Transcript Managing Health and Safety Performance

Gallagher Bassett
Managing Health and Safety Performance
Carl Dunckley
Risk Control Consultant
Alarm South East
4th November 2004
What’s the Problem ?
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Fatal injuries
There were 235 fatal injuries to workers in 2003/04,
Other reported injuries
In 2002/03, employers reported 154,430 other injuries,
Ill health
In 2001/02 an estimated 2.3 million people in Great Britain
were suffering from an illness which they believed was caused
or made worse by their current or past work,
Working days lost
In 2000-02 an estimated 40 million working days were lost
overall, 33 million due to work-related ill health and 7 million
due to workplace injury.
Source: HSE
What’s the Problem ?
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Latest HSE figures for 2001/02, health and
safety failures cost:
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employers between £3.9 - £7.8 billion,
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individuals between £10.1- £14.7 billion,
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the economy between £13.1 - £22.2 billion,
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society as a whole between £20 - £31.8 billion.
Source: HSE
Penalties
Most of HSE’s successful prosecutions result in a fine:
In 2003:
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The average fine per ‘offence prosecuted’ was £6,040
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13,263 enforcement notices were issued
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933 cases prosecuted, involving 1,688 separate alleged
offences (86% conviction rate)
22 Managers and Directors prosecuted. 11 of these were
convicted.
The largest fine was £240,000 for a major scaffold
collapse in a city centre.
Source: HSE
Corporate Manslaughter
Fatal Accident
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Where there is gross negligence, a company may be
prosecuted for corporate manslaughter
To convict a company of manslaughter a senior
individual identified as it’s embodiment or ‘directing
mind’ must first be convicted of manslaughter*.
* Need to identify someone who is ‘the embodiment’
(directing mind)
Culpable – Have the mental state (mens rea) to be
guilty of manslaughter
Forum 28 – Barrow-in-Furness
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UK’s biggest ever Legionella outbreak traced to 30 year old
air conditioning system Council run arts centre.
170 confirmed cases -7 deaths linked to outbreak.
Morecambe Bay Hospitals Trust cancelled around 700
operations to concentrate on the outbreak.
More than £60, 000 was spent on testing kits (2500 people).
The Pharmacy Department spent as much on a particular
antibiotic in one week as it did in the whole of previous year.
Intensive Care Unit stretched
beyond limits – patients relocated
around North East
Forum 28 – Barrow-in-Furness
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Police and HSE conducted joint investigation
Source traced to 30 year old air conditioning
system managed ‘in-house’, formerly managed by
specialist external contractors
Police charged senior Council official with seven
counts of manslaughter
Summonses served on Council for same seven
counts of manslaughter,
plus health and safety
breaches
HSC Enforcement Policy Statement
The revised HSC Enforcement Policy Statement says
that enforcing authorities should:
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consider the management chain and the role
played by individual directors and managers.
take action against them where the inspection or
investigation reveals that the offence was
committed with their consent or connivance or to
have been attributable to neglect on their part.
The Consultation Document
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Proposals for wide scale reform of law on
involuntary manslaughter
Involuntary manslaughter to be replaced by
3 new offences:
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‘Reckless killing’
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‘Killing by gross carelessness’
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‘Corporate killing’
Individuals
Corporate Killing
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A company’s conduct causes death i.e. the way
in which activities are managed fails to ensure
health and safety.
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And
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A company’s conduct falls far below what
would be expected in the circumstances.
Far Below Expectations…
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What Would You Expect?
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Health and Safety Policy & Arrangements
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Compliance with Legislation
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Risk Assessments
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Training and Information (Competence)
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Supervision
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Learning from Past Mistakes
Corporate Killing
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The management failure would be regarded as
the cause of death even if the immediate cause
is an individual’s act or omission
A conviction would require neither that the risk
be obvious nor that the organisation be capable
of appreciating the risk
Conviction of a company would not preclude
individuals being charged with reckless killing
or killing by gross negligence
Statements of Internal Control
The Accounts & Audit Regulations 2003
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Ensure financial management is adequate and
effective and that body has a sound system of
internal control……which includes
arrangements for management of risk
Conduct a review at least once a year in the
effectiveness of its systems of internal control
Publish a statement on internal control with
financial statements
Which Management Model?
‘British Standard BS8800 (1995) : Guide to
Occupational health and safety management
systems’
details:
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HS(G)65: Successful Health and Safety
Management
BS EN ISO 14001: Environmental Management
Systems
BS EN ISO 9001: Quality Management
Systems
HS(G)65
‘Successful Health and Safety Management’ HS(G)65 sets out
a safety management system in which the key elements of the
control cycle are:
POLICY
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ORGANISING
AUDITING
PLANNING & IMPLEMENTING
MEASURING PERFORMANCE
REVIEWING PERFORMANCE
Principle Components
POLICY
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Health & Safety Objectives*
ORGANISING
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Policy Formulation*
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Policy Review*
PLANNING & IMPLEMENTING
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MEASURING PERFORMANCE
REVIEWING PERFORMANCE
*Specific
“Effective health and safety policies set a clear direction
for the organisation to follow”
*Measurable
*Achievable
*Relevant
*Time-based
Principle Components
POLICY
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Structure & Responsibility*
ORGANISING
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Competence*
PLANNING & IMPLEMENTING
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Consultation &
Communication*
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MEASURING PERFORMANCE
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Information Management*
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Operational Control*
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Emergency Preparedness*
REVIEWING PERFORMANCE
*Specific
“An effective management structure and arrangements
are in place for delivering the policy”
*Measurable
*Achievable
*Relevant
*Time-based
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Principle Components
POLICY
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Risk Assessment*
ORGANISING
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Employee Training*
PLANNING & IMPLEMENTING
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General Planning*
MEASURING PERFORMANCE
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Management Plan*
REVIEWING PERFORMANCE
*Specific
“There is a planned and systemic approach to
implementing the health and safety policy through an
effective health and safety management system”
*Measurable
*Achievable
*Relevant
*Time-based
Principle Components
POLICY
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ORGANISING
Measurement &
Monitoring*
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Adverse Incidents*
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Benchmarking*
PLANNING & IMPLEMENTING
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MEASURING PERFORMANCE
REVIEWING PERFORMANCE
*Specific
“Performance is measured against agreed standards to
reveal when and where improvement is needed”
*Measurable
*Achievable
*Relevant
*Time-based
Principle Components
POLICY
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Record Management*
ORGANISING
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Auditing*
PLANNING & IMPLEMENTING
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MEASURING PERFORMANCE
REVIEWING PERFORMANCE
*Specific
“The organisation learns from all relevant
experience and applies the lessons”
*Measurable
*Achievable
*Relevant
*Time-based
HS(G)65
‘Successful Health and Safety Management’ HS(G)65
identifies auditing as a key component within the control cycle
POLICY
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ORGANISING
AUDITING
PLANNING & IMPLEMENTING
MEASURING PERFORMANCE
REVIEWING PERFORMANCE
Why Audit?
“The evidence therefore showed the sincerity of the concern
for safety. Sadly, however, it also showed the reality of the
failure to carry that concern through into action”
Anthony Hidden QC to summarise the evidence presented by British Rail Senior Managers, during enquiry
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into the Clapham Railway crash in 1988
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Piper Alpha
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Kings Cross
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Herald of Free Enterprise
‘You cant manage what you don’t measure…”
Drucker
Why Audit?
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The avoidance of complacency
The understanding that all systems will tend to
deteriorate over time, or become obsolete as
people and working practises change
Satisfaction of legal requirement
Put very simply, audits answer the question:
‘Are we doing what we said we would do?’
Why Audit?
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The Management of Health and Safety at Work
Regulations 1999 requires the establishment of a formal
Safety Management System. Regulation 4 (1) states:
“Every employer shall give effect to such arrangements as
are appropriate, having regard to the nature of his
activities and the size of his undertakings, for the effective
planning, organisation, control, monitoring and review of
the preventive and protective measures.”
Auditing is seen as the method by which the requirement
can be fulfilled.
HSG(65) Audits
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In addition to routine reactive and proactive
monitoring, periodic audits enable a deeper and more
critical appraisal of all the elements of the OH&S
management system.
Audits should be conducted by persons who are
competent and as independent as possible from the
activity being audited.
Audits should be tailored to the size and nature of the
organisation, and its risks.
HSG(65) Audits
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Audits will need to cover the following questions:
i)
is the organization’s overall H&S
management system capable of achieving the
required standards of H&S performance?
ii)
is the organization fulfilling all its obligations
with regard to H&S?
iii)
what are the strengths and weaknesses of the
H&S management system?
iv)
is the organization actually doing and achieving
what it claims to do?
Audit Methodology
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Audit methodology invariably includes
three key techniques:
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Interviewing key personnel
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Examination of Documentation
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Inspection
Selection of Auditors
Competent and Independent
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Health and Safety professionals,
Line managers or other employees with
additional training in health and safety and
auditing techniques,
Internal/External consultants?
Corporate H&S Performance Index - CHaSPI
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Designed to assist external stakeholders assess
H&S management of an organisation
Increase incentives for senior managers to
manage H&S well
Raise profile of H&S as key aspect of CSR
agenda
Research indicated significant interest amongst
investors and other stakeholders in a H&S
index
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Quantitative Indicators 1 to 5
1.
H&S Management Rating
2.
Injury rate – Employees & Contractors
3.
Employee Sickness Absence rate
4.
Occupational Health Rating
5.
Major Incident Rating
Indicators are weighted to reflect relative
importance. Indicator 1 has highest weighting
(50%, other 4 are 12.5%)
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Qualitative Indicators 6 to 9
6.
‘Under Watch’ Flag
7.
Highly Regulated Activity
8.
Directors’ Declaration
9.
CHaSPI verification
Users of the Index
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Investors seeking stocks in companies who have good
risk management and take CSR seriously
Insurers evaluating standards of risk management to
help establish terms
Employers as a means of demonstrating commitment
to CSR
Regulators considering performance of an
organisation
Potential employees wanting to assess a company’s
performance
http://www.chaspi.info-exchange.com
Additional Information
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A Guide to Measuring Health and Safety Performance
HSE
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Aiming to Improve: The principles of Performance
Measurement
Audit Commission
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Getting Better all the Time: Making Benchmarking Work
Audit Commission
Additional Information
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Managers Guide to Performance Management
IDEA
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How to Measure Performance: A Handbook of Techniques
and Tools
Department of Energy (United States of America)
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Achieving Best Practice in your Business: Quality
Management
Department of Trade and Industry