What is ISO 45001:2018, and How Can it Benefit Your Business?

What is ISO 45001:2018?

ISO 45001:2018 Standard is an Occupational Health and Safety Management System (OHSMS) designed to promote a healthy working environment by providing a framework for identifying, controlling, and managing occupational health and safety risks and opportunities. In addition, it offers a chance to benchmark OHS practices against global best practices.

This standard adopts a proactive, leadership-driven approach to ensure a safe workplace, focusing on continual improvement. It also shares common management principles with other standards, such as ISO 14001 Environmental Management Systems and ISO 9001 Quality Management Systems.

To achieve certification to ISO 45001, an organisation must demonstrate that it has a robust safety management system that meets the standard's requirements. This can help reduce workplace accidents, improve worker well-being, and meet legal obligations related to occupational health and safety.

ISO 45001:2018 in Australia and New Zealand

In October 2018, Standards Australia transitioned away from the old Australian Standard of AS/NZS 4801:2001, Occupational Health and Safety Management Systems. This move demonstrated commitment to industry-wide safety and health standard improvement.

New standard AS/NZS ISO 45001:2018 was adopted with guidance for use, providing businesses with much-needed support during this transition period. Despite the phased-out nature of AS/NZS 4801:2001, it remains maintained as a reference source for regulatory purposes, illustrating continued respect for its importance from a regulatory point of view.

By aligning with the international ISO standard, businesses of all sizes reduce safety risks, boost productivity, and demonstrate global compliance while implementing forward-looking safety practices beyond domestic requirements.

Benefits of Implementing ISO 45001 Occupational Health and Safety Management Systems Requirements

Implementing a management system based on ISO standards delivers several beneficial outcomes for businesses in terms of operations and finances.

1. Proactive Risk Management

From an operational standpoint, a clear management system helps organisations identify potential hazards quickly and take appropriate action to minimise risk before accidents occur. Fewer work-related injuries or illnesses among employees results, leading to improved morale and reduced costs from lost workdays or medical expenses.

2. Financial and Operational Gains

From a financial perspective, implementing this standard may also result in lower insurance premiums due to the reduced likelihood of costly claims resulting from workplace accidents or incidents. Additionally, a robust health and safety program may open access to grants or other funding opportunities from government agencies or nonprofit organisations looking to support businesses prioritising worker safety over profits.

3. Improved Brand Reputation and Competitive Edge

Lastly, adhering to these standards can improve your company's public image, as customers gravitate towards brands demonstrating commitment to employee well-being through maintaining safety standards. Certification can also provide an advantage when bidding for contracts, especially where safety credentials carry weight.

Discover more benefits for your business in our blog post.

Leadership-led Approach

One fundamental principle of ISO 45001 is a leadership-led approach, which emphasises the role of top management in driving efforts to improve health and safety performance.

The leadership-led approach of ISO 45001 means top management must take an active role in setting organisational health and safety goals and establishing policies and procedures for managing OHS risk. Organisations can achieve this by providing necessary resources and support, plus setting an example for others to follow.

ISO 45001 also requires top management to engage with employees and other interested parties, ensuring concerns and needs are considered when developing and implementing the health and safety management system. This can help create a positive health and safety culture where employees feel encouraged to speak up, with their contributions valued and respected.

Overall, the leadership-led approach of ISO 45001 forms an important part of the standard because it recognises that senior leaders must play a key role in driving efforts to improve health and safety performance. Taking an active, engaged approach to OHS management helps create safe, healthy workplaces and improves organisational compliance and reputation.

Common Principles with Other Standards

Similar to other well-known standards such as ISO 14001 Environmental Management Systems or ISO 9001 Quality Management Systems, ISO 45001 shares the same high-level structure, such as Plan-Do-Check-Act (PDCA), which focuses on continual improvement through structured processes covering all areas associated with OHS management system operations, including:

• Process-based approach: All three standards rest on a process-based approach, meaning they focus on processes and activities an organisation uses when managing OHS risks. This approach helps organisations understand how operations and activities interrelate and how outcomes can improve to achieve better results.
• Continual improvement: All three standards emphasise the importance of continual improvement, meaning organisations must regularly review and update their management systems to improve OHS performance and achieve goals. This can be done through regular internal audits and by tracking and analysing data on key performance indicators.
• Risk-based thinking: All three standards require organisations to consider risks and opportunities associated with their operations and take appropriate action to manage and seize those risks. This helps organisations identify and address potential problems before they occur, taking advantage of opportunities to improve performance and reduce work-related accidents.
• Engagement of people: All three standards recognise the importance of engaging employees and other stakeholders in developing and implementing the management system. This helps ensure organisational goals and objectives are understood and supported by all relevant parties, keeping the management system effective and sustainable.
• Compatibility: ISO 45001's compatibility with ISO 9001 and ISO 14001 enables integrated management systems, streamlining compliance and documentation efforts across quality, environmental, and health and safety domains.

Addressing Legal Requirements

One key principle of ISO Management System Standards involves organisations identifying and evaluating legal and other requirements that apply to their OHSMS. This involves identifying relevant laws, regulations, and other standards applicable to the organisation and its operations, then determining how these relate to safety guidelines.

The organisation must then ensure its OHSMS aligns with these requirements and has processes in place to monitor and update the system as necessary to maintain compliance.

In addition, the international standard requires organisations to have processes responding to applicable legal and other requirements. This means the organisation must have a system monitoring changes to relevant laws and regulations, updating its OHSMS as necessary to remain compliant with safety legislation.

Overall, ISO 45001 requirements provide a framework for organisations to identify, understand, and comply with legal obligations related to occupational health and safety. By implementing the standard, organisations ensure their OHS management stays aligned with applicable laws and regulations while taking appropriate steps to protect workers' and other stakeholders' health and safety.

This proves particularly valuable in sectors with frequent regulatory updates or high compliance burdens, where missed changes can lead to serious penalties.

Certification Bodies

A certification body is an organisation accredited to assess and certify organisations implementing ISO 45001. Certification bodies operate independently and are recognised by accreditation bodies as having expertise and capability to assess organisations against ISO 45001 requirements.

When a company tries to implement ISO 45001, it can choose to work with a certification body to assess its readiness for certification. The certification body will audit the company's OHSMS to determine whether it meets the standard's requirements. If found compliant with ISO 45001, the certification body issues a certificate of conformity.

The certification process typically involves several stages, including an initial assessment, a pre-certification audit, and a final certification audit. Certification bodies work closely with companies throughout the process, providing guidance and support while ensuring OHSMS compliance with ISO 45001.

Maintaining certification also requires surveillance audits and recertification every three years, reinforcing ongoing compliance. Some organisations also engage a consultant to support preparation for these audits and streamline the certification journey.

Auditing AS/NZS ISO 45001

To ensure compliance with requirements outlined within ISO 45001:2018, organisations normally conduct annual surveillance audits that regularly assess safety system performance against internal and external criteria. This process should aim to identify non-conformances or opportunities for improvement within the OHSMS and evaluate effectiveness against legal requirements and industry best practices.

Additionally, organisations should maintain an effective system for recording audit findings, so issues can be quickly resolved before becoming serious problems impacting worker safety or health outcomes. Our AS/NZS ISO 45001:2018 Internal Audit Checklist can support this process.

Benefits of an auditing program for ISO 45001 management systems include the following:

• Improved workplace safety: Annual auditing helps organisations identify and address potential safety hazards in the workplace, reducing the risk of employee accidents and injuries by improving worker participation.
• Enhanced compliance: Auditing helps organisations meet all relevant legal and regulatory requirements for workplace safety, helping prevent fines and other penalties for non-compliance.
• Increased efficiency: By identifying and addressing potential problems and inefficiencies in the management system, auditing helps organisations streamline processes and increase efficiency across operations.
• Better decision-making: Auditing provides organisations with valuable data and insights into management system performance, helping leaders make more informed decisions about improving operations and achieving goals.
• Enhanced reputation: Organisations certified as compliant with ISO 45001 can improve their reputation with customers, regulators, and other stakeholders, helping attract new business and build trust in their brand.

What is the Difference Between a Standard Like AS/NZS ISO 45001:2018 and a Safety Management System?

ISO 45001 is an international standard for Occupational Health and Safety Management Systems (OHSMS), while a Safety Management System (SMS) comprises policies, procedures, and practices an organisation uses to manage and control safety-related risks and hazards.

In other words, the ISO standard provides a framework for organisations in any industry sector to develop and implement an OHSMS, while the safety management system represents the actual system an organisation puts in place to manage and control safety risks.

While ISO 45001 and a safety management system remain closely related, they serve different purposes. ISO 45001 provides the framework for developing and implementing a world-class safety management system, while the safety management system represents the actual system an organisation uses to manage and control safety risks. Both prove important for ensuring the safety and well-being of workers and other stakeholders.

One is a globally agreed-upon "blueprint," while the other represents your business's real-world execution of that plan.

How Do I Develop My Safety Management System?

AS/NZS ISO 45001:2018, as a safety standard, outlines five key steps for creating a safe and healthy work environment. By following these steps, businesses can reduce workplace risks, demonstrate their duty of care towards employees' safety and well-being, and ensure their business remains compliant with relevant laws and regulations. Let's examine these five steps and what they entail.

Step 1: Risk Assessment & Hazard Identification

The first step in creating a safe working environment involves identifying potential risks or hazards that could affect your business operations. This includes assessing physical hazards, like machinery or tools, and psychological risks, such as stress or workloads. Once identified, strategies for mitigating them can reduce the likelihood of accidents occurring in the workplace.

Step 2: Implementation & Control of Risks

Once potential risks and hazards in the workplace have been identified, measures must be implemented to help prevent them from recurring. This could include implementing new safety procedures or providing additional training for employees on handling certain tasks, reducing potential risks and maintaining safe, healthy workplaces.

Step 3: Monitoring Effectiveness

For your risk management process to prove effective, regularly monitor the effectiveness of implemented strategies against both internal and external issues. This can be done through regular audits, helping identify areas where additional control measures may need to be taken for your business operations to remain safe and compliant with applicable regulations. Our guide on reviewing risk controls offers further detail on this step.

Step 4: Planning & Implementing

Once potential risks have been identified and strategies developed for mitigating them, plan out how these strategies get implemented into daily business operations. This includes ensuring all employees and interested parties are aware of new safety procedures, with training on performing certain tasks safely.

Step 5: Continual Improvement

Finally, once all safety procedures have been put into place, continual performance evaluation by senior management should follow, with improvements made as needed to remain up-to-date with current regulations and industry standards. Regularly evaluating your risk management process helps meet intended outcomes, particularly where additional control measures may need to be taken for business operations to remain safe and compliant with applicable regulations.

Let SafetyDocs Help You

Overall, implementing a management system based on ISO 45001 provides numerous benefits for businesses looking to improve operations while strengthening their bottom line. From reducing workplace risks through effective risk management strategies to improving customer satisfaction ratings through enhanced brand reputation.

For businesses looking to meet compliance requirements alongside the highest quality health and safety standards, SafetyDocs' management systems provide all requirements needed to meet AS/NZS ISO 45001. Our systems and Trades OHS Management System services strive to increase communication between employers and employees while remaining easy to use and implement in any organisation.

With SafetyDocs on your side, regardless of company size, everything needed to maintain the best possible occupational safety standard across all premises becomes readily available. Let us help take the guesswork out of safety compliance so focus can return to what's important – running a safe and successful business. See what other customers say in our customer reviews and testimonials.

To find out more about how your organisation can become certified to AS/NZS ISO 45001:2018, check out our range of integrated management systems, or visit our getting started guide for help downloading your documents.

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Author - Craig Cruickshank is the HSEQ Manager and Senior Technical Advisor at SafetyDocs by SafetyCulture.

Craig comes from a construction and environmental background, with experience in both the private and public sectors and is passionate about making health and safety information easy to find and understand for everyone.

Learn more about Craig's work on LinkedIn

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Please note that the above information is provided as a comment only and should not be relied on as professional, legal or financial advice.