Risk Management: A Legal Requirement & Tool to Increase Productivity & Competitiveness

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Risk Management A Legal Requirement & Tool To Increase Productivity & Competitiveness. Presented by EMAAN OSH Connect Pte Ltd This set of slides is for public sharing. No prior permission is required from its originator (EMAAN OSH Connect Pte Ltd). It can be distributed freely. You may NOT alter it in anyway and you may not charge for it. For any further enquiries or requires the presenter to present, Contact us @ [email protected]

Transcript of Risk Management: A Legal Requirement & Tool to Increase Productivity & Competitiveness

Page 1: Risk Management: A Legal Requirement & Tool to Increase Productivity & Competitiveness

Risk Management

A Legal Requirement & Tool To Increase

Productivity & Competitiveness. Presented by EMAAN OSH Connect Pte Ltd

This set of slides is for public sharing. No prior permission is required from its originator (EMAAN OSH Connect Pte Ltd).

It can be distributed freely. You may NOT alter it in anyway and you may not charge for it.

For any further enquiries or requires the presenter to present, Contact us @ [email protected]

Tel: (65) 62923549, Fax: (65) 62936164

Page 2: Risk Management: A Legal Requirement & Tool to Increase Productivity & Competitiveness

Presenter Profile

 Salahuddin is a former Factory Inspector with the Department of Industrial Safety, Ministy Of Labour (MOL, now MOM) and has helped many organizations (including MNCs) in developing, implementing and maintaining their ISO14001 Environmental and OHSAS18001 Safety and Health Management Systems since 1997.

In those capacities he had also served these organizations as an Associate Safety Manager, Safety Consultant, Trainer and Advisor. He has also been providing clients with non-statutory WSH-related in-house training such as Risk Assessment, Effective Workplace Inspections, Fire Safety Awareness, etc.

In consulting, he also provides consultation to workplaces and organizations in developing, establishing and implementing their workplace safety and health management system capabilities (which includes guidance for certification to bizSAFE Levels 3 and 5 by the WSH Council), based on the OHS Management System customized to SS506:2009.

SALAHUDDIN ABDUL SAMAD

BSc Health & Safety (Curtin University of Technology, Australia) Director, Emaan OSH Connect Pte Ltd.Principal WSH Advisor & Trainer, Asdin Associates.Former Factory Inspector (DIS, MOM).WSH Officer, ACTA Certified CB Trainer.Member, Singapore Institute of Safety Officers (SISO) & Association of Professional Trainers, Singapore (APTS).

Page 3: Risk Management: A Legal Requirement & Tool to Increase Productivity & Competitiveness

Presentation Objectives

Risk Management

Productivity Competitive Edge

RM a legal requirementRA (HI + RE + RC)

Eg. Re-engineering

• Your legal liability under the WSHA 2006;

• Risk Management requirements under the Act;

• The benefits of the bizSAFE Programme and how to get “certified”;

• The Government’s funding scheme via RMAF, ARC, RMAF Agent;• How Risk Management brings about increased Productivity and helps

raise your competitive edge over others.

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Introduction

Come Sep 2011, all remaining industries will fall under the enforcement framework of WSH Act 2006 and its relevant subsidiary legislation.• Risk Management is a major requirement

and challenge for SMEs while there are increased penalties prescribed for non-compliance.

• Let’s see how we could take advantage of risk management for enhancement of productivity and creating a competitive edge for our businesses.

Alan Greenspan, Ex-Chairman of the Federal Reserve of the United States remarked:• Technically, productivity is the ratio of

output to input. It is a measure of how efficiently and effectively a business or an economy uses inputs such as labour and capital to produce outputs such as goods and services.

• An increase in productivity means that more goods and services are produced with the same amount of labour and capital. It is not about cutting costs but "doing things right" and "doing the right things" to achieve maximum efficiency and value.

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Principles of New OSH Framework

1. Reduce Risks At Sourcea. Emphasising on good OSH management systemsb. Comprehensive Risk Assessments c. Assigning liability to those who are in control of

workplace risks2. Promote Industry Ownership of Standards &

Outcomesa. Mindset change from following letters of law to

taking responsibility over standards and outcomes.

3. Higher Penalties for Poor Safety Managementa. Penalties must be sufficient to reflect the cost of

poor safety management and deter risk-taking behaviour.

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WSHA 2006 & Phases of Implementation

• Effective 1st March 2006• Provides for coverage of all

workplaces but will be implemented in phases, focusing first on “HOT” industries (Phase 1) such as:

• Construction, • Shipbuilding and Ship-Repair

and • Metal-Working.

Workplace Safety and Health Act 2006

WSH Act 2006

A.F.R. per 100,000 workers 2008 = lowered to 2.82009 = increased to 2.92010 = lower @ 2.2 (LATEST fig.)

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WSHA & Phases of Implementation

Phase 2 = Effective 1st March 2008, 6 new sectors will be covered under WSHA 20061. Hotels, Food & Beverage Sectors2. Services allied to transportation of

goods. 3. Landscape Care & Maintenance

Service Activities4. Healthcare Activities5. Veterinary Activities6. Waste and Water Management

WSH Act 2006

Phase 3 = Effective Sep 2011 all other sectors will be covered under WSHA 2006

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WSH Act & Stakeholders Responsibilities

Enhancements ………..1. Higher penalties for non-conformance

(violations);2. Holds everyone (more than one party)

potentially liable, including managers and directors;

3. More WSH Ownership coverage;4. More Enforcement Tools;5. Shift of mindset

WSH Act 2006

Shift

PERFORMANCE-BASED WSH

MANAGEMENT

PRESCRIPTIVE WSH MANAGEMENT

“Duty to take, so far as is reasonably practicable, such measures as are necessary to ensure workplace safety and health” ………..……Workplace Safety and Health Act 2006

Occup

iers

Emplo

yers

Self-

emplo

yed

Manuf

actu

r

ers &

Supp

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Perso

ns at

wor

k

Princ

ipal

s

Stakeholders

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Principles of New OSH Framework

WSH (Risk Management) Regulations 2006Effective 1st Sep 2006

WSHA 2006(Effective 1st Mar 2006)

A glimpse of what the RM Regulations stipulates…..Regn 3 - In every workplace, the employer, self-employed person and principal shall conduct a risk assessment in relation to the safety and health risks posed to any person who may be affected by his undertaking in the workplace.Regn 4 – To eliminate and control risk…. Using the Hierarchy of Controls……Regn 8 – Penalty for non-compliance ….(a) for a first offence, to a fine not exceeding $10,000; (b) for a second or subsequent offence, to a fine not exceeding $20,000 or to imprisonment for a term not exceeding 6 months or to both.

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bizSAFE Journey

Source: WSHC Website at http://www.wshc.sg 2011-01-10 “Building Safety and Health In Your Business”

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Source: WSHC Website at http://www.wshc.sg 2011-01-10 “Building Safety and Health In Your Business”

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RMAF

What is RMAF?Risk Management Assistance Fund• Max. government funding of up to 90% of

Consultancy Fees subject to a max. of S$6K. And

• Max. claim of S$600/- of 3rd Party Auditing Fee.• However, companies can claim only on the

auditing fee (max. S$800) if the services of a Risk Consultant and RMAF Agent is not engaged.

• For further information & enquiries do visit• WSH Council at http://www.wshc.sg• Our Website at

http://www.oshconnect.com.sg

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Risk Management , Productivity & Competitiveness

Risk Management NOT Implemented

• Loss-time Injury incidents• Work Stoppages – Legal / Investigation / Voluntary• Disruption of work, tasks, processes, delivery, etc.• Loss time in sourcing of injured skilled worker replacement, • Loss-time in re-training new worker• Machinery/equipment down / failure requiring repairs / re-

setup• Increased insurance premiums• Workmen’s compensation costs, legal suits, etc• Increased investment costs• Decreased customer satisfaction, confidence, recurring or

new orders• Etc. Potential Major Losses

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Accidents – Wake up Calls For Employers & Stakeholders

ALL RIGHTS RESERVED© S4-05B

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ALL RIGHTS RESERVED© S4-05D

Accidents – Wake up Calls For Employers & Stakeholders

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Accidents – Wake up Calls For Employers & Stakeholders

ALL RIGHTS RESERVED© S4-05E

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ALL RIGHTS RESERVED© S4-05F

Accidents – Wake up Calls For Employers & Stakeholders

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Risk Management & Productivity

Productivity, Competitive Edge & Profitability

• Safer workplace & environment through re-engineering

• Work continues without unnecessary disruption• Timely completion of tasks • Achievement of set-targets• Timely delivery of orders• Increased customers’ trust & satisfaction• Increased orders• Increased employees morale• Increased profitability• Increased potential for growth• Ability to use useful WSH-related productivity

tools (SWP, PTW, etc)• Reduced costs (compensation, insurance, etc)

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How Emaan OSH Connect Can Assist YOU..

WSH Courses• bizSAFE Levels 1 & 2 in collaboration with

Asdin Associates (an MOM bizSAFE Approved Training Provider

• Risk Assessment• Effective WSH Inspections• Occupational First Aiders Course

WSH Consultation• bizSAFE Levels 3 and 5• Risk Assessment• other WSH related issues.

WSH Enquiries• Call us at +65 62923549• E-mail us at [email protected]• visit our website at http://www.oshconnect.com.sg

WSH Professional Courses• NEBOSH IGC

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Emaan OSH Connect Can Assist YOU..