What Is a Critical Risk Under New Zealand's HSWA Changes?
If you've been following the upcoming changes to New Zealand's health and safety legislation, you've probably started seeing the term critical risk more often.
From 1 April 2027, critical risks will take on greater significance under the Health and Safety at Work Act. All PCBUs will need to identify and prioritise their critical risks, although what that means in practice will differ depending on whether your organisation is considered a small or large PCBU.
So, what actually makes a risk critical?
It isn't simply another name for a high risk, nor does every hazard in your workplace automatically become a critical risk. Understanding the distinction now gives you time to review the risks you already manage and work out where the changes may affect your business.
What Is a Critical Risk?
Under the new framework, a critical risk is a risk that is likely to result in:
death;
a notifiable injury;
a notifiable illness;
a notifiable incident; or
a specified occupational disease.
Not sure what a notifiable injury, illness, or incident is? Read our blog on Notifiable Events: What New Zealand Businesses Need to Know to learn more.
A risk is also considered critical where it is managed by regulations under the Health and Safety at Work Act.
In practical terms, the framework is asking you to identify the risks associated with the hazards capable of causing the most serious harm in your workplace.
An important distinction here is the difference between a hazard and a risk. A hazard is something that could cause harm. Risk considers the chance that harm could occur and the potential outcome.
That distinction matters when deciding whether something meets the definition of a critical risk.
Some Risks Are Automatically Critical
You won't always need to determine whether a risk meets the serious-harm threshold yourself.
Where a hazard is covered by regulations under HSWA, the associated risk is automatically considered critical under the new framework.
WorkSafe gives examples including risks associated with:
hazardous substances;
asbestos;
certain machinery and plant;
working at height; and
other high-harm work covered by regulations.
For example, if your team works with a hazardous substance covered by the regulations, you don't first need to decide whether the potential harm is serious enough for the associated risk to be considered critical. Because regulations apply to that hazard, the associated risk is automatically critical.
This makes checking which regulations apply to your work an important part of identifying your critical risks.
How Do You Identify a Critical Risk?
For risks that aren't automatically captured by regulations, you'll need to consider the harm that could realistically result if the risk wasn't managed.
WorkSafe recommends starting with the hazards already present in your work. This includes everyday activities, equipment, maintenance and emergencies, alongside information from previous incidents and near misses and input from your workers.
For each hazard, consider:
What could realistically go wrong if our controls weren't there?
Then ask whether that situation is likely to result in death, a notifiable injury or illness, a notifiable incident or a specified occupational disease.
The words "likely to result" are important. WorkSafe explains that the chance of the serious outcome occurring needs to be more than a remote possibility, but it does not need to be certain. Businesses should consider the worst realistically possible outcome, rather than simply what normally happens.
That means identifying critical risks requires some judgement. It isn't simply a matter of labelling every conceivable serious outcome as critical.
What Could a Critical Risk Look Like in Practice?
Critical risks won't look the same in every workplace.
WorkSafe gives several examples that show how widely the concept can apply:
a worker handling cattle who could be trampled;
someone working around forklifts and moving loads who could be struck;
a roadside worker who could be hit by a vehicle;
a worker using machinery where crushing or amputation could occur;
workers handling hazardous substances covered by regulations.
The nature of your business therefore matters.
A hazard that creates a critical risk in one workplace may not arise at all in another. Even similar hazards can have different consequences depending on the task, environment and people involved.
That's why your existing understanding of your workplace remains important.
Don't Forget About Harm That Develops Over Time
Serious workplace harm isn't always immediate.
Some occupational diseases are also captured within the critical-risk definition. Examples identified by WorkSafe include occupational asthma, respiratory diseases caused by dusts or fumes, some cancers associated with workplace exposures such as asbestos, and occupational skin diseases.
This is an important reminder when reviewing your risks.
A piece of machinery capable of causing an amputation may stand out immediately as serious. Exposure to something that could contribute to illness years later may be much less obvious, even though the consequences can also be significant.
What Changes for Small and Large PCBUs?
This is one of the most significant parts of the 2027 changes.
Under WorkSafe's guidance:
Main HSWA duties are to prioritise managing critical risks | Must manage all workplace risks |
Must identify which risks meet the critical-risk definition | Must give greater priority, monitoring and resources to critical risks |
Must prioritise critical risks |
This doesn't mean a small business can simply write off everything it considers "minor". The first challenge is correctly identifying which risks meet the critical-risk definition and making sure those risks are actually managed.
There are also important implications around training, supervision, PPE, worker welfare and situations where PCBUs work together. Those differences deserve more detail than we can reasonably cover here.
You Probably Don't Need to Start from Scratch
If you already have an established risk-management process, the introduction of critical risks doesn't necessarily mean creating a completely new one.
WorkSafe specifically recommends using existing risk assessments as a starting point because businesses will often already know what their most serious risks are. It also recommends using incident information, industry guidance and worker input, documenting your reasoning in less-clear cases and reviewing critical risks when incidents occur or the work changes.
A practical review could begin with:
What are the most serious risks we currently manage?
Which of our hazards are covered by HSWA regulations?
What could realistically happen if our controls failed?
Could any exposures lead to occupational disease?
Have our workers identified risks we may have overlooked?
Have changes to our people, equipment or work altered any of our risks?
Can we explain why we've classified something as critical or otherwise?
The purpose isn't to create a longer risk register, but to make sure you understand which risks have the potential to cause the most serious harm and that your approach reflects the new framework coming into effect.
Do You Know Which Risks Are Critical in Your Workplace?
The term critical risk may be new to the legislation, but many of the hazards behind those risks won't be new to your business.
You may already manage machinery, vehicles, work at height, hazardous substances or other activities capable of causing serious harm. The change provides a clearer framework for identifying which risks demand particular attention.
Between now and 1 April 2027, it's worth reviewing your existing risk assessments through that lens.
Start with the work you're already doing. Look at the most serious realistically possible outcomes, check which hazards are covered by regulations, involve your workers and document the reasoning behind your decisions.
Most importantly, don't treat critical risk as another label to add to a register.
Use it to focus attention on the things that could genuinely cause the most harm.
What Does This Mean for Your Business?
We've created a central resource outlining the Health and Safety at Work Amendment Act 2026, including key changes, Safewise webinar recordings and practical information to help you understand what may affect your business.
This article provides general information only and should not be treated as legal advice. Health and safety requirements can vary depending on workplace risks, business operations, and the nature of the work. If you are unsure about your obligations, please contact us for assistance.
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