Factors in EHS risk management

EHS risk management

There are a variety of factors that need to be considered when implementing an effective EHS risk management program. Some of the key factors include:


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The nature of the business or operation. Each industry has its own unique hazards and risks that need to be considered when developing a risk management plan.


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The size of the operation. A small business may have different risks than a large corporate operation.

Type of work

The type of work being done. Manufacturing and construction industries have different safety concerns than office workers.


. The location of the operation. A hazardous materials storage facility will have different safety concerns than an office building located in the city center.

Number of employees

The number of employees. A small business may have certain liabilities that a larger enterprise would not.

Kind of process

The process is used to manage the EHS risk management program. Different companies have different processes for managing their environmental, health, and safety risks. It is important to use an established system so that all stakeholders are on the same page when it comes to tracking EHS incidents or near misses.


Industry-specific standards, codes and regulations. Employees must be trained on these standards in order to understand compliance requirements and reduce liability exposure due to ignorance of applicable laws. Also, third-party auditors require that these standards be followed in conducting annual assessments of your EHS controls.”

Severity of hazard

The severity of the hazard. It is important to consider which hazards pose a greater threat, both to employees and other stakeholders in the organization.


The frequency of the hazard. Some risks only arise periodically, such as when doing construction or renovations, whereas others have a constant presence and must be managed continuously.”

Level of risk

The level of risk that the organization is willing to take for each hazard. It is important to create a balance between reducing EHS risks and other business priorities such as profitability, quality standards, and speed of operations.”

Degree of severity

The degree of severity involved in an incident involving the use of chemicals, biological agents, or harmful physical agents (such as excessive noise). Such incidents can be very costly to an employer in terms of litigation costs and settlement of claims.


Legal liability and the potential costs and consequences associated with bodily injury and property damage that could occur if no risk management program were implemented.

Political pressure

Political pressures within an industry sector, such as greater controls on air emissions from stationary sources than mobile sources.”

Physical location

The physical location of where hazardous materials are stored or used.

Financial resources

The financial resources available to the organization for implementing risk management controls.”


The age of the organization and its safety record.


The culture of the organization with respect to health and safety.


Availability of data on which to make risk management decisions.”


Resistance to change by employees or management.”

Health and safety

Prioritization of health and safety risks by senior management.”

Level of enterprise

Level of expertise available within the organization for managing environmental, health, and safety risks.

Availability of insurance coverage for potential losses from EHS incidents.”


There are a number of factors that must be considered when creating an effective environmental, health, and safety risk management program. Each organization is unique and will have its own set of priorities when it comes to managing these risks. By taking into account the various factors listed above, you can develop a program that is tailored to your specific needs.

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