From buzzword to business backbone

When IRCA Global opened its doors in 1993, risk management looked very different: annual audits, paper files stacked in cabinets and separate departments managing safety, health, environment and quality in isolation. Fast forward three decades and the landscape has transformed fundamentally.

“Risk Management in many organisations was mainly a tick-box exercise, with audits once a year, paper files and mostly based on lagging indicators,” recalls Justin Nash, Group CEO. “Safety, health, environment, risk and quality (SHERQ) were all managed by separate departments that did not interact with each other that much. Today, organisations have combined efforts to provide an integrated view of exposure across the value chain.”

He adds, however, that the company learned early on that world-class systems don’t deliver results if leadership doesn’t change its behaviour towards safety, noting: “This is what led to the development and ongoing enhancement of our behaviour-based safety and behaviour-based care methodologies.” This human-centric approach opposes the most pressing challenges facing the risk management and compliance industry today.

“Technological and data-related challenges would be the highest priority on this list. Cyber security, automation and the use of AI have introduced new risk types that traditional SHERQ management frameworks never considered,” Nash notes. “Data is abundant in any organisation, but this is often fragmented. Data from your incident management systems, HR systems, maintenance systems and contractor platforms needs to be consolidated seamlessly to ensure that the fragmented data becomes meaningful management information.”

To achieve this, Nash suggests that companies should look for a SHERQ management partner they can trust, that has the correct accreditation and professional credibility. “Start by looking at the company’s depth and experience and look for a partner with demonstrable experience in your specific field; they should have an integrated approach and not focus on isolated products. This partner of choice should also be able to cover the full risk cycle, from baseline risk assessment, management system development, training and competency, behavioural interventions, auditing and investigating to digital solutions.”

Looking ahead, Nash sees clear directions emerging within the industry: “There will be a shift from static information to AI-assisted risk systems that provide real-time data and scenario modelling. People will need to spend less time capturing data and more time prioritising the information to assist leadership decision-making.”

He is particularly proud of IRCA’s journey, stating: “We’ve walked the road from frequent serious incidents and regulator pressure to improved safety performance, stronger systems and healthier cultures.”

Nash’s philosophy remains clear: “Good risk management is not about paperwork; it’s about protecting people, the environment, assets, reputation and, ultimately, the sustainability of the business.”