Scaled Management Systems

Loss prevention and risk management – Part 2

Part 2: Policy and written statement

The policy is a written summary of management’s dedication to the elimination of business exposures, loss prevention and progressive risk reduction.

Management’s intent must be consistently communicated throughout the business regarding the strategic control and elimination of the root causes for damage, harm, injury, illness, or loss.

Without a carefully structured and worded document signed by the executive management there’ll be no coordinated action for loss control, and it will be difficult to align actions with objectives.

Typically, organisations have focussed on occupational or work health and safety (OHS / WHS). And yet, this is but one aspect or element of broader and potential loss exposures.

Ideally, the policy or statement will summarise an organisation’s objectives for all potential losses, including OHS / WHS, and within a one-page document.

Once an organisation has developed the policy preferably in consultation with its employees and / or other interested parties, the document’s objectives can be linked with a strategic management plan for loss control.

The elements of this strategic plan can be thought of as inter-related or interlocking programmes controlling the workplace triumvirate of assets, methods and people.

In part 3 we start to look at these inter-related elements.