Turnbull Report 1999 (Originally known as Internal Control: Guidance for Directors on the Combined Code)
Health and Safety management was found to be one of the
greatest weaknesses of the companies before 1999 because they were found to be
focused on making monetary benefits. That is why finance was the primary
importance area for any organisation while doing business. This report was made
by Nigel Turnbull of Rank group plc for listed companies in London. This report
was primarily focused on financial aspects and drafted to show the directors
obligation to catch the business Fraud. However this reports also mentioned the
weak internal controls related to health and safety management and its direct
impact as a business risk. This report was set of combined code for companies’ directors.
Importance for H&S : Turnbull report clearly mentioned about the similar
gravity/ importance for health and safety management in the organisation like
for Finance and other departments. Under this report it was said to integrate
health and safety in other aspects of the business.
Basic four Requirements mentioned in the report:
1-
There should be the maintenance of sound system
of internal control. Policies, Organisation, resources, Risk assessment,
evaluation and control measures for routine and non routine jobs. Standard
operating procedures, awareness, communication system, corrective and
preventive actions on observations etc. Certification was also mentioned as a
requirement. All system of internal controls should be time bounded also (Means
schedule date wise or month wise with a proper planning).
2-
Regular review of its effectiveness of the
system of internal control. So that organisation should be updated with the
business risk concerning workplace. This is responsibility of Board directors to
set the frequency and scope.
3-
An annual
statement on the effectiveness of the system of internal control. It means
board should at least disclose that organisation is managing risks
(Identification, assessment and management of the risks).Statement should be
clear cut and should be away from ambiguities.
4-
An annual review of the effectiveness of
internal audit or need for the internal audit if there is no such function.
In nutshell this report was directly focused on managing
health and safety with the help of sound system of internal control (By independent
H&S management standard or with the help of global health and safety
management standard like OHSAS 18001 etc.). This report was concerned about
same status of managing safety as organisations do for finance, process and
other function. Also this reports clearly given choice of selecting risk
controls on the basis of CBA (Cost benefit analysis). Yes, this report was ultimately
drafted to improve the corporate governance among the listed companies of
United Kingdom.
https://en.wikipedia.org
https://www.healthandsafetyatwork.com/nebosh-managing-risk
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