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Developing a risk management system is important for any company. For oil and gas companies, or any company that’s in the energy sector, developing an effective risk management strategy is especially important.

An effective risk management strategy can help to reduce accidents, and prevent employee injury. Additionally, a reduction in accidents means fewer claims, and lower insurance premiums.

Here are six steps to help you to develop an effective risk management system for your energy company.

1. Identify Potential Hazards

All employees should be kept up-to-date, and informed of potential risks. This helps them to be more prepared and better able to respond to any potential hazards. Walk around the workplace to scout out places or hazards that should be addressed. Hold regular meetings to ask your employees what hazards they have noticed and take action to eliminate potential risks.

2. Identify Those Who Might in Harm’s Way

For each area considered a hazardous work environment, consider those who work there. Take the appropriate steps to educate them on how to stay safe while working in or around problem areas, and supply all necessary safety gear.

3. Evaluate Risks and Take Steps to Prevent Accidents

It’s not enough to identify potential risks, it’s important to take action to correct unsafe conditions. It is required by law that companies take action to create a safe work environment for employees, this includes identifying –and correcting anything that could be deemed potentially hazardous.

4. Review Regularly

Be sure to regularly review your work place for hazardous areas. Keep a close watch on those areas that were considered to be problem areas and constantly be on the lookout for potential problem areas. With workplaces constantly changing, it’s impossible that things will stay the same. Stay on top of work place safety.

5. Involve Employees

Involving your employees in the risk management planning is the only way to ensure that your system is enforced. Hold managers responsible for safety in their divisions, and encourage employees to give feedback at safety meetings. By involving your employees, you can help them to avoid accidents and help your company to stay accident free.

6. Workers Compensation

Workers compensation is an invaluable addition to your risk management system. Workers compensation offers valuable protection for your employees, as well as your company. If your employee becomes involved in a work related accident, workers compensation would pay for the medical expenses involved, preventing your company from having to pay out-of-pocket for these expenses.

In some cases, it may be beneficial to have an expert come into your company and identify potential hazards and risks. Sometimes looking at things with a fresh perspective can help to identify potential risks that you may not have realized were there before.