In a previous blog, we discussed the different types of safety audits and how they can be effectively used to address overall EHS (Environmental, Health, and Safety) compliance. To quickly recap, audit programs are essential compliance tools that help assess the current state and condition of an organization’s EHS ecosystem.
Third-party external audits are conducted by independent, full-time auditors who are equipped with the necessary accreditations and credentials to assess EHS compliance within an organization. Due to the complex and evolving nature of EHS compliance, especially across industries worldwide, these audits provide a conflict-free and authoritative identification of non-compliances.
Incorporating EHS compliance into an organization's risk management strategy is becoming increasingly important. According to the "Managing Risk from the Frontline" study published by PwC, risk and compliance functions are now seen as the second line of defense, alongside the first line—decision makers such as CEOs and C-level executives. This report, based on surveys of nearly 1,600 corporate offices in 30 industries across 80 countries, highlights a downward trend in eight of the 11 risk areas, from the perspective of "risks and compliance functions."
Benefits of External EHS Audits
Using a third-party auditor provides a fresh perspective and a different approach to researching, reviewing, and analyzing business safety programs. A well-planned and executed audit can significantly improve accident and injury prevention. When audits are performed thoroughly and followed up with actionable steps, they strengthen a company's accident prevention strategy.
Key Benefits of Third-Party External Audits in Health and Safety:
- Knowledge and Validation: Third-party audit firms bring a wealth of experience from conducting audits in diverse environments. They share industry best practices, which can enhance existing safety programs, offering valuable validation and recommending changes or improvements where necessary.
- Objectivity: External auditors lack the familiarity that internal staff may have with daily operations, which allows them to provide an unbiased, objective examination of company systems and procedures. This detachment ensures an impartial review of EHS practices.
- Accuracy of Results: Thanks to their objectivity, third-party auditors deliver a more accurate analysis of a company's safety measures. Their findings are based on unbiased data and are reflective of true EHS performance across the organization.
- Lower Impact on Business: While internal audits are crucial for maintaining smooth operations, third-party audits allow businesses to undergo evaluations with minimal disruption. Auditors can complete the audit and conduct interviews without affecting day-to-day productivity.
- Fresh Perspective and Independence: External auditors bring a fresh set of eyes and independent analysis to every aspect of EHS practices. Their independence ensures that they approach each audit with a clear, unbiased view.
- Diverse Experience: With experience across multiple sectors, third-party auditors bring a wealth of specialized knowledge. This diversity allows them to examine EHS systems from different angles, helping to uncover areas for improvement that might otherwise be overlooked.
- Unbiased Recommendations: Third-party audits provide valuable, unbiased insights. The actionable recommendations offered by external auditors are not influenced by internal company politics, ensuring they are based solely on the facts and findings.
- Future Planning Support: External auditors are not only focused on current EHS performance but can also contribute to future planning. Their expertise helps identify potential enterprise-wide risks and challenges that could arise later, enabling the company to address them proactively.
- In-depth Risk Identification: Beyond ensuring regulatory compliance, third-party external audits uncover hidden risks and operational practices that may be generally accepted but are, in fact, incorrect or unsafe.
- Easier Implementation in Global Operations: For multinational organizations, third-party audit firms with global reach can effectively handle operational and language barriers. Auditors with worldwide experience simplify the auditing process, regardless of geography.
While choosing the right third-party audit agency can be challenging, it has become much easier in today's information-rich world. With abundant resources and professional networks, selecting an appropriate agency is simply a matter of conducting thorough research or seeking recommendations from trusted sources.
For more information on how third-party external audits can benefit your organization, visit Core EHS Safety Audits.