Risk Management and Analysis Techniques
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Questions and Answers

What does societal risk estimate?

  • The chances of people being harmed by an industrial incident (correct)
  • The likelihood of natural disasters occurring
  • Individual incidents causing no harm
  • The financial loss from industrial accidents
  • What does cost-benefit analysis (CBA) assist duty holders with?

  • Making decisions on risk reduction measures (correct)
  • Calculating the overall company profit
  • Assessing individual employee risks
  • Determining employee training needs
  • Which is a characteristic of pure risk?

  • It is influenced by human intervention
  • It can be voluntarily taken on
  • It results in either a loss or no loss (correct)
  • It always leads to a financial gain
  • What is the primary goal of safety and health programs?

    <p>To prevent workplace injuries and illnesses</p> Signup and view all the answers

    What does preliminary hazard analysis primarily evaluate?

    <p>The initial hazards in a product's design and manufacture</p> Signup and view all the answers

    What are the three broad categories identified in David Yates' theory for quantifying accident causes?

    <p>Overload, inappropriate worker response, inappropriate activities</p> Signup and view all the answers

    Who is responsible for conducting an incident investigation?

    <p>The front-line supervisor</p> Signup and view all the answers

    According to Petersen's theory, what are the main causes of accidents/incidents?

    <p>Human error and/or system failure</p> Signup and view all the answers

    What does vicarious liability refer to?

    <p>Liability assigned to a third party for negligence</p> Signup and view all the answers

    Which of the following is NOT one of the Seven Cardinal Rules of Risk Communication?

    <p>Involve private stakeholders only</p> Signup and view all the answers

    The Peter Principle suggests which of the following concepts?

    <p>Individuals are promoted until they reach incompetence</p> Signup and view all the answers

    What is the primary goal of Fail Safe Operational design?

    <p>To prioritize safety in the event of failure</p> Signup and view all the answers

    What does a Z score indicate in statistical analysis?

    <p>It reflects the percentage of area under the curve.</p> Signup and view all the answers

    Which standard is specifically focused on improving OSH management systems?

    <p>ANSI/AIHA Z10</p> Signup and view all the answers

    What is the primary purpose of Poka Yoke?

    <p>To prevent inadvertent errors in a process.</p> Signup and view all the answers

    Which of the following steps is NOT part of the general process of risk assessment?

    <p>Assess cost implications.</p> Signup and view all the answers

    Which risk analysis technique examines responses to challenges?

    <p>Event tree analysis</p> Signup and view all the answers

    What is the main objective of safety and health programs?

    <p>To prevent workplace injuries, illnesses, and deaths</p> Signup and view all the answers

    Which type of insurance covers losses due to catastrophic events?

    <p>Catastrophe insurance</p> Signup and view all the answers

    What type of risk is characterized by a lack of possibility for financial gain?

    <p>Pure risk</p> Signup and view all the answers

    What concept is exemplified by David Yates' Human Factors Theory?

    <p>Overload, inappropriate response, and activities</p> Signup and view all the answers

    Which analysis technique focuses on identifying specific causes of a top-level event?

    <p>Fault tree analysis</p> Signup and view all the answers

    Which of the following describes a tangible cost?

    <p>Accrued employee salaries</p> Signup and view all the answers

    What is the primary goal of risk management in an organization?

    <p>To help decide where to apply funds for maximum risk reduction.</p> Signup and view all the answers

    What does risk homeostasis refer to?

    <p>Adjustment of behavior in response to perceived risk levels</p> Signup and view all the answers

    What does ALARP stand for in risk management?

    <p>As Low As Reasonably Practicable</p> Signup and view all the answers

    Which of the following best describes mutually exclusive events?

    <p>Events that cannot happen together</p> Signup and view all the answers

    Which of the following is an example of a speculative risk?

    <p>Investing in stock market shares</p> Signup and view all the answers

    Which analysis is described as top-down and based on premises?

    <p>Deductive analysis</p> Signup and view all the answers

    What is a key feature of dynamic risk assessments?

    <p>They are used by emergency service workers</p> Signup and view all the answers

    What is an example of an intangible cost?

    <p>Potential risks that develop over time</p> Signup and view all the answers

    What does ASTM stand for?

    <p>American Standards for Testing and Materials</p> Signup and view all the answers

    What kind of controls are educational controls considered?

    <p>Based on employee knowledge and skills</p> Signup and view all the answers

    Which of the following best describes the Peter Principle?

    <p>Employees are promoted until they reach their level of incompetence</p> Signup and view all the answers

    What is the primary purpose of an indemnification agreement?

    <p>To protect one party from risks created by the other</p> Signup and view all the answers

    What does a Z-score determine in statistics?

    <p>The location of a single score in a normal distribution</p> Signup and view all the answers

    What is a characteristic of fail-safe passive systems?

    <p>They stop operating automatically in case of failure</p> Signup and view all the answers

    What does Poka Yoke refer to?

    <p>An approach to mistake-proofing in processes</p> Signup and view all the answers

    Which of the following represents the Pareto Principle?

    <p>80% of results come from 20% of the efforts</p> Signup and view all the answers

    What is the goal of ranking departments by composite score in risk management?

    <p>To identify funding allocation for risk reduction</p> Signup and view all the answers

    What does ANSI/AIHA Z10 help to establish?

    <p>Occupational health and safety management systems</p> Signup and view all the answers

    Study Notes

    Dynamic Risk Assessments

    • Workers in emergency services, trades, care, retail, and security use dynamic risk assessments
    • These assessments are for rapidly changing situations

    Formal Hazard Analysis

    • Two types: inductive and deductive
    • Inductive (bottom-up): future, hypothetical, based on experience (e.g., FEMA, FEMCA, FHA)
    • Deductive (top-down): future behavior from premises (e.g., FTA, Fishbone, General to Specific)

    Cost Types

    • Tangible costs: easily seen, e.g., products, employee salaries, maintenance
    • Intangible costs: indirect costs, later effects, e.g., risk

    Risk Management

    • Definition: reducing or eliminating adverse risk effects for an organization
    • Risk homeostasis: comparing perceived and target risk levels, adjusting to minimize discrepancies
    • System availability: an item's operable and committable state

    Analysis Techniques

    • Fault tree analysis: deductive, starts with a top-level event, determining causes
    • No single method completely evaluates a product

    Control Measures

    • Examples include hazard avoidance, design changes to eliminate hazards, limiting exposure, providing personal protective equipment (PPE), and warning signals

    Risk Management Process

    • Key steps: hazard identification, assessment, control development, decision-making, implementation, supervision, evaluation
    • Types of controls: educational, physical, avoidance

    Insurance

    • Reinsurance: primary and secondary insurer agreement to cover risks
    • Retrocession: risk or insurance amount a company chooses not to retain

    Human Factors Theory

    • Accident causes categorized as overload, worker response, and activities (David Yates' theory)
    • Front-line supervisors conduct incident investigations
    • Accident/incident cause is human error and/or system failure (Petersen's theory)

    Vicarious Liability

    • Legal relationship for injury liability to a person not the cause of the act

    Risk Communication

    • Seven Cardinal Rules of Risk Communication (Covello and Allen 1988): accept, plan, listen, be honest, work with sources, meet needs of media, and speak with compassion

    System Safety

    • Fail-safe passive: equipment stops when fails, e.g., circuit breakers
    • Fail-safe active: emergency systems continue functioning during failure, e.g., emergency lights
    • Fail-safe operational: safety-prioritized design, e.g., feed water valve, copilot

    Statistical Concepts

    • Z-score: a score's position in a normal distribution; percentage of area under the curve
    • T-test: comparing population means (typically with less than 30 samples)
    • Chi square: measures "goodness of fit" between observed and expected frequencies; often used with frequency tables
    • Standard deviation: measures data dispersion; 1SD, 2SD, 3SD encompass different percentages of the data around the mean

    Poka Yoke

    • Japanese term: mistake-proofing, inadvertent error prevention

    Process Safety Management

    • ANSI/AIHA Z10: standard for implementing OSH management systems to improve employee safety

    Criteria for Controls

    • Support: resources (personnel, equipment)
    • Standards: clear, practical, specific guidance
    • Training: knowledge and skills; adequate training to implement controls
    • Leadership: competent managers and supervisors; competent for implementation
    • Individual: independent, self-disciplined employees

    Risk Categories

    • Pure risk: uncontrollable; loss or no loss, no financial gain (e.g., fires, floods)
    • Speculative risk: voluntary; potential profit or loss (e.g., gambling)

    Safety and Health Programs

    • Goal: prevent injuries, illnesses, and deaths; reduce financial hardship (reduce costs, safety/health, social responsibility, and productivity)
    • Focus on proactive, process-management, ongoing improvement (evaluation)

    Dynamic Risk Assessments

    • Used by emergency, trade, care, retail, and security workers

    Formal Hazard Analysis

    • Methods: inductive (bottom-up) and deductive (top-down) analysis

    Cost Classification

    • Tangible costs: easily seen (e.g., products, labor)
    • Intangible costs: difficult to see (e.g., risks)

    Berlo's Model

    • Source -- Message -- Channel -- Receiver

    System Availability

    • Degree of operability and committability of an item

    Independent and Mutually Exclusive Events

    • Independent: don't affect the probability of each other
    • Mutually exclusive: cannot happen at the same time

    Analysis Techniques

    • Fault tree analysis: deductive, starting with a top-level event
    • System hazard analysis: formal analysis of a system and its relationships, identification of hazards
    • Common cause failure analysis: single events or causes common to multiple components
    • Sneak circuit analysis: unintentional energy routes
    • Preliminary hazard analysis: conducts initial risk evaluation

    Failure Rate and Success Rate

    • Failure rate: failures / attempts
    • Success rate: successes / attempts

    Human Factors Theory

    • Classify accident causes into: overload, inappropriate worker response, inappropriate activity

    Incident Investigation

    • Front-line supervisors are responsible

    Petersen's Accident/Incident Theory

    • Human error or system failure causes accidents/incidents

    Vicarious Liability

    • Legal relationship where a person can be held liable for the actions of another

    Risk Communication Rules

    • Key rules in effective communication

    Risk Calculation

    • Formulas for calculating costs and benefits

    Experience Modification Rate

    • Rate less than 1 is considered very good; measures industry experience

    Behavior-Based Safety Process

    • Steps for implementing Behavior-Based Safety

    Modern Management Theory

    • Consequences must be positive or negative, immediate or future, certain or uncertain

    ISO 19011 Principles

    • Seven principles in auditing (e.g., integrity, due professional care)

    Insurance

    • Occurrence insurance (covers policy period incidents)
    • Claims-made insurance (covers incidents when claim is reported)
    • Reinsurance (between primary and secondary insurers)

    Miscellaneous

    • Acronyms (ASTM, ANSI, NFPA, IARC)

    Risk Management and Controls

    • Ranking departments by composite scores to allocate funds for greatest risk reduction
    • ABCs of Behavior: Antecedent, Behavior, Consequence

    Criteria for Controls

    • Support for controls, adequate supplies
    • Standards, adequate training
    • Training, competent managers and supervisors
    • Leadership

    Risk Assessment

    • Steps in risk assessment; identify hazards, decide on affected groups, assess them, record, and review results. (NIOSH, EPA)

    Risk Assessment Applications

    • Generic, specific, and dynamic risk assessments are used.
    • Dynamic: continuous process of identifying hazards, assessing risk, and taking action.

    Other Concepts

    • Definitions of descriptive epidemiology, ASTM, ANSI, NFPA, IARC

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    Related Documents

    Dynamic Risk Assessments PDF

    Description

    Explore various methods and concepts in dynamic risk assessments, formal hazard analysis, cost types, and overall risk management strategies. This quiz covers essential techniques such as fault tree analysis and the principles of risk homeostasis. Test your understanding of these critical topics in organizational safety.

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