How Managers Can Get Information About Accident Risks Before They Happen

Why Information About Critical Risks Doesn't Reach Management

In modern industry, one of the key problems in safety management is the disruption of bottom-up communication regarding critical risks. The speaker analyzes the results of a large-scale international study covering industrial company executives worldwide. The data reveals an alarming picture: in the vast majority of cases, top management does not receive objective information about the actual condition of equipment and pre-accident situations on site.

The presentation details the reasons for this phenomenon. The main factor, according to the managers themselves, is the pressure of ambitious financial and production plans handed down by shareholders. Prioritizing short-term profits over long-term investments in safety creates an environment where discussing costly problems becomes undesirable. Top management often does not want to hear about risks, as solving them requires enormous costs and can negatively impact performance metrics and bonuses.

Barriers to Information: Fear and Lack of Resources

On the part of line personnel and middle managers, the main barrier is fear. Employees are afraid that reporting a problem will lead to punishment, accusations of incompetence, or disloyalty. Furthermore, there is a persistent belief that even if a problem is reported, resources to solve it will not be allocated, and the responsibility for the consequences will fall on the person who raised the issue.

Using real cases, the speaker shows how years of underinvestment in fixed assets put local managers in a hopeless situation. They are forced to operate worn-out equipment without the ability to influence the situation, and over time they simply stop reporting risks, realizing the futility of these attempts.

A Model for Direct Communication of Risk Information

To solve this problem, the implementation of a direct communication model for critical risks is proposed. The essence of the approach is as follows:

• Focus on critical risks: There is no point in collecting information about all minor problems. It is necessary to identify 5-10% of key employees managing the most critical facilities where accidents could lead to a disaster.
• Direct communication channel: These employees are given the opportunity to report serious risks (threat of a group accident, production shutdown, environmental disaster) directly to the company's top executives, without filters or intermediaries.
• Emotional safety: A key condition for success is creating an atmosphere of trust. Management must guarantee that no one will be punished for disclosing information, and the careers of middle managers will not suffer.
• Real problem solving: Most importantly, top management must respond promptly to incoming signals and allocate resources to eliminate risks. Only by seeing real actions will employees begin to trust the system and disclose information.

What you will learn from this webinar:

• Why traditional reporting systems hide the real picture of risks from top management?
• How financial goals and KPIs influence the concealment of information about pre-accident situations?
• Why on-site employees are afraid to report equipment problems?
• How to build a direct communication channel between line personnel and the company's top executives?
• What conditions are necessary for the successful implementation of a critical risk reporting system?