Occupational Health and Safety Management Systems (OHSMS) - What Are They and Why Do I Need One?

What is a management system?

According to ISO 9001:2008 (the latest version of the Quality Standard and forerunner to various occupational health and safety (OHS) management system standards including AS/NZS 4801:2001), organisations must identify and manage numerous linked activities to function effectively.

It goes on to discuss the need for managing resources, inputs and outputs etc, making the point that only through a systematic or process approach will an organisation be able to maintain control. Put simply, a management system is the structure that enables organisations to manage the way they operate.

Occupational Health and Safety Management Systems (OHSMS) - What Are They and Why Do I Need One?

Why formalise?

Some may argue that organisations exist, possibly even flourish, without any form of management system. However, upon closer inspection, this is not the case. All successful organisations have values, policies, procedures, standard processes and practices. Whether documented or not, these are the components of that organisation's system of management. By formalising this system, an organisation has the opportunity to further review its performance, formally determine what works and does not work, agree to the preferred processes and proactively manage its continuous improvement.

Pitfalls of buying an off-the-shelf OHSMS

An all too common response is for an organisation to seek to buy an OHS / WHS management system (OHSMS / WHSMS) 'off the shelf'. Without the necessary contextualisation or engagement of relevant stakeholders during the design, are not only likely to be a wrong fit for the business but they often fail to gain the momentum to survive or could even be sabotaged from within the organisation.

A management system needs to be owned and operated by the organisation. No CEO worth their salt would dream to publish company vision, values or policy which they had simply downloaded from the internet and yet they may consider managing their workplace health and safety this way.

Pitfalls of designing a system

Unfortunately interpreting national or international standards and developing a compliant OHS / WHS management system can be quite complex. Even practitioners highly skilled in their relevant disciplines can find it difficult negotiating the process and producing something that meets the relevant criteria. Alternatively, many organisations end up with an OHSMS /WHSMS that meets all the requirements but results in a situation where their people are slaves to the documentation without seeing any actual added value to their processes or improvement in their workplace safety performance.

Solution?

So if an 'off-the-shelf' system is not the right approach and your organisation does not have the internal expertise, what is the answer? In the same way CEOs and boards of directors seek independent legal advice, due diligence from an accounts auditing firms or the expert opinion of an engineer, there are many instances where the design, development, implementation and review of OHS / WHS management systems require external experts.

When seeking this expertise, consider the providers background, experience, qualifications and past successes. Furthermore, if the OHS / WHS consultant isn't qualified to audit a management system to the applicable standard, then how could the design an OHS /WHS management system to meet it? If they have no actual industry experience then how will they adapt the cold hard pages of generic requirements to your business needs? It pays to ask around your network, seek referrals, do background checks and ask proposing OHS Consultants for relevant client references.

Conclusion

A well designed, developed and implemented management system can not only provide additional work and legal compliance but can be a valuable tool to driving your business to further OHS / WHS improvement.

For more information on OHS / WHS Management Systems, visit the OSHEM Solutions website [link below].

Occupational Health and Safety Management Systems (OHSMS) - What Are They and Why Do I Need One?
Check For The New Release in Health, Fitness & Dieting Category of Books NOW!
Check What Are The Top Cooking Books in Last 90 Days Best Cheap Deal!
Check For Cookbooks Best Sellers 2012 Discount OFFER!
Check for Top 100 Most Popular Books People Are Buying Daily Price Update!
Check For 100 New Release & BestSeller Books For Your Collection

Peter Gaul is Principal Consultant of OSHEM Solutions, an Australian Environmental and OHS Consultancy. OSHEM Solutions provides a range of services including OHS / WHS management system design, development and implementation.

Contact OSHEM Solutions on 1300 657 279 for more information or for a more complete list services, along with case-studies and testimonials, visit http://www.oshemsolutions.com.au. Additionally OSHEM Solutions regularly publishes health, safety and environmental management news and articles on their website.

Change Management - Role of the Leader

Who is the leader?

The leader is the one who can alter forces that can impact the change project. Depending on the magnitude of the change, this leader might be the CEO/Executive Director, VP, department manager, etc. If the organization culture must change to accommodate a new way of working, the leader MUST be the top dog, the CEO/President/Executive Director. Company culture is created from the top of the organization. Changes to the culture must be driven by the top of the organization. If it is an interdepartmental change, it must be the person in the organization who has influence/authority over all participants. A project manager can be delegated the responsibility for executing the tasks of the change. However, the leader (sponsor/champion) remains accountable for the success of the change effort.

The majority of project managers fit into two categories. The first is a consultant-type (external or internal) who leaves after implementation. The second is a person in one of the departments affected by the change. This person returns to his/her original department after implementation and operates a part of what was implemented. Neither f these people can sustain the change across all effected parts of the organization, if the parts attempt to drift back to the old way. They are not accountable for the change results next year. The project manager can lead the work of change implementation. However, every major change needs to have an overall leader who will be accountable for maintaining the benefits on an ongoing basis. This person has to remain visible during and after the change effort. This person is the Process Owner.

Change Management - Role of the Leader

The first key to a successful change effort is, obviously, for the leader to understand what the change is. The second key is to understand the impact of the change to the work and the impact to the people. As leadership is about people, the impacts to consider can include behavior changes, impacts of status changes, impacts of re-distribution of power and authority, altered relationships and responsibilities, people performing new tasks outside of their comfort zone, etc.

This leader must be the first one to make the appropriate changes in his/her own behavior, actions and attitudes. After all, leaders are role models. For example, if the change requires more open communication, then the leader must demonstrate more open communication. This is single most difficult part of any change effort. The head of the organization usually considers his/her old successful ways as the right way to lead. They are very willing to have the rest to of the organization change. But don't recognize that they drive the behavior of the organization. If they want it to change, they must SHOW the organization how to change. TELLING them how to change is not effective. Employees know that you vote with your feet. If you do not walk the talk, don't expect them to either. Being a role model is a major part of the success of change efforts.

The next key after the leader understands the "new way" is to present the vision of how the world will work during and after the implementation. This vision needs to be framed in a way that lets the people know WIIFM (What's in it for me). Once they understand the benefit to themselves as well as the company, they will release their energy to move toward the vision. This alters the mindset of the followers. All people in an organization operate under the influence of external (to them) forces: culture -company and personal, policies and procedures, etc.

But people also operate under influences that are internal to themselves (comfort zone): their mindset on power, authority, status, security, territoriality, personal competence, level of confidence, risk taking, etc. Forcing behavior changes may get you compliance. But it will not generate enthusiasm and commitment. (Side note: most change efforts target policies, procedures and technology and not how you think about the work.) A lasting change needs to alter the way people think in order to enable different behavior. This is the path of the effective leader.

People move at different paces. The people who embrace the change more quickly should need less support. The people change more slowly will need more support to get over the hump.

The fourth big key is stakeholder involvement. I know that many of you think that people resist change. I believe that this is incorrect. I believe that people do not mind change. They don't want to BE changed. People change themselves and their surroundings all of the time. They change houses, cars, jobs, hair color, spouses, etc. The difference is that in these decisions, they participated and often made the decision. Take advantage of this willingness to change. Involve them initially in understanding the What and Why of the change and subsequently in the planning and rollout. Initially, it requires patience to work through the resistance and counter proposals. Recognize that this type of interaction is the norm in an open communication environment. Utilize the energy of the early adapters to move the effort forward. Leaders enlist these people as evangelists. They will help you move others along. Make sure that you include informal leaders in a major way.

The last big key is leadership visibility in support of the project. When the leader uses his/her valuable time on the change effort, the employees recognize that it must be important. When the leader is a role model for new types of behavior, people pick up on it. When the leader communicates openly, including giving straight answers to tough questions, people begin to believe. When leaders react calmly to surprises, people have less anxiety when things do not go smoothly. When the leader follows the Deming prescription to Stay The Course, people recognize that it is not going away and they must deal with it.

The big leader will usually delegate project responsibility. But he/she must remain visible, must request status, must meet with employees and feed the findings to the project manager for action, then report back to the people on the action taken.

Lack of leader visibility and involvement is the single largest factor in the failure of change efforts. Having the top leaders engaged in the project will go a long way toward ensuring its success in transforming the organization.

Leaders have a lot of things to do, a wide range of responsibilities. The leadership activities I've described above are in addition to what already fills up their day. It is understandable that once they delegate the change activity, they move on to other things. The majority of high-level leaders have trouble sustaining this visible role. This is a wrong thought process.

If it is important enough to make a change to a large part of their organization, it HAS to be a high enough priority for the leader to stay involved. Many successful leaders find it helpful to have a mentor or a coach to offer guidance when adding this new role.

Change Management - Role of the Leader
Check For The New Release in Health, Fitness & Dieting Category of Books NOW!
Check What Are The Top Cooking Books in Last 90 Days Best Cheap Deal!
Check For Cookbooks Best Sellers 2012 Discount OFFER!
Check for Top 100 Most Popular Books People Are Buying Daily Price Update!
Check For 100 New Release & BestSeller Books For Your Collection

See the article Change Management - Anatomy of Change for the best approach to a change project.

Bob Maitland is a consultant, coach and author who helps small and medium sized businesses to improve the bottom line. He assists leaders to gain higher levels of commitment from their people; aligns all parts of the company to work together to achieve the goals; and ensures the work is done efficiently and effectively freeing up resources. When you add your industry knowledge, you are on your way to becoming an Elite Company.

http://www.eliteleadershipsolutions.com
When you absolutely have to get better!

The Importance of Credit Risk Management for Banking

The importance of credit risk management for banking is tremendous. Banks and other financial institutions are often faced with risks that are mostly of financial nature. These institutions must balance risks as well as returns. For a bank to have a large consumer base, it must offer loan products that are reasonable enough. However, if the interest rates in loan products are too low, the bank will suffer from losses. In terms of equity, a bank must have substantial amount of capital on its reserve, but not too much that it misses the investment revenue, and not too little that it leads itself to financial instability and to the risk of regulatory non-compliance.

Credit risk management, in finance terms, refers to the process of risk assessment that comes in an investment. Risk often comes in investing and in the allocation of capital. The risks must be assessed so as to derive a sound investment decision. Likewise, the assessment of risk is also crucial in coming up with the position to balance risks and returns.

Banks are constantly faced with risks. There are certain risks in the process of granting loans to certain clients. There can be more risks involved if the loan is extended to unworthy debtors. Certain risks may also come when banks offer securities and other forms of investments.

The Importance of Credit Risk Management for Banking

The risk of losses that result in the default of payment of the debtors is a kind of risk that must be expected. Because of the exposure of banks to many risks, it is only reasonable for a bank to keep substantial amount of capital to protect its solvency and to maintain its economic stability. The second Basel Accords provides statements of its rules regarding the regulation of the bank's capital allocation in connection with the level of risks the bank is exposed to. The greater the bank is exposed to risks, the greater the amount of capital must be when it comes to its reserves, so as to maintain its solvency and stability. To determine the risks that come with lending and investment practices, banks must assess the risks. Credit risk management must play its role then to help banks be in compliance with Basel II Accord and other regulatory bodies.

To manage and assess the risks faced by banks, it is important to make certain estimates, conduct monitoring, and perform reviews of the performance of the bank. However, because banks are into lending and investing practices, it is relevant to make reviews on loans and to scrutinize and analyse portfolios. Loan reviews and portfolio analysis are crucial then in determining the credit and investment risks.

The complexity and emergence of various securities and derivatives is a factor banks must be active in managing the risks. The credit risk management system used by many banks today has complexity; however, it can help in the assessment of risks by analysing the credits and determining the probability of defaults and risks of losses.

Credit risk management for banking is a very useful system, especially if the risks are in line with the survival of banks in the business world.

The Importance of Credit Risk Management for Banking
Check For The New Release in Health, Fitness & Dieting Category of Books NOW!
Check What Are The Top Cooking Books in Last 90 Days Best Cheap Deal!
Check For Cookbooks Best Sellers 2012 Discount OFFER!
Check for Top 100 Most Popular Books People Are Buying Daily Price Update!
Check For 100 New Release & BestSeller Books For Your Collection

If you are interested in credit risk management for banking, check this web-site to learn more about credit risk kpi.