Assignment Cover Sheet

Programme BACHELOR OF COMMERCE

Module Name RISK MANAGEMENT 3

Assignment Number 10.1.15
Surname MAFU
First Name/S MGCINI
Student Number 22115111
Date Submitted 26/09/2023
Postal Address

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E-Mail mafumgcini@gmail.com
(alternate email address)
Contact Numbers Cell :074 372 3616
Home :
Work :011 523 5006
Alternate contact :
Name: Elizabeth Ncube
Relationship: Partner
Contact number: 0780573965

I ___MGCINI __MAFU_____________ ID/Passport No.__8803076354082______________hereby

confirm that the assignment submitted herein is my own original work.
Date: __26/09/2023____________________
FOR OFFICE USE ONLY
Marks per question (Q)
Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10
QUESTION ONE

1.1 Examine the king 3 Report on Corporate Governance and discuss its
significance in South Africa.

2009 King III report,governance, strategy and sustainability were integrated. The report
recommends that organisations produce an integrated report in place of an annual financial report
and a separate sustainability report and those companies create sustainability reports according to
the Global Reporting Initiative's Sustainability Reporting Guidelines.
In contrast to the earlier versions, King III is applicable to all entities, public, private and non-profit.
King encourages all entities to adopt the King III principles and explain how these have been applied
or are not applicable. The code of governance was applicable from March 2010.
The report incorporated a number of global emerging governance trends:

 Alternative dispute resolution

 Risk-based internal audit
 Shareholder approval of non-executive directors' remuneration
 Evaluation of board and directors' performance
It also incorporated a number of new principles to address elements not previously included in the
King reports:

 IT governance
 Business Rescue
 Fundamental and affected transactions in terms of director's responsibilities during mergers,
acquisitions and amalgamations.
Again, the code of corporate governance is not enforced through legislation. However, due to
evolutions in South African law many of the principles put forward in King II are now embodied as
law in the Companies Act of South Africa of 2008. In addition to the Companies Act, there are
additional applicable statutes that encapsulate some of the principles of King III such as the Public
Finance Management Act and the Promotion of Access to Information Act

King 3 Report has a big significance to south Africa corporate governance listed below

KEY PRINCIPLES OF THE KING III REPORT The Report places great emphasis on:
Leadership;
Sustainability; and
Corporate Citizenship.
The importance of the concepts of integrated sustainability and social transformation is highlighted.
This leads to a lasting concentration on the effects of business on society and the environment. The
concept of sustainability is linked with the evaluation of ethics and the improvement of ethical
standards in business and in the community. The Minister of Environmental Affairs has pointed out
that, unless measures are adopted, greenhouse gas emissions in South Africa will quadruple by
2050. This would result in South Africa becoming a pariah nation. Sustainability reporting is also
emphasised in the need to utilise suppliers from amongst previously disadvantaged people. The
success of companies in the 21st century is likely to involve:
The natural environment;
The social environment;
The political system; and
The global economy.

The King III Report has placed great emphasis on an integrated report, which will evaluate the
company’s impact on the economic life of the community in which it operates, as well as many other
matters.

1.2 Discuss the significant aspects relating to business sustainability.

Business sustainability helps resolve or mitigate environmental, social and economic challenges
through the strategic management of corporate resources. It seeks to improve the effects a
company has on the external world. In return, the business generates goodwill with customers,
employees, community members, investors and other stakeholders. In addition, a business
sustainability program can lower costs and promote the long-term financial health of the
organization. If a company spends less on electricity, water and other resources, it can increase
profits. Similarly, a company's sustainability initiatives might help improve business results by
elevating its standing in the community and with employees.

Companies are advised to regularly publish sustainability goals and report on their progress
toward reaching them. This transparency helps employees and outsiders understand how the
business is contributing to a sustainable global economy. In addition, these progress reports
help maintain trust with stakeholders.

Furthermore, business sustainability objectives and goals help organizations stay true to
commitments to core business interests such as operational efficiency and shareholder value.
Business sustainability has been incorporated into other business movements such as kaizen, a
philosophy of continuous improvement that aims to reduce waste in manufacturing and business
processes through a focus on increased quality control and productivity. Sustainability efforts
also help to build more resilient supply chains by increasing efficiency and better managing
costs.

3 types of sustainability

Environmental, social and economic demands are considered the three pillars of business
sustainability. In the corporate world, they're sometimes referred to as the triple bottom line, a
sustainability-focused framework for assessing a company's social and environmental impact
and the overall economic value it creates. This is a departure from the traditional concept of the
bottom line, which evaluates all efforts in terms of their short-term effect on profits.
The three main pillars of sustainability are the following:

1. Environmental sustainability garners the most attention from businesses. It requires companies
to focus on improving energy efficiency in data centers and other facilities and on reducing their
carbon footprint, packaging waste and water usage, among other environmental issues.

2. Social sustainability focuses on corporate social responsibility and being a business that
customers, the surrounding community, employees and investors want to support. Companies
practicing social sustainability are advised to adopt fair labor practices and invest in long-term
community relationships by giving back to the local community, among other steps.

3. Economic sustainability focuses on long-term business profitability and includes activities such
as corporate governance, risk management, regulatory compliance, ethical business practices
and accounting transparency.

4. These three categories are commonly referred to by the acronym ESG -- or environmental, social
and governance. ESG is another framework that helps companies document their business
practices, progress, and related risks and opportunities as part of business sustainability efforts.
Businesses can then measure their success in these areas using various ESG metrics and
report the results publicly. ESG rating agencies use the disclosures and other data to give
companies ESG scores, which investors and other stakeholders can consider in evaluating
organizations.

How to create a sustainable business strategy

While there's no one right way to practice sustainable business development, organizations can
implement the following best practices:

 Address compliance. Companies need to pay attention to and meet compliance requirements
regarding waste management, pollution and energy efficiency, as well as regulations related to
corporate governance such as the Sarbanes-Oxley Act in the U.S. and the European Union's
General Data Protection Regulation. Failing to adhere to these regulations can result in financial
fines and reputational damage, which can make it difficult to sustain a business.
 Align overall business strategy with sustainability. Businesses should realize that contrary to
traditional ways of thinking, sustainability isn't at odds with higher profits or a competitive edge
over business rivals. Sustainability -- social, environmental and corporate -- is essential for long-
term success. Businesses should strive to exceed compliance and use sustainability to their
competitive advantage.

 Quantify results and return on investment. Businesses should quantify the return on
sustainability investments to make progress easier to track. For example, on compliance-based
sustainability initiatives, regulations typically outline a preset framework to help businesses
measure their progress. Various ESG reporting frameworks and standards are also available to
use. It's generally more difficult for businesses to independently define a framework that
measures sustainability, with the goal of achieving competitive advantage once base-level
compliance requirements are met.

 Be proactive. Anticipate potential areas of improvement and build them into the sustainability
strategy before they become a visible problem. While most corporations understand the
importance of sustainability, not all are proactive.

 Be transparent. Disclosures about a company's sustainability strategy must be shared with the
board of directors, shareholders, customers, employees and the surrounding community.
Businesses should also be forthcoming about where improvements are required and their plans
to address that.

 Collaborate. Work with other organizations -- suppliers and business partners, for example -- to
jointly develop plans to address larger economic, environmental and social problems.
QUESTION TWO

2.1 Discuss the significance of quality assurance systems for risk management.

QA establishes and maintains set requirements for developing or manufacturing reliable products. A
quality assurance system is meant to increase customer confidence and a company's credibility,
while also improving work processes and efficiency, and it enables a company to better compete
with others.

The ISO (International Organization for Standardization) is a driving force behind QA practices and
mapping the processes used to implement QA. QA is often paired with the ISO 9000 international
standard. Many companies use ISO 9000 to ensure that their quality assurance system is in place
and effective.

The concept of QA as a formalized practice started in the manufacturing industry, and it has since
spread to most industries, including software development.

Importance of quality assurance

Quality assurance helps a company create products and services that meet the needs, expectations
and requirements of customers. It yields high-quality product offerings that build trust and loyalty with
customers. The standards and procedures defined by a quality assurance program help prevent
product defects before they arise.

Quality assurance methods

Quality assurance utilizes one of three methods:

 Failure testing, which continually tests a product to determine if it breaks or fails. For physical
products that need to withstand stress, this could involve testing the product under heat,
 pressure or vibration. For software products, failure testing might involve placing the software
under high usage or load conditions.

 Statistical process control (SPC), a methodology based on objective data and analysis and
developed by Walter Shewhart at Western Electric Company and Bell Telephone Laboratories in
the 1920's and 1930's. This methodology uses statistical methods to manage and control the
production of products.

 Total quality management (TQM), which applies quantitative methods as the basis for continuous
improvement. TQM relies on facts, data and analysis to support product planning and
performance reviews.

Benefits of incorporating Risk Management into Quality Assurance Testing

 Improving product/service quality– The primary benefit of incorporating Risk Management into
Quality Assurance Testing is that it helps improve the quality of the product or service. Think of it
as getting a fresh coat of paint on a rusty old car, it’ll look brand new! By identifying and
mitigating potential risks, QA teams can ensure that the end product is of high quality, reliable,
and meets the customer’s expectations. It’s like getting a perfect 10 from the judges on “Dancing
with the Stars”.

 Reducing the impact of risks – Another major benefit of incorporating Risk Management into
Quality Assurance Testing is that it helps reduce the impact of risks. This is like avoiding a traffic
jam, you’re ensuring that the project stays on track and arrives on time. By reducing the impact
of risks, QA teams can minimize project delays, minimize the impact of software bugs, and avoid
budget overruns. It’s like having a weatherman who always predicts sunny skies, you’ll always
know what to expect.

 Minimizing overlooked or inadequately addressed issues – Risk management also helps

minimize issues that may have been overlooked or inadequately addressed during the
development and testing process. This is like having an eagle eye, you’re making sure nothing
slips through the cracks. By using a systematic and comprehensive approach, QA teams can
ensure that all potential risks have been thoroughly addressed, reducing the likelihood of missed
 or overlooked issues. It’s like having a team of detectives on the case, no detail will be left
unnoticed.

 Meeting customer needs and expectations – Finally, incorporating risk management into quality
assurance testing helps QA teams meet the customer’s needs and expectations. By delivering a
high-quality product or service, QA teams can ensure customer satisfaction and help build a
positive reputation for their company. It’s like getting a standing ovation after a performance;
your customers will be wowed by the quality of your product/service!

2.2 Explain the reasons for the occurrence of unsafe acts and describe the
various.

Unsafe acts are any actions or behaviors that put ourselves or others at risk of harm. These
could include using improper tools, failing to wear proper personal protective equipment (PPE),
working without proper authorization, or simply being careless or distracted on the job.

Unsafe Acts

80% of all injuries on duty are the result of unsafe Acts by people.

More difficult to reduce as they revolve around people and what they do.

Will never be entirely cured by training or motivation ie How about the person who has a dizzy
spell and collapses onto unguarded drive sprockets?

Some examples of unsafe acts are:

 Speed – operating a machine at a speed it is not designed to run at.
 Working without authority – entering a confined space before it has been declared safe.
 Adjusting moving machinery – lubricating bearings or changing the drive belts while the machine is
still running.
 Chance taking – Running in front of a fork lift
 PPE not worn – not wearing safety goggles when grinding.
 Three of the primary causes of unsafe acts are due to:

A Lack of Knowledge of Health & Safety Protocols: An employee may not have knowledge of
their employer’s health and safety protocols. This is an example of poor communication on the
company’s part. Regulations and hazards can change regularly, so employers must make it their
business to provide employees with regular safety updates and training.

Refusing to Follow Safety Protocols: Many companies go to great lengths to post their health and
safety rules for all employees to see. However, there may be those few employees who choose
to ignore these regulations for their own personal reasons.

Doing the Bare Minimum to Cut Costs: Implementing safety programs can be time-consuming
and costly. To cut costs and keep production steady, some employers use it as an excuse to
forego implementing certain regulations. This can backfire down the road if an injury were to
happen and lead to OSHA penalties as well as worker compensation claims.

Preventing Unsafe Acts

Preventing unsafe acts and unsafe conditions is everyone’s responsibility. Here are some tips to
help you prevent accidents on the job:

 Always use proper tools and equipment for the task at hand
 Wear proper PPE as required by your job
 Follow established safety procedures and guidelines
 Keep your workspace clean and organized
 Report any unsafe conditions or hazards to your supervisor
 Never take shortcuts or risks when performing a task
 Take breaks as needed to stay alert and focused
QUESTION THREE

3.1 Discuss the various environment concerns affecting businesses.

Businesses are affected by major environmental issues and sustainability challenges. Climate
change, pollution, and global warming impact a company’s bottom line because these top
environmental issues in business reduce profits and productivity in the workforce.

Our world is facing important sustainability challenges that have global consequences. Alone,
we cannot solve environmental issues in a measurable way. Businesses, on the other hand,
have the reach, resources, and competency to make a tangible impact. This is why sustainable
business is the most effective way to instigate long-term change that benefits both businesses
and global consumers.

For a long time, companies did not see or want to see their large-scale impact on the
environment. Yet, wherever you look, industries are there and it affects the landscapes
in multifaceted ways.

Environmental issues have no borders. As environmental issues continue to worsen globally,

businesses are seeing the responsibility they have to reduce their elephantine carbon footprints.
Mass production needs mass amounts of resources. If we do not care for the planet, the
precious resources we have will deplete, to the detriment of all.

Companies that face environmental and ethical issues in business with solutions have a market
advantage. Consumers are increasingly more likely to purchase from businesses with strong
CSR strategies.

Below are some of the major environmental issues the world, and business world, are facing:

1. Pollution

Pollution is when contaminants gather in an environment and cause harmful or unfavorable

effects. We see pollution in the air, water, and soil of our planet that have a harmful effect on
human beings and global ecosystems.
The main contributor to air pollution is the excess burning of fossil fuels. Burning products that
produce carbon dioxide, like fossil fuels, cause C02 levels to become unbalanced and affect our
air quality.

Major contributors to water pollution are industrial waste, marine dumping, and the agricultural
industry. Water pollution is from improper waste disposal and the use of harmful chemicals that
seep into our water sources.
How Pollution Affects Business

These are the primary ways that pollution can affect business:

Loss of Employees

Pollution affects business because it causes health problems in the workforce. According to the
World Health Organization (WHO), air pollution causes 4.2 million deaths every year globally.

Pollution causes health problems in humans which has a direct effect on sick days and health
benefits requested by employees. When employees face health problems, productivity decreases.

Loss of Resources

Pollution affects business because it depletes usable resources.

Of the 3% fresh water available on the planet, only 0.5% is drinkable. This is because the other 2.5%
is frozen in glaciers or too polluted to consume. If we continue to pollute our water, we will continue
to make scarce a life-giving resource.

Why Businesses Should Reduce Pollution

Pollution is one of the top environmental issues that businesses have a role in reducing. A 2017
study found that 100 businesses contributed nearly 71% of the greenhouse gas emissions on our
planet.

If businesses make an effort to reduce their carbon footprint and use water-safe practices, the global
production of air and water pollution will reduce dramatically.

Businesses produce large amounts of pollution to manufacture and transport products

and power warehouses and storefronts. Consumers are aware that corporations have a larger
environmental impact than single entities and are holding companies accountable for their
environmental actions.

For example, airline companies are aware of their impact on global C02 emissions and are working
to use cleaner fuel sources to combat their carbon footprint.
The company AeroFarms uses vertical gardening with 95% less water use than conventional
agricultural practices and no pesticides.

These companies have recognized the impact of pollution and have made steps to mitigate their
effects on the environment.

2. Climate Change

Climate change is a result of global warming. Climate change is the long-term shift in weather
patterns and global temperatures due to rising carbon levels. Carbon emissions and greenhouse
gasses trap heat in our atmosphere resulting in slight but ever-increasing temperature changes.

Climate change is one of the biggest environmental issues that we face because it affects all
weather systems and climates around the globe. Droughts, forest fires, floods, storms, and natural
disasters are all a result of climate change.

The main contributors to climate change are burning fossil fuels, industrial and agriculture practices,
and deforestation.

How Climate Change Affects Business

These are the primary ways that climate change can affect business:

Loss of Employees

Climate change affects businesses because employees are relocating due to natural disasters.

Another way businesses lose productivity because of climate change is from increased sick leave
requests. As a result of the California wildfires, laws were put in place to protect employees when
requesting sick leave.

Loss of Product

Climate change affects businesses because natural disasters destroy warehouses, natural
resources, and interrupt transportation schedules.
Why Businesses Should Care About Climate Change

Companies are seeing that going carbon neutral is beneficial to business.

Businesses are not impervious to the effects of climate change. Natural disasters affect crop
production, destroy infrastructure, and destroy resources. A 2021 study of 750 executives reported
that more than 25% are already noticing a scarcity of resources in the supply chain due to the effects
of climate change.

Which brings us to our next environmental issue in business.

3. Depleting Natural Resources

Natural resources are objects sourced from the earth that we use in the production and
manufacturing of goods.

We see examples of depleting natural resources from deforestation, mining, and

agriculture. Deforestation is depleting our forests. We are using unsustainable amounts of wood in
our production methods.

Mining is depleting fossil fuels and mineral deposits. At the same time, mining contributes
to pollution and habitat destruction.

Overfarming is depleting the nutrients in our soil and our water supply.

We need to seek renewable energy sources, sustainable materials, and updated decision-making
methods to ensure that the resources are protected for future generations.

How Depleting Natural Resources Affects Business

These are the primary ways that depleting natural resources can affect business:

Loss of Product

Depleting natural resources affects businesses because products that use the resource will be more
expensive and difficult to manufacture.

If businesses do not have the resources they need to produce their products, what happens to that
business if it does not adapt to a green future? It goes extinct too.

Loss of Profit

Depleting natural resources affect businesses because scarcity increases overhead.

Scarcity creates more market competition which increases prices for consumers. However, a higher
sticker price does not result in increased profits, since overhead prices in production also increase.

Why Businesses Should Care About Depleting Resources

Economic sustainability is in the best interest of a business, especially one that relies on natural
resources. Economic sustainability examples include companies like AgroFarms and Source water
producing solar panels, which make a profit from sustainable methods of business.

Protecting natural resources gives longevity to a company, protecting the planet as well as profits.

As fossil fuels continue to be depleted, locally sourced products will have a market advantage with
lower fuel costs.

According to one source, the return of investment on clean water is quadrupled due to reduced
healthcare costs, increased productivity, and fewer premature deaths.

4. Habitat Destruction

Habitat destruction is when an environment becomes unsuitable to sustain normal life for inhabitants
of that area or ecosystem. Habitat destruction is one of the top environmental issues in business
because it contributes to depleting natural resources, pollution, and climate change.

We see habitat destruction of pandas, elephants, and tigers from the depletion of forest
environments due to deforestation and human influence. But humans are increasingly finding their
own habitats being destroyed which has a direct effect on business.

The 2020 wildfires in the United States burned millions of acres of forests. This destroyed animal
habitats, displaced families, and resulted in increased insurance rates which drive up living costs.

The main contributor to habitat destruction is human influence from mining, deforestation, and
overpopulation.
How Habitat Destruction Affects Business

These are the primary ways that habitat destruction can affect business:

Loss of Employees
Habitat destruction affects businesses because as houses get destroyed and insurance rates
increase, families relocate to cost-friendlier areas. The reduction of a viable workforce results in
reduced production.

Loss of Product

Habitat destruction affects business because as we deplete our natural resources, products that
use those resources can no longer be sourced. Habitat destruction results in higher overheads
and, eventually, the inability to continue production of the product.

Loss of Profits

Habitat destruction goes hand in hand with resource depletion which raises overhead costs and
cuts into company profits.

Another way habitat destruction affects business profits is through government initiatives to go
green. Anti-plastic laws changed the ways we used plastic bags and straws seemingly overnight.
Companies that produced these plastic products needed to sustainably adapt in order to hold onto
the market and their profits.

Why Businesses Should Care About Habitat Destruction

Companies face turnover from something that seems out of their control. At first glance, a raging
forest fire burning down an employee's house does not seem to be the responsibility of the
company. However, when the employee relocates and seeks new employment in a new city, the
company suffers and must retrain a new staff member.

When businesses care about habitat destruction and source raw goods from more sustainable
sources, like bamboo instead of wood, employees and CEOs benefit.

Bamboo toothbrushes have seen a steady increase in sales, showing that consumers are
increasingly interested in purchasing sustainably sourced products.

5. Overpopulation
Overpopulation means the number of people on the planet or given environment outnumbers the
resources available to sustain that population.
Overpopulation contributes to pollution and climate change, improper waste disposal, habitat
destruction, and the depletion of resources.

How Overpopulation Affects Business

These are the primary ways that overpopulation can affect business:

Loss of Employees
Overpopulation affects business because it correlates to lower education rates and low-income
rates. Overpopulation reduces the talent pool of an educated and qualified workforce making it
more difficult for companies to secure the employees they are looking for.

Loss of Profits
Overpopulation affects business profits because more people means higher inflation rates. As
inflation rates rise, resources cost more which cuts into business profits.
Why Businesses Should Care About Overpopulation
Overpopulation is the main contributor to most of the environmental challenges we face today.
Businesses have an impact on overpopulation that requires long-term thinking.
In the short-term, overpopulation means more market competition which is good for business.
However, overpopulation has negative consequences on our environment and it reduces the
quality of life for low-income families.

Businesses have an impact on overpopulation. Families in poverty have more children than
higher-earning families. Livable wages contribute to education and medical care which in turn
results in fewer children per family.

When a business invests in livable wages for their employees, they are investing in a higher
quality of life and a more educated workforce for the future generation.

6. Improper Waste Disposal

Improper waste disposal is one of the top environmental issues in business. Due to
overpopulation and improper waste disposal, we are polluting our land, water, and air.

Improper waste disposal is seen in nearly every product; from single-use plastic water bottles to
fast fashion, to where we put animal feces from factory farms.

How Improper Waste Disposal Affects Business

These are the primary ways that improper waste disposal can affect business:

Loss of Profits
Improper waste disposal affects business profits because government policies are being put in
place to keep companies financially accountable for their environmental effects.

For example, in 2020, Walgreens was fined USD 3.5-million for improper waste disposal.

Loss of Employees
Improper waste disposal has serious health consequences for employees and anyone living in
areas surrounding production plants.

For example, farms that used dangerous chemicals in agricultural practices have now poisoned
the drinking water of this California town. Relocation and sick leave reduce the workforce for
businesses.

Why Businesses Should Properly Dispose of Waste

Improper waste disposal from one part of the planet can have long-term effects on the entire
planet. A new study in 2022 found microplastics in human blood. Microplastics are associated
with improper plastic disposal and have been found in rainwater.

Businesses produce a lot of waste and benefit from the continuous purchase of goods. Fast
fashion is an example of a business model that has a responsibility to consider the end location of
last season's fabrics.

For example, the jean brand Levi’s released a new line of jeans called WellThread which uses
sustainable materials and no harmful chemicals.

Proper waste disposal will preserve our global freshwater sources from contaminants to keep
employees and consumers healthy. Recycling practices will give us multiple uses of resources to
preserve the raw goods we have so that production lines can continue meeting consumer needs.
The Bottom Line

Our planet faces environmental challenges that have direct and negative consequences on the
longevity of current business practices.

Pollution, climate change, habitat destruction, overpopulation, depleting resources, and improper
waste disposal all have cyclical effects on profits, employee turnover, and productivity.
Businesses have the worldwide reach, the resources, and the technology to make scaleable
changes to their procedures to reduce their impact on the environment. When businesses
acknowledge and take responsibility for their large-scale environmental impact, the whole planet
benefits.

Show the world how your company is creating a better business future with sustainable
initiatives. Contact Prodigium Pictures to highlight your positive impact and show consumers
that you care about sustainability issues.
 3.2 Assess the significance of occupational hygiene in business.

A clean and safe workplace lifts worker morale, increases productivity, and benefits businesses
and employees.

Some other fantastic benefits are:

 Efficient work process, less waste, and increased productivity.

 Maximised worker potential.
 Improved employee health and better employee retention.
 Reduced injury claims and time-wasting paperwork.
 Reduced absence from work and sick leave.
 Technological improvements decrease waste and increase production.

Good occupational hygiene practices enhance the efficiency of a business leading to better
growth potential, attaining business goals, and increased profit margins.

Occupational Hygiene Could Lead to The Following

Reduced Costs:
When hazards are removed or workers are made aware of how to protect themselves, accidents
are automatically reduced. In turn, you will pay less in sickness benefits for unproductive staff
members and avoid the cost of temporary replacements. Furthermore, your occupational
hygiene measures might be inadequate in a worst-case scenario. In this case, the company could
even be faced with costly industrial compensation claims.
Improved Staff Morale:
A high incidence of work-related illnesses or accidents is hardly likely to build trust in the
company. In the absence of any visible attempts to protect workers’ health and safety, employees
tend to distance themselves from management. Low morale manifests as low productivity,
adding to the losses due to illness and injury. By contrast, those companies that have chosen to
implement an effective occupational hygiene programme have reported marked improvements in
their staff relations and productivity.
Improved Public Image:
No company needs negative publicity. However, keeping a secret has become far more difficult
in this era of the internet and social media. Suppose your company has a bad accident record. In
that case, sooner or later, a disgruntled worker or angry relative will reveal the fact online. How
do you think your clients might react to the possibility that they could be seen as supporting a
company that leaves its employees at risk? A visible occupational hygiene programme inspires
confidence and can only strengthen your public image. It will also make it easier to recruit new
staff and retain your existing workforce.
Consistency with the Rules

There are rules for employers to protect their workers from word-related dangers like health
risks, ergonomic risks, and exposure to dangerous materials. By maintaining industrial
cleanliness, businesses can ensure compliance with these regulations and avoid costly fines and
prison issues.

While employers can hire industrial hygienists for their workplace, they can also have an in-
house team member look after it for themselves. In that case, workers could consider enrolling
in online industrial hygiene programs like a Master of Science in Public Health (MSPH) in
Industrial Hygiene. Students learn to think logically about workplace health and safety through
such programs. Toxicology, data representation, and the study of disease transmission are taught
so that students can create effective safety guidelines that can safeguard workers.

In addition to educational programs, workplaces must also consistently read about new updates
on laws on industrial hygiene to ensure they comply with all of them. In turn, there’s minimal
risk of running into costly lawsuits.

2. Increase in Productivity

When the workplace is designed for safety and cleanliness, employees are more likely to finish
their work efficiently. Employees who work in safe conditions may be at lower risk of diseases,
injuries, and other medical problems, resulting in fewer days off and improved efficiency.

In order to maintain a high level of indoor air purity and prevent the spread of airborne diseases,
using air purification equipment and ensuring adequate airflow are also helpful. In turn,
employees can also feel comfortable in their workspace, which may allow them to stay focused
on their work.

3. Reduced Costs Associated with Medical Services

Workers are less likely to become ill or injured when risks are reduced, which reduces costs
associated with medical services and treatments. Employees may also be exposed to hazardous
chemical compounds like mold, gases, or dirt that should irritate their respiratory systems if a
company does not provide adequate ventilation. Staff members may require medical attention or
even hospitalization as a result.

4. Better Public Image

Companies that emphasize industrial hygiene can boost their reputation by demonstrating their
dedication to the health and safety of their employees, customers, and the general public. Some
clients may even choose to work with a company that goes above and beyond to provide safe and
healthy work environments for their industrial workers.
5. Happier Employees

Below are some ways industrial hygiene can lead to happier employees.

 Improved physical well-being: Modern hygiene practices can help reduce illnesses
and accidents. When employees are in good health, they are able to carry out their
responsibilities at work more effectively, which results in increased output and
efficiency.
 Satisfaction at work: It is more likely for an employee to feel content with their
employer if they believe their employer values their safety and well-being. That can help
increase productivity in the workplace.
 Raised morale: A work environment that emphasizes safety for its workforce by
controlling the risk of hazards can help create a work environment built on trust and
appreciation for every team member. That can help improve workplace morale, which in
turn, leads to higher levels of efficiency.

6. Reduced Absenteeism

Workers may also develop illness and require time off from work to recuperate if they are
exposed to risks in the workplace, such as noise, residue, or fumes. In some cases, risks at work
can potentially cause long-term health issues, which could result in disabilities.

Maintaining industrial hygiene can ensure that workers have fewer risks of injury and illness,
which can help reduce the number of sick days taken by employees. That can benefit employers
by having more professionals on hand, which can improve the bottom line in the long term. Even
something as small as ensuring that employees wear personal protective equipment (PPE), such
as gloves or respirators, to avoid coming into contact with hazardous materials can make a
significant difference.

7. Cost Savings for Training

Workers face risks on the job; they could get injured or become ill, which may lead to their
resignation or time off for months. Employers will need replacements in that case, which could
lead to recruitment and training costs for new hires. Employers can save money on these costs by
reducing workplace hazards by enforcing industrial hygiene practices.

Conclusion

Occupational hygiene should be maintained for an organization’s collective success as well as

the health and safety of its employees. Employers can improve workplace health and safety by
identifying and controlling potential risks, such as exposure to hazardous substances and faulty
machinery. That is why companies that manufacture or assemble products must ensure that they
comply with occupational hygiene requirements to help their business grow in the long term.
They must also continue to read about changes in the laws to ensure compliance.
QUESTION FOUR

4.1 Discuss the risks/hazards involved in operating machinery within a

manufacturing organisation and provide ways in which these risks could be
mitigated.

There are many potential hazards associated with machinery. Some of these hazards are always
present, while others can appear unexpectedly. It is important to be aware of all potential hazards
in order to develop a comprehensive risk management plan.

The following are some common hazards associated with machinery:

1. Crushing Hazards

On construction sites, crushing hazards are often caused by excavators and other heavy
machinery. If an employee is struck by a piece of machinery, it can result in serious injuries or
even death. Employees should always be aware of their surroundings and clear areas where
heavy machinery operates to prevent crushing hazards. Workers should wear personal protective
equipment (PPE) to protect themselves from potential hazards if necessary.

Crushing hazards can also occur when workers are performing maintenance on machinery. If
workers are not properly trained to safely perform maintenance, they could be seriously injured
or killed. To prevent these hazards, it is important for employers to provide employees with
proper training and safety procedures.

2. Shear Hazards

Shear hazards are caused by moving parts that can cut or slice through skin and flesh. Shear
hazards can occur when workers use hand-operated tools, such as knives, or when operating
machinery with moving parts, such as saws. Employees should always use the proper safety
equipment and procedures when working with hand-operated tools or machinery to prevent shear
hazards.

3. Cutting/Severing Hazards

There are many types of cutting hazards, but the three most common contact with a moving
sharp-edged part, contact with a rotating part, and contact with a moving part.
The first type of cutting hazard is contact with a moving sharp-edged part. This can happen when
using a machine with a blade, such as a bandsaw. If the blade is not properly guarded, your
clothing or skin can come into contact with the blade and be cut. The second type of cutting
hazard is contact with a rotating part. This can happen when you are using a drill press or lathe.
If the chuck or bit is not properly secured, your clothing or skin can come into contact with the
rotating part and be cut.
The third type of cutting hazard is contact with a moving part. This can happen when you are
using a power saw or drill. If the blade or bit is not properly secured, your clothing or skin can
come into contact with the moving part and be cut.
To avoid these hazards, always ensure that the blades on your machines are properly guarded and
that the chucks and bits on your drill presses and lathes are properly secured. If you use a power
saw or drill, ensure the blade or bit is not worn or damaged. Also, always wear proper protective
clothing, such as gloves, when using machinery.

4. Drawing In Or Trapping Hazards

This hazard can occur when clothing or body parts become caught in moving parts of a machine.
The result can be severe injuries or even death. Always wear protective clothing, such as gloves
and long sleeves, to prevent this hazard, when working with machinery. Also, keep your hands
and feet away from moving parts and ensure that hair is tied back so it cannot become caught in
machinery.

5. Stabbing Or Puncture Hazards

Stabbing or puncture hazards can occur when using a machine with a pointy or sharp edge, such
as a drill press. If the bit is not properly secured, your clothing or skin can come into contact with
the pointy or sharp edge and be punctured. Always ensure the bit on your drill press is properly
secured to prevent this hazard. Also, wear proper protective clothing, such as gloves, when using
machinery.

7. Friction Or Abrasion Hazards

Friction and abrasion hazards are often found in mechanical machinery. When contact is made
with a fast-moving surface that may be smooth (e.g. touching a spin dryer) or rough (e.g.
touching a belt sander), there is a potential for serious injury.

There are several ways to protect yourself from these hazards:

 Wear appropriate Personal Protective Equipment (PPE), such as gloves, safety glasses, and
ear protection.
 Be aware of your surroundings and stay clear of moving parts.
 Follow the manufacturer’s instructions for operating the machinery safely.
8. Entanglement Hazards

Entanglement hazards can occur when clothing or body parts become caught in moving parts of
a machine. The result can be severe injuries or even death.

There are several ways to prevent this from happening:

 Keep your hair pulled back and away from rotating machine parts.
 Wear close-fitting clothes that won’t get caught on anything.
 Be aware of your surroundings and what you’re doing at all times.
If you see someone else caught in a machine, don’t try to help them yourself. Turn off the
machine and get help from someone who can safely release them.

Entanglement is a very real hazard in any industry that uses machinery. By taking some simple
precautions, you can prevent it from happening to you or anyone else.

9. Impact Hazards

The most common type of impact hazard is when the body is struck by a powered part of a
machine. This is similar to crushing, but there is no fixed structure to trap the person. The speed
and weight of the object do the damage.

Impact hazards can also occur when two parts of a machine collide. This can happen when two
machine parts are not properly aligned or when one part breaks and hits another. Impact hazards
can also occur when a person is hit by a flying object thrown or ejected from a machine. Impact
hazards can be prevented by proper maintenance of machines, training of workers, and using
safety devices. Impact hazards can also be minimized by the use of guards and barriers. When
working with machines, it is important to be aware of the potential for impact hazards and to take
precautions to avoid them.

10. High-Pressure Fluid Injection Hazards

High-pressure fluid injection is a hazard that can occur when fluids are forced into the body at
high pressures. This can happen when a person is cleaning a machine with high-pressure water
and the nozzle breaks or when a person is hit by a high-pressure fluid from a ruptured hose. The
high-pressure fluid injection can also occur when a person is welding, and the arc flashes back,
injecting molten metal into the body.

The high-pressure fluid injection can cause serious injuries or even death. Always use proper
safety equipment to prevent this hazard when working with high-pressure fluids. Wear goggles
or a face shield to protect your eyes, and wear gloves and protective clothing to protect your
skin. Wear a welding helmet to protect your face and neck if you are welding.
4.2 Elaborate on the concept of hedging in order to evaluate and control risk.

What Is Hedging?
The best way to understand hedging is to think of it as a form of insurance. When people decide
to hedge, they are insuring themselves against a negative event's impact on their finances. This
doesn't prevent all negative events from happening. However, if a negative event does happen
and you're properly hedged, the impact of the event is reduced.

In practice, hedging occurs almost everywhere. For example, if you buy homeowner's insurance,
you are hedging yourself against fires, break-ins, or other unforeseen disasters.

Hedging is a financial strategy that should be understood and used by investors because of the
advantages it offers. As an investment, it protects an individual’s finances from being exposed to
a risky situation that may lead to loss of value. However, hedging doesn’t necessarily mean that
the investments won’t lose value at all. Rather, in the event that happens, the losses will be
mitigated by gains in another investment.

How do Hedging Strategies Work?

Hedging is the balance that supports any type of investment. A common form of hedging is
a derivative or a contract whose value is measured by an underlying asset. Say, for instance, an
investor buys stocks of a company hoping that the price for such stocks will rise. However, on
the contrary, the price plummets and leaves the investor with a loss.

Such incidents can be mitigated if the investor uses an option to ensure that the impact of such a
negative event will be balanced off. An option is an agreement that lets the investor buy or sell a
stock at an agreed price within a specific period of time. In this case, a put option would enable
the investor to make a profit from the stock’s decline in price. That profit would offset at least
part of his loss from buying the stock. This is considered one of the most effective hedging
strategies.

Examples of Hedging Strategies

There are various hedging strategies, and each one is unique. Investors are encouraged to use not
just one strategy, but different ones for the best results. Below are some of the most common
hedging strategies that investors should consider:

1. Diversification
The adage that goes “don’t put all your eggs in one basket” never gets old, and it actually makes
sense even in finance. Diversification is when an investor puts his finances into investments that
don’t move in a uniform direction. Simply put, it is investing in a variety of assets that are not
related to each other so that if one of these declines, the others may rise.

For example, a businessman buys stocks from a hotel, a private hospital, and a chain of malls. If
the tourism industry where the hotel operates is impacted by a negative event, the other
investments won’t be affected because they are not related.

2. Arbitrage

The arbitrage strategy is very simple yet very clever. It involves buying a product and selling it
immediately in another market for a higher price; thus, making small but steady profits. The
strategy is most commonly used in the stock market.

Let’s take a very simple example of a junior high school student buying a pair of Asics shoes
from the outlet store that is near his home for only $45 and selling it to his schoolmate for $70.
The schoolmate is happy to find a much cheaper price compared to the department store which
sells it for $110.

3. Average down

The average down strategy involves buying more units of a particular product even though the
cost or selling price of the product has declined. Stock investors often use this strategy of
hedging their investments. If the price of a stock they’ve previously purchased declines
significantly, they buy more shares at the lower price. Then, if the price rises to point between
their two buy prices, the profits from the second buy may offset losses in the first.

4. Staying in cash

This strategy is as simple as it sounds. The investor keeps part of his money in cash, hedging
against potential losses in his investments.

Areas of Hedging

Hedging can be used in various areas such as commodities, which include things such as gas, oil,
meat products, dairy, sugar, and others.
Another area is securities, which are most commonly found in the form of stocks and bonds.
Investors can buy securities without taking possession of anything physical, making them an
easily tradable property. Currencies can also be hedged, as well as interest rates and weather.

Final Thoughts

Hedging is an important protection that investors can use to protect their investments from
sudden and unforeseen changes in financial markets.