Safety Management

Can Using Risk Management Software Help Save Money?

Caitlin Liboiron @Caitlin
Safety & Compliance
6 min read
February 28, 2022

Whether you’re the CEO of Bechtel or the owner of a concrete-mixing operation, trimming expenses boost profits, which is all anyone in business cares about. Construction, however, is a sector that poses particular challenges when it comes to controlling costs. Due to the nature of the industry (work takes place outdoors, at heights, in all types of weather), workers’ compensation and insurance claims can quickly add up and devour any company’s bottom line.

While construction firms can save money on such costs with the right risk management software, the impact of a risk management solution often extends far beyond just insurance claims and comp expenses. How so? Simple. Safer job sites are more productive job sites, more productive job sites lead to more contracts, more contracts lead to higher profits. And risk management software makes all this possible.

The positive domino effect of site safety is simply impossible to ignore and leveraging risk management software will yield big benefits. There is, however, another way to think about risk management software: A smart investment in your company’s long-term health.

1) Helps Reduce the Likelihood of a Workplace Accident

Risk management software helps you detect potential risks quickly and intervene before they escalate into bigger problems. Traditionally, inspections were done manually. With this approach, one can easily put too much emphasis on one risk area while completely missing another. Risk management software provides complete oversight by leveraging trends and analysis tools to create graphs, charts, and heat maps showing all the areas of your job site that poses a risk.

By consolidating several data points on one central platform, risk management software paints a clear picture of your past injury claims as they relate to future incidents. You’ll have a better understanding of incident frequency, average response times, average resolution times. Empowered with that information, you can quickly determine how employees, company policy, or the job site itself pose unnecessary operational and personal injury risks.

Machinery and machine guarding are among the top five most violated safety regulations in the construction industry. Other infractions include:

  • Eye and face protection
  • Fall protection
  • Scaffolding
  • Respiratory protection

Preventing accidents at your company starts with strict adherence to OSHA standards. Technology-driven solutions can help construction firms stay compliant and heighten awareness of the importance of being committed to safety, every day. Save your company time and money by addressing these core issues with risk management software.

2) Minimizes and Prevents Fines from Non-Compliance Issues

When construction companies fail to follow specific compliance and safety regulations, steep financial penalties usually follow. Risk management software can minimize and outright prevent fines levied against you for non-compliance issues. How? Risk management software identifies the areas that aren’t up to par and notifies you in real-time so you act in time.

Salus’ compliance management feature, for example, protects your business with real-time monitoring of daily activities. If workers fall behind on their safety forms, you can easily follow up with them to get the necessary paperwork completed, submitted, and logged.

Companies that deploy proper risk management software can lower their insurance premiums by showing adjusters they’re taking the appropriate steps to protect their workforce. Gone are the days of cluttered filing cabinets and VHS training tapes. In the digital age, risk management software is the best way, the only way, to keep effective track of job site safety compliance.

According to the National Safety Council, the most expensive workers comp claims result from motor vehicle incidents, burns, and falls – accidents that can occur on a construction site. With the average cost of a workers comp claim hovering around $42,000, taking steps to prevent claims, in general, should be a no-brainer. And while this may seem steep, there’s even more reason to be on top of your game. If you operate in a state that requires workers’ comp and you do not provide it, an injured worker can sue to cover medical expenses. You could lose upwards of $80,000 in the case of a severe motor vehicle accident. You could even face jail time.

Risk management software identifies the areas that aren't up to par and notifies you in real-time so you act in time.

3) Helps Avoid Unnecessary Operating Costs

The equipment and machinery associated with your job site are expensive. When those assets go uninspected (or are inspected less frequently), the risk of malfunction, injury, and liability increases. With risk management software, you can avoid unnecessary costs by automating a more straightforward process regarding your equipment.

How significant a role does automation play in saving you operational costs?

Preventative Maintenance Scheduling: Periodic equipment inspection can drastically reduce the number of incidents related to that machine. Automation keeps track of when those machines were last inspected or serviced and will ping you when it’s time to check on them again. Paired with Salus’ compliance management feature, you’ll know who’s on top of their inspections and who could use a friendly reminder.

Machine Health and Performance: Repair costs can add up quickly. Staying on top of maintenance with automated inspections will prevent unplanned downtime in case of a malfunction. You’ll quickly notice when something doesn’t look right so you can act before it becomes a real issue.

Cost Reduction: Big problems come with bigger price tags. Identifying a minor issue with a particular piece of equipment can prevent the repair costs of a catastrophic malfunction, not to mention the downtime associated with a broken piece of broken machinery.

4) Improves Budgeting

Every construction job comes with a budget, and companies that consistently stay under budget are poised to win more contracts. Risk management software looks at the big picture when calculating the project budget. It integrates schedule and cost planning into the budgeting process, accounting for extra time, resources, and cash as needed. By eliminating the guesswork and making more informed decisions, you significantly reduce the risk of going over budget and significantly increase the likelihood of winning more business.

Risk-versus-opportunity conversions are popular in general risk management but are just as helpful when budget planning. Risk management software identifies areas of concern and can outline how those factors tie into the budget. Ask yourself: Can we improve this area? How much will it cost to improve? How can we restructure the budget to address these issues?

Deliver Projects Faster, On Time, and On Budget

So there you have it: contractors who use risk management software stand to save thousands of dollars each year. Of course, there is plenty more to risk management than just software, but this particular tool eliminates the guesswork that comes along with manual risk tracking and offers a data-driven approach instead.

Keep in mind, though, that risk management software is more than just a report-generating tool. The real power lies in its ability to spot trends, detect risks and determine long-term consequences that might otherwise be overlooked.

Salus offers top-of-the-line safety solutions for every construction business. Our platform utilizes digital forms for easy sharing, tracking, and collaboration. Your digital documents tie into the compliance management hub, where you can track and monitor daily activity. The subcontractor portal makes it easy to keep track of safety and compliance measures among your subs, while the compliance management tool monitors daily activity in real-time. Salus’ asset manager stays on top of inspections and maintenance, ensuring the safety and reliability of your machinery.

Book a demo today and learn more about how risk management software can help save you money, keep your job site safe, your firm compliant.

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