Risk Management Notes and Reviewers PDF

RISK MANAGEMENT (DEFINITIONS & TERMINOLOGIES) | WEEK 2 - 3 | - Goal Only - System Only - Goal + System Definition of Risk Management ▪ Risk management is the systematic process of identifying, assessing, and controlling potential threats to an organization's objectives...

RISK MANAGEMENT (DEFINITIONS & TERMINOLOGIES) | WEEK 2 - 3 | - Goal Only - System Only - Goal + System Definition of Risk Management ▪ Risk management is the systematic process of identifying, assessing, and controlling potential threats to an organization's objectives. ▪ It involves taking steps to minimize the impact of negative events and maximize the realization of opportunities. Management Administration Direction Command Control Conduct Regulation Leadership Supervision Governance Overseeing Guidance Risk The likelihood that a hazard will cause harm and the severity of that harm. It's the combination of the probability of an event occurring and its potential consequences. Example: Slipping and falling on a wet floor is determined by the likelihood of someone walking on the wet floor and the severity of the potential injury. Hazard A potential source of harm or damage. It's a condition or situation that could cause injury, illness, or property damage. Example: Slippery floors, Faulty equipment, Chemicals, or Wildlife HAZARD is the WHAT (the thing that could cause harm) RISK is HOW likely and how bad it could be. Examples of Risks Associated with Hazards: The risk of chemical exposure leading to respiratory illness among workers in a chemical plant. The risk of a fall occurring due to slippery floors in a restaurant. The risk of hearing damage among workers exposed to high levels of noise without proper hearing protection. The risk of stress-related health issues among employees in a high-pressure work environment. Likelihood ▪ Refers to the probability or chance of a specific event occurring. ▪ Often expressed as a percentage or using qualitative terms like "high," "medium," or "low.” ▪ Considers factors such as historical data, trends, and expert judgment. Impact ▪ Measures the potential consequences or severity of a risk event if it occurs. ▪ Assessed in terms of financial loss, reputational damage, operational disruption, or other negative outcomes. ▪ Can be quantified using monetary values or qualitative scales. “By combining likelihood and impact, we prioritize risks and allocate resources effectively. A risk with a high likelihood and high impact is typically considered a significant threat, while a risk with a low likelihood and low impact may be less of a concern.” KEY COMPONENTS OF RISK MANAGEMENT Risk identification – Recognizing potential threats and opportunities. Risk assessment – Evaluating the likelihood and impact of identified risks. Risk prioritization – Determining the order in which risks should be addressed. Risk treatment – Developing strategies to manage risks (avoidance, mitigation, transfer, acceptance). Risk monitoring and review – Continuously tracking and evaluating risks. RISK TREATMENT Risk mitigation – Reducing the impact or probability of a risk. Risk transfer – Shifting the responsibility for a risk to another party Risk acceptance – Deciding to live with the consequences of a risk. TYPES OF WORKPLACE HAZARDS Chemical Hazards – present when a worker is exposed to any chemical preparation in the workplace in any form (solid, liquid, or gas). Physical Hazards – are factors within the environment that can harm the body without necessarily touching it. Ergonomic Hazards – this occurs when the type of work, body positions, and working conditions put a strain on the body. Psychological Hazards – these are stressors associated with workplace issues such as tension, anxiety, or strain to workers. RISK is the potential loss or damage. HAZARD is the potential source of harm or damage. FOOD SAFETY AND SANITATION Food – is any substance whether simple, mixed or compounded that is used as food, drink, confectionery or condiments. Safety – an overall quality of food fit for consumption; a state of being protected from potential harm or something that has been designed to protect and prevent harm. Sanitation – the policy and practice of protecting health through hygienic measures. Cleanliness – is an absence of visible soil or dirt and is not necessarily sanitized. Hygiene – is a science and practice of maintaining good health through cleanliness. Microorganism – a living organism too small to be seen with the naked eye. Pathogen – microorganisms that can cause illness. FOOD SAFETY Refers to the set of practices performed to prevent the occurrence of foodborne illnesses. FOOD SANITATION Refers to cleanliness and maintenance of good and safe conditions of equipment and food service facilities. In principle, food sanitation is part of the bigger umbrella of food safety. STEPS TO FOOD SAFETY FOOD SAFETY OBJECTIVE To protect consumers of food products from foodborne illnesses or injuries related to food consumption. Foodborne illnesses are a major threat to food businesses and affect everyone all over the world due to inadequate food safety. FOODBORNE ILLNESSES ▪ A disease which caused by people eating contaminated food. ▪ It is generally classified as foodborne infection, intoxication, or toxin-mediated infection. CLASSIFICATION OF FOODBORNE ILLNESSES Foodborne infection – caused by eating food that contains living disease-causing microorganisms. Foodborne intoxication – caused by eating food that contains harmful chemical, or toxin produced by bacteria or other source. Foodborne toxin-mediated infection – caused by eating a food that contains harmful microorganisms that will produce a toxin once inside the human body. COSTS OF FOODBORNE ILLNESS FOR INDIVUDUAL: Foodborne illness is the greatest danger to food safety. It could result to illness or diseases to an individual that would affect their overall health, work and personal lives. Loss of family income Increased insurance Medical expenses Cost of special dietary needs Loss of productivity, leisure and travel opportunities Death or funeral expense FOR ESTABLISHMENT: Foodborne illness outbreak can cost an establishment thousands of pesos, it can even be the reason for an establishment to closed. Loss of customers and sales Loss of prestige and reputation Lawsuits Lowered employee morale Employee absenteeism Increase employee turn over COMMON SYMPTOMS OF FOODBORNE ILLNESS Headache Nausea Vomiting Dehydration Abdominal pain Foodborne Illness Outbreak happens when two or more people get the same illness after eating the same contaminated food. HIGHLY SUSCEPTIBLE INDIVIDUALS Infants and young children Elderly persons Pregnant women Chronically–ill person Persons with Disability HOW TO AVOID FOODBORNE ILLNESS? Clean ▪ Wash hands thoroughly with soap and water before, during, and after handling food. ▪ Clean and sanitize all surfaces, utensils, and cutting boards after preparing each food item. Separate ▪ Keep raw and cooked foods separate to prevent cross-contamination. ▪ Use separate cutting boards and utensils for raw meat, poultry, seafood, and eggs. Cook ▪ Cook foods to the proper internal temperature. Use a food thermometer to ensure safety. ▪ Reheat leftovers thoroughly to kill harmful bacteria. Chill ▪ Refrigerate perishable foods promptly. ▪ Store leftovers in shallow containers to speed cooling. ▪ Thaw frozen foods safely in the refrigerator or microwave. Additional Tips ▪ Avoid consuming raw or undercooked eggs, meat, poultry, or seafood. ▪ Practice good personal hygiene, including covering your mouth and nose when coughing or sneezing. ▪ Be aware of food recalls and follow instructions. ▪ Maintain proper food storage temperatures. FOOD CONTAMINATION Food contamination occurs when harmful substances or organisms are present in food. Contamination can happen at any point in the food production process, from farm to table. Proper food handling and preparation are crucial to prevent food contamination. Contaminated food is generally defined as food that is spoiled due to the presence of certain microorganisms, such as bacteria, virus or parasites, or any toxic substances that make the food unfit for consumption. A food contaminant can be biological, chemical or physical in nature, with the former being more common. MAIN TYPES OF FOOD CONTAMINANTS/FOODBORNE HAZARDS CAUSES OF FOOD CONTAMINATION Improper handling, preparing, and storing of food. Improper washing of hands and fingernails. Poor personal hygiene habits of food employees. People who may seem well but who carry pathogens that can make other people sick. Improperly cleaned and sanitized eating and cooking utensils and equipment. Contamination of food, utensils, and equipment from flies, roaches, and other insects and pests. Use of foods from unapproved sources. CROSS-CONTAMINATION ▪ The transfer of harmful bacteria from one person, object, or place to another. ▪ It's a common cause of foodborne illness which can happen when raw meat, poultry, seafood, or eggs come into contact with ready-to-eat foods. EXAMPLES OF CROSS-CONTAMINATION Using the same cutting board for raw meat and vegetables without cleaning it in between. Touching raw meat and then touching ready-to-eat foods without washing hands. Storing raw meat above ready-to-eat foods in the refrigerator (allowing meat juices to drip). COLOR-CODED CUTTING BOARDS Brown – Cooked Meats Red – Raw Meats Blue – Raw Fish, Seafood White – Bakery, Pastries, Dairy Green – Fruits and Vegetables Yellow – Raw Poultry