Going beyond compliance: Prioritizing risk and resources effectively

In today’s business world, merely meeting compliance standards isn’t enough. Companies that truly stand out are those that move beyond compliance by embedding their core values into every aspect of their operations. These organizations don’t just follow the rules — they integrate a culture of responsibility, safety, and ethics into their processes.

However, this shift requires new priorities. With limited resources, even essential programs like Environmental, Health, and Safety (EHS) compliance must be managed with other organizational goals in mind. To achieve this, businesses can set strategic goals, break them down into manageable steps, and leverage their existing resources.

In our recent eBook, A handbook for EHS compliance transformation, health and safety expert Anthony Wareham laid out effective ways for businesses to move beyond compliance and ensure sustainable growth.

Here are his five top actionable steps:

1. Measure and prioritize risk

Risk is an inherent part of every business activity, and while it can’t be completely eliminated, it can be managed. The key to risk management is understanding its severity and probability. Organizations must quantify and rank risks based on these factors. Here are three important types of risk to consider:

Uncontrolled risk

The potential risk when no control measures are in place, determined by multiplying the severity and probability of the risk.

Current risk

The level of risk after implementing control measures. Although severity usually stays constant, probability can be reduced. For example, in an electrical work scenario, the severity (potential fatality) is constant, but safety measures like proper training and PPE can drastically reduce the likelihood of an accident.

ALARP (As Low As Reasonably Practicable)

This represents the lowest achievable level of risk after applying all feasible control measures. While residual risk will always remain, it should be as low as possible within current technical and financial constraints.

To successfully manage risk, businesses need to accurately measure it, determine the gap between current risk and ALARP, and allocate resources to reduce risks to an acceptable level. Organizations may tolerate a certain level of risk in the short term, allowing for a more financially sustainable path toward improvement over time.

2. Set intermediate milestones

Reducing risk is a process, not a one-time event. Rather than attempting to minimize risk immediately, companies should aim for gradual, staged improvements. This approach ensures that resources are used efficiently while allowing leadership to monitor progress over time. By setting achievable intermediate milestones, businesses can stretch their resources and steadily improve safety and compliance standards.

3. Align risks and resources

Managing risk isn’t just about identifying it — it’s about making informed decisions on how to address it within the available resources. Companies must determine how much risk they’re willing to accept and ensure that sufficient resources are allocated to reduce the most critical risks first.

Here are three key ways to align the resources at your disposal with the risks you need to overcome:

1. Engage leadership

Safety professionals should provide a comprehensive analysis to help leadership prioritize risk reduction efforts. It’s important to remind decision-makers that they hold the ultimate responsibility for risk management, not the EHS manager.

2. Leverage cross-functional teams

Collaborate with departments like Quality Management to identify opportunities that benefit multiple areas, such as investing in machinery that improves both productivity and safety.

3. Develop long-term strategies

Secure leadership sign-off on a long-term risk management plan and review it annually to ensure it remains adequately resourced.

By presenting the risks clearly, leadership will be more inclined to allocate the necessary resources, knowing that inaction could lead to greater consequences.

4. Leverage the teams you have

Often, companies overlook the potential within their own teams. While they may lack certain skills, enthusiastic and motivated employees can be upskilled to drive the company’s safety and compliance efforts forward. Upskilling existing staff not only boosts morale but also creates a positive organizational culture that fosters continuous improvement.

Give your team the right tools, clear goals, and plenty of support, and they’ll deliver remarkable results. Investing in your employees’ development will help you unlock the hidden potential within your organization.

5. Build systems that support your goals and your teams

The foundation of an effective EHS program is intelligent systems design. By investing in systems that streamline processes, you’ll save time, reduce risk, and optimize resources. Here are two critical components to consider:

1. Management systems

Implement robust management systems like ISO 45001 or ISO 14001. These frameworks provide a structured, interconnected approach to managing risks and ensuring compliance. They’re most effective when externally validated.

2. Compliance tracking

For companies operating globally, it’s essential to have a compliance tracking system that provides real-time updates on local legal requirements. A comprehensive compliance management tool will help businesses stay ahead of regulatory changes and avoid costly mistakes.

Additionally, make sure these systems are intuitive and user-friendly, offering value not just to corporate teams but to employees at every level of the organization. When systems are designed with usability in mind, they’re more likely to be embraced by the people who need to implement them.

Plan for measured success

Achieving a vision “beyond compliance” requires careful planning, measured steps, and ongoing commitment. Start by conducting a comprehensive assessment of the risks your organization faces and align those risks with the resources you have. Set realistic goals, invest in your team, and build intelligent systems to support your efforts.

Remember, compliance is just the baseline — going beyond it is what sets truly great organizations apart.