Managing operational risk in the industrial workplace
23-APR-09
Addressing the issue of risk management with regard to fraud, theft and damage in the workplace is an important aspect of any company’s operational function, especially when depressed economic conditions place pressure on both workers and companies.
According to Ian Robinson, Managing Director at industrial staffing solution specialists, Kelly Industrial, many companies in the industrial sector have turned to outsourced and flexi-staffing solutions to streamline their operating processes and make their human resource costs scalable to meet varying production demand.
This has brought with it certain risk management challenges that Robinson says should be addressed both by the client and their staffing specialist, through a partnership approach to risk mitigation.
“Theft remains the biggest threat in the workplace environment, closely followed by damage to goods and operating equipment,” says Robinson. “We, as staffing solution providers can minimise the risk of theft through our recruitment methodology, which includes the stringent profiling and screening of our candidates and forms part of the protective controls we have in place.
"We can also minimise damage to goods and operating equipment by ensuring candidates are qualified to operate in that environment and that they receive continual on-site training."
However, Robinson points out that when flexi-staff have been deployed into a client’s workplace it is difficult to control that environment.
“This is where we need to partner with our clients to jointly manage the risk and ensure that appropriate detective controls, such as security checks and surveillance, are in place,” he continues.
“We therefore endeavour to do a full risk analysis, in conjunction with our clients before any staffing contract is rolled-out with them.”
A risk analysis should look at current HR processes, procedures and policies, as well as identify what risk mitigating strategies are in place. Robinson states that at this point it is important that a client plays open cards with their staffing solution provider.
“This type of analysis will help both parties to understand their risk environment and know exactly what is needed for a comprehensive risk management strategy that addresses these needs.”
With the correct proactive and detective controls in place, Robinson advises that both parties establish a risk committee that can monitor their dynamic industrial environment, then analyse and act on real-time workplace reporting.
“Regular joint risk management meetings will allow the company to take swift action to deter future acts of theft or ensure that any identified operational short-falls can be addressed before they result in any serious damage or loss,” says Robinson.
“To make this process a success, staffing solution specialists should ideally be working with operational owners of departments who can make the decisions and take immediate action in this regard,” says Robinson.
“It is also important that companies understand that insurance is not a suitable risk management strategy for industrial work environments, and careful attention should also be paid to the insurance offered by staffing companies, because at the end of the day it is the company that has taken on the flexi-staff that carries the risk,’ he concludes.
