Smith Brown Chemicals Company: Risk Assessment And Compliance Requirements

Potential Risks and Hazards

Discuss about the Effectiveness of Safety Management Systems.

SBC is basically a medium sized chemical distributor which is located at the rear of the large metropolitan shopping precinct. The company purchases large quantity of cleaning chemicals. They are delivered to the retail outlets after being transferred from the large drums to small containers to the different retail outlets.

• To conduct risk assessment and risk management analysis for SBC.
• To conduct research on the compliance requirements and evaluation of legislations applied for SBC.
• To develop the risk assessment matrix for the identification and assessment of the risks evaluated at SBC.
• To develop the risk control procedures for dealing with the risks identified and assessed.
• To evaluate the challenges faced in mitigation of the risks at SBC.
• To develop the action plan and present it to the CEO and Board of Directors.

The scope for the company is to expand their services across the country. They also have the scope of becoming the largest distributor across the region. They also have the scope of enhancing their growth and profitability. They have the scope of competing with the other competitors present within the chemical industry.

The limitations of the proposal is that the adoption of the change and its acceptance by all the staffs working in SBC. The feasibility of the proposal submitted to the CEO and the Senior Management of SBC. The next could be the hazards and the risks which are identified and needs to be assessed and monitored on an urgent basis to have their operations properly within the metropolitan area (Harrison and Lock 2017).

The case study review of the Smith Brown Chemicals Company helped in identifying the potential risks and hazards of the company. The list of risks that were identified is given below–

• improper cleaning of the chemicals
• spilling of chemicals
• dumping the waste at the wrong place
• cleaning after a long gap
• limited use of emergency equipments at the company
• unsafe chemical handling by the staff of the company
• lack of an emergency plan displayed at the company
• lack of attention towards the injury of the staff
• confidential and financial information was not secured
• inappropriate and incomplete details of employees (Villa et al. 2016)
• incorrect pay and superannuation records
• water wastage on a large scale
• inaccurate location
• community centre development at the backyard of the company

The Smith Brown Chemicals Company is located near an old- age home and a childcare centre. These two centers were prone to risks because of the emission of hazardous materials from the company. Inappropriate cleaning of chemicals made it more dangerous if anyone is exposed to it. The childcare centre consisted of children below the age of 5. Therefore, they were not supposed to expose to the hazardous materials, however, the production process was responsible for emitting dangerous materials. It was risky for them, as small containers tend to spread more the materials easily than large containers (He et al. 2014). This area was not properly looked after by the employers. The workers are also exposed to the spilling of chemicals during the process of decanting. The spilling chemicals were cleaned up with rags, which were later disposed off without any precautionary measures. The waste was casually dumped in an open area at the backyard of the company.     

Moreover, the waste was collected on a weekly basis. It created a huge time gap and resulted in the spreading negative effect in the surrounding areas. Not only are the workers exposed to the hazardous materials but also the waste contractor. The ignorance of the proper waste treatment resulted in polluting the area. It was risky for the old patients and the children in the nearby centre. The workers of the company were not trained properly in the proper treatment of the waste materials, which was more harmful for the environment as well as them (Kasperson 2014).

Compliance Requirements

There was no provision of immediate medical treatment of the workers in the company. If the workers were exposed to risky chemicals, there was no equipment to treat their injuries at SBC. There was a high risk of being exposed to the injury, as the workers were not properly trained on the handling of chemicals. In addition to the health issues, there were risks of technical spoilage too. The computers at SBC, which contained the personal information of the workers, were not secured with password so there was high chance of hampering of information at any time. Conduction of background research in regards to the legislation and compliance requirements in SBC

The legislation and the compliance requirements are very important for the company to operate with all the legal guidelines and ethics conducted in the running of their business. According to the case scenario, it is evident that the company is having the high risk of health and safety of the staffs working as they were not been given the training on the safe handling of the chemicals and there is case of spillage of chemicals from the retail containers they are using it for transportation to the different retail outlets (Pritchard and PMP 2014). So it is important that SBC should comply with the Workplace Health and Safety legislation. The company should be obtaining SDS for the storing and moving of the hazardous substances. They should be maintaining a proper product register of the stored chemicals. They should be identifying the hazards and assessment of the risks associated with the company. They should be developing and managing controls over the eliminator or if possible the reduction of the levels of high risk activities involved as well. They should be periodically reviewing and assessing the risks. According to the AS1940 standards SBC should be handling and storing the chemicals in safe and secured way so that any hazardous incidents do not occur inside the premises of SBC.

According to the transport of hazardous goods legislations, SBC should comply with this in proper and effective usage of the chemicals coming and going out of the premises. In accordance with the Fair Work Act 2009 SBC should comply with the fair working of the employees and minimum wages to be given to the employees working there (Bergamaschi et al. 2015). It also contributes to the development of the proper workplace relationships. SBC should be promoting the fair operation and activities for the economic growth of the business and fair working procedures for the staffs of SBC.

Risk Assessment Matrix

It is evident that the company is using single flush system and they have been consuming around 30,000 litres of water per week which is huge amount. This is simply the breach of water usage to be done by SBC. So in accordance with the Water Management Act 2000 the company should be using the water conservatively so that it should be sustained for the communities as well for the future generations to come. They have not been controlling the usage of water which is affecting the economic and the social benefits. SBC should be using proper drainage system in order to reduce the wastage as well as for the preservation of water.

According to the scenario of SBC, they are facing the issue of environmental degradation which results in affecting the communities. In accordance with the EPBC Act 1999 each and every organizations in Australia should comply with the preservation of natural resources like water as well as protecting the environment from the effect of hazardous substances and its movement from one place to the other. SBC should comply with this act on a serious note to reduce the level of environmental degradation.

A risk assessment is defined as a tool which is used by any organization in order to carefully examine the risks associated and taking up actions in reducing the level of risks (Kerzner and Kerzner 2017).

In this step after the evaluation of the risks there is the urgent need of recording the findings and proper implementation plan to be recognized and developed for SBC.

In this last stage there is the requirement of the up dation and review of the risks so that if there are any changes required in the implementation plan, then it should be done in accordance with the case scenario or the company requirements.

Risks Identified	Risk Causes	Risk Consequences
Improper cleaning	There is the use of rags for cleaning of the small spills which are taken place at the time of transportation	Slips and falls of the staffs in premises.
Spilling of chemicals	SBC purchases huge quantity of cleaning chemicals so they are first come at SBC in 205 litres of drums which are really huge. After that they are decanted in retail size containers or small containers.	Damage of property and ill effects on health of staffs.
Improper place of dumping and cleaning after long time.	The dumping of the rags from which the chemicals are cleaned when they spilled up is dumped at the rear yard of the premises and they are taken off after a week by the waste contractor.	Intoxification and other health related issues.
Limited Emergency Equipments used at SBC	The cause is basically the lack of any cases of accidents or severe injuries for the staffs to be taken place in SBC.	No dealing of emergency situations.
Unsafe handling of chemicals for the staffs of SBC.	There are no proper training manuals or conduction of training programs to be done at SBC.	Results in explosion and property damage at SBC.
Lack of emergency plan displayed at SBC	The lack of poor management and inefficiency of the health and safety officer at SBC.	No crisis management could take place.
Insufficient dealing with the injuries of the staffs	There were no comprehensive processes to be established for dealing with the injuries of the staffs for SBC.	Lowering o staff morale and loss in productivity.
No protection for confidential and financial information in SBC	The computer systems were not password protected and anyone could access and amend the information.	Huge financial and reputational loss.
Inappropriate employee detail forms.	The employee past health issues was demanded in the employee details form which does not have any use in the future.	Loss of employee engagement at SBC
Incomplete wage and superannuation records	There is no record keeping of the wages and the superannuation given to the staffs.	Retention problems for staffs.
Huge water wastage in SBC	The toilets use the single flush system and there is wastage of around 30,000 litres of water each week.	Financial loss for SBC
Inappropriate location of SBC	The SBC is located at the busy intersection and there are chances of vehicle accidents in front of the premise.	Loss in sales for SBC
Community Centre Development at rear yard of SBC	The storage of empty drums at the rear yard which is waiting for the collection of chemicals.	Health related issues for children.

The risk assessment matrix is a clinical tool in having the view of the prioritized risks as well the assessing of the risks in a proper manner. This provides quick view on the level of risks prioritized so that the management of any organization should be assessing the prioritized risks as early as possible. This risk assessment matrix s easy to develop as most of the information can be easily dealt from the risk assessment and risk management analysis which I done before the risk assessment matrix to be formed.

The purpose of the risk assessment matrix is to define the level of risks by consideration of the probability of occurrence of the various types of risks associated with case or any organization used in the study (Thomas 2012). This is useful in assessing the prioritized risks as well in effective decision making to be done by the external change agent to be hired at SBC.

Importance of Risk Assessment Matrix

The importance of risk assessment matrix is that they play a vital role in the development of the risk management plan and the evaluation of safety management at SBC. This is also important in creating awareness of the hazards and risks as well the consequences of the risks and hazards identified as well.

Priority Risks	Risk Level	Strategies in dealing with the risks
Improper cleaning	Extremely High	There is the need of using fresh and clean cloth for cleaning of the chemicals. The use of mops in cleaning of the floors and other places in the premises of SBC.
Spilling of chemicals	Extremely High	There is the need of using large sized and air packed containers.
Improper place of dumping and cleaning after long time.	High	The dumping of the rags should not be done at the rear yard of the premises and cleaning of the waste dumpster is made on a regular basis.
Limited Emergency Equipments used at SBC	High	There is the need of developing notes and proper list of all the emergency equipments used at the premises of SBC.
Unsafe handling of chemicals for the staffs of SBC.	Extremely High	Need of conducting training programs and training manuals should be given to the staffs. The chemicals are also stored in places outside the premises.
Lack of emergency plan displayed at SBC	Extremely High	Immediate development and preparation of emergency plan and need of checking it on a regular basis.
Insufficient dealing with the injuries of the staffs	Extremely High	There is the need of providing of safety tool kits to the staffs so that they can be able to identify the safety issues at SBC.
No protection for confidential and financial information in SBC	High	Legal password protected systems to be developed.
Incomplete wage and superannuation records	Low	Development of MIS system for keeping all the records intact.
Huge water wastage in SBC	High	Use of double flush system toilets in SBC
Inappropriate location of SBC	Low	Need to change it to any non busy locations.

According to Webster (2016) risk management is essential for reducing the probable negative impact on the company and the huge amount of money associated with it. In the Smith Brown Chemicals Company, the risks that were identified needed immediate attention. Previous literature and case studies were reviewed to throw light on this issue. For instance, the workers of chemical industries have a high exposure to hazardous materials in comparison to the general population (Bergamaschi et al. 2015). The reason behind this is that the large amount of chemical materials and the effluence of other particles generated during production procedure is more than in any other profession. The risk assessment technique as a part of control banding framework of robust theory reflects a strong theory. However, the implementation of model requires further development for transferring the risk to the insurance companies. A general analysis of risk assessment with particular focus on the emission of hazardous materials outlined the research on material performance. A safe and secured exposure to chemical materials is regarded as an ethical consideration for all the workers who are involved in the production process.

On the light of this article, it can be mentioned that enough effort is required from the management and employers for providing a safe workplace to the workers. The present scenario of the increase in the number of stakeholders in chemical companies, strong factors can be based on the development of effective risk management strategies. As per the given case of Smith Brown Chemical Company, immediate risk management strategies are necessary due to its location in a highly sensitive area. Large air- packed containers need to be used by the company as a safety measure and the waste materials need to be dumped at a proper place for avoiding future complication at the old- age home and child- care centre (Reese 2015).

According to Caldwell et al. (2016), there is a necessity of guidance for the assessment, mitigation and management of potential environmental effects of active pharmaceutical ingredients (APIs) in treating wastewater from manufacturing chemicals companies. The approaches used in this particular study have identified the tools to evaluate the potential risks from the hazardous materials and create measures for decreasing the risk. These specific measures are implemented either internally within the company or from external sources, which are limited to the local circumference. The instances and case studies provided will be effective in seeking the mitigation strategies for SBC Company.

Recommendations

As the external change agent hired by SBC, The external change agent should be providing training manuals and conduct training programs for making the staffs educated about how to handle safely the chemicals used. They also educate about the packaging of the chemicals so that they are safely transported to the retail outlets. They should be taking regular meetings and discussions with the staffs for analyzing the feedbacks they give it to the external change agent. There is also the need of supplying the large containers in order to reduce the level of chemical spillage to be taken place in SBC. The external change agent should be ordering different types of cleaning devices like mops, sweeps and hire sweepers and cleaners on contract basis.

It is important that the external change agent might proposing that it should be collaborating with the foreign suppliers who do not compromise in the quality of the chemicals given to them in order to reduce the level of high risk of safety issues inside the premises (Maguire 2017). The order of the special waste dumpster to be used for reducing level of intoxication of the chemicals after being stored there for one week is important. The leasing of the priority emergency equipments which are costly so that it should be used at emergency purposes and there is also the purchasing of the emergency equipments which are mostly used in providing safety to the staffs working in SBC.

The external change agent will be proposing to provide safety manuals and safety tool kit where the employees should be using it which includes the gloves, masks and other materials for reducing the health and safety related issues in coming in contact with the chemicals for supply.

The external change agent will be proposing to implement MIS system with the help of the software analyst and network engineer so that proper recording of the risks as well the detailed information of all the stakeholders are found and retrieved whenever essential for SBC.

The external change agent will suggest the company to hire software and business analyst in order to develop proper IT system and analyze the business.

The challenges faced by the external change agent in order to implement the risk mitigation strategies could be the conflict of ideas and knowledge with the CEO and the Board of Directors. The communication gap to be taken place between them and the legal and compliance requirements in adoption of the strategies could be the challenge to be introduced.

Conclusion

In order to mitigate the risk at the workplace, there is an immediate necessity of precautionary steps. As it was mentioned that the chemicals were not cleaned properly, it can be suggested that fresh and clean clothes can be used always and the used ones need to be disposed properly. Spilling of chemicals can be avoided if large air- packed containers are used instead of small containers. The use of large containers might not prevent spilling entirely but it will reduce the risk largely. The company should think of a better place to dispose the clothes rather than throwing it in the backyard. Improper disposal is not only affecting the workers but also the environment (Stark et al. 2015). 

Moreover, the waste should be collected on a regular basis and not on a weekly basis. This is because more time the chemicals will be exposed in the area; more will be its impact on the environment. Therefore, the company should make a deal with the waste contractor to collect the chemical every day. The waste should not be thrown in the backyard rather it should be collected in an enclosed bin so that it does not pollute the air. There should be separate bins for different categories of waste because combination of one chemical with the other might pose a severe threat among all.

There should be abundant emergency equipments in the company premises which can be used in need. The staffs need to be trained immediately by an expert so that they can learn the technique of safe handling of chemicals and equipments. The training session should be followed by a practical demonstration to find out the impact of the theoretical learning by the staffs. The chemicals should be stored in a safe and secured area and need to be handled by the expert and trained workers only.

Apart from all these, there is an immediate need of proper injury treatment system for the employees along with the security of their personal information. MIS system can be used as a part of maintaining the personal records (Aqlan and Ali 2014). Above all, the company needs to be shifted in an open area so that its harmful impact is not felt by old people and infants.

It is important to mention the fact that there is the need of purchasing of the proper equipments like the protective clothes, the gloves and the other precautionary materials or equipments for cleaning the chemicals in a more proper way. The safety management system is implemented by the development of the safety manuals which is handed over to the employees working in SBC (Duijm 2015). It is also important that there is the need of the development of the proper drainage system where the dumped and the stored waste water is cleaned out from the premises. The inspection officer should be implemented by hiring process and this will help in making the inspection of the premises so that any harmful incidents do not occur inside the premises of SBC. The implementation of the advertising and the banners which were used inside the premises and this will help in promoting awareness of the use of hazardous substances inside the premises and educate the employees regarding the storage and the safe handling of chemicals (Bloch Blumberg and Laartz 2012). It is also obvious that there is the need of the implementation of the personal risk development plan where the external change agent should be comparing the risk management analysis made by him with the personal risk development plan which has been developed earlier. The need of the environmental packets and the other things were used for reduce the water and the soil pollution which is caused due to the storage of chemicals at the rear yard of SBC. The MIS system is needed to be installed through the linkage of the system with the server. It should also be implementing the emergency training for the employees working so that they can be able to handle the situations of emergencies in SBC.

The challenge which has been faced by the external change agent in the incorporation of the plan B is the financial challenge. It is obvious that for the development of the waste treatment system and the hiring of the new talents there is the huge investment to be done by the company SBC (Kaplan and Mikes 2012). The next could be the legal challenges which are faced by the external change agent in the implementation of the activities as there is compliance to be developed in the implementation. The challenge of safeguarding the environment from any kind of hazardous substances coming in contact could be the toughest one to manage for the external agent.

It is seen that there is the development of the implementation plan to be developed and it should be presented to the CEO and the Board of Directors by the external change agent. The action plan is defined as the implementation of the actions taken in order to assess and manage the risks associated with the company during their operations at SBC. The implementation plan after formed, it needs to be approved by the CEO and the Board of Directors for implementing change in SBC (Kendrick 2015). It is said that in this action plan which has been developed by the external change agent contains the different components which includes the budget for the actions taken or the activities which needs to be implemented in order to undergo the change in SBC for the growth and sustainability of the business (Covello and Merkhoher 2013). The next could be the types of resources to be required for the implementation of the activities to be done. The next could be the timeline by which the implementation plan is implemented for SBC to accept and work on the change by the different stakeholders involved in this company.

Actions Taken	Budget (AUD)	Resource Requirements	Timeline
Agreement with new  Suppliers	400	Agreement papers, document for approval from CEO and Board of Directors.	March 26, 2018
Conduction of training programs and development of training manuals	200	Training brochures, training manuals and training devices.	April 5, 2018
Development of new safety tool kits.	250	Safety tool box	April 17, 2018
Leasing of Costly Emergency Equipments	400	Safety Officer, Finance and employees	April 28, 2018
Purchasing of Prioritized Emergency Devices	500	Health and Safety Officer, finance and employees.	May 3, 2018
Hiring of new cleaners	150	Finance	May 7 , 2018
Development of MIS system.	350	Network administrators and system analyst	May 12, 2018
New contract with waste contractor.	200	Health and Safety officer, Quality Manager and Risk Manager	May 20,2018
Purchasing of special type of waste dumpster.	100	Finance and human resources.	May 23, 2018
Development of waste management system.	450	Risk manager, Health and Safety Officer and System analyst.	May 26, 2018

From the action plan it is indicated that the total budget estimated from this plan is around 3000 AUD which is affordable for the company SBC to undergo change. It has been taking around 2 months in the completion of the action plan.

In consideration of the turbulent economic environment and high competition in the market for the chemical industries, there are certain recommendations to be developed which is proved to be beneficial for the sake of SBC. It is recommended that for the further development of the SBC, they should be developing good infrastructure and provide best of the facilities to the employees and the visitors coming there (Larson and Gray 2013). It is recommended that they have the huge open space where there is the chances of developing the community care centre which is very good for the future and expansion of their services to the communities they have been operating in a proper manner,. There is also recommendation of the development of the compliance and regulatory requirements to be improved so that legal obligations could be eliminated. It is recommended that the will be improving the local nursing home which cares for the elderly residents with age related conditions including dementia. This will help to further develop their business which fosters growth and sustainability for SBC. They should also be developing further in terms of the infrastructural development ad the wide range of facilities for the nursing home where they provide day to day care for the children who are less than 5 years ago.

It is recommended that if SBC is collaborated with the government for the development of the community centre which improves their economic power and the sales of SBC could be enhanced (Bahr 2014). This should also provide them the opportunity to enhance the brand image and high reputation as well. It is recommended that due to the partnership of SBC with the government in the future help in generating huge revenue for the company adds to the growth of the business.

With the increasing competition, there is always urgency for SBC to provide high quality and timely services to the retail stores by SBC. So it is recommended that there is the need of hiring new and professional employees who should be working for long time in SBC. There is the conduction of training sessions to be held which helps in making the employees educate about the safe handling of chemicals and storage in small containers (Glendon Clarke and McKenna 2016). This will influence the growth and sales of the business for SBC. There is the need of monitoring of the external environment with the application of the PESTLE analysis and Porters Five Force model for analyzing the strategies of the competitors.

Conclusion

From the study it is evident that SBC will be growing their business and expanding their services in order to become sustainable in the future. It is concluded that SBC should be improving on the way they are analyzing the risks identified and assessed. It concludes with the fact that SBC should be improving in developing and providing best of opportunities in the economic and social benefit of the country. It concludes that the legislations and the regulatory compliance should be measured and analyzed effectively in the assessing and reviewing of the economic and social risks involved with SBC. Hence, the proposal which is presented by the external change agent should be feasible enough and it will be approved by the CEO and the senior management.

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