Operational Risk Case Studies

Client Context

• National construction company operating across 9–10 provinces
• Multiple regulatory environments (provincial + federal)
• Established safety program and management system in place

Despite significant investment in health and safety, performance and costs remained inconsistent across regions.

The Problem

• Safety was managed as a compliance function, not an operational lever
• Costs of incidents were poorly understood and underestimated
• Efforts were spread across too many initiatives with limited impact
• Systems were complex, time-consuming, and unevenly applied

In short, a lot of effort, but limited visibility on what actually mattered.

1. Data Structuring & Integration

• Workers’ compensation (costs, claims)
• HR systems (lost time, modified duties)
• Payroll (true cost of labor, including contributions)
• Operational margins

2. Financial Translation of Risk

• Lost time
• Modified duties (reduced productivity)
• Equipment damage
• Indirect costs

This created a clear and realistic view of the true cost of incidents.

3. Targeted Data Analysis

• Specific trades and job types
• High-impact regions
• Injury types and causes
• Experience levels and work conditions

This allowed prioritization based on impact, not assumptions.

4. System Simplification & Operational Integration

• Simplified the safety management system
• Reduced administrative burden
• Implemented corporate dashboards with actionable KPIs
• Standardized training and processes across Canada
• Improved return-to-work management

The objective was not to add controls, but to make the system usable and effective in real operations.

Significant performance improvements over first 4 years:

• 44% reduction in total recordable incident frequency
• 85% reduction in lost-time incident frequency
• 92% reduction in severity

Financial impact:

• Major reductions in workers’ compensation rates across multiple provinces
• Shift from surcharge to rebate in some jurisdictions
• Better control of direct and indirect incident costs

Operational impact:

• Improved decision-making at management level
• Better allocation of resources toward high-impact risks
• Reduced administrative workload
• Stronger alignment between safety, operations, and financial performance

Key Takeaway

Most organizations don’t lack effort in safety, they lack visibility on where that effort actually creates value.

• Systems become complex over time
• Effort increases, but results plateau
• Costs remain high because the real drivers are not addressed

The solution is not more procedures. It is better alignment between risk, operations, and financial impact.