What forms the foundation of any risk-management plan?

The foundation of any risk-management plan is hazard and risk analysis. This process involves identifying potential hazards that could cause harm or loss, assessing the risks associated with these hazards, and determining the appropriate measures for mitigation. Conducting a thorough hazard and risk analysis allows organizations to understand what risks they face and the potential impact of those risks.

By identifying and analyzing the hazards specific to an environment or operation, effective strategies can be developed to minimize or eliminate risks. This foundational step is crucial because it directly informs policy creation, the necessity for training, and approaches to accident reporting. Without a comprehensive understanding of the risks involved, efforts in policy creation, training, and accident reporting might not effectively address the core issues at play. Thus, hazard and risk analysis serves as the critical starting point for developing an informed and effective risk-management plan.