Managing risk in an increasingly uncertain regulatory environment

April 26th, 2017 by Dakota Software Staff Industry News

The move from Barack Obama's presidency to Donald Trump's has created a shakeup in the overall regulatory framework. Changes made by President Trump have created an unfamiliar regulatory environment for organizations subject to EPA and OSHA oversight.

Those changes are many, from a general federal rule requiring no new legislation be passed unless two older rules are removed, as The Hill reported, to selecting a longtime EPA legal challenger to lead that agency in Scott Pruitt. Political ramifications aside, plenty of practical concerns for businesses have arisen from these developments.

The need to adapt to new forms of regulatory rulemaking is mixed with the constant directive to keep employees safe and minimize enironmental imacts. Many rules recently added by the Obama administration have been taken off the books. Challenges to more tenured regulations, like the Clean Power Plan, will take longer to resolve and leave many companies in a state of flux regarding which rules to follow and for how long.

Understanding the difference between regulations and underlying risks

Changes in regulations are only one part of the overall EHS puzzle. Businesses may be tempted to relax their internal procedures and policies as regulations are trimmed down or removed entirely. However, no organization wants to create an environment that increases the chance of harm to its workers or communities.

The potential for risk exists independent of the rules in place at the federal, state and local level, no matter the policies of the current administration. A fully formed strategy for ensuring continuous operation alongside worker health and safety has to go further than adherence with EHS regulations.

Of course, compliance remains a key part of the puzzle. Fines and penalties can arise when rules aren't followed. The best track for businesses to follow is a steady review and self-enforcement of EHS requirements, supplemented with an enhanced focus on self-auditing and making smart, efficient changes to operations - whether or not they're required by regulatory agencies.

Using a two-pronged approach

Giving the right amount of attention to both regulatory needs and the practical realities of employee and facility safety may sound like a complicated affair. However, developing and maintaining the right approach, with EHS professionals using their existing knowledge and experience to guide such efforts, can alleviate many concerns. Staying up-to-date with regulatory changes and understanding the intent behind them will help businesses remain in the good graces of the agencies, no matter which rules are kept on the books.

The other major aspect, internal policymaking, should keep an eye on both regulations in development and the unique needs of each company and facility. Implementing rules ahead of their official approval and the beginning of enforcement creates obvious benefits, keeping operations safe and reducing the changes of violations when inspections occur. Crafting internal policies that address any reductions or existing shortcomings in OSHA, EPA and other regulations also pays off.

A complete understanding of potential risks and addressing them effectively creates a more active and safe workforce. Enhancing policies to go beyond regulatory demands is an effective strategy, as long as it's undertaken in a reasonable, decisive and pragmatic fashion. In a recent Knowledge Brief from The Environmental, Health & Safety Audit Center, a specialty auditing resource from The Institute for Internal Auditors (IIA), the author encourages organizations to utilize audit as a means to “safeguard against risks the EPA regulations were intended to mitigate.”

Choosing the right tools for the job

The right software tools can help EHS staff supplement their already substantial knowledge and ensure their facilities are adhering to regulatory requirements, management systems, and organizational policies and procedures. Dakota Auditor allows EHS professionals to test compliance on a site-by-site basis, taking recent revisions to regulatory requirements into account.

While Dakota Software's onboard Reference Library clarifies the intent of current regulations, its regulatory change tracking also allows auditors to verify compliance against past requirements. This combination of features helps organizations stay abreast of changing requirements while continuing to measure themselves against more stringent requirements.