Australian risk advisory firm, Manage Damage, recently introduced an approach to reducing costs of worker insurance to global business in Singapore at the 2017 World Congress on Safety & Health at Work. The Congress is jointly organized by the International Labour Organization (ILO) and International Social Security Association (ISSA), bodies of the United Nations.
"Business, international labour organizations and governments have struggled to find ways to define the true cost of non-financial risk as they seek to build a stronger global workforce, our methodology is a world first to prove in fiscal terms that prevention pays," says Jillian Hamilton, Managing Director of Manage Damage.
Non-financial risk targets those areas not measured in financial terms - the support and shared services in an organization. The full financial position of these services is not usually known as associated costs are either not identified or hidden across operational or financial structures.
The Manage Damage process analyses the costs such as safety, health, environment, quality and human resources across the whole of business and converts this information into financial terms to be easily addressed by boards and senior leadership.
"Manage Damage is about reducing risk across the whole of a business. We call our philosophy 'Risk Dollarization,’ says Hamilton.
Hamilton explains that their methodology converts non-financial risk into dollar terms to enable management to more easily address the complex interplay of these factors within a business and reduce associated costs.
“Management can see where issues lie and where true associated costs are located. Companies obtain complete visibility of true damage costs and opportunities to manage the damage are highlighted. This unique approach to 'dollarizing' risk reduces the cost of damage and the negative impact on a company's bottom-line.
"We are seeing great interest from both large business and government globally in our approach. This is an area which has been pushed into the too hard basket by management as it has been difficult to address in clear fiscal terms.”