1. Risk management in small enterprises A system analysis of what works and what doesn´t PhD Ann-Beth Antonsson, Swedish Environmental Research Institute

2. [ Risk management in small enterprises. A system analysis of what works and what doesn´t ] [Ann-Beth Antonsson], [2006-09-14 Development in occupational health and safety legislation Focus on risky work operations Detailed technical demands that reduces risk Focus on management Requirements for risk assessment and control Leaves the solutions to the enterprises to find out Technology Organisation

3. [ Risk management in small enterprises. A system analysis of what works and what doesn´t ] [Ann-Beth Antonsson], [2006-09-14 Why this development? New approach needed for unexpected and unusual risks Demands from large enterprises There is more but one solution to each problem Detailed technical demands hamper development Small enterprises Just tell us what to do and we will do it

4. [ Risk management in small enterprises. A system analysis of what works and what doesn´t ] [Ann-Beth Antonsson], [2006-09-14 A systems analysis of small enterprises and risk assessment The little enterprise Characteristics of enterprise Status of occupational health and safety Access to expert knowledge Authorities Sector organisations Customers Suppliers Researchers Demands and support Perceived need

5. [ Risk management in small enterprises. A system analysis of what works and what doesn´t ] [Ann-Beth Antonsson], [2006-09-14 External pressure on and external support to SSEs Pressure –Authorities inspect seldom, except for sectors at high risk –Authorities select most important demands, according to present risk in enterprise (Swedish study) External support –Minority of SSEs affiliated to Occupational health service –Swedish study show that SSEs frequently use medical services, less frequent technical incl. risk assessment –Poor understanding of what OHS can be used for

6. [ Risk management in small enterprises. A system analysis of what works and what doesn´t ] [Ann-Beth Antonsson], [2006-09-14 What is small enterprises Usually defined as less than 50 employees Micro-enterprises, less than 10 employees If less than 20 employees, just one manager One or a few managers, managing many tasks (personnel, economy, marketing, customer relations, planning, product development, environment, quality, occupational health and safety ….) Little time for each task Superficial knowledge for many tasks Need for constant prioritisation

7. [ Risk management in small enterprises. A system analysis of what works and what doesn´t ] [Ann-Beth Antonsson], [2006-09-14 Culture usually characterised by aiming at short-term survival of enterprise Prioritise –customers –activities that yield income –activities that someone asks for –activities that are perceived as useful to the enterprise –activities that the manager finds important Skip activities –that no-one asks for –that seems not to be useful –that are complicated and requires a lot of time In what category will risk assessment of occupational hazards fall?

8. [ Risk management in small enterprises. A system analysis of what works and what doesn´t ] [Ann-Beth Antonsson], [2006-09-14 One example shows the complexity of risk assessment in SSEs Car bodywork repair –Problem with formation of isocyanates from welding, grinding, cutting and other hot operations –Experts (researchers) developed a set of measures that reduced isocyanate exposure –Dissemination of the results, detailed advice for several operations, e.g. welding with integrated local exhaust ventilation, use of tools for cutting that generated less heat why isocyanates were not formed etc. –Extensive dissemination through articles in sector media, debates etc.

9. [ Risk management in small enterprises. A system analysis of what works and what doesn´t ] [Ann-Beth Antonsson], [2006-09-14 What did the car bodywork enterprises do? No risk assessment of their own Sought for concrete solutions from suppliers of tools etc. who they already knew. Suppliers had poor knowledge about the problem, and suggested less effective safety measures which their firm sold, mainly PPE Applied some but far from all of the really good solutions proposed by researchers and developed together with representatives of the sector When asked about the risks –the enterprises were well aware of the risks with isocyanates –they thought risks were under control (Which they were not!)

10. [ Risk management in small enterprises. A system analysis of what works and what doesn´t ] [Ann-Beth Antonsson], [2006-09-14 What can we learn from SSE in the car bodywork sector Risk assessments may be extremely difficult to conduct for SSEs SSEs tend to look for the simplest solution from known sources which they have an established personal relation to, e.g. suppliers Advice given by suppliers is not always founded on knowledge about occupational health and safety Advice from suppliers is not always good advice

11. [ Risk management in small enterprises. A system analysis of what works and what doesn´t ] [Ann-Beth Antonsson], [2006-09-14 Conclusions Pros of risk assessment in SSEs Good for risks that do not need skilled expert evaluations When it works –all risks can be identified, even if they are unusual or not common in the sector / work task –opportunity to prioritise most hazardous operations and work tasks –=> cost effective –Engages employees and employer in reducing risks and improving working environment But is this a realistic outcome in most SSEs?

12. [ Risk management in small enterprises. A system analysis of what works and what doesn´t ] [Ann-Beth Antonsson], [2006-09-14 Conclusion Cons of risk assessment in SSEs Time consuming (to understand, learn about methods and conduct) and SSEs often skip activities that require a lot of time Requires knowledge to achieve the desired quality, knowledge which is often not present in SSEs Risk of poor quality in risk assessment => risk of bad prioritisation => the desired reduced risk may not be achieved => risk of low cost-effectiveness

13. [ Risk management in small enterprises. A system analysis of what works and what doesn´t ] [Ann-Beth Antonsson], [2006-09-14 Is there an alternative to risk assessment What about the old method? –More detailed advice on control measures that reduce risks – Good practise –Still often integrated in risk assessments, but not always highlighted Alternative or complementary method –Increased demands on suppliers - why is their knowledge and advice on safety measures so poor? –Suppliers is an important source of information for SSEs, can we increase demands on their information about OHS in relation to their products? –Can we demand that suppliers sell safer products?

14. [ Risk management in small enterprises. A system analysis of what works and what doesn´t ] [Ann-Beth Antonsson], [2006-09-14 Pros and cons of detailed advice on controls – the Good practise approach Pros –Applicable for the most usual hazards –Adapted to culture of SSEs and more readily accepted than demands for risk assessment –Reduces risk of not identifying well-known serious hazards –Reduces risk of poor control measures Cons –Not applicable for less usual hazards –May hamper technical development –Can easily be overrun by suppliers advice/marketing –Requires a lot of work when developed

15. [ Risk management in small enterprises. A system analysis of what works and what doesn´t ] [Ann-Beth Antonsson], [2006-09-14 Conclusions There is not one method for identifying and reducing risks in SSEs. Several methods are needed. Demands for risk assessment seems not to give the desired results in SSEs, if personal support is not added. Evaluations of available methods needed!!! Increased demands on suppliers is one method that ought to be investigated and developed further. Detailed advice on solutions to common problems is still needed and appreciated by SSEs