DIFFERENT TYPES OF RISK ASSESSMENT

INTRODUCTION Risks will only be controlled properly if we know, conduct and maintain the three different types of Risk Assessment within the Health and Safety Management system.

NEED Without an understanding of the Risk Management Process and of each type of Risk Assessment within the HIRA (Hazard Identification Risk Assessment) process, you will not have an appreciation of the holistic process.

 This lesson will give you the necessary information to bring about a full understanding of the types of Risk Assessment which will assist you in eventually conducting an Issue Based Risk Assessment. Any company will benefit from Risk Assessments done correctly and diligently.

TITLE Different Types Of Risk Assessment

RANGE Enterprise Wide Risk Management process (Irm.net) Issuebased Risk Assessment Continuous Risk Assessment

OBJECTIVE Given a lesson titled: Different types of Risk Assessment Delegates must be able to understand and explain the three types of Risk Assessment.

DIFFERENT TYPES OF RISK ASSESSMENT: There are essentially three forms of risk assessment which are part of a risk management system and need to be carried out under legislation. These are (not in order of priority): 6.1 Enterprise wide Risk Management

 Definition Enterprise wide Risk management (EwRM) The process of systematically and comprehensively identifying critical risks, quantifying their impacts, and then developing and implementing integrated risk management solutions by aligning strategy, people, processes, and technology to maximize enterprise value

Identify the Risks. What are the major dangers/risks which pose a threat to the business/company? These risks are identified by the Management team sitting around the table and doing brainstorming. Measurement and Analysis (How big are the potential losses?) Risk Mitigation (What can be done about the risks? (4Ts)).

Describe & Assign Responsibilities Describe the magnitude, dangers associated with and controls needed to mitigate the risk. (Likelihood controls, Consequence controls, System controls). Assign responsibilities to ensure the risk is managed.

Quantify Assess the compliance to controls. Planning and implementation of set targets and action plans to manage critical risks.

Monitor & manage controls Monitoring of key risk indicators. Continuous reporting on progress/regress. Regular review on risk status and controls.

 The Enterprise wide Risk Management software program was designed to systematically apply these principles and provide a snapshot view on the status of all major risks, with historical performance providing a picture of performance, and the ability to know exactly what to manage to mitigate the risk.

 The program is designed to be a repository of all major risks in the organization i.e. physical peril risks, functional risks, environmental risks, financial risks etc.

 It is therefore important to note that the initial identifying, descriptions and quantification, etc. is done in conjunction with the Environmental Managers and SHE Managers and the relevant Risk owner(s), Risk editor(s) Risk assuror(s) who will be responsible for managing this risk. This ensures that everyone is familiar with the risk, understands the implications and their own responsibility in the management thereof.

 Risk Management entails the following: Identify the risk, assess its magnitude and determine the controls required to mitigate the risk to a tolerable level. Evaluate what resources are needed (including human resources) and how they must be equipped to give effect to the controls needed to bring about a tolerable risk level.

 Implement these controls and check for effectiveness and compliance. Periodically evaluate the actual status of the risk to determine whether the tolerable level of the risk has been achieved or additional controls are needed.

 6.2 Issuebased Risk Assessments

As circumstances and needs arise, separate Risk Assessment studies need to be conducted. These are normally associated with a system for the management of change. A risk assessment needs to be carried out when, for example: New machines or equipment or materials are introduced; A system of work is changed or operations alter; After an accident or a near-miss has occurred;

 As new knowledge comes to light and information is received which may influence the level of risk to employees at the Organisation. An example of this is when the scientific knowledge about the toxicity of a substance changes and previous risk assessment exercises dealing with that substance are invalid. Or when the Baseline Risk Assessment indicates that a particular area / function / task etc. is an issue as it carries a high risk ranking above the acceptable level.

 Issuebased Risk Assessment is a much more indepth investigation of a specific issue and would require a team of more specified persons. Completed actions reduce the risk ranking of the issue and this should be fed back to the Baseline. Issuebased Risk Assessment will result in required actions, such as the need for procedures, guidelines, changes to work methods or modifications to equipment etc. Equipment checklists, etc. should also be derived from Issuebased Risk Assessment.

Purpose To conduct a detailed study Output Clear recommendations to management for,to update baseline profile if required Action plans for the control of significant risks Input into RISK CONTROL ELEMENTS i.e. training programmes, standards, procedures, codes of practice and management systems

 Continuous Risk Assessments This is the most important and powerful form of risk assessment which must take place continually, as an integral part of day to day management. It will mainly be conducted by all employees and it is essential that formal training is provided to enable this process to be efficient. Examples of continuous risk assessment include:

 Audits; General hazard awareness (linked to a suggestion scheme, Planned Task Observations, Planned General Inspections) Pre-work assessments using checklists.

 In this latter case, the checklists will need to be developed following Issuebased Risk Assessment exercises Issuebased Risk. One outcome of the risk assessment process can be the development of a checklist which deals with the critical parts and critical processes, concentrating on the key performance indicators which show the effectiveness of the underlying systems of control.

 Pre-work risk assessments must be conducted daily, by the supervisor and the team from the area of work, in consultation with safety representatives Also, as part of good management practice, those same supervisors must undertake Critical Task Analysis and Planned Task Observation, on an ongoing basis. In this type of risk assessment, the emphasis is on hazard awareness through hazard identification.

 Continuous Risk Assessment identifies (should) hazards that occur on a daily basis. It provides for the over inspection of procedures, standards etc. recommended by other Risk Assessment investigations. Results should therefore be fed back to the baseline to ensure deficiencies are identified and hot spots do not re-occur.

 NOTE-In Terms of the analysis from info from continuous assessment - this component of the HAZARD IDENTIFICATION elements is the activity that CLOSES THE LOOP. It is important to identify those items within the RISK CONTROL ELEMENTS that gave rise to or contributed to the hazard, near miss, incident or accident under investigation.

 Purpose The purpose of continuous HIRA is to promptly identify OH&S hazards for the purpose of immediately treating significant risks. The responsibility for addressing the hazard, and ensuring that it is addressed to the point of conclusion (immediate causes), lies with the person who first identified that hazard. Most accidents happen because somebody has not taken immediate action when something appeared to be wrong.

 Output Outputs of continuous risk assessment process are: risks are treated immediately, in order of significance; information to feed back to issue-based assessment and information to feed back to baseline assessment

 General Comments The diagram (on previous page) is a schematic depiction of a possible process to conduct a Continuous Assessment. Continuous assessments should take place continually, as an integral part of day to day operations management. It might not use the more sophisticated HIRA techniques which are used in baseline and issue-based HIRA but, in terms of ensuring the reduction of OH&S risks in the workplace, this form of HIRA is possibly the

most powerful and important.

 It is the duty of all first-line supervisors to ensure that effective Continuous HIRA's actually take place in the workplace. The employer must ensure that all employees are competent to perform continuous HIRA.

 The following could form part of continuous HIRA: Inspections and observations; Occupational hygiene measurements; Planned maintenance systems; Pre-work assessments; OH&S audits; and Planned task observations.

 In continuous HIRA, the emphasis is on day to day hazard awareness, through HIRA, and immediate risk treatment. In developing hazard awareness, memory joggers such as inspection checklists, pre-use checklists, and critical part and paths checklists, can be used.

 Inspections / Observations
Physical Conditions Survey Hazard identification Compliance monitoring Identification of losses

 Planned Inspections and Risk Management The information gathered through planned inspections, must be fed back to update the risk profile. Possible new risks may have been identified, or the impact of an identified risk might have changed.

 Inspections / Surveys - Traditional Approach Punch list of deviations Mainly identifies symptoms of system problems within the organisation Promotes a reactive and wait for the problem / kill the fire culture Priority is sometimes allocated to deviations observed, but with little or no inference to the risk it presents to the organisation Sampling is done, yet no analysis done to indicate size of the problem, e.g. percentage, cause for deviation, etc. therefore

 Little is learned, other than a deviation was observed, requiring action to be taken Recurring deviations, at the same location or elsewhere in the organisation

 Inspections / Surveys - Risk Based Approach Use of checklists: Used in order to facilitate analysis, e.g. fire fighting equipment, passive fire protection, permanent support, temporary support, electric cabling, etc. Deviations recorded against checklist item Number of conditions / items observed, number substandard and percentage compliance recorded Indicative of compliance to own and/or accepted practice

 Basic causes for each of the deviations recorded as far as possible, by consulting accompanying employee: e.g. Fire extinguisher not in place could be as a result of: Inadequate Leadership (supervisor did not ensure installation of temporary unit) Inadequate equipment / materials (shortage of extinguishers) Improper motivation (personnel ignoring rules in order to speed up production), etc.

 Supports a systems approach Long term results, as the organisation can focus on eliminating basic causes, and not only treating symptoms Risk rating allocated to each deviation Majority of deviations are hazards Standard Practical Guide to Risk Assessment risk matrix utilised to determine risk of each hazard identified Will enhance a risk based approach, as advocated by the Mine Health and Safety Act

 Realistic setting of priorities Enhances rapid risk reduction

 Benefits: Enhances compliance to OH&S act, a risk based focus and systems focus Does not support blame culture due to focus on systems, rather than individuals who caused the problem, etc. Supports as far as reasonably practicable principles

 1. During the EwRM process significant issues/risks requiring immediate attention are identified and then closely monitored through the Continuous HIRA process. Controls are identified and implemented for each risk identified during the EwRM process.

 2. The data from the Continuous HIRA process is used during the EwRM process. 3. Outcomes from the Continuous HIRA might require more in-depth analysis through the Issue Based HIRA.

 The outcome of an Issued Based HIRA needs to be monitored through the Continuous HIRA process to ensure recommendations are complied with and are effective. Checklists are normally also produced as part of an Issue Based HIRA to be used in the Continuous HIRA as part of the monitoring process.

 The Enterprise wide Risk Management process can be used to assist with the scoping process during the Issue Based HIRA

 As part of the Continuous and Issue Based HIRA process, the integrity and effectiveness of the Management Systems (the effectiveness of controls i.e. procedures & standards) is continually evaluated and up-dated in order to maintain risks as low as reasonably possible.

 The result from the complete Risk Management Process manifests itself in the Irm.net programme, which can be used for comparison purposes against previous cycles.