Understanding Critical Risks

Organizations often struggle to grasp the concept of critical risks and critical risk management, which is essential for preventing major accidents. Numerous past disasters, such as the BP Texas City explosion and the Pike River coal mine tragedy, highlight the consequences of organizations overlooking critical risks in favor of focusing on less significant injury rates. These incidents illustrate that boards and management often fail to demonstrate the effectiveness of their safety systems and controls, leading to a lack of assurance concerning fundamental processes that could prevent catastrophic events. Emphasizing critical risks instead of simply measuring overall safety activity is vital for organizations to enhance governance and ensure their critical systems are functioning properly.