RISK MANAGEMENT AND

ASSESSMENT
 2.1 INTRODUCTION TO RISK MANAGEMENT

BASIC PRINCIPLE OF RISK MANAGEMENT

a) Integrate Risk Management as part of planning at all

levels of business.
b) Accept no unnecessary risks.
c) Make risk decision appropriately.
d) Accept risk when benefit overweigh costs.
e) Manage the risk.
 RISK ASSESSMENT

Why need to carry out risk assessment?

a) Logical and cost-effective management of

occupational safety and health (OSH)
b) Legal requirement
- OSHA 1994 (Part IV S.15 – General duties of Employers and
Self Employed Person)
- OSH (Control of Industrial Major Accident Hazard) Regulation
1996
- OSH (Use and Standard Exposure of Chemical Hazardous to
Health) Regulation 2000
c) Management system standard requirement
- MS 1722:2003, OHSAS 18001, ISO 14001
 Risk Assessment of the Organization

Risk assessment should be carried out for:

a. Routine and non-routine activities i.e maintenance,

shutdowns abnormal operation.
b. Activities of all personal having access to the
workplace (including subcontractors and visitors).
c. Facilities at the workplace, whether provided by the
organization or others such as contractors.
 When to Carry Out Risk Assessment

• Before operation
• During operation
• After operation

When to Review Risk Assessment

• Internal changes – before modification of plants,

changes in organization, introduction of new materials,
machinery, working procedure.
• External changes – amendments of national law and
regulations, development of new knowledge.
 Who Will Carry Out Risk Assessment
• Person or persons trained to identify hazard and risk assessment
– In some cases legally competent person, example : Chemical Health
Risk Assessor

• In typical organization, consultation with and involvement of the

safety and health committee, supervisors or workers and their
representatives.
Basic Components of Risk Management

Hazard Identification

Risk Assessment

Risk Control

Review Control Measure

2.2 RISK ASSESSMENT TECHNIQUES

Classify Activities
(Work, Product, Services, Activities)

Identify Hazard

Determine Risk

Decide if Risk is Tolerable

Decide if Impact is Significant

Risk Control Action Plan

Review Adequacy of Risk Control

 HAZARD ANALYSIS

Some of the technique used:

 Hazard Identification, Risk Assessment and Risk Control

 Job safety analysis (JSA)
 Fault Tree Analysis (FTA)
 Failure Mode and Effect Analysis (FMEA)
 Hazard and Operability Studies (HAZOP)
 Fault Tree Analysis

Focus on:

a) To analyze how and why accident could occur.

b) Graphic technique.
c) To calculate probability of end event.
Example - Fall from a Defective Ladder

a) Why was the defective ladder not found during normal inspection?

b) Why did the supervisor allow its use?

c) Didn't the injured employee know it should not be used?

d) Was the employee properly trained?

e) Was the employee reminded not to use the ladder?

f) Did the superior examine the job first?

FTA analysis steps:

a) Select a component for analysis.

b) Identify critical failures or ‘faults’ related to the
component.
c) Identify causes for each fault.
d) Work toward a root cause.
e) Identify countermeasures for each root cause.
 FAULT TREE ANALYSIS FALL FROM LADDER

KNOWS LADDER IS
DEFECTIVE BUT STILL WORKER USED
DECIDES TO USE DEFECTIVE LADDER
DEFECTIVE LADDER

DIDN'T KNOW LADDER WAS

NO CHOICE DEFECTIVE

UNAWARE OF DID NOT

CONSEQUENCES RECOGNIZE LADDER WAS NOT
DEFECT INSPECTED

BELIEVES LADDER
IS STILL SAFE NO SEGREGATION
NO SUPERVISION
PROCEDURES
MAINTENANCE ORGANISATION
MANAGEMENT
 Job Safety Analysis (JSA)

JSA is a tool used to improve job safety through:

a) Identifying the hazards or potential hazards associated

with each step of a job.
b) Finding effective control measures to prevent or
eliminate exposure.
Steps:

a) Select – selecting the job to be analyzed.

b) Record – Breaking the job down into a sequence of
task.
c) Examine – Identifying potential hazards associated
with sequence of tasks.
d) Develop – Determining preventive measures to control
hazards associated with sequenced of tasks.
e) Install – Ideally, after the hazards have been
identified, safe work procedure should be developed
and communicate to others.
f) Monitor – Monitor effectiveness of control measures,
review and revised as and when necessary.
 Failure Mode and Effect Analysis (FMEA)

• Develop by reliability engineer (1950s) to determine

problems that could arise from malfunction of military
systems.
• FMEA is a procedure by which each potential failure and
the kinds of failures that could happen, at the component
level in the systems are examined and analyzed to
determine its effect on the system.
• The FMEA is used to assure that components failure
modes and their effects have been considered and either
eliminated or controlled; that information for maintenance
and operational manuals has been provided; and that
input to other safety analysis has been generated.
System Component Failure Mode Failure Effect

Increased
Inadequate water
Scrubber Water pump environmental
flow
pollution

Failure Mode and Effect Analysis Table

 Method of Identifying Hazard

• Review document and publication

• Inspection and observation
• Measurement of the atmosphere, monitoring the
environment or medical surveillance of the workers.
• Hazard analysis
 2.3 HIRARC

Purpose of HIRARC
a) To identify all the factors that may cause harm to employees
and others (the hazards);
b) To consider what the chances are of that harm actually be
falling anyone in the circumstances of a particular case and
the possible severity that could come from it (the risks)
c) To enable employers to plan, introduce and monitor
preventive measures to ensure that the risks are adequately
controlled at all times.
Process of HIRARC
 HAZARD IDENTIFICATION

Sources of Hazard

Man Unsafe acts

Machinery Installation, layout and design of
equipment
Materials Substances such as chemicals and
gases use in the workplace
Method The way people carry out their work
Media Workplace condition i.e. air quality,
ventilation, lighting, noise, vibration etc.
 Classification of Hazard

Mechanical Physical Electrical

Physhosocial
Biological
HAZARD

Ergonomics Chemical
 Hazard Identification Techniques

• Work place inspections;

• Task safety analysis or job hazard analysis;
• Preliminary investigations;
• Potential accident factors;
• Failure analysis;
• Accident and incident investigations.
 RISK ASSESSMENT

Types of Risk Assessment

1. Qualitative Risk Assessment

2. Semi-Quantitative Risk Assessment

3. Quantitative Risk Assessment

 Analyze the Risk

Risk is the combination of the likelihood and severity of a

specified hazardous event occurring. In mathematical
term, risk can be calculated by the equation -

Risk = Likelihood x Severity

 Likelihood

Determine likelihood

• Very likely - could happen frequently

• Likely - could happen occasionally

• Unlikely - could happen, but only rarely

• Highly unlikely - could happen, but probably never will

 Severity

Determine severity categories i.e.:

• Fatality

• Major injuries (normally irreversible injury or damage to health)

• Minor injuries (normally reversible injury or damage to health

requiring days off work)

• Negligible injuries (first aid)

 Qualitative Risk Table

Severity Likelihood
Very Likely Likely Unlikely Highly Unlikely
Fatality High High High Medium
Major Injuries High High Medium Medium
Minor Injuries High Medium Medium Low
Negligible Injuries Medium Medium Low Low
 Semi-Quantitative Risk Assessment

Determine likelihood categories

•4: Daily
•3: Weekly
•2: Yearly
•1: Monthly

Determine severity categories

• 4: Fatality & Permanent Disability

• 3: More than 4 days MC
• 2: Less than or 4 days MC
• 1: First aid and near misses
 Semi-Quantitative Risk Assessment

LIKELIHOOD
Yearly Monthly Weekly Daily

1 2 3 4
SEVERITY

First Aid
and Near 1 1 2 3 4
Misses
Less than
or 4 days 2 2 4 6 8
MC
More than
4 days MC
3 3 6 9 12
Fatality &
Permanent 4 4 8 12 16
Disability
 Decision for Action

AS LOW AS REASONABLY PRACTICABLE (ALARP)

PRINCIPLE

Risk cannot be Intolerable (e.g. H,H or >10)

justified LEVE
on any grounds L
TOLERABLE IF:
A Risk is undertaken if
OF Reduction
a benefit is desired
L Impractical
 or
A Reduce risk RISK Cost / gain grossly
R Disproportionate
P No need for detailed
action
Trivial
 RISK CONTROL
Principle of Control

•Substitution •Housekeeping •Training and

•Modify process •General education
•Enclosure ventilation •Worker rotation
•Local exhaust •Continuous area •Enclosure of
•Fugitive monitoring worker
emission control •Dilution •Personal
•Isolation ventilation monitoring
•Automation or •Personal
remote control protective devices
 Consideration In Implementing
Risk Control

• Review measures regularly; modify if necessary

• Comply with national laws and regulations

• Reflect good management practice

• Consider the current state of knowledge

• Include information or reports from organizations such

as:
– DOSH, OSH services, and others.
 Hierarchy Of Control
MOST EFFECTIVE
i. Elimination - Getting rid of a hazardous job, tool, process,
machine or substance is perhaps the best way of protecting
workers.

FAIRLY EFFECTIVE
ii. Substitution – replacing the hazard with one that presents lower
risk.
iii. Isolation – isolating or separating the hazard from the person, or
the person from the hazards.
iv. Engineering control – requires thinking about ways work could
be done differently to make the world safer such as rearranging
aspects of workplace, modifying equipment, combining tasks,
changing procedures to eliminate hazardous step.

LEAST EFFECTIVE
v. Administrative – reduction of exposure to risk through use of
procedures or instruction.
vi. PPE – worn by people as final barrier themselves and hazard.
 SUMMARY

• The basic of OSH management is the identification of

hazard, risk assessment, control of risk and review.
• Ways of identifying hazards varies from inspection of the
workplace to reviewing legislation.
• Risk assessment allows an organization to build a sound
basis for managing hazard.
• Hierarchy of hazard control starts with elimination; use of
PPE is the last resort.