Defining Your Company’s Risk Tolerance | Risk Matrix Episode 129

Risk Matrix #129: Defining Your Company’s Risk Tolerance

Workers will define your risk tolerance if you don’t.

In this episode Dr. Martin and James discuss why companies need to establish clear risk tolerance collectively instead of letting individual workers make their own decisions about acceptable risk in workplace safety.

KEY TAKEAWAYS

• If you don’t define risk tolerance, workers will define it for you. Companies need safety policies, procedures, training, and consistent messaging to establish guardrails through effective safety management.
• Get rid of the cowboys. Workers who take unnecessary risks influence the entire team and create a safety culture where others follow their example.
• Your messaging matters. Mission statements like “on time every time” or “accomplish no matter what” tell workers safety rules don’t apply when production is at stake in risk management decisions.

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