Risk Management Overview

Risk Management

• Risk management is the identification, assessment, and prioritization of risks, followed by coordinated and economical application of resources to minimize, monitor, and control the probability and impact of unfortunate events or to maximize the realization of opportunities.
• Risks can stem from liabilities, credit risk, accidents, natural causes, disasters, or deliberate attacks.
• Risk assessment involves evaluating the risks associated with specific hazards to make decisions and implement appropriate control measures.
• Hazard identification is the process of examining each work area to pinpoint hazards associated with each job or task.

Risk Management Process

• The risk management process starts with hazard identification.
• Hazard assessment uses charts, codes, and numbers to evaluate the probability and severity of each hazard.
• Then, management is implemented to control the hazards
• The process also determines if hazards are unavoidable. The decision to proceed or not depends on the risk. Low-risk projects can be handled by line supervisors, while extremely high-risk projects require CEO approval.

Hazard Identification

• Identifying specific work areas.
• Reviewing previous incidents or accidents related to the task.
• Performing on-site visual inspections of the work area.
• Identifying individual job tasks and breaking them into steps.
• Analyzing each job task to pinpoint hazards or potential hazards.

Controls Development and Decision Making

• Controls are implemented through training and procedures.
• Controls can be educational, physical (barriers, signage), or avoidance measures.
• Adequate personnel, equipment, and facilities are crucial for implementing controls.
• Supervisors and managers must ensure employee understanding and competence.
• Clear, practical, and specific guidance and procedures are essential for control implementation.

Implement Controls

• Integrating controls into standard operating procedures, written instructions, and toolbox talks.
• Converting controls into clear instructions.
• Coordinating and communicating with supervisors and employees.

Supervise and Evaluate

• Ensuring employees understand control procedures.
• Continuous risk assessment throughout the project or task duration (by safety managers).
• Methods for supervision include spot checks, inspections, daily reports, and direct supervision.
• Post-project evaluation, and ongoing maintenance of results in project files.

Risk Assessment Concept

• Risk assessment involves identifying, estimating, and evaluating risks.
• Assessing risks involves determining their likelihood and consequence(severity).
• Risk assessment aids in avoidance and management of organizational risks
• A key component of chemical risk assessments is determining risk via hazard identification, dose-response assessment, and exposure assessments.

Risk and Insurance

• Risk is defined as the uncertainty arising from potential events that may affect assets.
• Insurance is used to mitigate financial risk.
• Risk assessment helps in calculating financial risk per incident.

System Safety Devices

• Systems safety involves controls that prevent accidents or injuries.
• Redundancy is an approach where critical systems have multiple independent components to prevent catastrophic failure.
• Parallel subsystems, backup systems, and partial redundancy can mitigate risk.
• Safety devices aim to eliminate or lower people's exposure to risks.
• Fail-safe devices prevent injury or damage from equipment or systems failure.

Warning Devices

• Effective warning systems require careful design, clear communication of meaning to the recipient, and an understanding of the hazard itself.
• Warning systems require sensors for detecting hazards.
• Designers should ensure that warning systems effectively differentiate the hazard from others.
• Warning systems should be in a place and able to operate. Recipients must see or hear it, understand the underlying meaning, recognize the actions to take, and complete these actions promptly.