Operational Risk Case Studies

Implementing RCODS: Operational Risk & OHS Optimization (RCODS) in a Canadian Construction & Manufacturing Company

Turning Safety Data Into Operational Performance

Fortalis partnered with a national construction and manufacturing organization to improve operational risk management, reduce incident-related costs, and simplify safety systems across multiple provinces.

The organization already had established health and safety programs in place. However, despite significant investment in compliance initiatives, operational performance and incident-related costs were not improving at the expected pace.

This case study demonstrates how a more integrated and operational approach to risk management helped create measurable improvements in safety performance, cost control, and organizational visibility.

The Context & Problem

Where the organization stood, and why results were not meeting expectations.

Client Context

The client operated across 9–10 Canadian provinces within complex regulatory environments involving both provincial and federal requirements.

The organization had:

An established occupational health and safety management system
Existing compliance programs and reporting structures
Multiple operational teams across construction and manufacturing activities
Significant administrative and operational complexity

Despite these efforts, leadership lacked clear visibility into where operational risk and financial impact were truly originating.

The Operational Problem

The organization was facing a common challenge seen in many large operations:

Safety was managed primarily as a compliance function rather than an operational performance driver
Incident costs were poorly understood and underestimated
Resources were spread across multiple initiatives with limited measurable impact
Safety systems became increasingly complex, time-consuming, and inconsistently applied across regions

In short, effort continued to increase while operational visibility and performance improvements remained limited.

Our Approach

Fortalis implemented what would later become the RCODS approach (Reducing Cost of Doing Safety).

The objective was not to add more controls or procedures, but to simplify systems, improve operational visibility, and align safety management with measurable business outcomes.

1. Data Structuring & Integration

We consolidated operational and financial data across multiple systems to create a clearer picture of risk exposure and performance drivers.

This included:

Workers’ compensation claims and associated costs
HR and workforce management data
Lost-time and modified duty metrics
Payroll and labor cost analysis
Operational margin and performance indicators

This integration created a unified operational risk view across the organization.

2. Financial Translation of Risk

One of the key issues identified was that operational risks were not being translated into meaningful financial terms.

Fortalis developed a structured methodology to quantify:

Lost-time incidents
Reduced productivity from modified duties
Equipment and operational disruption costs
Direct and indirect incident-related expenses

This allowed leadership teams to better understand the true operational and financial impact of workplace incidents.

3. Targeted Risk & Performance Analysis

Using integrated operational data, we identified where risks and costs were actually being generated.

Analysis focused on:

Specific trades and job functions
High-impact operational regions
Injury categories and recurring causes
Workforce experience levels and working conditions

This allowed the organization to prioritize resources based on measurable impact rather than assumptions.

4. System Simplification & Operational Integration

Fortalis helped simplify and standardize the organization’s operational risk and OHS management processes.

Key improvements included:

Simplified safety management systems
Reduced administrative burden
Corporate dashboards with actionable KPIs
Standardized training and operational processes across Canada
Improved return-to-work management practices

The focus was to make systems operationally effective, practical, and easier to apply consistently across multiple regions.

Results & Operational Impact

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Performance Improvements Over the First Four Years

The organization achieved significant measurable improvements, including:

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

Financial impact:

The project also delivered substantial financial and operational benefits:

Major reductions in workers’ compensation costs across multiple provinces
Movement from surcharge positions toward rebate eligibility in certain jurisdictions
Improved control over direct and indirect incident-related costs
Better visibility into operational risk drivers and cost allocation

Operational impact:

Additional operational outcomes included:

Improved management decision-making through clearer operational data
Better allocation of resources toward high-impact risks
Reduced administrative workload and system complexity
Stronger alignment between safety, operations, and financial performance

Lost days for workplace accidents

Weighted National WCB Rate

Key Takeaway

When operational risk is measured in both operational and financial terms, priorities become significantly clearer.

Most organizations do not lack effort in safety and operational risk management. The real challenge is often a lack of visibility into where that effort creates measurable operational value.

This project highlights a recurring operational pattern:

Systems become more complex over time
Administrative effort increases while performance plateaus
Costs remain high because the true operational drivers are not fully understood

The solution is not necessarily more procedures or additional controls.

It is better alignment between operational risk, system performance, leadership visibility, and business outcomes.

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