What is risk assessment in general?

Put simply, a risk assessment is the process of identifying potential hazards in your workplace, evaluating the level of risk they pose and putting controls in place to minimise or eliminate those risks. Risk assessments aren’t just about following the law – they’re a vital part of preventing harm to your workers and maintaining a safe, productive environment. Failing to carry out risk assessments could mean legal and financial penalties, but it also means your team’s safety and wellbeing is compromised too.

A thorough risk assessment means you can understand the specific risks present in your work environment, evaluate the likelihood and severity of potential incidents, and put the right control measures in place. Risk assessments are the best way to avoid  accidents, injuries, and in severe cases, fatalities.

In this article, we’ll look into the consequences of bad risk assessments, especially the legal implications, financial implications, and reputational damage that can result from bad risk assessment practice. 

Are risk assessments a legal requirement?

In short, yes, risk assessments are a legal requirement for UK businesses. 

The laws and regulations surrounding risk assessments are in place to champion the safety of individuals in the workplace. The Health and Safety at Work etc. Act 1974 is one of the cornerstones of Health & Safety legislation in the UK, and it places a legal duty on employers to ensure, so far as is reasonably practicable, the health, safety, and welfare at work of their employees.

Building on the HSWA, the Management of Health and Safety at Work Regulations 1999 (MHSWR) provides a more detailed framework for risk management. These regulations put a duty on employers like you to properly identify and evaluate the risks to their employees, as well as to others who might be affected in their work environment. Plus, the MHSWR states that employers should implement appropriate control measures to reduce these risks. If your business employs five or more people, you’re also legally obliged to write your risk assessments down – but we’d recommend doing it anyway so you can show inspectors when they come to visit.

As well as these two primary pieces of legislation, various other regulations may be relevant to your specific industry or work activities. For example, regulations related to working at height, manual handling, or the use of hazardous substances all contain specific requirements for risk assessment and control. 

Understanding and putting in place risk assessments can be complex, and it’s essential for you to understand which regulations apply to your operations to make sure you’re fully compliant and your workforce is safe

What’s the purpose of risk assessments in the workplace?

The answer is simple – risk assessments are crucial for identifying and controlling risk. There are hundreds of different types of risk assessments, and each one is tailored to the industry or work that is being carried out. It’s good to think of risk assessment in a step by step process…

  • Identifying hazards: The first step in your risk assessment is basically a bit of detective work – examine your workplace thoroughly and pinpoint anything that might harm someone’s health. . This might include physical hazards, chemical hazards or even biological hazards.
  • Evaluating risks: Once you’ve identified potential hazards, think about the level of risk they pose. . Ask yourself two questions – how likely is it if something could go wrong, and what would the consequences be if it did?. For example, a small spill could lead to a minor slip, but working at height carries a higher risk of serious injury. Understanding these factors helps you prioritise which risks need your attention first.
  • Implementing control measures: The ultimate goal of a risk assessment is to put in place control measures to eliminate or reduce the risks. Wherever possible, aim to remove the hazard altogether, but if you can’t, focus on reducing the risk. That could involve controls such as guard rails when working from height, administrative controls like safe work procedures, or providing personal protective equipment to workers on site.
  • Reviewing and updating: A risk assessment isn’t something you do once and forget about – it needs to evolve with your business. . They need to be regularly reviewed and updated, especially when there are changes in the workplace, such as new equipment, new employees or new processes. Regular reviews make sure your employees stay protected and your business stays one step ahead. 

Completing eliminating hazards isn’t always practical for a business, but a risk assessment can highlight the best course of action to take. This not only protects the workforce but also contributes to a more productive and positive work environment.

What are the consequences of not carrying out a risk assessment? 

The consequences can be significant and damaging to your business, as well as the safety of your employees and others. Without a risk assessment that is valid, in-date and frequently reviewed, gaps in your Health and Safety measures can soon be exposed. 

If one of your employees suffers a serious injury, the legal responsibility ultimately falls on your business. . Governing bodies, like the Health and Safety Executive (HSE), will thoroughly investigate whether you’ve taken all the required steps to identify and mitigate risks. Failing to carry out proper risk assessments would be treated as a significant oversight and can lead to steep fines. If an incident results in a fatality, the consequences can escalate further – so taking proactive steps to assess and minimise these risks is vital.

Being a responsible employer means staying compliant and reducing the chance of being held liable should the worst happen. This doesn’t just include  carrying out risk assessments but also regularly reviewing and updating them if there are changes in the workplace.

Failing to do correct risk assessments can have some pretty substantial consequences, including:

  • Legal action and fines: As mentioned above, if you’re found to be in breach of Health & Safety regulations due to a lack of risk assessment, you could face substantial fines.
  • Reputational damage: News of a workplace accident resulting in investigation can severely damage your reputation. This can lead to loss of trust from your customers, difficulty in hiring and retaining workers, and damage to brand image.
  • Increased insurance costs: Following a workplace accident or a health and safety investigation, insurance companies might increase your premiums significantly, reflecting the increased risk associated with your business.
  • Business disruption: Workplace accidents can lead to significant business disruption, including lost productivity, downtime, and the need for staff replacements.
  • Employee morale: A workplace where risks aren’t managed properly can lead to low employee morale, increased absenteeism, and difficulty in retaining skilled workers.

In short, neglecting risk assessments isn’t just a legal oversight, it’s a gamble with the safety of your employees and the future of your business. Putting time and effort into good risk management is key to keeping your business thriving for the long haul.

Need support with your risk assessment?

Risk assessments can be challenging and overwhelming, not to mention the pressure of getting them right – but the good news is, you don’t have to navigate it on your own. HS Direct is here to lend a helping hand and make your life easier when it comes to risk assessments. We offer a range of services and solutions to make sure that your business is legally compliant and, more importantly, safe for everyone involved.

  • We’ve got hundreds of risk assessment templates available to download right away – so you can be sure you’re getting your risk assessments right.
  • With the help of our expert people, you’ll never need to worry about your risk assessments being legally compliant again – and you can get peace of mind that you’re avoiding financial and reputational costs.
  • With our smart Health and Safety software solution, Safety First, you can get one place to create, store and edit your risk assessments all in one place. You’ll also get access to hundreds of risk assessment templates.
  • Check out our extensive guide to risk assessments, a handy online resource packed full of useful information to help you understand the topic in greater detail.