Sometimes risk and safety teams are within the same department – and risk managers may even have responsibility for the safety programs at their organization. But in other organizations, the teams are separate, meaning communication and collaboration may be limited and siloed. In many cases, risk management and safety teams use completely different technology systems or rely on spreadsheets saved to individual desktops. With that comes risks for both departments:
- Risk managers may not have visibility into how the safety program is impacting their total cost of risk (TCOR)
- Safety managers may not be able to tie the success of their safety initiatives to financial results, limiting their internal influence
For Risk Managers, It’s a Clear Choice
For many risk managers, the importance of a strong safety or loss control program, bolstered by a proactive safety culture is clear: having systems in place to reduce hazards means fewer workplace incidents and injuries, resulting in fewer claims and potential litigation events. We’ve even heard from our clients that with Origami’s reporting tools, risk managers have been able to demonstrate the positive results of their organization’s safety program to brokers and agents, enabling them to strengthen their partnership and negotiate lower premiums. This is supported by Redhand Advisor’s finding in their 2021 RMIS report survey of RMIS buyers (consisting mostly of risk managers) in which 10% of respondents were planning to implement an EHS system in the next 18 months.
For Safety Managers, an Opportunity for Cultural Growth
However, it is less likely for safety managers to see why a collaborative partnership with risk management is so valuable. One thing we hear is that EHS and safety professionals struggle to get buy-in for additional investment and attention to safety, meaning that safety is not embedded into the company culture, is overlooked as a priority, or is simply viewed as a compliance exercise. When risk managers have visibility into safety data, they can tie that data to financial impact, which safety teams can then present to executives to get further investment in safety initiatives, ranging from activities like safety meetings to investment into a safety management technology system. This is a win-win situation for both risk and safety teams because increased investment into safety will likely result in a reduction of incidents, which can reduce TCOR.
An Easy Path Toward Collaboration
As the risk and safety landscapes continue to evolve, the need for this mutual collaboration will only grow.
One way to ensure better collaboration between the two departments – or to level up your program if resources are limited – is to invest in a single technology platform for risk and safety. Independent analyst firm, Verdantix, highlights the value of Origami Risk in their 2021 Safety Management Software Buyer’s Guide as having an integrated risk and safety program, noting the platform “allows clients to remove silos between disparate solutions, identify interconnected risks, consolidate claims and policy data, and ensure that reporting capabilities provide the insights needed for an integrated response.”
While the benefit of this collaboration may be clear to these different teams, a question of technological support will quickly come into scope as it’s executed. The only question that will remain is whether your organization’s current risk and safety management stack will support this partnership. To learn more about how Origami’s RMIS and EHS solutions can help break down organizational silos and reduce costs, start a conversation with us.