Formally, business risk management is defined as the identification, analysis, monitoring, and mitigation of uncertainty as related to decision-making and operations. Risks are events or circumstances that can bring negative consequences to a business, and the goal is to minimise these types of events and circumstances. There are many different types, including operational and environmental risks. Ultimately, the impact of risk to the business is financial loss. However, high risk business related events and activities can also have an impact on people and places that are not stakeholders. For example, a worker driving a delivery van while under the influence of alcohol is a risk to other drivers, in addition to co-workers and customers. A manufacturing assembly line worker using illicit drugs threatens the health and welfare of co-workers and end-product users.
Drug and alcohol testing programs clearly fit within the risk management program. Policies are designed to identify and control the general risks by establishing a substance free workplace and methods for mitigating risks. The actual testing of workers serves as the means for monitoring substance use and reducing the potential risks associated with substance abuse. A risk management plan should reflect all potential business risks as much as possible, which means fitting random, safety-risk, and for-cause testing into the plan.
Risk Priorities and Major Consequences
A useful tool called the Risk Management – Risk Analysis Matrix was developed by the Small Business Development Corporation of the Western Australia government.1 It provides an excellent starting point for understanding and rating risk priorities, which include no risk, low risk, moderate risk, high risk, and extreme risk The matrix can be applied to the risk of drug and alcohol use in the workplace.
For example, the mining industry has a documented problem with drug and alcohol use among the fly in-fly out miners. Using the matrix, the event (drug use) would have a likelihood of ‘certain’, indicating an occurrence at least once per week. The consequence of risk expression is either ‘major’, ‘fatality’, or ‘multiple fatalities.’ The choice depends on the history of the particular business and industry. No matter what selection of consequences is made in the mining example, the risk rating will establish a risk priority of ‘extreme’, meaning involved work processes should cease and immediate corrective action taken.
In a remote mining operation, hospital setting, worksite with lots of machinery or requiring vehicle and equipment operation, construction site, and so on, the matrix will lead to a high or extreme risk priority associated with workplace drug and alcohol use. The risk of injury or death rises significantly when jobs include operating machinery or heavy equipment, completing work processes requiring a high degree of accuracy for safety reasons, or looking after the welfare of others.
Always a Risk
However, make no mistake about it – every business needs a drug and alcohol policy and random testing program. If the risks associated with substance abuse are appropriately assessed, the risk priority will always be at least ‘moderate’, requiring corrective action through the planning process. The risk priority will never be ‘no risk’ or ‘low risk.’
Even businesses with mostly office workers or other white-collar positions need a strong drug and alcohol policy. For example, the community based nonprofit MADEC delivers Employment Training and Community Development initiatives in New South Wales, Victoria and South Australia. In the company’s Workplace Safety Training & Induction Program posted online, it is made clear that the “dangers of consuming drugs and alcohol in the workplace are well recognised.” The manual goes on to say that employees are expected to follow host employer and MADEC’s policies and breaches can lead to dismissal.2
There are many risk management resources available including Australian Standard AS/NZS 4360 and the companion Handbook HB 436. The best resource to turn to for assistance with drug and alcohol screening services is Mediscreen at http://mediscreen.net.au/. Mediscreen has years of experience and a professional, expert staff that works with all types and sizes of business.
References
1 SBDC. (2013). Risk Management – Risk Analysis Matrix. Retrieved July 15, 2013, from Government of Western Australia – Small Business Development Corporation: http://www.smallbusiness.wa.gov.au/risk-management/
MADEC. (2009). Workplace Safety Training & Induction Program. Retrieved July 5, 2013, from MADEC Employment & Training: http://www.madec.edu.au/wp-content/uploads/2011/03/Workplace-Safety-Training.pdf
