compliance

Compliance

safetyculture

Safety Culture

riskprotection

Risk Protection

Fact: Accidents Happen

If the worst case happens and a prosecution is brought against the organisation then it is vital to prove that the companies risk management of its safety processes falls into the lowest culpability factor category i.e. meet recognised industry standards are pro-actively managed.

The new guidelines means:

  • Fines are now basically uncapped
  • Fines are based on Company turnover NOT profit
  • Risk of custodial sentences have increased dramatically under the new legislation.

It is therefore important for organisations to be able to demonstrate that they have robust safety management systems in place which are comprehensive and pro-actively managed.

See below of examples of the culpability factor impact on the potential fine range:
These fine ranges are based on using the lowest level of Harm factor (Level 4)

Company Fine Starting Point
Medium
(turnover £10-50m)
High Culpability
Level 2
£100k
Medium Culpability
Level 3
£50k
Lowest Culpability
Level 4
£3k
Large
(turnover £50m plus)
High Culpability
Level 2
£240k
Medium Culpability
Level 3
£130k
Lowest Culpability
Level 4
£10k

Definition of Culpability Factors:

Very High (Level 1) Deliberate breach or flagrant disregard for the law
High (Level 2) Serious and/or systemic failure within the organisation to address risks to health and safety
Medium (Level 3) Systems were in place but these were not sufficiently adhered to or implemented
Low (Level 4) Failings were minor and occurred as an isolated incident.