assignment
hopelessq8
Lecture5-RM.pdf
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LECTURE-5
-RISK ASSESSMENT & RISK MANAGEMENT-
15FMCE214: PREVENTIVE MAINTENANCE TECHNIQUES
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By the end of this chapter you should be able to:
❑ Understand the difference between hazard and risk
❑ Describe the purpose of risk assessment ❑ Identify the steps in risk management process ❑ Establish risk assessment matrix and calculate
risk rate.
Learning Outcome
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WHAT IS A RISK?
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WHAT IS A RISK?
What’s the risk to have from new
influenza virus ?
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WHAT IS A RISK?
Scenario 1:
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WHAT IS A RISK?
Scenario 2:
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HAZARD AND RISK
▪ Hazard: is a source of danger or harm , e.g. electricity, chemicals, working up a ladder, noise, a keyboard, a bully at work, stress, etc.
▪ Risk : is the probability/Likelihood, high or low, that any hazard will actually cause somebody harm.
What is the difference between hazard and risk?
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REFLECTION
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REFLECTION
Take few minutes to reflect on:
▪ Do you assess risks?
▪ Why is it important to assess risks?
Assessing Risk: From Start to Finish https://www.youtube.com/watch?v=ag2JndaG8GI
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❑ A risk assessment is a term used to describe the overall process or method where you: ▪ Identify hazards and risk factors that have the potential
to cause harm (hazard identification). ▪ Analyze and evaluate the risk associated with that
hazard (risk analysis, and risk evaluation).
❑ Hazard identification and risk assessment will help you: 1. Recognize and control hazards in your workplace. 2. Improve the behavioral Safety.
RISK ASSESSMENT :DEFINITION AND PURPOSE
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3. Set risk management standards, based on acceptable safe practices and legal requirements.
4. Reduce incidents in the workplace. 5. Save costs by being proactive instead of reactive
RISK ASSESSMENT :DEFINITION AND PURPOSE
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RISK ASSESSMENT :DEFINITION AND PURPOSE
❑ Risk assessment is an inherent part of a broader risk management strategy to introduce control measures to eliminate or reduce any potential risk-related consequences.
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RISK MANAGEMENT PROCESS
1. Identify hazards
2. Assess hazards/ Risk Assessment
3. Decide on control measures
4. Implement controls
5. Supervise and evaluate
❑ Risk Management Process is a five-step process which consists of:
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RISK MANAGEMENT PROCESS
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STEP1. IDENTIFY THE HAZARDS
❑ A hazard is identified as “a condition with the potential to cause injury, illness, or death of personnel; damage to or loss of equipment or property; or mission degradation”. The goal of Step 1 is to first identify all of the hazards that exist in the operation in order to effectively assess them in the next step.
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Risk Assessment Worksheet - The project's objective, tasks, and associated
hazards are identified
STEP1. IDENTIFY THE HAZARDS
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RISK MANAGEMENT PROCESS
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STEP2. RISK ASSESSMENT
❑This step focuses on assessing the risk associated with each hazard and quantifying the likelihood (probability) and the impact (severity or consequence) of the hazards identified in Step 1.
❑Hazard Impact are ranked considering a number of dimensions relating to money, time, regulation, etc.
❑Once ranked, the risks are most easily displayed on a
likelihood-impact matrix that serves as a clear communication
tool, allowing anyone, to be able to understand the level of
associated risk.
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➢The matrix can be colored to highlight the most
important risks.
STEP2. RISK ASSESSMENT
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❑ Likelihood-impact matrix : To Identify the Level of risk associated with each hazard, the levels of impact and likelihood should be defined.
▪ Impact refers to the severity of a problem, for example whether it causes death, injury or simply a delay.
▪ Likelihood refers to how likely or probable that the problem will occur, it may be extremely unlikely or very likely.
Impact and Likelihood are rated by referring to the National Health and Safety risk criteria
STEP2. RISK ASSESSMENT
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-Impact Score: Descriptor and Definition-
STEP2. RISK ASSESSMENT
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-Likelihood Score: Descriptor and Frequency-
STEP2. RISK ASSESSMENT
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❑ Example: You are aware that there are heavy items to be loaded on a car. ➢ You decide that this could cause an injury that could
potentially lead to hospitalization. Hence the consequence is “Moderate” and the impact score is 3.
➢ You may be looking at the risk of muscular skeletal injury whilst loading the car. You determine that it is “Possible” that an injury may occur (remember that this is without any controls in place). The likelihood score is 3.
STEP2. RISK ASSESSMENT
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❑ Once the likelihood and impact of the risk have been assessed they are plotted on the risk profiling grid, the risk rating can be quantitatively defined :
STEP2. RISK ASSESSMENT
𝑹𝒊𝒔𝒌 𝒓𝒂𝒕𝒊𝒏𝒈 = 𝑳𝒊𝒌𝒆𝒍𝒊𝒉𝒐𝒐𝒅 × 𝑰𝒎𝒑𝒂𝒄𝒕
▪ Example: If a risk has a likelihood of 4 – Likely and a severity of 4 – Major, the risk rating will be 4 x 4 = 16. This would mean the risk is high and would require a treatment plan.
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-Quantitative Risk assessment matrix-
STEP2. RISK ASSESSMENT
Impact
Li ke
li h
o o
d
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❑ Based on the calculated risk rate (score), the likelihood- impact matrix can highlight the most important risks showing the risk level with the corresponding color code:
-Risk matrix-
STEP2. RISK ASSESSMENT
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❑Example
STEP2. RISK ASSESSMENT
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Risk Assessment Tool - Completed by employees before
implementing project. Overall project risk is low.
STEP2. RISK ASSESSMENT ❑Example
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RISK MANAGEMENT PROCESS
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STEP3. CONTROLS AND RISK DECISION
❑ Once hazards have been identified and assessed, management actions need to be determined to reduce risk. Control options involve the application of strategic options to manage the level of identified risk. There are 4 main ways to manage risk:
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▪ Transfer the risk- i.e. transfer the effects of the risk to another organization more capable of handling it (eg. if you have a third party contracted to write your software code, you could transfer the risk that there will be errors in the code over to them).
▪ Avoid the risk- i.e. change your plans completely to avoid the risk
▪ Accept the risk - i.e. You simply accept that it might happen and decide to deal with it if it does.
▪ Control the risk - i.e. reduce the consequences of the risk, if it should happen.
STEP3. CONTROLS AND RISK DECISION
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STEP3. CONTROLS AND RISK DECISION
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❑ Residual risk is determined based on the risk remaining for a hazard after the control measure has been implemented. The overall level of risk is then determined.
❑ Risk decisions are made at this point in the process. The level of decision making authority is based on the level of overall risk that is determined. The decision making authority may approve, disapprove, or return the document for further evaluation.
STEP3. CONTROLS AND RISK DECISION
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STEP3. CONTROLS AND RISK DECISION
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RISK MANAGEMENT PROCESS
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❑ Once the risk decision is made, the control measures identified in the previous steps are integrated into the plan for the operation and are implemented by the appropriate individual or group to ensure that implement the specific risk management strategy is effective.
STEP4. IMPLEMENT CONTROLS
❑ Part of implementing control measures is having a dialog with the personnel executing the project's objectives: If personnel disagree with the level of risk associated with the project, the decision makers and personnel should work together to come to a mutual understanding and acceptance.
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STEP4. IMPLEMENT CONTROLS
❑ If it is determined that the risk level is too high and/or the controls implemented in Step 4 are not as effective as thought, then the Step 3 decision must be revisited to either develop additional or alternate controls, modifications or reject the course of action.
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RISK MANAGEMENT PROCESS
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STEP5. SUPERVISE
❑ The final step in the Operational Risk Management process is to monitor the situation and provide leadership to ensure the controls are effective and remain in place. Changes requiring further risk management must be identified and acted on. When necessary, actions must be taken to correct ineffective risk controls and restart the risk management steps in response to new hazards.
❑ On the Risk Management process graphic the arrows show that the information flow includes going back from Step 5 to Step 4 as appropriate to improve effectiveness of control efforts for known hazards.
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MAINTENANCE COST
RISK ASSESSMENT SAVE LIVES!
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