Risk Management and Hazard Analysis
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Questions and Answers

What does the Chi Square (X2) test primarily measure?

  • The variation of a sample around its mean
  • The mean difference between two populations
  • The correlation between two continuous variables
  • The goodness of fit between observed and expected frequencies (correct)

What does the term Poka Yoke refer to?

  • A type of risk assessment model
  • A statistical technique to analyze variance
  • A mechanism for mistake-proofing processes (correct)
  • A method for enhancing employee productivity

Which of the following describes dynamic risk assessment?

  • A one-time evaluation of workplace hazards
  • An ongoing process adapting to changing circumstances (correct)
  • A risk analysis conducted by a single person
  • A standard method with fixed guidelines

Which of the following is NOT part of NIOSH's three-step process for conducting occupational risk assessments?

<p>Conduct a financial risk analysis (B)</p> Signup and view all the answers

In risk management, what is the primary goal?

<p>To help managers allocate resources for optimal risk reduction (D)</p> Signup and view all the answers

What does the 'failure' mean in the context of risk analysis?

<p>Departure from intended design parameters in a system (B)</p> Signup and view all the answers

Which of the following concepts is essential to Process Safety Management?

<p>Clear guidance and procedural standards (B)</p> Signup and view all the answers

What characterizes fail-safe passive systems?

<p>They stop operating in a low energy state. (C)</p> Signup and view all the answers

Which principle suggests that a person's promotion can lead to their incompetence?

<p>Peter Principle (B)</p> Signup and view all the answers

What is the purpose of the Poka yoke manufacturing technique?

<p>To prevent inadvertent errors and improve quality. (D)</p> Signup and view all the answers

Which of these is NOT a type of control measure mentioned?

<p>Social (A)</p> Signup and view all the answers

What does the Chi Square statistic measure in risk analysis?

<p>The probability of error between observed and expected outcomes. (B)</p> Signup and view all the answers

What does ASTM International signify?

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

Which principle explains that employees are promoted until they reach a level where they cannot perform effectively?

<p>Peter Principle (C)</p> Signup and view all the answers

What is the primary focus of Poka Yoke?

<p>Preventing inadvertent errors and defects (D)</p> Signup and view all the answers

Which of the following controls includes barriers and guards?

<p>Physical controls (C)</p> Signup and view all the answers

Which statistic is used to compare a population mean to a sample mean?

<p>T-test (D)</p> Signup and view all the answers

What does the term 'Fail Safe Active' refer to?

<p>Emergency lights that activate during power failure (A)</p> Signup and view all the answers

Which principle suggests that a small portion of employees is responsible for the majority of results?

<p>Pareto Principle (A)</p> Signup and view all the answers

What is a key feature of an indemnification agreement?

<p>It protects against liability risks (D)</p> Signup and view all the answers

What does the Z-score measure in a normal distribution?

<p>The location of a single score relative to the mean (C)</p> Signup and view all the answers

What standard aids in establishing occupational safety and health management systems?

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

What is the primary purpose of safety and health programs in the workplace?

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

Which type of risk is characterized by having no potential for profit or loss?

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

In the framework of hazard management, which step involves gathering information and analyzing risks?

<p>Hazard assessment (D)</p> Signup and view all the answers

Which control measures aim to reduce the likelihood of risk occurrence or consequences?

<p>Detective controls (A)</p> Signup and view all the answers

What assigns liability for an injury to a person who did not directly cause the injury?

<p>Vicarious Liability (B)</p> Signup and view all the answers

Petersen's Accident/Incident Theory emphasizes which two primary causes of accidents?

<p>Human error and system failure (B)</p> Signup and view all the answers

What is the purpose of reinsurance in the context of insurance?

<p>To transfer risk from the insurer to the reinsurer (A)</p> Signup and view all the answers

What approach does the Human Factors Theory advocate for understanding accidents?

<p>Categorization of accident causes (C)</p> Signup and view all the answers

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

<p>Ignoring public feedback (C)</p> Signup and view all the answers

What is the proper formula for calculating compensation cost?

<p>Gross / Profit margin % (A)</p> Signup and view all the answers

Which of the following is NOT a step in the Behavior-Based Safety process?

<p>Establish safety policy (C)</p> Signup and view all the answers

What condition is crucial for increasing the likelihood of success in safety management?

<p>Safety Leadership (D)</p> Signup and view all the answers

Which of the following resources is NOT used for the extraction of critical behaviors?

<p>Stock Market Analysis (D)</p> Signup and view all the answers

What characteristic of consequences has the greatest impact on employee behavior?

<p>Soon, Certain, Positive (A)</p> Signup and view all the answers

According to modern management theory, how must consequences be structured?

<p>Either immediate or future, and certain or uncertain (D)</p> Signup and view all the answers

Which principle is NOT one of the seven principles for auditing according to ISO 19011?

<p>Positive reformation (D)</p> Signup and view all the answers

What does occurrence insurance cover?

<p>Incidents occurring during the policy period (A)</p> Signup and view all the answers

What is the first step in the Behavior-Based Safety process?

<p>Form assessment team(s) (B)</p> Signup and view all the answers

Which of the following conditions contributes to effective employee empowerment and participation in safety?

<p>Open communication and involvement (B)</p> Signup and view all the answers

Flashcards

Z-score

Determines the location of a single score within a normal distribution, and the percentage of area under the curve.

T-test

Compares the population mean to a sample mean, often used with smaller data sets.

Chi-Square Test

Measures how well observed frequencies match expected frequencies, often used with frequency tables.

Poka Yoke

A Japanese term that means 'mistake-proofing', designed to prevent or detect errors.

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Mistake-Proofing

Preventing or detecting errors in a process, often a key part of quality control.

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ANSI/AIHA Z10

A standard helping to establish management systems for workplace safety, similar to OHSAS 18001.

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Event Tree Analysis (ETA)

An inductive technique that explores different responses to 'challenges'.

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Hazard Identification

The process of identifying potential hazards in the workplace that could cause harm to employees.

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Hazard Assessment

The evaluation of the severity and likelihood of each identified hazard, determining its potential impact.

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Development of Controls and Decision-Making

The steps taken to reduce or eliminate hazards, including implementing control measures and making informed decisions.

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Implementation

The implementation of chosen control measures, such as training, engineering controls, or administrative procedures.

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Supervision and Evaluation

The ongoing monitoring and evaluation of the effectiveness of implemented control measures.

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Residual Risk

The level of risk that remains after implementing control measures.

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Pure Risk

Risks that are beyond human control, resulting in potential loss or no loss, like natural disasters.

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Speculative Risk

Risks taken voluntarily, leading to potential profit or loss, such as gambling.

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Safety and Health Programs

The primary goal is to prevent injuries, illnesses, and deaths in the workplace.

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Peter Principle

The idea that employees are promoted until they reach a level where they are no longer competent.

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Parkinson's Principle

A principle suggesting that work expands to fill the time available for its completion.

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Reinsurance

A type of risk management where the risk is transferred to another party, typically an insurance company, by purchasing an insurance policy.

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Risk Assessment

The process of identifying hazards and evaluating their potential risks for the purpose of decision making and implementing control measures.

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Hazard

The possibility of a situation causing injury, illness, or death, or mission degradation.

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Compensation Cost

A measure of how well a company is managing its workers' compensation costs. It's calculated by dividing the total cost of workers' compensation by the company's gross profit margin.

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Loss Ratio

A measure of how often an insurance company pays out claims. It's calculated by dividing the total amount of losses paid out by the insurer by the total amount of premiums collected. This is factored by experience modification rate, which reflects a company's safety record.

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CBA Ratio

A measure of the effectiveness of a company's safety program. It's calculated by dividing the total cost of benefits paid out by the company by the total cost of the safety program. A ratio of 1 means the benefits paid out are equal to the cost of the safety program.

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Experience Modification Rate (EMR)

A number that reflects a company's past safety performance. A lower experience modification rate is better: less than 1 is considered very good. It can be used to influence workers' compensation premiums.

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Behavior-Based Safety Process

A structured approach to improving workplace safety by identifying and changing unsafe behaviors. It focuses on positive reinforcement and early intervention to prevent accidents.

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Safety Leadership

Strong leadership that makes safety a top priority. This involves actively promoting a safe work environment, supporting safety initiatives, and holding everyone accountable for safety.

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Integrated Safety Management System

A comprehensive system that integrates safety into all aspects of an organization's operations. It involves clear policies, procedures, training, and ongoing monitoring.

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Employee Empowerment and Participation in Safety

Empowering employees to participate in safety by giving them the authority and resources to identify and resolve safety hazards. This fosters a culture of ownership over safety.

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Organization's Safety Culture

The shared values, beliefs, and practices of an organization regarding safety. A strong safety culture emphasizes teamwork, communication, and accountability.

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Measurement and Accountability

The process of setting goals, measuring progress, and holding people accountable for safety performance. This ensures continuous improvement in safety practices.

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Indemnification Agreement

A contract that protects one party from the risks or liabilities created by the other party in a transaction.

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Ranking Departments by Composite Score

A method of ranking departments based on their composite scores to help managers allocate resources for the greatest risk reduction.

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ABCs of Behavior

A framework for understanding behavior that outlines the sequence of Antecedent, Behavior, and Consequence.

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Educational Controls

Controls based on employee knowledge and skills, implemented through individual and collective training.

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Physical Controls

Controls that utilize physical barriers, guards, signs, or special controllers to prevent hazards.

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Avoidance Controls

Controls that involve supervisors taking proactive steps to prevent contact or exposure with identified hazards.

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Pareto Principle (80/20 Rule)

A principle suggesting that a small percentage of employees are responsible for the majority of work and accidents.

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Fail Safe Passive

A system where the equipment stops operating if a failure occurs, such as circuit breakers and fuses.

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Study Notes

Dynamic Risk Assessments

  • Workers commonly use dynamic risk assessments, including emergency service workers, tradespeople, care workers, retail staff, and security operatives.

Formal Hazard Analysis

  • Two types of formal hazard analysis are inductive and deductive.
  • Inductive analysis is bottom-up, future-oriented, and hypothetical, based on experience and conclusions (examples include FEMA, FEMCA, and FHA).
  • Deductive analysis is top-down, future-oriented, and concludes future behavior from a number of premises (examples include FTA, Fishbone, and General to Specific).

Cost Types

  • Tangible costs are immediately apparent, such as purchasing products, paying employees, and equipment maintenance.
  • Intangible costs are indirect and their effects are perceived later in the future, such as risk.

Risk Management

  • Defined as the eradication or minimization of adverse effects from risks.
  • Risk homeostasis: a theory that people compare their perceived risk level to a target level and adjust their behavior accordingly.
  • System availability is a measure of an item's ability to be operable and usable.

Analysis Techniques

  • Fault tree analysis is an example of deductive analysis that begins with a top-level event and logically determines its causes.
  • No single method completely evaluates a product.

Control Measures

  • Examples include avoidance of hazards, engineering controls to eliminate them, limiting exposure time, providing protective equipment and safety devices, and using warning signs.

Risk Management Process

  • Key steps include hazard identification, hazard assessment, developing controls, decision-making, implementation, and supervision/evaluation.
  • Types of controls include educational, physical, and avoidance.

Insurance

  • Reinsurance is insurance between a primary and secondary insurer, where the secondary insurer covers part of the primary insurer's losses.
  • Retrocession is the portion of risk a company chooses not to retain.

Human Factors Theory

  • Yates' theory: accidents can be categorized as overload, inappropriate worker response, and inappropriate worker activities.
  • Front-line supervisors conduct incident investigations.
  • Petersen's theory: accident causes are human error and/or system failure.

Vicarious Liability

  • Liability assigned to a person who didn't cause the injury but has a legal relationship to the negligent person.

Risk Communication

  • Seven cardinal rules (Covello and Allen 1988) include accepting the public as partners, listening to public concerns, being honest, and working with other credible sources.

Risk Calculation

  • Compensation cost is calculated (gross / profit margin %).
  • Loss ratio is calculated (losses / (E modifier X manual premium)).
  • CBA ratio is calculated as (Benefits / Cost).

Statistical Concepts

  • Z score (Z) determines the location of a score in a normal distribution.
  • T-test (t) compares population mean to a sample mean (typically a small sample).
  • Chi-square (X2) measures the "goodness of fit" between observed and expected values, often used with frequency tables.
  • Standard deviation (SD) provides measures of variability (1SD =+/-68%, 2SD = +/-95%, 3SD = +/- 99.7%).

Miscellaneous

  • ASTM International and ANSI (American National Standards Institute) are organizations.
  • NFPA (National Fire Protection Association) is a standards organization.

Poka-Yoke

  • A Japanese term that means "mistake-proofing" or "inadvertent error prevention", utilized in manufacturing to prevent or detect errors.
  • It is preventative rather than corrective

Process Safety Management

  • ANSI/AIHA Z10 is a standard for setting OSH (Occupational Safety and Health) management systems.

Criteria for Controls

  • Support, standards, training, and leadership are all crucial for effective controls.
  • Sufficient personnel, equipment, supplies, and facilities aid in effective controls.
  • Clear, practical, and specific guidelines and procedures are also crucial.

Risk Categories

  • Pure risk: Risks beyond human control (e.g., fires, floods).
  • Speculative risk: Risks voluntarily taken (e.g., gambling).

Risk Assessment

  • NIOSH's three-step process involves identifying hazards, assessing exposure response relationships, and characterizing workplace risks.

Risk Communication

  • The Seven Cardinal Rules of Risk Communication are valuable for effectively conveying risk.

Insurance and Liability

  • Occurrence insurance covers incidents during the policy period.
  • Claims-made insurance covers incidents when the insurer is notified of the claim.
  • Reinsurance is an agreement between insurers.

Preliminary Hazard Analysis

  • A technique used to evaluate hazards during the initial product design and manufacturing stages.

Failure Rate and Success Rate

  • Failure rate: the ratio of failures to attempts.
  • Success rate: the ratio of successes to attempts.

Critical Incident Technique

  • A method for identifying errors and unsafe conditions that result in injurious accidents within a population.

Accident/Incident Theory

  • Petersen's theory: accident causes are human error and/or system failure

Incident Investigation

  • Front-line supervisors are responsible for investigating incidents.

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Dynamic Risk Assessments PDF

Description

This quiz covers key concepts in dynamic risk assessments and formal hazard analysis. It distinguishes between tangible and intangible costs and explores the principles of risk management. Test your knowledge of both inductive and deductive analysis methods.

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