contribute to CG. A H&S practitioner's skills alone are insufficient.
I hope this is of help.
Ken
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Posted By George Wedgwood
My experience exactly as Ken's. In fact, I was jointly involved with environment, insurance (risk) and hr managers to achieve the goals required and all had to agree on the methods of presentation and what to show by way of effective stats for 'public' consumption.
George
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