CHAPTER 2

RISK MANAGEMENT AND

ASSESSMENT

SUBTOPIC
2.1
2.2
2.3

Introduction to Risk Management

Risk Assessment Techniques
HIRARC

2.1

INTRODUCTION TO RISK MANAGEMENT

BASIC PRINCIPLE OF RISK MANAGEMENT

a)
b)
c)
d)
e)

Integrate Risk Management as part of planning at all

levels of business.
Accept no unnecessary risks.
Make risk decision appropriately.
Accept risk when benefit overweigh costs.
Manage the risk.

RISK ASSESSMENT
Why need to carry out risk assessment?
a)
b)

Logical and cost-effective management of occupational

safety and health (OSH)
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.
b.
c.

Routine and non-routine activities i.e maintenance,

shutdowns abnormal operation.
Activities of all personal having access to the
workplace (including subcontractors and visitors).
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)
b)
c)

To analyze how and why accident could occur.

Graphic technique.
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)
b)
c)
d)
e)

Select a component for analysis.

Identify critical failures or faults related to the
component.
Identify causes for each fault.
Work toward a root cause.
Identify countermeasures for each root cause.

FAULT TREE
ANALYSIS
KNOWS LADDER IS
DEFECTIVE BUT STILL
DECIDES TO USE
DEFECTIVE LADDER

BELIEVES LADDER
IS STILL SAFE

WORKER USED
DEFECTIVE LADDER
DIDN'T KNOW LADDER WAS
DEFECTIVE

NO CHOICE
UNAWARE OF
CONSEQUENCES

FALL FROM LADDER

DID NOT
RECOGNIZE
DEFECT

LADDER WAS NOT

INSPECTED

NO SEGREGATION
NO SUPERVISION

TRAINING
INCOMPATIBLE
GOALS

PROCEDURES
MAINTENANCE
MANAGEMENT

ORGANISATION

Job Safety Analysis (JSA)

JSA is a tool used to improve job safety through:

a)
b)

Identifying the hazards or potential hazards associated

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

Steps:
a)
b)
c)
d)
e)

f)

Select selecting the job to be analyzed.

Record Breaking the job down into a sequence of
task.
Examine Identifying potential hazards associated
with sequence of tasks.
Develop Determining preventive measures to control
hazards associated with sequenced of tasks.
Install Ideally, after the hazards have been identified,
safe work procedure should be developed and
communicate to others.
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

Scrubber

Component

Failure Mode

Failure Effect

Water pump

Inadequate water
flow

Increased
environmental
pollution

Failure Mode and Effect Analysis Table

Method of Identifying Hazard

Review document and publication

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

the

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
Machinery
Materials
Method
Media

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

Classification of Hazard
Mechanical

Physical

Physhosocial

Electrical

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

Semi-Quantitative Risk Assessment

Determine likelihood categories
4:
3:
2:
1:

Daily
Weekly
Yearly
Monthly

Determine severity categories

4:
3:
2:
1:

Fatality & Permanent Disability

More than 4 days MC
Less than or 4 days MC
First aid and near misses

Semi-Quantitative Risk Assessment

LIKELIHOOD
Yearly

Monthly

Weekly

Daily

SEVERITY

First Aid
and Near
Misses

Less than
or 4 days
MC

More than
4 days MC

12

Fatality &
Permanent
Disability

12

16

Decision for Action

AS LOW AS REASONABLY PRACTICABLE
(ALARP) PRINCIPLE
Risk cannot be
justified
on any grounds

Intolerable (e.g. H,H or >10)

LEVE
L

A
L
A
R Reduce risk
P No need for

RISK

detailed
action

Trivial

Risk is
undertaken if a
benefit is desired

OF

TOLERABLE IF:
Reduction
Impractical
or
Cost / gain grossly
Disproportionate

RISK CONTROL
Principle of Control

Substitution
Modify process
Enclosure
Local exhaust
Fugitive
emission control
Isolation

Housekeeping
General
ventilation
Continuous area
monitoring
Dilution
ventilation
Automation or
remote control

Training and
education
Worker rotation
Enclosure of
worker
Personal
monitoring
Personal
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.