As a board director of a Health Care and Aged Care organisation, or if you are about to become one, you need to understand your role and responsibilities. You also need to be aware of food law (and other regulatory requirements) and ensure your organisation abides by them.
Health Care and Aged Care organisations increasingly face many challenges and higher expectations from an array of stakeholders, regulatory agencies and consumers. The area of food safety is no exception, with many organisations achieving minimum regulatory compliance and failing to recognise related risks until after a serious episode occurs – as a consultant working across the broader food industry, this is something I see too often in these sectors.
As far back as 1997, Winsome McCaughey AO, the former Chief Executive of Australia New Zealand Food Authority outlined the broad policy framework for food regulatory reform in Australia.
The reforms promoted a risk-based approach to food safety management which is consistent with international guidelines on risk analysis. Central to this approach was the introduction of national food safety standards.
The national food regulator, developed standards requiring food safety programs in high-risk sectors such as to vulnerable persons.
Food businesses providing potentially hazardous food to hospital patients, aged care residents and children in child care centres are captured by these requirements. It also applies to businesses that prepare and deliver meals to vulnerable persons.
Health Care and Aged Care organisations need to ensure that risks to food safety management within their business are properly identified, reported and controlled.
The key action points for boards of directors to embrace are:
- understanding and accepting its role and responsibility in food safety leadership
- understanding and accepting at an individual board member level the accountability for their role
- understanding the organisation’s obligations under various (food) legislation
- creating clearly defined policies on accountabilities, risk and reporting
- to consider the food safety implications of board decisions
- to oversee management actions in food safety matters.
The Board should also agree on:
- how to incorporate food safety management into existing governance structures
- how to set objectives and monitor performance of the business and food related risks
- the appointment of a board member as its food safety ‘champion’ – a nominated food safety director who will take the lead on ensuring that the board’s food safety management systems responsibilities are properly discharged.
The governance of an organisation involves the establishment of a framework of values, processes and practices designed to regulate, monitor and provide effective reporting on organisational performance. Through this framework, boards and directors exercise their governing authority and make decisions to achieve the organisation’s purpose and goals. Directors ensure the organisation operates effectively, ethically and complies with all laws and regulations.
Food safety governance is as important as any other aspect of governance. It is also a fundamental part of an organisation’s risk management strategy, which is a key responsibility of a board of directors. Both the board and its management team have a duty to exercise due diligence to ensure that the organisation complies with its food safety duties and obligations. Failure to effectively manage food safety risk has both human and business costs – this includes damaged reputations and potential prosecution.
It is important to distinguish between governance and management practices. Directors should focus on governance related issues – determining the organisation’s purpose, developing an effective governance culture, holding management to account and ensuring effective performance and compliance. Directors work with management to develop strategy and business plans which are then implemented by management.
There is no ‘one-size fits all’ solution for establishing effective food safety management governance, as the structures and levels of engagement vary with the size and complexity of the organisations involved. There are however, a number of basic questions which a board of directors can ask itself to assist in creating the right business culture:
- How does the board assure itself the food safety management system has been fully implemented across the organisation?
- How does the board assure itself that the organisation is demonstrating its commitment to food safety?
- How does the board verify that the organisation’s food safety strategic and operational risks have been adequately identified, assessed and appropriate mitigation strategies have been implemented?
- What relevant information is the board receiving on food safety management? Is this reporting sufficient?
- What processes are in place to inform board members of the results (and actions taken) from internal and external audits and comprehensive senior management reviews to ensure the food safety management system is fit for purpose?
- How does the board satisfy itself that the organisation has food handling employees and managers that are competent and adequately trained in their food safety responsibilities and accountabilities?
- Does the organisation have sufficient resources (people, equipment, systems and budget) for managing its food safety management systems?
- What approach does the board use to compare the performance of the food safety management system with comparable organisations? How does it monitor and rate its organisation’s performance?
It’s time for the Health Care and Aged Care sectors to move beyond meeting minimum compliance requirements and strive for business excellence in food safety management systems.
Think ST Solutions offers you practical solutions at a management level and to your staff whether you operate in hospitals, aged care facilities, restaurants, hotels or the food industry generally. We specialise in developing useful tools to assist you in the areas of food safety, strategic planning, business management, risk and compliance training and easy to implement business consultancy solutions.
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