Risk Audit
Posted by Peter Baskerville in Nov, 2014
What is a Risk audit?
A risk audit is a study to determine the validity of risks, and the ways that those risks can be minimized through cooperation of employers and employees.
What is a Risk audit like?
A risk audit is like a sporting team performing a study on sports injuries, and then implementing ways to prevent those types of injuries from occurring to their players. Through the evaluation of the sport, the activity it takes to participate in the sport, the possibility of injury while engaged in the sport, and the severity of the possible injuries, a sports team can determine what safety gear, and practices they can implement to reduce the possibility of injuries occurring to the players on their team. A risk audit establishes the possibilities of injuries that could happen to the employees of a company and then details how well the risk policies, and procedures, that are in place will do to prevent these injuries.
What is the purpose of a Risk audit?
The purpose of a risk audit is tom assess how well the risk policies, and procedures, that a company has will do in protecting the workers in the workplace.
What is the principal structure of a Risk audit?
The principle structure of a risk audit is performed in the following steps:
- The disclosure of the current risk management policies and procedures that are being used at a company
- The evaluation of those policies and procedures to determine whether they are adequate and in compliance with Work Health & Safety guidelines
- The evaluation of employee files to see who is at the greatest risk, and who has received the proper training to help them avoid the risk as much as possible
- Sitting in on a training session to make certain that the instructor is getting the points across to the employees in a way that they understand completely
- Making suggestions of changes that could be implemented to make the workplace safer for all employees
- Following up in a set period of time to make sure that the changes were made to the risk management policies and procedures manual, and that all employees are aware of the changes and how those changes impact them
What are the different types of Risk audit?
There are several different types of risk audit that may be performed. These include, but are not limited to the following:
- Reading the policy and procedures manual that is given to each employee when they are hired to assess the policies and make update suggestions
- Evaluating each employee for their ability at doing the job they are assigned to, and to see if they are aware of the risks of their job, what to do in case of an emergency, who to report violations to, and what their chain of command is
- To evaluate automated equipment to see that it is in proper working order
- To evaluate all machinery that could pose a threat to a human worker to determine if safety guards are in place to help reduce the chances of an accident
- Evaluate the safety equipment that is supplied to the employees and determine if the employees are actually using the equipment in the proper manner
- Evaluate the evacuation plans and determine if the evacuation routes that employees from each department should follow are clearly marked
- Check the premises for fire extinguishers and fire alarms, sprinklers, and smoke detectors designed to protect employees
- Determine if the structure has adequate ventilation
What terms are used when conducting a Risk audit?
Some common terms associated with a risk audit are:
- Risk management policy – in reference to the company rules and guidelines on how to handle an emergency situation
- Safety devices – including personal safety devices such as safety eyewear, or safety footwear to protect an employee
- Ventilation – meaning the circulation of fresh air into a structure where employees are working
- Evacuation route – referring to the designated route employees are supposed to follow in the case of an emergency evacuation of the building. These routes should be clear at all times
- Panic bar – referring to a bar on a door that when depressed with your hands will allow people to exit the area. These are usually installed on doors that are kept shut
- Fire rated door – in reference to a door designed to withstand more heat from a fire than a normal door can
Where can I find more information about a Risk audit?
If you would like to learn more about risk audits you can go to the following websites.
http://en.wikipedia.org/wiki/Risk_assessment
http://internalaudit.wsu.edu/riskassessment.html
http://www.aicpa.org/InterestAreas/FRC/AuditAttest/Pages/RiskAssessment.aspx
- About the Author
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Peter Baskerville is an entrepreneur with a passion for developing innovative solutions for the many problems facing the vocational training industry in the 21st century. As founder and manager of many businesses incorporating over 30 outlets, Peter has invested decades in discovering and applying best practice work skilling in a variety of contexts. He currently shares these insights on Quora with some articles being published by Forbes, Huffington Post, INC and Slate. Peter was awarded the Quora Top Writer award for 6 years starting in 2012. For many years Peter has been a facilitator of the Start Your Own Business course. Peter carries the endorsement of his peers in areas of E-Learning, Start-ups, Coaching and Higher Education.