Risk Management Overview

A systematic procedure for identifying and analyzing potential hazards in a workplace.

The likelihood of a hazardous event actually occurring.

The potential impact of a hazardous event on worker safety and health.

The process of systematically analyzing individual hazards to determine their probability and severity.

A standardized approach for estimating risk with numbers and charts, allowing for consistent comparisons across different hazards.

The overall risk level of a job or project, taking into account all identified hazards.

The decision-making process regarding the safety of proceeding with a project or job task based on the assessed risk level.

Controls based on the knowledge and skills of employees or individuals performing the task.

Controls that involve physical barriers, guards, or signs to warn employees and others of hazards.

Controls that involve proactive steps taken to prevent contact or exposure to identified hazards.

These controls are effective when implemented through training that ensures performance to a standard.

A key element in developing and implementing control measures is to specify who, what, when, where, and how each control is to be used.

The supervisor or manager responsible for the project must compare and balance the risk against the benefits.

Ensuring that the necessary personnel, equipment, supplies, and facilities are available to implement suitable controls.

Assessing whether individuals have the necessary knowledge and skills to implement a specific control.

Determining if individual employees are self-disciplined enough to effectively implement a control measure.

The process of identifying potential hazards that could cause harm to people, the environment, or property.

The process of characterizing the nature and severity of potential harm from a hazard.

The process of determining how much exposure people have to a specific hazard.

The process of estimating the relationship between the amount of exposure to a hazard and the likelihood of negative effects.

The process of combining information from hazard identification, characterization, exposure assessment, and dose-response assessment to estimate the overall risk.

A legal principle that encourages individuals and organizations to take preventive measures to avoid harm to others.

A principle that emphasizes taking precautionary measures to prevent harm even when there is scientific uncertainty about the risks.

A set of rules and guidelines that define acceptable levels of exposure to hazards.

The process of reducing or eliminating risks associated with hazards.

The process of evaluating the effectiveness of risk management strategies.

A proactive approach to identifying, assessing, and managing all types of risks that an organization faces, including financial, operational, reporting, compliance, governance, strategic, and reputational risks.

A strategic business discipline that addresses a full spectrum of risks, treating them as a comprehensive group rather than independent clusters.

It prioritizes and manages risk exposures as a collective whole, recognizing the interplay between individual risks within the organization.

A key benefit of effective ERM is that it allows organizations to identify and manage risks in a structured and systematic way, leading to better decision-making.

Effective management of risk is viewed as a competitive advantage. Embed risk management as a critical component in all decision-making processes throughout the organization.

ERM considers the collection of risk in broad terms.

ERM evaluates the interconnectedness of individual risks across the organization.

ERM provides a structured process for the management of all risks.

ERM seeks to embed risk management as a component in all critical decisions throughout the organization.

Organizations may establish reserve funds as a financial strategy to mitigate high-severity, low-probability risks, such as natural disasters or economic downturns.

A method for calculating a risk score, R, by multiplying consequence rating (C) by exposure value (E) and probability value (P). It's the first step in assessing the justification of correcting a hazard.

A value calculated to determine if the cost of correcting a hazard is justified. It uses the risk score (R), cost factor (CF), and degree of correction value (DC).

A process used to evaluate the risks associated with a hazard and determine the effectiveness and cost of implementing controls to mitigate those risks. It aims to optimize return on investment, balancing risk reduction with cost.

A factor that reflects the cost associated with implementing different types of controls, from simple and inexpensive to complex and costly.

A factor representing the level of correction required to address a hazard, ranging from minor adjustments to complete overhaul. Larger values indicate a greater effort and cost.