Safety PEST Analysis
Changes in your business environment
can create great opportunities for your
organization - and cause significant
Threats can include deregulation that exposes
you to intensified competition; a shrinking
market; or increases to interest rates, which can
cause problems if your company is burdened by
debt in incident safety costs
Before the Problem gets to Huge
First Where are We
Clearly identify the problem or challenge, and write it down.
Reverse the problem or challenge by asking:
"How could I possibly cause the problem?", or
"How could I possibly achieve the opposite effect?".
Brainstorm the reverse problem to generate reverse solution
ideas. Allow the brainstorm ideas to flow freely. Do not reject
anything at this stage.
Once you have brainstormed all the ideas to solve the reverse
problem, now reverse these into solution ideas for the original
problem or challenge.
Evaluate these solution ideas. Can you see a potential
solution? Can you see attributes of a potential solution?
Similar to the SWOT Analysis
• It helps you to spot business or personal
opportunities, and it gives you advanced warning
of significant threats. It reveals the direction of
change within your business environment. This
helps you shape what you're doing, so that you
work with change, rather than against it. It helps
you avoid starting projects that are likely to fail,
for reasons beyond your control. It can help you
break free of unconscious assumptions when you
enter a new country, region, or market; because
it helps you develop an objective view of this new
Understand the Risk
• Risk Analysis helps you identify and manage potential problems
that could undermine key business initiatives or projects.
• Risk is made up of two things: the probability of something going
wrong, and the negative consequences that will happen if it does.
• You carry out a Risk Analysis by first identifying the possible threats
that you face, and by then estimating the likelihood that these
threats will materialize.
• Risk Analysis can be quite involved, and it's useful in a variety of
situations. To do an in-depth analysis, you'll need to draw on
detailed information such as project plans, financial data, security
protocols, marketing forecasts, or other relevant information.
Risk Value = Probability of Event x Cost
Risk analysis is useful in many situations, for example, when
• Planning projects, to help you anticipate and neutralize
• Deciding whether or not to move forward with a project.
• Improving safety and managing potential risks in the
• Preparing for events such as equipment or technology
failure, theft, staff sickness, or natural disasters.
• Planning for changes in your environment, such as new
competitors coming into the market, or changes to
• The Risk Impact/Probability Chart is based on the
principle that a risk has two primary dimensions:
• Probability – A risk is an event that "may" occur. The
probability of it occurring can range anywhere from
just above 0 percent to just below 100 percent. (Note:
It can't be exactly 100 percent, because then it would
be a certainty, not a risk. And it can't be exactly 0
percent, or it wouldn't be a risk.)
• Impact – A risk, by its very nature, always has a
negative impact. However, the size of the impact varies
in terms of cost and impact on health, human life, or
some other critical factor.
With the Risk Impact/Probability Chart, you
map out each risk – and its position
determines its priority. High-probability/high-
impact risks are the most critical, and you
should put a great deal of effort into managing
these. The low-probability/high-impact risks
and high-probability/low-impact risks are next
in priority, though you may want to adopt
different strategies for each.
Political Factors to Consider
• When is the country's next local, state, or national election? How could this
change government or regional policy?
• Who are the most likely contenders for power? What are their views on business
policy, and on other policies that affect your organization?
• Depending on the country, how well developed are property rights and the rule of
law, and how widespread are corruption and organized crime? How are these
situations likely to change, and how is this likely to affect you?
• Could any pending legislation or taxation changes affect your business, either
positively or negatively?
• How will business regulation, along with any planned changes to it, affect your
business? And is there a trend towards regulation or deregulation?
• How does government approach corporate policy, corporate social responsibility,
environmental issues, and customer protection legislation? What impact does this
have, and is it likely to change?
• What is the likely timescale of proposed legislative changes?
• Are there any other political factors that are likely to change?
Economic Factors to Consider
• How stable is the current economy? Is it growing, stagnating, or
• Are key exchange rates stable, or do they tend to vary significantly?
• Are customers' levels of disposable income rising or falling? How is
this likely to change in the next few years?
• What is the unemployment rate? Will it be easy to build a skilled
workforce? Or will it be expensive to hire skilled labor?
• Do consumers and businesses have easy access to credit? If not,
how will this affect your organization?
• How is globalization affecting the economic environment?
• Are there any other economic factors that you should consider?
Socio-Cultural Factors to Consider
• What is the population's growth rate and age profile? How is this likely to
• Are generational shifts in attitude likely to affect what you're doing?
• What are your society's levels of health, education, and social mobility?
How are these changing, and what impact does this have?
• What employment patterns, job market trends, and attitudes toward work
can you observe? Are these different for different age groups?
• What social attitudes and social taboos could affect your business? Have
there been recent socio-cultural changes that might affect this?
• How do religious beliefs and lifestyle choices affect the population?
• Are any other socio-cultural factors likely to drive change for your
Technological Factors to Consider
• Are there any new technologies that you could be using?
• Are there any new technologies on the horizon that could radically
affect your work or your industry?
• Do any of your competitors have access to new technologies that
could redefine their products?
• In which areas do governments and educational institutions focus
their research? Is there anything you can do to take advantage of
• How have infrastructure changes affected work patterns (for
example, levels of remote working)?
• Are there existing technological hubs that you could work with or
• Are there any other technological factors that you should consider?
The Dimensions of Culture
And Tows Strategic Matrix
Use Porter’s Diamond to Control your
Now write your controls using
Let your Staff Help
Talk Supplier SIPOC
When looking at your Safety Issues
• Challenge assumptions: For every situation, you
have a set of key assumptions.
• Reword the problem: Stating the problem
differently often leads to different ideas.
• Think in reverse: If you feel you cannot think of
anything new, try turning things upside-down.
• Express yourself through different media: We
have multiple intelligences but somehow, when
faced with workplace challenges we just tend to
use our verbal reasoning ability.
Now DO IT
DO IT is an acronym that stands for:
D – Define problem
O – Open mind and apply creative techniques
I – Identify best solution
T – Transform