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Podcast
Podcast
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Questions and Answers
Questions and Answers
Which of the following scenarios demonstrates the concept of risk aversion in the context of safety and health?
Which of the following scenarios demonstrates the concept of risk aversion in the context of safety and health?
- An individual regularly participates in extreme sports without using any protective gear.
- A construction firm postpones safety inspections to meet project deadlines.
- A business owner decides to ignore safety regulations to increase productivity and profits.
- A company invests in advanced safety training for its employees to minimize potential workplace accidents. (correct)
In assessing risk related to workplace safety, how do frequency and severity interact to influence the overall risk level?
In assessing risk related to workplace safety, how do frequency and severity interact to influence the overall risk level?
- Low frequency events are not considered substantial risks, even if their potential severity is extremely high.
- Risk is primarily determined by the severity of potential consequences, regardless of how infrequently they occur.
- High frequency of minor incidents is always a greater risk than a rare, catastrophic event.
- Risk is evaluated by considering both the likelihood of an event occurring (frequency) and the extent of potential harm (severity). (correct)
What distinguishes a performance standard from a prescriptive standard in the context of regulatory approaches to workplace safety?
What distinguishes a performance standard from a prescriptive standard in the context of regulatory approaches to workplace safety?
- A performance standard specifies the exact methods and technologies companies must use to achieve safety, while a prescriptive standard sets measurable outcome targets.
- A performance standard defines the required level of safety to be achieved, while a prescriptive standard specifies the methods to achieve it. (correct)
- A prescriptive standard outlines broad objectives for safety, while a performance standard details the specific actions required to meet those objectives.
- A prescriptive standard encourages innovation by allowing companies to develop their own safety measures, while a performance standard enforces strict adherence to proven methods.
How does the precautionary principle influence regulatory decision-making, particularly in comparison to a strictly science-based approach?
How does the precautionary principle influence regulatory decision-making, particularly in comparison to a strictly science-based approach?
In the context of risk management and regulatory policy, what is the key distinction between a Type I error (false positive) and a Type II error (false negative)?
In the context of risk management and regulatory policy, what is the key distinction between a Type I error (false positive) and a Type II error (false negative)?
How does the concept of coupling, as described by Charles Perrow, influence the potential for significant adverse events in complex technological systems?
How does the concept of coupling, as described by Charles Perrow, influence the potential for significant adverse events in complex technological systems?
In the context of insurance risk management, how does loss control benefit both the insurance company and the insured customer?
In the context of insurance risk management, how does loss control benefit both the insurance company and the insured customer?
What role does trust play in shaping public perception of risk, particularly in relation to communications from organizations about potential hazards?
What role does trust play in shaping public perception of risk, particularly in relation to communications from organizations about potential hazards?
According to the risk perception factors, which scenario would likely evoke a higher sense of perceived risk among the general public?
According to the risk perception factors, which scenario would likely evoke a higher sense of perceived risk among the general public?
How might measuring hearing reduction with hearing protection programs affect workers' cooperation with such programs?
How might measuring hearing reduction with hearing protection programs affect workers' cooperation with such programs?
In risk assessment, why is it important to include workers and managers with experience with hazards and risks?
In risk assessment, why is it important to include workers and managers with experience with hazards and risks?
What is the primary difference between the terms risk assessment and risk management as used in the context of safety and health?
What is the primary difference between the terms risk assessment and risk management as used in the context of safety and health?
In the risk assessment matrix, how are probability and severity combined to determine the level of risk and the appropriate action to be taken?
In the risk assessment matrix, how are probability and severity combined to determine the level of risk and the appropriate action to be taken?
According to David Ropeik's factors of Risk Perception, which of the following situations will likely cause a notable upswing in the public sense of perceived risk?
According to David Ropeik's factors of Risk Perception, which of the following situations will likely cause a notable upswing in the public sense of perceived risk?
According to the table on 'Risk Perception Factors Affecting Risk Acceptance', why would something 'voluntary' be more acceptable than something 'involuntary'?
According to the table on 'Risk Perception Factors Affecting Risk Acceptance', why would something 'voluntary' be more acceptable than something 'involuntary'?
According to the table on 'Risk Perception Factors Affecting Risk Estimation', why would something 'dramatic' be overestimated while something 'mundane' is underestimated?
According to the table on 'Risk Perception Factors Affecting Risk Estimation', why would something 'dramatic' be overestimated while something 'mundane' is underestimated?
The text presents different risk estimation factors, and how they affect safety. Why would requiring procedures be much safer than optional ones?
The text presents different risk estimation factors, and how they affect safety. Why would requiring procedures be much safer than optional ones?
The text notes the differences between individual and group behaviors when responding to risk. Why do groups 'choose to be together with others' under high risk?
The text notes the differences between individual and group behaviors when responding to risk. Why do groups 'choose to be together with others' under high risk?
In the 'Risk Assessment Matrix' shown in the text, one axis is the 'hazard severity'. What makes up the severity of a given situation?
In the 'Risk Assessment Matrix' shown in the text, one axis is the 'hazard severity'. What makes up the severity of a given situation?
Several factors that affect risk show how they interact. The level of control one has over a situation and risk vs. reward seem to have the greatest impact, but how?
Several factors that affect risk show how they interact. The level of control one has over a situation and risk vs. reward seem to have the greatest impact, but how?
Questions and Answers
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Flashcards
Flashcards
What is risk and risk aversion?
What is risk and risk aversion?
Risk is defined as the potential for unwanted, negative consequences of an event. Risk aversion refers to actions taken to control or reduce risk.
How is risk defined in safety and health?
How is risk defined in safety and health?
In safety and health, risk quantifies the probability or likelihood of an adverse event and the severity of its consequences. It has two main aspects: frequency and severity.
What are frequency and severity in risk?
What are frequency and severity in risk?
Frequency in risk refers to the probability of an event's occurrence (e.g., once per week, once per year). Severity refers to the potential loss when an event occurs, expressed in human (e.g., loss of life) or financial terms (e.g., cost of production interruption).
Differentiate between risk assessment and risk management.
Differentiate between risk assessment and risk management.
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What was the result of the Robens Committee's strategy?
What was the result of the Robens Committee's strategy?
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What is a duty of care?
What is a duty of care?
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Explain the precautionary principle.
Explain the precautionary principle.
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What are Type I and Type II policy errors?
What are Type I and Type II policy errors?
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How do complex technologies introduce risks?
How do complex technologies introduce risks?
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What is the difference between loose and tight coupling?
What is the difference between loose and tight coupling?
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How do risk concepts apply to business?
How do risk concepts apply to business?
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How does insurance define risk and underwriting?
How does insurance define risk and underwriting?
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What is loss control in insurance?
What is loss control in insurance?
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Explain risk perception.
Explain risk perception.
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List some factors influencing risk perception.
List some factors influencing risk perception.
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What is risk-taking behavior?
What is risk-taking behavior?
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What influences individual risk-taking behavior?
What influences individual risk-taking behavior?
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What is risk analysis within risk assessment?
What is risk analysis within risk assessment?
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What is a risk reduction decision matrix?
What is a risk reduction decision matrix?
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What are the components of risk assessment according to Figure 34-2?
What are the components of risk assessment according to Figure 34-2?
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Flashcards
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Study Notes
Study Notes
Risks and Losses
- Life involves gains and losses for people and organizations.
- Risk involves avoiding losses and unwanted events
- Risk aversion is action taken to control or reduce risk.
- Risk infers probability of an adverse event and the severity of the event's consequences.
- Frequency is probability of an event's occurrence
- Severity is the potential loss when an event occurs.
- Risk is used to identify hazards, events, and negative consequences.
- Risk assessment and risk management methods aim to prevent or deal with risks.
- Risk assessment and management are used within general business operations and decisions.
- Risk covers financial decisions, security of trade secrets/data, and losses from accidents, human error or health exposures.
Risk Complexities
- Organizations and individuals deal with risk and risk concepts in many ways.
Regulatory Aspects of Risk
- Government leaders consider risk while creating laws and regulations.
- Government protects public health, safety, and welfare.
Regulatory Methods
- A British Parliament strategy regulated workplace safety and health in the UK.
- The strategy established the government’s role in achieving workplace safety and health.
- The strategy was adopted by several Commonwealth countries.
- The Committee Report recognized the importance of prevention lies with those who create the risks.
- An effective self-regulating system is preferable to regulation.
Regulatory Strategy
- One difficulty for governments is determining how to respond to risk
- Multiple factors decide what risks need protection and the level of risk requiring regulation.
- From 1960, the U.S. identified new health, safety, and environmental risks, creating corresponding rules.
- European risk regulations initially lagged but shifted in the 1990s.
Vogel's analysis
- In the U.S., regulations had a sound science basis.
- Europe shifted to a precautionary principle, relying on public fears.
- The U.S. requires proof of risk to justify regulation, while Europe acts if there's a potential risk.
Precautionary Principle
- The Precautionary Principle is taking action even if cause and effect aren't fully established scientifically.
- EU promoted precautionary principle in 2000
- Type I policy error: overly stringent regulations (false positives).
- Type II policy error: insufficiently stringent regulations (false negatives).
- Legislators must weigh competing factors in decisions about the risks to regulate.
Risk and Technology
- Discussions center on the hazards that people face at work, in products, at home, and in outside activities.
- Safety requires approaching each hazard by looking at the risks associated with it.
- Responsibility is identifying risks and establishing protection.
- Controlling or reducing risks incur costs.
- Technological risks are real and must be identified, understood, measured, assessed, and managed.
- The public and technical people or politicians may have different risk perceptions.
- Technological risk is balanced with its benefits.
- Combinations of technologies create new risks.
Risks Related to Complex Systems
- Adverse events result from a combination of small events.
- Redundancy provides alternatives to prevent serious consequences.
- Coupling links one small event to another, potentially causing more serious outcomes.
- Tight coupling: one event leads to a second, more serious event.
- Loose coupling: two or more adverse events occur at the same time, without causing one another.
- Risks introduced by complex technologies are difficult to assess and manage.
Risk and Business
- Risk assessment involves identifying business risks, including safety and health risks.
- Risk management involves evaluating risks and deciding how to handle them.
- Industries and organizations adopt safety management systems (SMS) that incorporate risk assessment and risk management.
Risk and Insurance
- Risk is a basic element of insurance.
- Insurance Risk Management Institute defines risk as "the insured or the property to which an insurance policy relates"
- An insurance company provides policies for certain risks and evaluate before making estimates.
- Underwriting: process of determining whether to accept a risk, the amount of insurance to offer, and at what price.
- Loss control involves controlling conditions that can lead to a loss.
- Loss control helps clients manage safety and health, recognize hazards, and implement preventive measures.
Risk Perception
- Risk perception is subjective, influenced by technical and human aspects.
- People differ on technical considerations and interpret statistics and numbers differently.
- Risk perception factors link to fear and how the brain judges danger.
- Risk perception factors: trust, risk versus benefit, control, choice, natural vs. human-made risks, potential for pain/suffering, uncertainty, catastrophic vs. chronic events, personal relevance, new vs. familiar risks, risk to children, personification, and fairness.
- Factors influence the value people place on risk.
Risk Taking Behavior
- People take chances even when aware of risks.
- People who are risk takers have accidents more frequently and have higher absentee rates.
- Risk perception influences risk taking and risk acceptance.
- People take greater risks when they have a choice about safety but not under employers safe procedure requirements
- People are less likely to take risks when anxious or when they understand what's going on.
- Group and individual risk-taking behavior differ.
- Fear triggers group behavior
- Anxiousness makes them choose to be alone
Risk Assessment
- Terminology for risk, risk management, and risk assessment is not consistent.
- Risk assessment involves identification and analysis of risk.
- When considering legislation, policy depends on the work of scientists, industry groups, and interest groups to identify and evaluate the risks.
- Safety and health assessment involves hazard identification and identification of threats and hazard-driven events.
- Risk analysis evaluates likelihood/frequency and severity/consequences of each risk.
- Risk assessment is not independent of the process or personnel.
- People affected by a risk should participate.
- There are some values that cannot be quantified but still need to be considered.
- Risk estimation projects frequency and severity. Risk evaluation involves risk aversion and risk acceptance.
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