Have you ever stopped and thought about the vast array of potential consequences of workplace incidents?
I think we’re all well aware that workplace incidents can have a profound impact on people and organisations, with the most critical concern of putting people at unacceptable risk and the potential for injuries, harmful exposure and deaths. But what about the myriad of other possible consequences? Have you ever quantified exactly what they could entail?
As part of a recent project, I was asked a question by one of the Senior Executives that shocked me a bit as to whether there was adequate thought and appreciation of the sheer amount of possible consequences from an incident.
The Question…
“Well, putting aside the fact of a fatality, what’s the worst thing that could possibly happen if we had an incident? It’d pretty much be over on the day and we’d resume normal operations quickly wouldn’t we?”.
While I shook my head in shock at the question and dare I say naivety behind the question, my brain worked over-time with all of the direct and indirect consequences that could arise with an incident. I soon filled a white board at that meeting with all of the possible consequences that should be considered and the vulnerability that organisations can face and need to be aware of.
My list from the whiteboard of the array of direct and indirect consequences from an incident included:
Putting people at risk for injury / death
Ongoing rehabilitation costs from injuries
Compensation claims
Worker Absenteeism
Regulatory litigation / prosecutions
Increased financial penalties for both organisations and individual office holders
Operating sanctions
Environmental harm and associated fines
Reduced personnel morale and performance
Project delays (time and $ blowouts with possible financial penalties arising)
Recovery / clean-up costs
Equipment damage, down-time and repair
Interruption to normal operations
Loss of production
Damage to reputation
Adverse media attention
Community concerns and complaints
Increased insurance premiums
Future contracts threatened
Costs of reactive incident investigations
What are your thoughts? Did I miss any other quantifiable possible consequences? Send me an email or get in touch with any comments. Cheers Jo
Data from Safe Work Australia shows that work-related injuries cost the Australian economy around AUD $60 billion every single year.
The unsettling reality in Australia is that one Australian worker is injured every five minutes and very sadly, every two days a person will go to work and never come home after being involved in a fatal incident.
2016 – 182 workers were killed at work
2017 – 190 workers were killed at work
2018 – 157 workers were killed at work (preliminary data)
…and in 2019 YTD (September 2019) 114 workers have already been killed at work.
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