EKONOMIKA COLUMN| Invest in Risk Management

By Newton Mambande

HARARE – RISK management policies should be integrated into the corporate governance and strategy framework of every business, whether a conglomerate or small-to-medium enterprise (SME). These policies are critical for achieving occupational safety, health, environmental, and quality assurance (SHEQA) standards.

In Zimbabwe, risk management forms part of legal compliance. Companies must adhere to regulatory frameworks set by the National Social Security Authority (NSSA), Environmental Management Agency (EMA), the Standards Association of Zimbabwe (SAZ), and other relevant authorities. Globally, businesses should align with standards set by the International Labour Organization (ILO) and World Health Organization (WHO). To enhance compliance, SHEQA, human capital, and compliance managers may leverage artificial intelligence (AI) tools to improve workplace safety and efficiency.

Implementing risk management requires transparency regarding employee health status in accordance with privacy laws. Employees must provide accurate health information during recruitment, subject to legal limitations. Some employers mitigate risks by requiring medical assessments where legally permitted.

Companies should consider group life insurance and pension policies for employees or promote individual coverage. This transfers risk to insurers while building capital reserves, improving profitability, and enhancing employee retention. Such practices boost productivity, create jobs, and strengthen economic growth.

Compliance with local and international regulations not only safeguards financial resources but also enhances corporate integrity—a key branding asset. This fosters investor confidence, client trust, and sustainable growth.

Background checks for prospective employees should be conducted within legal boundaries. While not always necessary, “know your client” (KYC) principles help assess hiring risks. Any decisions based on criminal or financial history must comply with anti-discrimination laws.

Investing in risk management saves costs and ensures compliance. Emerging businesses can learn from established firms like Border Timbers Limited, Tongaat Hulett, and Old Mutual Limited, which maintain robust SHEQA policies aligned with applicable regulations.

Newton Mambande is an entrepreneur and researcher. His work has been published in internationally accredited journals. Contact: newtonmunod@gmail.com or WhatsApp: +263773411103.