Safety Climate and Its Relationship with Workers' Risk Perceptions and Risk Tolerances toward the Acceptance of Risk Management

Risk management is a systematic approach of dealing with the inherent uncertainty of risks in a deliberate manner. Workers' risk perception and risk tolerance are two elements that may impact how a firm handles risk and how secure it is, depending on how comparable their risk perceptions and tolerances are. There exists a disparity between the phase of evaluating operational hazards and the phase of comprehending them. The role of workers towards risk management remains limited. Hence, the objective of this study is to ascertain the correlation between the perception of risk and the willingness to take risks, in connection to the workers' safety environment in refinery plants. An analysis utilising the Partial Least Squares-SEM model wasperformed on the data obtained from a valid research questionnaire. Results illustrate that risk perception of employees and their level of readiness to accept risks (tolerance) are remarkably impacted by the safety climate. Moreover, it explained how an individual's viewpoint on risk perception significantly impacts their willingness to embrace risk. This study increases employee awareness, which promotes a safety culture and enhances understanding of the company's risk management strategies. As a result, there will be a notable decline in occurrences pertaining to safety in general.