Essays on Risk Management at Newton Tools Company Case Study

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The paper "Risk Management at Newton Tools Company" Is a wonderful example of a Management Case Study. Effective management of risks involves minimization of a system's exposure to potential hazards and possibilities of a risk occurring. While both risks and hazards cannot be out-ruled in any system, it is possible to reduce their probability of occurring or causing harm by limiting the causative factors. This report consists of a risk audit at Newton Tool’ s warehouse basing on the case scenario. The first section of the report is the identification and discussion of the potential risks and hazards that may affect the company.

The second part is the action plans that should guide the company’ s response to the identified risks relating to OH& S and warehouse management. The third section identifies the next meeting staff meeting agenda in relation to risk management. Finally, the report offers recommendations on how Newton Tools can manage risks, potential hazards, and its supply chain effectively to avoid costly incidences/accidents and disruptions. Things to do next Newton Tools warehouse posed several workplace safety risks that should be addressed in order to reduce the possibility and intensity of the occurrence of the identified risks.

According to Tang (2006), the possibility of a risk occurring can be reduced by limiting a system’ s exposure level, environmental hazards, and vulnerability. After conducting a risk audit on Newton tools based on observations made in the scenario, the following warehouse risk items were identified. The risk items are listed in order of their importance in relation to potential harm or loss that may be caused.     High stacking of heavy inventory may cause injury in case they fall It is noticeable that the warehouse did not use a racking system.

All the heavy and light tools were stored using block stacking. Stacks went as high as three pellets in most cases. The stacking system can be highly unstable particularly if it goes higher than required. In most cases, 1.2 meters is the recommended height. In case of instability, inventory may fall leading to disorganization and potential injury to workers. This risk is likely to occur given the narrow aisles that forklifts and people have to use to access inventory.

It is highly important that the management prioritizes addressing this risk as it may cause damage, injuries, or fatality in the warehouse. Poorly planned drainage system increases the chance of chemical contamination The warehouse has previously been half-flooded by a drainage pipe smashed by an accident. Workers dropped a crate of heavy tools against the pipe and smashed it. This incident exposed the warehouse to the risk of chemical contamination since the company is located in a heavy industrial area. In fact, a large drain separates the company from a large chemical plant.

Additionally, a flooded warehouse may damage inventory such as steel tools, which may rust due to contact with water. This could potentially lead to huge financial losses. Dusty environment and polluted pose a potential health hazard Newton Tools is located in a dusty industrial area with few trees to control the wind. In addition, a large chemical plant may also be causing a lot of air pollution. The mixture of dust and chemical air pollution may pose a health hazard to workers. This may cause the company to incur losses in terms of employee treatment and loss of trained talent.

It is vital, that the company considers internal and external measures that can limit the impact of surrounding area air pollution on its workforce.

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