Risk Management & Risk Assessment

Perception

What is risk management/assessment?

Informal risk assessment.

Formal Risk assessment

Risk Assessments – why?

Why ???
Risk Assessment Status

We would rather learn from the

mistakes and accidents that
have already happened then the
ones that are waiting to happen
or may happen in future.
Risk Assessment Status
On 1st July 2010 a number of new amendments have
come into force with regard to IMO Resolution
A.741(18) as amended by MSC.104(73) – the
International Safety Management (ISM) Code and IMO
Resolution A.913(22) ‘Revised Guidelines on
implementation of the ISM Code by Administrations’ –
will be replaced with new ‘Guidelines on implementation
of the ISM Code by Administrations’.
Risk Assessment Status
 The amendments get much closer and do make it clear
that there is an expectation that the Company will adopt
a risk based approach to managing safety.
 The method to be adopted for assessing risk and
establishing safeguards is left to each individual
Company – subject to approval by the relevant
Administration. A number of basic risk assessment
models are readily available – such as that contained in
the UK Maritime and Coastguard Agency (MCA) ‘Code of
Safe Working Practices for Merchant Seamen’ in Chapter
1.
Business Management is about
maximising the chance of success.
Risk Management is about minimizing the
chance of failure – pure risk

EffectiveRisk Management requires

structured Risk Assessment as an input
Business Management and
Risk Management
 W hat is Risk Assessment?

A systematic and scientific decision making

process to determine:
What can go wrong?
How likely is it?
What are the impacts?
What can we do?
 It
is a process that involves periodic re-
assessment of threats and vulnerabilities to
achieve continual improvement of appropriate
safety measures
What Should be Assessed
The assessment should cover the risk arising
from the activity to the individual.

Theassessment should cover the risk for

damage to equipment / property.

Theassessment should cover the risk for

damage to the environment.
When to do Risk Assessment
Formal Risk Assessment should be carried
out mainly before major / odd repair jobs,
other odd jobs and in general before non-
routine activities.

Informal Risk Assessment should be carried

out before any activity whether on or off-
duty.
1. IDENTIFICATION
Work Activities
Each task which is a part of the work activity
should be listed.

Pleasnote there can be more than one

hazard for each activity

All the hazards should be listed.

Is there a source of Harm

Some examples for the source can be

categorized as follows:-

1.Mechanical
2.Electrical
3.Physical
4.Fire & Explosion
5.Pollution
HAZARDS
Look only for hazards which you could reasonably expect to
result in significant harm under the conditions in the
workplace:

 Slipping/Tripping Hazards – Physical Hazard

 Fire Hazard – Fire & Explosion
 Chemical Hazard
 Hazard from Moving parts of machinery – Physical Hazard
 Hazard for Working at a height – Physical Hazard
 Pressure system Hazards – Mechanical Hazard
 Electrical Hazards
 Dust Hazards – Health Hazard
 Hazards from Fumes
 Noise Hazard – Physical Hazard
 Poor Lighting – Physical Hazard
 Temperature - – Physical Hazard
IDENTIFICATION

Effects of Hazards
This shall include identification of:
Personnel at Risk (e.g. shipboard personnel,
pilot, surveyor etc.)
Environment & Property at Risk (e.g.
pollution, marine life, vessel, cargo, terminal
etc.)
All the stakeholders (shipboard personnel
and families, owner, insurance, coastal state,
flag state etc.)
Who or what could be harmed

People involved in the work activity

Damage to the equipment used for the work

activity.

Damage to the environment or surrounding

space
What can I do about the hazard

Existing Controls – What are the normal existing

controls in place.

Personnel Protective Equipment

Permits / Check lists
Proper training
Proper lighting
Communication
Constant monitoring of the work activity.
Emergency back up equipment
All personnel aware of the hazards
Simple Examples of Risk Assessment
 Crossing the road
 Climbing Stairs
 ATC at major airports
RISK
AN EXPRESSION OF POSSIBLE LOSS IN
TERMS OF SEVERITY AND PROBABILITY

Risk is a combination of two elements:

The severity of the hazardous event.
The likelihood that the hazard will occur.
 Risk Assessment Matrix
Probability RepeatedIsolated Occurring Not Remote
Events Inciden Sometimes Likely Possibility
t

Severity A B C D E
Fatal/ Total I High Risk High High Risk High Moderate
Loss /Spill >100 Risk Risk Risk
Disability/ Dry ll High Risk High High Risk Mod Moderate
dock/ Spill < 100 Risk Risk Risk

Hospital/ COC/ lll High Risk High Moderate Mod Low Risk
Spill > 1 Risk Risk Risk
Medical/ Damage/ lV High Risk Mod Risk Moderate Low Low Risk
Spill <1 Risk Risk

First Aid/ Minor V Moderate Mod Risk Low Risk Low Low Risk
damage/ No spill Risk Risk
 Classification

High Risk – Work should not be started until the risk has been reduced to
acceptable level. If it is not possible to reduce the risk, the work
should be prohibited.

Moderate Risk – Effort should be made to reduce the risk further. If it is not
possible to reduce the risk, the activity should be constantly
monitored by a responsible person. The work should be stopped
if the risk increases.

Low Risk - No additional Controls are Required

Assessment
...identify the risk?
Assessment
...conclusion

SHE IS NOT WEARING A SAFETY HELMET!

In fact she’s not wearing much protection at all!
RISK MANAGEMENT PROCESS
•IDENTIFY HAZARDS

•ASSESS HAZARDS & RISKS

•IMPLEMENT CONTROLS

•MAKE RISK DECISIONS

•REVIEW, SUPERVISE, EMERGENCY

PROCEDURES
SUMMARY
Risk management is a systematic way of
thinking
It increases awareness of hazards and risks
involved in an operation
Process should be dynamic
If you want to know the cost of safety, try
having an accident