8 Different Types of Risk Assessment

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DIFFERENT

TYPES OF RISK ASSESSMENT


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INTRODUCTION

Risks will only be controlled properly if weknow, conduct and maintain the threedifferent types of Risk Assessment within the

Health and Safety Management system.


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NEED

Without an understanding of the Risk

Management Process and of each type of RiskAssessment within the HIRA (HazardIdentification Risk Assessment) process, you

will not have an appreciation of the holisticprocess.


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This lesson will give you the necessaryinformation to bring about a full understandingof the types of Risk Assessment which will assist

you in eventually conducting an Issue BasedRisk Assessment. Any company will benefitfrom Risk Assessments done correctly and

diligently.


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TITLE

Different Types Of Risk Assessment


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OBJECTIVE

Given a lesson titled: Different types ofRisk Assessment Delegates must be able tounderstand and explain the three types of RiskAssessment.


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DIFFERENT TYPES OF RISK

ASSESSMENT:

There are essentially three forms of riskassessment which are part of a riskmanagement system and need to be carried out

under legislation. These are (not in order ofpriority):

6.1 Enterprise wide Risk Management


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DefinitionEnterprise wide Risk

management (EwRM)

The process of systematically andcomprehensively identifying critical risks,

quantifying their impacts, and then

developing and implementing integratedrisk management solutions by aligning

strategy, people, processes, and technology

to maximize enterprise value


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Identify the Risks.

What are the major dangers/risks which

pose a threat to the business/company?These risks are identified by theManagement team sitting around the table

and doing brainstorming. Measurement and Analysis (How big are the

potential losses?)

Risk Mitigation (What can be done aboutthe risks? (4Ts)).


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Describe & Assign Responsibilities

Describe the magnitude, dangers associatedwith and controls needed to mitigate therisk. (Likelihood controls, Consequencecontrols, System controls).

Assign responsibilities to ensure the risk ismanaged.


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Quantify

Assess the compliance to controls.

Planning and implementation of set targetsand action plans to manage critical risks.


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The Enterprise wide Risk Management softwareprogram was designed to systematically apply

these principles and provide a snapshot view onthe status of all major risks, with historicalperformance providing a picture of

performance, and the ability to know exactlywhat to manage to mitigate the risk.


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The program is designed to be a repository of allmajor risks in the organization i.e. physical perilrisks, functional risks, environmental risks,

financial risks etc.


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It is therefore important to note that the initialidentifying, descriptions and quantification, etc.

is done in conjunction with the EnvironmentalManagers and SHE Managers and the relevantRisk owner(s), Risk editor(s) Risk assuror(s) who

will be responsible for managing this risk. Thisensures that everyone is familiar with the risk,understands the implications and their ownresponsibility in the management thereof.


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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.


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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.


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6.2 Issuebased Risk Assessments

As circumstances and needs arise, separate Risk

Assessment studies need to be conducted. Theseare normally associated with a system for themanagement of change. A risk assessment needs tobe carried out when, for example:

New machines or equipment or materials areintroduced;

A system of work is changed or operations alter;

After an accident or a near-miss has occurred;


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As new knowledge comes to light andinformation is received which may influence the

level of risk to employees at the Organisation.An example of this is when the scientificknowledge about the toxicity of a substancechanges and previous risk assessment exercisesdealing with that substance are invalid.

Or when the Baseline Risk Assessment indicatesthat a particular area / function / task etc. is an

issue as it carries a high risk ranking above theacceptable level.


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Issuebased Risk Assessmentis a much more in-depth 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 requiredactions, such as the need for procedures, guidelines,changes to work methods or modifications toequipment etc.

Equipment checklists, etc. should also be derivedfrom Issuebased Risk Assessment.


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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


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Continuous Risk Assessments

This is the most important and powerful form

of risk assessment which must take placecontinually, as an integral part of day to daymanagement. It will mainly be conducted by all

employees and it is essential that formal trainingis provided to enable this process to be efficient.Examples of continuous risk assessment include:


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Audits;

General hazard awareness (linked to asuggestion scheme, Planned Task Observations,Planned General Inspections)

Pre-work assessments using checklists.


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In this latter case, the checklists will need to bedeveloped following Issuebased Risk

Assessment exercises Issuebased Risk. Oneoutcome of the risk assessment process can bethe development of a checklist which deals with

the critical parts and critical processes,concentrating on the key performance indicatorswhich show the effectiveness of the underlyingsystems of control.


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Pre-work risk assessments must be conducteddaily, by the supervisor and the team from the

area of work, in consultation with safetyrepresentatives Also, as part of goodmanagement practice, those same supervisors

must undertake Critical Task Analysis andPlanned Task Observation, on an ongoing basis.

In this type of risk assessment, the emphasis is

on hazard awareness through hazardidentification.


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Continuous Risk Assessment identifies (should)hazards that occur on a daily basis. It provides

for the over inspection of procedures, standardsetc. recommended by other Risk Assessmentinvestigations. Results should therefore be fed

back to the baseline to ensure deficiencies areidentified and hot spots do not re-occur.


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NOTE-In Terms of the analysis from info fromcontinuous assessment - this component of the

HAZARDIDENTIFICATION elements isthe activity that CLOSES THE LOOP.

It is important to identify those items within the

RISK CONTROL ELEMENTS that gaverise to or contributed to the hazard, near miss,incident or accident under investigation.


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Output

Outputs of continuous risk assessment process

are:

risks are treated immediately, in order ofsignificance;

information to feed back to issue-basedassessment and

information to feed back to baseline assessment


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General Comments

The diagram (on previous page) is a schematic

depiction of a possible process to conduct aContinuous Assessment. Continuousassessments should take place continually, as an

integral part of day to day operationsmanagement. It might not use the moresophisticated HIRA techniques which are usedin baseline and issue-based HIRA but, in terms

of ensuring the reduction of OH&S risks in theworkplace, this form of HIRA is possibly themost powerful and important.


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It is the duty of all first-line supervisors toensure that effective Continuous HIRA's

actually take place in the workplace. Theemployer must ensure that all employees arecompetent to perform continuous HIRA.


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The following could formpartof continuousHIRA:

Inspections and observations; Occupational hygiene measurements;

Planned maintenance systems;

Pre-work assessments;

OH&S audits; and

Planned task observations.


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In continuous HIRA, the emphasis is on day todayhazardawareness, through HIRA, andimmediate risktreatment. In developinghazardawareness, memory joggers such as inspectionchecklists, pre-use checklists, and critical part

and paths checklists, can be used.


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Inspections / Observations

Physical Conditions Survey

Hazard identification

Compliance monitoring Identification of losses


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Planned Inspections and Risk Management

The information gathered through planned

inspections, must be fed back to update the riskprofile.

Possible new risks may have been identified, or

the impact of an identified risk might havechanged.


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Inspections / Surveys - Traditional Approach

Punch list of deviations

Mainly identifies symptoms of system problems withinthe 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 itpresents to the organisation

Sampling is done, yet no analysis done to indicate sizeof the problem, e.g. percentage, cause for deviation, etc.therefore


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Little is learned, other than a deviation wasobserved, requiring action to be taken

Recurring deviations, at the same location orelsewhere in the organisation


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Inspections / Surveys - Risk Based Approach

Use of checklists:

Used in order to facilitate analysis, e.g. fire fightingequipment, passive fire protection, permanent support,temporary support, electric cabling, etc.

Deviations recorded against checklist item

Number of conditions / items observed, numbersubstandard and percentage compliance recorded

Indicative of compliance to own and/or accepted

practice


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Basic causes for each of the deviations recordedas far as possible, by consulting accompanying

employee: e.g. Fire extinguisher not in place could be as a

result of:

Inadequate Leadership (supervisor did notensure installation of temporary unit)

Inadequate equipment / materials (shortage of

extinguishers) Improper motivation (personnel ignoring rules

in order to speed up production), etc.


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Supports a systems approach

Long term results, as the organisation can focus

on eliminating basic causes, and not onlytreating 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, asadvocated by the Mine Health and Safety Act


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Realistic setting of priorities

Enhances rapid risk reduction


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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


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1. During the EwRM process significantissues/risks requiring immediate attention are

identified and then closely monitored throughthe Continuous HIRA process. Controls areidentified and implemented for each risk

identified during the EwRM process.


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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 throughthe Issue Based HIRA.


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The outcome of an Issued Based HIRA needs tobe monitored through the Continuous HIRA

process to ensure recommendations arecomplied with and are effective. Checklists arenormally also produced as part of an IssueBased HIRA to be used in the ContinuousHIRA as part of the monitoring process.


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The Enterprise wide Risk Management processcan be used to assist with the scoping processduring the Issue Based HIRA


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As part of the Continuous and Issue Based

HIRA process, the integrity and effectiveness ofthe Management Systems (the effectiveness ofcontrols i.e. procedures & standards) iscontinually evaluated and up-dated in order tomaintain risks as low as reasonably possible.


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The result from the complete Risk ManagementProcess manifests itself in the Irm.netprogramme, which can be used for comparison

purposes against previous cycles.

8 Different Types of Risk Assessment

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