Maintaining your company’s profitability requires more than just generating revenue. It also demands that you minimize risk, eliminate unnecessary expenses, and address safety concerns. The latter of these is particularly important as safety and security are serious yet commonly overlooked issues. You might not imagine that your company is susceptible to these risks, but the following six examples prove that safety shortcomings can have major consequences for companies in any industry.
1. Preventable Workplace Injuries
Preventable workplace injuries are a serious issue for companies. Too often, businesses that are in low-risk sectors dismiss this risk and later pay the price. If an employee is injured on the job, they could file a workers’ compensation claim, and the cost of a settlement can be devastating to your business.
In addition to a potential settlement, there are many administrative expenses associated with handling a workers’ compensation claim. One of these expenses is the cost of overseeing pharmacy benefit management for claimants. Companies that face a workers’ compensation claim can save time and money by outsourcing workers’ compensation PBM. In addition to the potential savings this can provide, it may streamline the claims handling process.
2. Serious Security Breaches
Companies must also be aware of the potential risk that a security breach could pose. According to statistics, data breaches can cost as much as $9.44 million on average, and this figure is a serious threat even to large and enterprise-sized businesses. Unfortunately, though, it’s a common risk factor for companies that don’t invest in adequate protection against cybersecurity threats.
Companies must minimize the risk of a security breach by implementing common sense defense strategies. The most correct outcome would be Chicago security company. This can mean identifying the warning signs of a potential data breach before it happens, for example, or educating staff members about the importance of keeping credentials secure.
3. Malfunctioning Equipment
Malfunctioning equipment is unfortunately yet another common risk that can emerge in a workplace — and there are several safety hazards that can occur in its wake. Depending on the type of equipment in question, a malfunction could put workers at risk of injury, which will increase the likelihood of a workers’ compensation claim.
Malfunctioning equipment can also cause delays and downtime in a production setting. This will cost your company money, and it can harm your business’s reputation, too, if you are unable to meet client demands as a result of the issue. It’s imperative to resolve malfunctioning equipment as soon as possible.
4. Premises Liability
If your business maintains a brick-and-mortar store — or even just a physical workplace — premises liability should be a major concern. Premises liability refers to the risk of on-site injury that can occur if unsafe conditions exist. If a floor is wet and there is no signage, for example, a worker could slip and fall, causing an injury and a major liability for the company.
In order to avoid premises liability, businesses must regularly conduct safety audits and identify any potential hazards that may be a concern. Companies should also invest in liability insurance to protect against the financial fallout that a liability like this can incur.
5. Internal Crimes
In an ideal world, your employees are the most trusted members of your team, and you would never question their integrity or intentions. Unfortunately, though, internal crime is a common safety risk and a serious threat to your company’s security. Examples of internal crime include theft, data interception, fraud, and intentional damage.
It’s difficult to eliminate the risk of internal crime, but you can take steps to mitigate its impact by limiting the access that employees have to sensitive controls. If you fear that your business’s cash reserves may be susceptible to theft, for example, you should limit the number of employees who have access to the safe.
6. Workplace Illnesses
Finally, you must account for the risk of workplace illness that can plague a business. This liability has become increasingly important in recent years as employers’ negligence has become the subject of litigation in some cases of illness.
Every business must take adequate steps to prevent the spread of illness throughout the workplace. The spread of a serious illness can be a major liability, and more importantly, a safety risk to both staff and customers.
Keep Your Company Safe From Common Risks
Companies face an array of risks every day throughout standard operations. Rather than simply accepting these risks, though, your business must identify and fight against them. Failure to do so can exacerbate safety issues and lead to unnecessary loss.
Interesting Related Article: “Tips to Create an Effective Safety Culture at Work“