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Best practice Frazer Argyros-Farrell examines the culture of managing property risk in relation to hazards, showing how an understanding of risks ensures better management


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RISK management programme is essential to the smooth running of any business. However, in order to


effectively protect employees, and potentially customers, as well as the reputation and longevity of a business, risk management needs to be fully embedded in the culture and practices of everyone in the workplace. Property risk management is concerned with understanding and mitigating the impact that a loss event could have on an organisation’s physical assets and infrastructure. That event can be adverse weather, vehicle impact, terrorism, escape of water or fire, to name a few. Such events not only have the potential to damage assets, but also to interrupt business operations and create other financial losses, as well as cause death or injury. A risk management approach in itself


is straightforward, and should follow the following cycle: • identify hazards • implement controls • continually monitor and review


20 APRIL 2018 www.frmjournal.com


• look out for new hazards and ensure they are appropriately controlled


Where risk management can fall down is how the above approach is implemented and embedded within an organisation. Therefore, key to good risk management is having a strong culture of understanding risk, with clear lines of sight and competent people who understand risk management controlling the process. There are many organisations that help businesses understand their risk and advise them how to control it. Most businesses can produce documents showing that standard procedures such as fi re risk assessments and hot work controls are in place. But what is often missing is the audit or review process that ensures these controls are effective and correctly implemented. Reviewing procedures and systems is essential to making sure that they are working effectively. Often organisations that are implementing a new control or procedure will circulate a copy of the procedure or install the control measure,


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