Risk Management Concepts

Risk Management

• Risk management is a process that helps organizations understand and manage risks.
• The process uses five key steps:
  • Establish the context
  • Identify risks
  • Analyze risks
  • Evaluate risks
  • Treat risks
• Risks can be classified as natural, technological, biological, or civil/political.
• Establishing the context involves setting parameters and criteria to evaluate risks.
• Identifying risks involves a process to identify potential hazards that could result in adverse outcomes.
• Analyze risks involves understanding potential risk impacts and their likelihood of occurring.
• Evaluate risks involves deciding which risks require attention and in what order.
• Treat risks involves identifying and selecting appropriate measures to mitigate or prevent identified risks.
• Risk mitigation strategies include:
  • Prevention
  • Mitigation
  • Preparedness
  • Response
  • Recovery
• Hierarchy of Controls is a framework to manage risks:
  • Elimination – Removing the hazard entirely.
  • Substitution – Replacing the hazard with a less harmful alternative.
  • Engineering – Modifying the work environment to reduce exposure to hazards.
  • Administrative – Implementing procedures to reduce exposure to hazards.
  • Personal Protective Equipment (PPE) – Providing equipment to protect workers from hazards.
  • Emergency Procedures – Developing procedures to respond effectively to emergencies.
• Standard Risk Treatment Options:
  • Avoid the Risk – Decide not to proceed with activities that are likely to generate risks.
  • Reduce the Likelihood of Occurrence – Modify the risk by reducing the likelihood of it occurring.
  • Reduce the Consequences – Modify the risk by minimizing its impact if it occurs.
  • Transfer the Risk – Shift the responsibility for risk to another party.
  • Retain the Risk – Accept the risk and plan to manage its consequences.

Occupational Health & Safety

• The Occupational Health and Safety Act provides a framework for creating a safe work environment.
• Employee Rights:
  • Right to Refuse – Employees can refuse to perform work deemed unsafe.
  • Right to Know – Employees have the right to be informed about potential hazards in the workplace.
  • Right to Participate – Employees have a right to participate in safety committees.
• Employee Responsibilities:
  • Take responsibility for personal health and safety.
  • Report any hazard or dangerous situation.
  • Use protective equipment and safety procedures.
• Employer Responsibilities:
  • Ensure employee health and safety at work.
  • Provide necessary safety equipment.
  • Post a statement regarding workplace violence.
• Reporting Hazards:
  • Employees must report hazards in writing to their supervisor.
  • If not satisfied with the response, they can report to Human Resources (HR).
  • Employers have 21 days to respond to hazard reports.
  • If no resolution is found, employees can report to the Department of Labor and Employment.
• Workplace Violence:
  • Employers must post a statement acknowledging workplace violence as a hazard.
  • The statement should include:
    • Recognition of violence as a hazard.
    • Recognition of the physical and emotional impacts of violence.
    • A statement that violence is unacceptable.
    • An employer commitment to minimizing and eliminating workplace violence.