A manufacturing company is experiencing rising levels of workplace accidents. A review is undertaken that concludes that in order to meet managements expectation of faster production, workers have become accepting of high-risk behaviour and are not following the companys safety procedures, and are failing to operate the companys ageing and dangerous equipment safely.

As the Chief Risk Officer of this company, you are asked to explain to the Board why this risk was not brought to their attention and how it might be reduced in the future.

Answer ALL of the following:

1. Using the root cause method, describe what type of risk this is, including a description of the sources of uncertainty, the objective(s) at risk and possible consequences.

2. Describe which theories of risk perception and tolerance can be used to explain the workers behaviours.

3. Identify and describe actions the company could take to reduce its risk.