Internal assessments are the number one way to uncover risks in your workplace. Conducting a workplace risk assessment in your company will allow you to minimize risks, better comply with workplace safety regulations, and help you to create and maintain a healthier work environment.

For a full look at workplace risk assessment reports, check out our new guide.

The employer is legally responsible for removing all barriers to safe work. When this obligation is not upheld, the image of the company will suffer;  it becomes harder to recruit great people and consumers won't buy your products or services. Allegations of unsafe working conditions and injury on the job can be expensive once the legal and social costs are tallied.

What is a Risk Assessment?

The group at healthyworkinglives.com gives a complete definition of the term risk assessment:

“A risk assessment is a systematic method of looking at work activities, considering what could go wrong, and deciding on suitable control measures to prevent loss, damage or injury in the workplace. The Assessment should include the controls required to eliminate, reduce or minimize the risks.”

In short, a risk assessment in the workplace identifies potential risks for a project across a wide array of categories and offers suggestions for mitigation plans for each one.

Are Risk Assessments Important?

What is the purpose of a risk assessment? It's mandatory to ensure the safety and well-being of all employees and customers or clients.

Workplace safety is a major concern for employees and is the source of a lot of internal complaints. Even the smallest complaint about the issue of safety in the workplace should be investigated. If you don't address the concern internally, an employee could take the matter externally, which could have negative consequences for your company.

Download our free HR Risk Assessment Template & Matrix to stay organized and conduct better workplace risk assessments.

If you are unaware of the risks in your workplace, you are putting yourself, your employees, customers and the entire organization in danger.

When it comes to employee safety, going above the legal minimum will help to eliminate as much of the risk as possible and to reduce the number of safety-related incidents reported. An in-depth control measures assessment report protects not only your organization, but the well-being of your employees, too.

Every company should carry out the risk assessment process at least once a year in order to remain up-to-date on any new risks that have been introduced or discovered that could be compromising the ability of employees to complete their work. Companies that use case management software to conduct better investigations and manage internal incidents have an advantage over those that don't.

A good case management solution ensures safety matters don't fall through the cracks, provides data that identifies areas of risk and helps you make the workplace safer by following up on complaints and making the necessary adjustments to eliminate the problem.

Employees often report workplace concerns anonymously. For tips on dealing with this scenario, download the free cheat sheet: Handling Anonymous Reports.

RELATED: How to Use a Risk Assessment Matrix [with Template]

Benefits of Risk Assessments

Millions of dollars are awarded in workplace safety cases each year. Many of these cases also gather significant media attention- putting your name in the spotlight in the most undesirable of times.

When you take the time to conduct a benefit-risk assessment, evaluate the findings, and make corrections to the risks discovered during the risk assessment process, you will be providing the following benefits to your company:

Optimal Productivity

When you eliminate barriers that employees face when trying to complete their jobs and provide them with the proper working tools to complete tasks, productivity and the quality of work will be higher.

When employees have to deal with defective tools or systems, they waste time trying to fix things, resulting in wasted company time and money.

Invest in facility upgrades, create an ergonomic workspace and train employees how to do their jobs safely in order to set the stage for optimal productivity.

Happier Employees

Providing a safe, healthy and stress-free workplace will result in positive employee attitudes, fewer days off due to illness or stress, and a stronger commitment to the goals of the company.

Safety at work is a major concern for employees. When employees feel safe at work, they are more likely to want to remain working for you, decreasing employee turnover. They're also sure to be more loyal to the brand and spread the word about your company, helping bring in more customers and high-quality job candidates.

Better Qualified Employees

Another one of the biggest risk management benefits is attracting great employees. When people decide where to work, businesses that are known for their commitment to safety in the workplace are likely to be more attractive options. When employees feel safe at work, they can do their tasks more effectively, creatively, and efficiently, helping your company innovate. You'll also likely get candidates who value risk mitigation over simply moving fast.

Saving Money

Fewer injuries lead to fewer costs. Happy employees lead to decreased turnover and training costs. Fewer incidents lead to a lower chance of lawsuits, fines or penalties from labor boards. You get the picture.

The costs of creating a risk assessment report and investing in changes to the workplace are minimal when compared to the costs of not doing these. For instance, would you rather spend a few months and a few thousand dollars on extra precautions, or millions in legal fees, non-compliance fines, and lost business due to a poor public reputation? It's an easy choice for most organizations.

Positive Image

Avoiding negative publicity is good for your public image, but it also increases opportunity for your company. When you are seen as committed to safety, other businesses will want to be associated with your brand.  A positive reputation both externally (e.g., customers, clients, partners) and internally (employees) is one of the best advantages of risk management and assessment.

Frequently Asked Questions

What is a risk assessment and why is it important?

A risk assessment is a process used by organizations to identify potential hazards associated to a project and evaluate the risks associated with them. It is used to determine the likelihood and impact of these risks and to develop strategies to mitigate or eliminate them. Risk assessments are important because they protect people, property, and resources by preventing accidents, ensuring safety, and complying with legal requirements.

What are the main purposes of a risk assessment?

The main purposes of a company risk assessment include identifying potential hazards, evaluating risks, implementing control measures, and ensuring compliance with safety regulations to maintain a safe work environment.

What are the benefits of risk assessments?

The benefits of effective risk and opportunity management in the workplace are numerous, including minimizing risks, enhancing compliance with safety regulations, promoting a healthier work environment, optimizing productivity, improving employee morale, attracting better-qualified employees, saving costs, and enhancing the company's public image.

What are the 4 key objectives of a risk assessment?

The four key objectives of a risk assessment are to identify hazards, assess and evaluate risks, implement control measures to mitigate risks, and ensure compliance with safety regulations and standards.