The Hidden Dangers of Inadequate Risk Assessment

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A person in protective gear is carefully welding inside a large metal structure mindful of the dangers of inadequate risk assessment Clad in a blue suit yellow gloves and helmet they expertly handle the welding torch from which bright sparks illuminate their work on the metal’s interior

Risk assessments. Boring, right? Is it just something you have to do to meet government workplace safety regulations? One of those health and safety legal compliance things that no one really needs to spend too much time focusing on…

Or not.

Inadequate (or entirely missing!) risk assessments can result in completely catastrophic consequences. They are a danger, not just to you, your employees, and your customers, but also to your entire business.

We can’t say it enough: risk assessments! They need to be done, and they need to be done well, and they need to assess risk properly.

Let’s take a proper look and assess risk assessments!

The Human Cost: Accidents and Injuries

This is the obvious bit, and it’s easy to gloss over, but let’s not. When people have accidents at work because of an inadequate or poorly conducted risk assessment, they can get hurt. Worse, it could be fatal.

Fatal injuries at work are low – this government statistic shows that there were 138 fatal incidents for workers and 87 public fatalities (making a total of 225) in the 2023/24 year. That’s a small number, right? After all, there are 68.35 million people in the country, so 225 is a low percentage (less than 0.0004%).

You could look at it that way.

Or you could consider 225 lives. 225 businesses that had someone fatally injured on the premises. 225 families that were devastated.

And what about how it affects everyone else’s mental health and well-being in your company? Plus,  that doesn’t take into account the non-fatal injuries.

Risk assessments – good ones – save lives. They are why the number is only 225 and not many times higher. Don’t let your business be on the wrong side of this statistic. It’s not just ‘annoying health and safety’; it’s not merely a legal compliance – workplace safety is a real concern, and it should be your concern.

risk assessment

The Legal Consequences of Poor Risk Assessments

If saving lives and preventing injury isn’t enough (and it should be), what about the legal ramifications? The Health and Safety at Work Act 1974 and the Management of Health and Safety at Work Regulations 1999 mandate proper risk assessments, and failure to comply will lead to:

  • Fines
  • Potential for personal accountability for company directors
  • A possibility of a prison sentence

Plus, any associated legal costs of fighting the case and defending your position. The HSE Convictions Database is a publicly accessible source that can show exactly how large these fines can be – in 2019, a recycling firm was fined £200,000 (plus over £7k in costs); while in 2022, a demolition firm had to pay over £63,000 including costs; or, perhaps your company can shoulder a bill for £400,000, as this textiles company did in 2021.

What about the headline-making examples with household name brands? Such as when a man tragically died at a Ginsters’ factory in Cornwall, resulting in £1.28 million in fines, or when a worker died at Morrison’s, leading to a £3.5 million fine for a health and safety breach.

The legal impact and costs of making inadequate risk assessments are clear.

Financial Risks: More Than Just Fines

‘Have you been involved in an accident at work? We can help you claim compensation!’

If you’ve ever heard something like this, then you must realise that there are companies out there that work all day, every day, with the sole purpose of finding victims of poor health and safety risk assessments. These businesses exist to take the responsible companies to court and squeeze the maximum compensation possible out of them. ‘No win, no fee’ might sound great if you’re looking to get a financial recompense for an injury at work, but it’s a horror story for businesses. 

Even if you’re insured, the impact on your company and the effect on any future insurance underwriting will be significant.

Not only that, but having to deal with the claim is going to cost you hugely in terms of legal fees, your time, and the business’s productivity.

Compensation claims are expensive, there’s no getting around it – far more expensive than undertaking proper risk assessments in the first place!

risk assessment scaled

Reputation Damage: The Long-Term Impact

Not all damage is financial, at least, not immediately. Your brand reputation and employee loyalty will both suffer if an accident happens at work and it is found that there was a lack of workplace safety.

As we have seen, accidents of this nature often reach the news and public awareness. Publication of the information, which will inevitably include any inadequate risk assessment, will have a damaging effect on your branding. The saying that ‘all publicity is good publicity’ is definitely not true in this case.

While the effects of brand weakening may not be immediately seen, over time, the loss of business and worker confidence may be significant.

Misconceptions That Lead to Poor Risk Assessments

It’s easy to think that you’re not part of the problem and none of this applies to you. Many business leaders suffer from the misconception that these sorts of things happen to other people, not them. Consider the following excuses that we hear all the time:

  • We’re a low risk business’ – Every business needs adequate risk assessment. Just because you consider yourself low risk, doesn’t mean no risk. Risk assessment will show just how much of a risk you are and where the risks lie – that’s the entire point of it! If you’re low risk, do a full assessment, and you’ll prove it, as well as highlight the places you do want to focus on.
  • We don’t have the time or resources’ – Do you have the time and resources to deal with an accident, fines, and the compensation claim? Do you have the time and resources to undo an accident and potentially give someone back their life? Health and safety is a priority and you must find the time and resources.
  • It’s not that important’ – It is.

How Envesca Can Help

risk assessment

Let’s be honest, this article has been bleak and doom-laden. Thankfully, we can step out of that fog, because we’re here to help. Envesca are experts in helping businesses like yours identify and mitigate the risks, undertaking thorough risk assessments that are not just legally compliant, but also help you prevent accidents at work.

We have training and consultancy services that can be tailored to your individual business needs so that you can bring your health and safety processes to the highest level. We can help with software solutions, like the T100 compliance software, using technology to ensure the very best in risk assessment and workplace safety.

It’s not all doom and gloom! The work done by the Health and Safety Executive and by consultant services like Envesca has been bringing the accident statistics down and down. By working with us, you are in good hands. 

Contact Envesca today to learn how we can help you create a safer workplace and ensure compliance with legal requirements. Call us on 01452 717 790 or visit www.envesca.co.uk to find out more.

If you’ve got a question or query, please contact our super friendly team, they will be delighted to help you!

Simply get in touch via phone or email.
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