James Smith, Co-CEO at A-SAFE, looks at the need for better transparency and risk management in the supply chain.

What if the real issue isn’t the risk, but your blind spot around it? Warehouses push harder for speed, scale and efficiency, yet the thinking behind how they manage risk still lags. It’s not the forklifts or the night shifts that are holding back operations. It’s the blurry, all-in-one approach to risk that masks real threats, like logging all incidents under one category or not analysing their root cause. This behaviour is what stifles performance and creates a culture of guesswork. 

If your risk map looks like a one-size-fits-all spreadsheet, then yes, poor risk understanding is probably dragging your efficiency down too. It’s time to reframe how we think about risk, not as a siloed compliance exercise, but as a driver of sharper operations and smarter business decisions.

The cast of characters in operational risk

Risk doesn’t float around as a general threat. It shows up through real people and physical systems, each bringing their own weight to the equation. You have machines, vehicles, people, workflows, site layout, external contractors, materials movement, visitors… all constantly interacting, all with potential friction points.

Operational risk comes to life through this web of movement and interaction. Yet, most companies still treat it as an abstract category, a box-ticking exercise that allows them to get on with ‘the important things of the business.’ Instead of dissecting the risk profile of each element, companies with a substandard safety infrastructure apply a blanket approach to risk management. For example, they use the same type of safety barrier across the entire facility regardless of the vehicle types operating nearby or enforce generic speed limits without accounting for the presence of pedestrian walkways. The one word to describe this approach is ‘dangerous.’

Risk must be classified in terms of its physical, behavioural and systemic origins. When each factor is visible and accounted for, the reactive cycle ends. A safety barrier that cannot suitably protect your people and assets from your site’s real impact angles or frequency patterns is not protection, but rather a false sense of safety. 

As a result of this misdirected investment in safety, efficiency and productivity suffer. For example, just because a safety barrier claims it can withstand X-thousand Joules, it does not mean it has been independently tested to that standard, or that it can withstand that force repeatedly or across its whole structure. This is why it is imperative to deploy safety solutions that are fit for purpose, independently tested and, most importantly, able to protect from your very own particular risks. Otherwise, you will be under the impression of being safe, yet you are leaving real risk unaddressed.

Your environment shapes your risk – not the other way around

Every facility has its own risk fingerprint defined by its layout, vehicle types, pedestrian walkways and traffic intensity. But too many sites still rely on standardised solutions that ignore this complexity. They segregate people and machines with painted lines on the floor, place the same barrier system near low-speed pallet trucks and high-impact forklifts, or have damaged safety solutions in place that do not guarantee protection in the event of a new impact.

These misalignments reflect a surface-level approach that ticks boxes instead of solving problems. Real risk management starts with questioning how people move, how machines behave and planning an efficient segregation between them. These are examples of what happens when safety infrastructure is not based on how a space is actually used. Misfit solutions offer false security. Real protection begins with matching infrastructure to operational conditions.

The future of risk management is proactive, not reactive

The old model of risk management was built around audits, forms and lagging indicators. But in modern operations, risk changes by the hour or even by the shift, whether that is at night with fewer staff, or a day or week of high e-commerce activity like Black Friday. Waiting for a weekly or monthly safety report to understand evolving risk and adjust does not cut it anymore.

Staff engagement is another benefit of having a good understanding of your own risk. When teams see their feedback reflected in real-time adjustments, they stop viewing safety as top-down enforcement. Instead, it becomes behavioural, part of how they do their jobs better. That change in attitude has a compounding effect. Workers become eyes on the floor, flagging issues before they escalate, feeding valuable insight back into the system.

Risk and efficiency are interlinked 

This is where risk and efficiency are linked because operational efficiency depends on fast feedback loops. That means switching from static documentation to live data. Smart safety infrastructure such as impact-tracking barriers, wearable sensors or predictive maintenance systems powered by the Industrial Internet of Things (IIoT) are what offer this level of visibility. You don’t just spot the problem after the fact. You see risk forming and deal with it in real time.

The payoff of investing in safety is worth it: more efficient and productive operations enabled by optimised internal routes for people and machines, reduced unscheduled downtime thanks to a lack of friction and, most importantly, fewer incidents. The financial case for proactive risk management could not be clearer. The average cost of one hour of downtime in UK factories is just over £5,000, although for larger companies in industries like automotive, it can reach up to £2m. With the average downtime per company per year reaching 49 hours, the costs skyrocket. 

With a sound safety infrastructure in place that helps you prevent downtime, the costs diminish and you create a suitable environment for productivity and long-term growth. The message is simple: in risk, proactivity always outperforms reactivity.

Final thoughts

If you are still seeing risk as a static compliance task, you are missing the bigger picture. The businesses that lead in growth are those that recognise risk as a personal reality, shaped by their unique context, challenges and goals – not as a universal constant. They map it and turn that data into stronger performance. Risk reduction is, effectively, a growth tool. But only if you treat it as a perpetual obligation, not a checklist.

Risk itself isn’t what holds you back. Unidentified risk is. Call it out, bring it into focus and address appropriately. Once you’ve done that, watch efficiency follow the clarity you’ve created.

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