Safety management system: Importance and key components

Jonny Parker
September 23, 2024

An employee throws out their back while lifting a heavy box. A bottle of toxic cleaning material leaks in the warehouse. Office staff keep tripping on an awkward step outside the front door.

These scenarios are just a few of many workplace hazards — and most of them are preventable. Identifying and mitigating these risks is the core purpose of safety management systems (SMS): maintaining a safe working environment for everyone. Plus, an effective SMS prevents non-compliance with any industry safety regulations, keeping both employees and operations safe. 

Here’s a guide on what an SMS is, its benefits, and how to implement them.

What is a safety management system?

An SMS is a structured approach to safety risk management that systematically identifies, assesses, and controls risks. Having a system in place provides a framework for monitoring performance and creating a culture where safety is a shared responsibility. 

By integrating safety practices into every aspect of an organization’s operations, an SMS helps prevent accidents, injuries, and potential losses. Although these systems are most common in the air traffic and aviation industry through the Federal Aviation Administration (FAA) and International Civil Aviation Organization (ICAO), quality management and risk control should be prioritized in any industry. 

The benefits of using a safety management system

Knowing how to implement an SMS has tons of benefits for organizations while reducing the potential for accidents:

  • Enhanced compliance: A well-structured SMS helps organizations meet all regulatory and legal safety requirements. By keeping up with industry standards and regulations, organizations avoid legal penalties and reduce the risk of compliance-related issues.
  • Risk reduction: Identify potential hazards through systematic risk assessments and implement control measures to fix issues before they cause accidents with an SMS. That might mean teaching employees proper handling techniques or reorganizing a warehouse to avoid hazards. Taking a proactive approach minimizes the possibility of injuries and operational disruptions.
  • Improved safety culture: When an organization prioritizes safety and integrates it into daily activities through new initiatives, templates, or daily checklists, employees become more aware of potential risks and contribute to maintaining a safe work environment. An effective SMS encourages safety promotion and smart decision-making by engaging employees at all levels. 
  • Operational efficiency: An SMS enhances operational efficiency by defining processes to streamline safety procedures and ensure clear communication.

How to implement a safety management system

A comprehensive SMS includes a few key components, and each plays a big role in ensuring the system’s effectiveness and contributing to a safer work environment. Here are the elements yours should have. 

1. Safety policy

A safety policy outlines an organization’s commitment to safety and provides a framework for its management practices. It establishes the organization’s objectives and responsibilities to set the tone for a culture of workplace safety. 

Effective policies need to be clear, communicated to all employees, and regularly reviewed to reflect changes in the organization or its operating environment.

2. Safety objectives

Safety objectives are specific, measurable goals an organization sets to achieve its policy. They guide the implementation of safety measures, help track progress, and align with overall business goals while addressing areas for improvement. An example would be an organization aiming to improve handling practices when moving inventory to prevent injuries and reduce damage.

3. Risk assessment

Risk assessment involves identifying potential hazards, evaluating the risks associated with those hazards, and implementing control measures for mitigation. This process helps organizations understand the nature and extent of risks and prioritize actions to address them effectively.

4. Roles and responsibilities

Clearly defined roles and responsibilities ensure that everyone in the organization understands their part in maintaining safety and performing risk management tasks. These tasks include assigning specific duties to individuals, departments, or teams and ensuring accountability for safety performance.

But regardless of an employee’s team, basic safety rules should apply across the organization. If someone notices a potential hazard, from spilled chemicals to a damaged chair, they should know how to report it. 

5. Training and competence

Regular training ensures employees have the necessary skills and knowledge to perform their tasks safely. Competence is assessed through training programs, certifications, and evaluations, ensuring that employees are well-prepared to handle safety-related tasks.

6. Communication and consultation

Effective communication and consultation involve sharing safety information in an easily accessible way. It also includes seeking employee feedback and addressing their concerns. Open lines of communication foster a collaborative approach to safety and help identify issues early.

7. Operational control

Operational control refers to the procedures and practices implemented to manage risks regularly. Consider implementing safe work practices, using appropriate personal protection equipment (PPE), and ensuring operations always follow established safety standards.

8. Emergency preparedness and response

Fire drills are one of many ways to prepare for emergencies. You can also develop plans and procedures to handle unexpected events, such as accidents, natural disasters, or other crises. An effective emergency preparedness plan includes drills and resources to ensure a quick and coordinated response. 

9. Incident reporting and investigation

Reporting and investigating incidents is crucial for understanding their causes and preventing recurrence. Incident reporting allows employees to report safety issues promptly, while thorough investigations help identify root causes and implement corrective actions.

10. Performance measurement and monitoring

Monitoring safety performance involves tracking key indicators, like how many incident reports you receive in a set period, and evaluating the effectiveness of existing measures. 

11. Audit and review

Regular audits and reviews assess the SMS’s effectiveness and identify areas for improvement. Audits evaluate safety practices, while reviews help ensure that the SMS remains relevant and effective in addressing evolving safety challenges.

12. Continuous improvement

Continuous improvement involves regularly updating safety practices to enhance performance and address new risks. This proactive approach ensures that the SMS evolves with the organization and maintains a safe work environment effectively. Collecting feedback from employees is a great way to make sure your policies address their concerns and help them feel safe in the workplace. 

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Create a seamless safety management system with Fishbowl

By implementing a comprehensive SMS, organizations can ensure compliance, reduce risks, and foster a positive safety culture. And since clear communication and visibility is crucial to keeping team members safe, you need a platform that lets you manage everything in your warehouse with ease

That’s where Fishbowl can help. With its robust inventory management capabilities and seamless QuickBooks integration, Fishbowl helps you maintain accurate records to streamline operations. Plus, you can use Fishbowl to track asset lifecycles to make sure equipment is maintained and doesn’t become a hazard.   

But the benefits don’t stop there. In Fishbowl, you can add instructions to a bill of materials or work order on how to perform tasks, with additional notes to mention any safety warnings or hazardous materials. 

Schedule a demo with Fishbowl to learn how we can help your business grow and thrive — safely.