Statutory to Corporate Risk Management

Statutory to Corporate Risk Management

In any risk management strategy, managers should take into account several factors. The human factor, for example, plays a large part in legal liability issues, while the specific focus of the business plays a role in the risk of mechanical failure and the risk of not meeting deadlines and/or objectives. The impact of any such risks could badly damage the public image and reputation of the company. Risk management is therefore vitally important to maintain not only the company's image with its public, but also to minimize employee turnover and requisite leave as a result of risk related injury. Another important issue in corporate risk management is statutory risk. There are certain legal requirements a company must follow in order to mitigate its related risks. If these requirements are not met, the company is in danger of being shut down by the authorities. Legal requirements are put in place for the protection of both the company and the public. These can for example relate to pollution statistics, danger to workers, danger to the public, etc. The company should therefore follow procedures to ensure the smooth integration of statutory risk requirements with the corporate risk management strategy.

The first step is awareness. After completing a risk assessment on the physical premises of the workplace, as well as in terms of human resources, a manager needs to turn his or her attention to statutory risk issues. All legal documentation relevant to the company and its risk levels should be obtained from the relevant authorities and investigated thoroughly. To facilitate this process, it may be advisable to make use of legal services or other professionals to explain the terms and conditions of statutory risk.

The manager should also ensure that all team leaders and employees are aware of the integration of statutory with corporate risk. To ensure that such a process runs smoothly, it may be a good idea to hold several seminars and subsequently make documentation available on the company's Internet page, its notice board, or in the form of a hand-out to each employee. This will minimize the risk of legal liability if an employee is injured or incapacitated by not following the risk regulations put in place.

After a thorough risk assessment, an investigation of statutory risk issues, and informing the employee base, a manager is then ready to put in place specific measures to integrate statutory with corporate risk management. These should be thoroughly delineated and explained, so that each employee is fully aware of the risks of not following the requisite procedures. In some cases injury or even death could result. If the necessary measures are in place, such injury or death can be ascribed to neglect by the employee rather than by management, and the employee and his or her family runs the risk of substantial financial and personal loss as a result.