Be able to decide about the investments on risks prevention and the plan of improvement for the execution of the adminstrative responsability (i.e., company’s responsibility).
What’s HERITAGE®
HERITAGE® protect the company heritage through the reinforcement of the 5 (enabling) functions that protect it: the Quality, the Health, the Safety, the Security, and the Environment (i.e., QHSSE functions).
HERITAGE® is meant for the Employer and the QHSSE managers to enable them making efficient decisions on risks prevention (economic traceability), as well as producing and controlling the improvement plans.
HERITAGE® is the arconym of Health, SafEty, SecuRity, EnvIronment, and QualiTy IndicAtors for OrGanizational DEcisions.
The problem: have the costs of prevention and lack of prevention to verfy their efficiency
The traditional control system (global accounting, the analytical one and the budget) does not consider explicitly the programming and the econmic control of market risks, as well as the negative external effects (quality of product, health, safety, security, environment).
The Employer and the managers of the 5 enabling functions (Quality, Health, Safety, Security, and Environment) they typically have to face the following difficulties:
- identifuing the costs of prevention and the costs of non-prevention (fines, seizes, retrofitting, etc.) that, despite objectively registered in the global accouting system of the company, they must be reclassified to enable a cost-benefit analysis;
- riclassifying the costs of prevention and those sanctioned (i.e., those of non-prevention) in centres of costs referring to the risks to prevent (e.g., injuries, hygine, protection, environement, etc.), and foreseen by HERITAGE®;
- decide the investment on risks prevention, on the basis of a cost-benefit analysis, and the actions of improvements needed.
HERITAGE® is born, bearing in ming these difficulties, to enabling the riclassification of costs of prevention and thos of non-prevention, the informed decision on investments and the definition of the plan of improvement activities.
The HERITAGE® model
The HERITAGE® methodology enable the Employer to decide consciously and efficiently on the investments to make to prevent risks and to elaborate the plan of improvement.
The decision is conscious because HERITAGE®:
- prepares, for the Employer and the managers of the 5 enabling functions, the costs of prevention and non-prevention ex post, to enbale the assessment of their efficacy for each of the 5 risk areas (i.e., Quality, Health, Safety, Security, and Environement);
- enables the Empoyer and the managers of the 5 enabling functions to decide ex ante, i.e., preventively, what investments (i.e., how much and in which risk area) make in the next budgeting period to concretely formulate the company polocy on risk prevention;
- allows to build the improvement plan.
The decision making process on prevention costs is centred on 3 interconnected moments:
1. the riclassification
2. the decision
3. the control
The riclassification of data present in the global accounting it is fundamental to enable the decision making process as it enables to compare homogeneous costs with resptect to the risks to prevent.
REGISTER is the functinaity of HERITAGE® that enable to riclassifying the costs of prevention and those of non-prevention to support the decision making on investments. For the Employer and the managers of the 5 enabling functions the riclassification of figures is preliminar to the investment of financial resources in the critical risk areas.
The preparation of HERITAGE® for the retrival from the global accounting of costs of prevention and costs sanctioned allows for the automatic riclassification of costs born by the company.
The costs comparison (those of prevention and those sanctioned) is fundamental to decide as it enables to understand the efficiencyof the decisions made.
DECIDE is the functionality of HERITAGE® that make possible the cost-benefit analysis for the definition of the improvement plan. Comapre the costs born (and to bear) for the prevention with those sanctioned (and foreseen) for each risk area both ex post, i.e., finally, and ex ante, i.e., preventively. The costs comparison (those of prevention and those sanctioned) is fundamental to build the the improvement plan as it allows to understand the efficient of the decisions made.
The cost-benefit analysis that reflects the company’s prevention policy must account for:
- the discretional costs of prevention, stemming from the respect of the Law, the amount of which is at the discretion of the Employer;
- the external sancitoned costs, raised by the actors in charge of the control (i.e., Autotirities);
- the internal sanctioned costs, stemming from the lack of compliance of company’s rules (penalisations).
The creation of the improvement plan integrates the technical interventions, stemming from the risk assessment, with the valorisation made through the cost-benefit analysis.
The control of decisions on investments allows for the Employer, and to the decision maker, to verify whether the resources have been spent according to the improvement plan.
CONTROL is the functionality (shared and enabled by SHARED KONTROL®) for the control of company’s plans (of quality, health, safety, securtiy, and environment), the assignement of improvement plans and for the assignement of the internal penalisations (budget penalisation – internal sanctioned costs) for the lack of compliance with company’s rules.
The investments on prevention decided for the risk areas translate into the objectives of the improvement plans assigned to each manager (the activities, the deadlines and the expected results) and, in the case of middle-top managers, even into budget of function.
The CONTROL functionality applied to the acion plans:
- increases the efficiency of the control and the timeliness of the correcttive interventions (if ay);
- considers the risk prevention as one institutional activity in the business management;
- allows for obkective assessment of the efficacy of company’s prevention policy;
- offers, whether enabled by the CONTACT® functionality, the economic traceability necessary to reduce or eliminate or alleviate the company’s administrative responsability.
The advantages of HERITAGE® for the Employer
The advantages of HERITAGE® for the Employer and the managers of the 5 enabling functions are as follows:
- the availability of a rational economic criteria of the cost-benefit analysis for the conscious choise of the prevention policy;
- the istitution of the accounting prevention (at limited costs) for the preparation of the costs of rpevention, of those sanctioned (diveided by risk area) and the budget of function (quality, health, safety, security, and environment), in addtition to the calculus for the specific needs (such as injury costs, costs for stress, social budget, etc.);
- the creation of the improvement plan for each risk area;
- the economic (and organisational) traceability, whether the CONTACT® functionality is active, of the prevention policy (fundamental for the relief of the attenuation from the administrative responsibility);
- the arrangement of the “European Prevention Model” that integrates, within the same unit, the competences to prevent the risk of negative external effects (injuries, pshyco-social risks, hygiene, environmental pollution…), reducing the administrative costs given by duplication of organisational functions;
- the enlargement of the professional competences of the managers of the 5 enabling functions to the economyical side of risk prevention and the assessment of the efficiency of the company’s prevention policy.
HERITAGE® is applicable to production, as well as service, companies of large, medium, small and micro size.