People, Organization and Risk

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Table of Contents

Introduction
Role of Risk Perception in Risk Management and Regulation
Critical Examples
Conclusion
List of References

Introduction

There are diverse risks within organizational environments. The increased level of organizational competitiveness is important. It has led to a potential rise in the complexity of risks. This explains the core principle behind “occupational health and safety,” (OHS). Notably, present organizations recognize the need to employ critical OHS processes. The practice includes the establishment of key safety procedures.

These embody both the psychological and the physical risks. A risk may refer to the likelihood of occurrence of a detrimental activity (Branch, Ramsay & Barker 2007, p. 265). In a typical risk management programme, there are vital steps to be undertaken. The identification of the risk emanates as the basic initial step.

It is necessary for organizations indulged in risky operations to establish critical steps for risk mitigation (Hopkin 2012, p. 17). This discussion examines the role of risk perception in the process of risk management and regulation. Apart from this, the discussion highlights the critical examples and scenarios where risk perception and management are applicable.

Role of Risk Perception in Risk Management and Regulation

Risk perception is a critical process in the management and regulation or risk. The global transformations have significant impacts in the management of risks. Ideally, organizations must develop a crucial risk identification path. This helps in the process of formulation of the risk management and regulation policies (Griffin & Moorehead 2012, p. 11). Consequently, the process remains pertinent to the basic implementation procedures.

Risk perception enables the institution of important evaluative procedures in the management of risks. It operates as a probabilistic scale from which the perceived risks get evaluated, monitored and mitigated. Risk perception emphasizes on the significance of establishment of the risk management departments within organizations. This critical initiative enables the utilization of the expert knowledge and familiarity from these professionals.

The observation of OHS guidelines within the work processes is crucial. These embody the classification of various physical risks associated with the given work process. These might include risks eminent from environmental health hazards. Apart from these, it might also involve other hazards linked to poor work conditions (Hopkin 2012, p. 47). It is important to note that the OHS guidelines must not solitarily involve the identification and definition of physical risks.

However, the importance of engaging monitoring processes for the psychological or mental risks is eminent. In these processes, risk perception plays a significant role. For instance, the workers or employees engaged in various work processes might apply their perceptions in the identification of probable risks.

Particularly, these relate to the risks associated with specific work processes. Therefore, their consequent identification helps the management in the development of a risk matrix mitigation and reduction plan. Consequently, these bear important implications in the process of management and minimization of these risks.

There is an evident reliance of safety management strategies on the general management roles. These include basic management processes such as the development of policies and various guidelines. Observably, this pattern is identifiable within the domestic and global organizational levels. Risk perception helps in the initiation and development of appropriate standards and operating procedures.

These include the development of quality principles and adherence processes. However, the establishment of any “safety management system,” (SMS) within organizations must involve the consideration of risk perception criteria (Cox, Karanika, Griffiths & Houdmont 2007, p. 350).

In order to manage employee stress, the management must draw a list of occupational stress associated with the particular stress condition. As indicated within most investigations, most instances of occupational stress and depression might be due to diverse factors. Some of these include longer working hours, improper work-life balance and poor working conditions.

It is also imperative to indicate that other factors or potential situations that may lead to the development of employee stress. However, it is upon the management to evaluate those work conditions that may significantly cause the development of occupational stress. The process of risk perception remains applicable in this critical domain (Hopkins 2011, p. 112). This is irrespective of the domain of operation of the organization in context.

The process of risk management is very crucial. This is applicable to both the employee welfare and profitability of the business organization. However, it is important to emphasize on the need to employ strategic approaches in this management processes. These include the uses of critical initiatives. Risk regulation and perception includes some of the basic processes applicable in the reinforcement of the risk management processes. Risk perception also emphasizes on the emergent need to integrate a systematic strategy.

The application of various drills and simulation programmes in risk management and regulation is appropriate. However, it is notable that these simulation processes are only possible after a comprehensive identification and classification of various risks (Santos-Reyes & Beard 2008, p. 25).

Principally, this describes the operative role of the process of risk perception within all organizations. Through risk perception processes, the relevant professionals are able to perform critical tasks. For instance, they have the capacity to develop and design a comprehensive policy guideline concerning occupational health. These policies undergo design and development through explicit processes or review and analysis of factors.

There are various instances where these observations are widely applicable. For example, organizations that seek to utilize proper physical risk management approaches must employ strategic mechanisms. These involve the application of various risk management tools (Griffin & Moorehead 2012, p. 41). Training on OHS is necessary. However, the observation of risk perception helps to formalize and simplify the process.

Particularly, this relates to the complete comprehension and adoption of the critical risk management practices. Employees have the capacity to visualize and perceive the various occupational risks. Furthermore, they also develop the competency to practice and adhere to the basic principles of risk management.

There are initiatives within organizations that aid the processes of risk perception. Analytically, these may include real time empirical assessment of perceived risks. As the solitary department charged with this responsibility, the OHS unit with organizations must identify the various types of risks.

It is also critical to identify the role likely sources of such risks within organizations (Ferrari 2009, p. 91). The integration of appropriate communication and feedback mechanisms in the process of risk management and regulation is necessary. However, these processes require necessary accomplishments from risk perception practices. Limitation of stressful work environment is important. Generally, the process requires a stringent evaluative mechanism.

The critical incidences relating to the identification of the processes require keen considerations. There are several instances where risk perception has been applicable. For example, the process is pertinent in the development of quality assurance programmes. These also extend to the design of quality assurance and monitoring systems. In addition, the process also applies to the development of a “systematic safety management system,” (SSMS) strategy (Hopkins 2011, p. 116).

The bases of such systems require proper definition within different organizations. Indicatively, the integration of these processes is critical. Risk perception within organizations aims to sustain any risks. These must be observable within appropriate levels of operations pertinent to specific organizations (Santos-Reyes & Beard 2008, p. 17).

Risk perception increases the significance and efficiency of communication. As indicated within most OHS guidelines, communication processes remain vital in the collective accomplishment of organizational goals. In the end, this helps in the enhancement of the general organizational performance.

Critical Examples

Notably, failure to observe regulatory systems has severe implications. There are tragic mistakes made by personalities responsible for various legislations and policies regarding OHS. In consideration of “3 Tas” incidents, the company failed to employ trained personnel for the inspection responsibilities. Another example is that of “Crandall and Darby No.1, JWR.” In this case, the management permitted the application of poor inspection procedures.

These disregarded significant aspects of risk control. In other cases, organizations simply fail to strengthen legislations. In essence, such companies have flawed monitoring standards, reporting requirements, sanctions and work rights. There are different OHS management systems (Griffin & Moorehead 2012, p. 80). These might involve catastrophic assessment and emergency evacuation procedures.

Other OHS practices involve the induction, training, and supervision protocols. In most situations, workers play a major role in the management of notable hazards. Indicatively, most organizations presently recognize the importance of behaviour modification within workplaces. Scenario planning is widely applicable in the process of risk management within most firms. Scenario planning helps to enable workplaces develop their minimum actions for preparedness.

Workplaces must also conduct independent system auditing and risk assessment. These help to comprehend the preparations required for volatile work environments. Observably, most disasters occur because relevant authorities fail to take responsibility (Ala-Mursula, Vahtera, Linna, Pentti & Kivimäki 2005, p. 856).

Particularly, this is after receiving warning of an imminent tragedy. There is documentation of the major disasters that occasionally occur due to lack of observation of the warning systems. From these documentations, various examples remain eminent. The famous “Moura number 2 coal mine” is an example.

This incidence occurred in Queensland during the 1986. Analytically, the occurrence is attributable to the failure of the management to act on available information. The processes involved had great violations on the basic principles of OHS. In this particular case, the management passed gas underground.

This was despite their knowledge about the presence of workers within the target emission location. Other examples of disasters include the ValuJet where noticeable system problems were eminent. Apart from this, the AZF chemical plant explosion includes another example. In this case, the negligence on the management’s side led massive loss of lives.

Conclusion

Risk regulation and management are vital processes within most organizations. The integration of various transformative approaches such as risk perception also remains critical. Notably, different risks exist within business organizations. Organizations need to apply robust management practices in the reduction of these risks.

Identification and categorization of the potential risks include some of the crucial steps. The global transformations have significant impacts on the types and magnitude of risks. It is important to note the instances of application of risk management and regulation practices.

List of References

Ala-Mursula, L , Vahtera, J, Linna, A, Pentti, J & Kivimäki, M 2005, Employee worktime control moderates the effects of job strain and effort-reward imbalance on sickness absence: the 10-town study. J. Epidemiol. Community Health, vol. 59, no. 6, pp. 851-857.

Branch, S, Ramsay, S & Barker, M 2007, Managers in the firing line: Contributing factors to workplace bullying by staff – an interview study, Journal of Management & Organization vil. 13, no. 3, pp. 264–281.

Cox, T, Karanika, M, Griffiths, A & Houdmont, J 2007, Evaluating organizational-level work stress interventions: Beyond traditional methods, Work & Stress, vol. 21, no. 5, pp. 348-362.

Ferrari, M 2009, Risk perception, culture, and legal change a comparative study on food safety in the wake of the mad cow crisis, Ashgate, Burlington, VT.

Griffin, W & Moorehead, G 2012, Organizational behavior: managing people and organizations, South-Western/Cengage Learning, Mason, OH.

Hopkin, P 2012, Fundamentals of risk management: understanding evaluating and implementing effective risk management, Kogan Page, London.

Hopkins, A 2011, Risk-management and rule-compliance: Decision-making in hazardous industries, Safety Science, vol. 46, no. 2, pp. 110-120.

Santos-Reyes, J & Beard, A 2008, A systemic approach to managing safety, Journal of Loss Prevention in the Process Industries, vol. 21, no.1, pp. 15-28.

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