Hurricanes, tsunamis, earthquakes, tornadoes, hail, gale-force winds, even mud volcanoes — disastrous events in recent years have taught us that you really don't know what natural calamities will threaten to wreak havoc on business. Add to that machine and chemical hazards in the workplace and even the possibility of terrorist attacks — and we're talking major problems in safety, security, productivity and money.

It's a matter of being prepared for the unthinkable.

Mark Gryc, vice president and chief engineer for FM Global, a commercial and industrial property insurance and risk management organization, recently emphasized to IndustryWeek the "three main ways to lessen loss":

• Prevention (use less hazardous materials or locate them in safer areas);
• Protection (adequate roofing, windows, etc.); and
• Planning (having materials on hand to face the storm).

The International Strategy for Disaster Reduction (ISDR) in recent years has moved toward a global understanding and commitment to implement a natural disaster reduction agenda. The ISDR organized the World Conference on Disaster Reduction (WCDR) in Kobe, Japan, in January 2005, which culminated in the adoption of the Hyogo Framework for Action (HFA). As Oxford Analytica recently pointed out, "the framework enumerates several priorities," namely:

• Ensuring that disaster risk assessment is a national and a local priority with a strong institutional basis for implementation;
• Identifying, assessing and monitoring disaster risks and enhancing early warning;
• Using knowledge, innovation and education to build a culture of safety and resilience at all levels;
• Reducing underlying risk factors; and
• Strengthening disaster preparedness for effective response at all levels.

"On the brink of destruction, assessing risk at the plant level is key to minimizing damage," IndustryWeek further noted.

Moreover, today — one week after the solemn sixth anniversary of the September 11, 2001, attacks, which killed nearly 3,000 people — the threat of terrorism is immediately and overwhelmingly top of mind for many. (See: How Vulnerable Are U.S. Power Plants?)

Security breaches in the United States alone cost industry tens of billions of dollars each year, according to Deborah Catalano Ruriani at Inbound Logistics. "If you manufacture, distribute or ship high-value items, security within your company is at risk of being compromised. Preventing security breaches — in your facilities, and when your cargo is being loaded or unloaded for transit — is key." (For 10 excellent tips on how to improve your security program, see Inbound Logistics.)

Yet disasters affect more than just the factory. That is why supply chain risk management (SCRM) has been gaining increased attention over the past few years.

For example, in a report earlier this year entitled Managing Risk in the Supply Chain — A Quantitative Study, AMR Research noted that more than half (54 percent) of 89 executives surveyed said their companies planned to increase spending on SCRM in the following 12 months. Forty-six percent said their companies planned to implement or evaluate SCRM technology within the next two years, and one-third said they already have dedicated budget line items for SCRM.

The reason for this upsurge in interest appears clear, according to Supply & Demand-Chain Executive:

Executives believe that the threats to their supply chains are on the rise. In fact, in a September 2006 survey of 3,172 management leaders by consulting firm McKinsey, almost two-thirds of the respondents reported that the risks to their supply chains had increased over the previous five years. These anxieties may stem from the string of major disasters that have affected global supply chains in the new millennium, but at the same time macro-economic trends also are increasing supply chains' risk profiles. AMR's [authors of the report] point out that the greater adoption of global sourcing and outsourced manufacturing strategies has left supply chains more exposed to potential disruptions than in the past.

Clearly, the acute risk facing the security of today's business is multi-faced and deserves multi-faceted focus on prevention, protection and planning. In other words: Be prepared for the unthinkable.

Safety
Estimating occupational harm is tricky. The Archives of Internal Medicine (AIM) estimates more than 60,300 fatalities result from occupational illnesses annually. The Bureau of Labor Statistics reports 5,703 workplace deaths having taken place last year. And the Occupational Safety and Health Administration (OSHA) says 6,000 people die each year from workplace injuries, with another 6 million workers suffering non-fatal workplace injuries at an annual cost of more than $125 billion to U.S. businesses.

Whichever of these numbers is closest to truth, there are obviously some safety issues that must be addressed. Every day, many of us lift, twist, reach, push and pull. Even sitting can cause injury. And inevitably, some workers get hurt.

"The world's most efficiently run manufacturers understand better than most the drain injuries place on employees, and on corporate profits," IndustryWeek noted earlier this month. "Companies interested in improving productivity, quality, morale and employee health while reducing injuries employ multi-faceted programs to aggressively address the issue."

In this context, "due diligence" means taking all reasonable care in all circumstances of the workplace to protect the health and safety of all workers. This is the standard of care required to comply with OSHA regulations. And it requires communicating and fostering a culture of safety.

"So much of protecting people at work revolves around communicating," according to Industrial Safety & Hygiene News (ISHN) editor Dave Johnson in his recent column Communications Breakdown in Safety? "There's training and instructing, coaching, giving warnings, feedback, rules interpretations. You have 'tailgate talks' out in the field. You give updates, interpret rules, propose plans and goals, explain the mission."

Further, communication plays an important role in risk reduction for machinery. "When designing machine safety signs, it is important to use a consistent visual layout along with a uniform system for the recognition of potential personal-injury hazards," according to Occupational Hazards magazine. "This will help to effectively communicate hazard information."

It comes as little surprise that "Hazard Communication" and "Machine Guarding" both appeared in OSHA's most recent list of top 10 violations, at #2 and # 8, respectively. ("Powered Industrial Trucks," or forklifts, came in at #6 on the top 10. See today's Prevent Forklift Fatalities.)

Writes industrial-organizational psychology professor Dr. John Kello at ISHN:

Organizations are often uncomfortable emphasizing, or indeed even mentioning, the fiscal pragmatics of safety ... There is some awkwardness attached to "putting a dollar value on a human life" ... But whatever value labels and justifications we attach to promoting and requiring safe work and ethical behavior, it certainly is at the very least a foolish waste of money to operate unsafely... .

There may not be any one-size-fits-all program, but preparation, communication and fostering the proper workplace culture are universal practices for a safe and secure business and working environment.

Safety Sources

Occupational Safety and Health Administration (OSHA)

Florida Unified School Districts, Hazardous Materials Safety

Oklahoma State University, Industrial Plant Safety Manuals

American Red Cross: Prepare a Safer Workplace and Protect Your Most Valuable Asset: Your Employees

OSHA Workers' Page

National Institute for Occupational Safety and Health (NIOSH)

American Society of Safety Engineers' Business Disaster Tips, August 2007

Safeguarding in Manufacturing, at WorkSafeBC's Safety at Work center for the Manufacturing Industry.

Earlier:

How Vulnerable Are U.S. Power Plants?

The Many Faces of Safety & Health

Eliminating Workplace Boo-Boos

References

Batten Down the Hatches
by Traci Purdum
IndustryWeek, Sept. 1, 2007

Disaster Risk Reduction Gains Support
Oxford Analytica, Aug. 27, 2007

Improving Your Security Program
by Deborah Catalano Ruriani (and Scott Kirk, E.J. Brooks)
Inbound Logistics, February 2007

Managing Risk in the Supply Chain — a Quantitative Study
by Mark Hillman and Heather Keltz
AMR Research, Jan. 3, 2007

Disaster-Proofing the Supply Chain
by Andrew K. Reese
Supply & Demand-Chain Executive, April/May 2007

A Safer Way to Manufacture
by Walt Rostykus (Humantech Inc.)
IndustryWeek, Sept. 5, 2007

EDITORIAL COMMENTS: Communications Breakdown in Safety?
by Dave Johnson
Industrial Safety & Hygiene News, August 1, 2007

Designing Effective Machine Safety Signs
by Ryan Ebens
Occupational Hazards, July 1, 2007

POSITIVE SAFETY CULTURES: Business Puts on Its SOX
by Dr. John Kello
Industrial Safety & Hygiene News, Aug. 1, 2007

OSHA's Top 10 Most Cited Violations for 2006
by Matt McCreery
Safety Resources, Inc., March 2007