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A systematic processes
6. Follow 1. Hazard
Through & Identification
Review
2. Risk
5. Implement
Assessment
Risk Controls
3. Analyze
4. Risk
Risk Control
Controls
Measures
Making Risk Control Decisions
6. Supervise 1. Identify
and Review the Hazards
5. Implement 2. Assess
Risk Controls the Risks
3. Analyze
Risk Control
Measures
4. Make
Control
Decisions
Risk Control Measurement
Analysis
COMPENSATE
Design parallel and redundant systems
REDUCE
Design for minimum risk
Incorporate Safety Devices
Provide Warning Devices
Develop SOPs & Train
Providing Management Risk
Control Options
Program Manager looking for optimum combinations
Mission supportive
Some Risk Controls are incompatible
Evaluate full cost versus full benefit
Be prepared for numbers game
Some Controls reinforce one another
Win-Win option
Redundancy = Robustness
Is it needed?
Can you afford it? i.e., $$$, #s, real estate
Decision Making Considerations
Make decisions at the right time
Dont rush Make them as late as possible without
negative impact on timeline
Make decisions at the right level
It should be established who makes the tough calls
Use RAC or TREC to quantify who, what, when
Provide Mission supportive options
Use the Macro Option list as a starting point
Be prepared to offer sound advice
What Level is The Right Level
Dont just pass the buck up to the next level
You should help address the operational realities
Decision should be made at the level that has the
best understanding of the risks, opportunity and
authority to commit resources
Be prepared to address dynamic environments
What is your span of control
Preliminary Hazard Analysis in
system life cycle
System Concept
System Definition
System Development
PHA System Production
System Operation
SSHA in the system life cycle
System Concept
System Definition
System Development
SSHA System Production
System Operation
Determine Risk Control Effects
S I
E
Catastrophic 1 2 6 8 12
V
E
Critical II 3 4 7 11 15
R
III
I Moderate 5 9 10 14 16
T
Negligible IV
Y 13 17 18 19 20
Risk Levels
Decision Making Guideline
RISK LEVEL DECISION LEVEL
Extremely High Senior Executive
High Managing Director
Medium Program Manager
Low Any person in a
leadership position
When you have finished your
analysis and prepare to make your
decision, ask yourself the following
questions:
If events are dependent, then the occurrence of one event can affect
the occurrence of the second event. For example, if two buildings are
located close together, the probability of the second building having a
fire loss is greater if there is a fire at the first building.
Cost of countermeasures
Mishap Costs
Cost of countermeasures
Mishap Costs
6. Supervise 1. Identify
and Review the Hazards
2. Assess
5. Implement the Risks
Risk Controls
3. Analyze
4. Make
Risk Control
Control
Measures
Decisions
Reason Model
A POLICY A TRAINING
PILLAR PACKAGE
A MEASUREMENT A MOTIVATIONAL
PACKAGE PACKAGE
COMMAND TOOL KIT
JOB AIDS
SUPPORT PACKAGE
PACKAGE
SUPERVISE AND REVIEW
6. Supervise
and Review
1. Identify
the Hazards
5. Implement 2. Assess
Risk Controls the Risks
3. Analyze
4. Make
Risk Control
Control
Measures
Decisions
Supervise and Review
6. Supervise
and Review
1. Identify
the Hazards
5. Implement 2. Assess
Risk Controls the Risks
3. Analyze
4. Make
Risk Control
Control
Measures
Decisions