Risk Management

What is a Hazard? - It is a source or situation with a potential for harm.Example: Circling sharks are a Hazard, but what is the risk of injury? What is Risk? - The probability of an event occurring and the consequences if it does occur.A construction risk can be defined as any exposure to possible loss. How do you manage Risks? 

Risk Management Cycle

Step 1: Hazard Identification: When must you identify hazards?

• Before setting up and using a workplace
• When planning work processes
• Before installing, commissioning or erecting plant
• Whenever changes are made to the:
  • Workplace
  • System or method of work
  • Plant used
  • Chemicals used
• Whenever new information regarding work processes becomes available

Step 2: Risk Assessment This is a 2 step process, involving:

• Inherent Risk – the level of risk that exists WITHOUT controls in place
• Residual Risk – looks at the quality of the controls in place and calculates the risk employees are actually exposed to

We usually assess:

• Likelihood
• Consequence

Step 3: Risk Control Hierarchy Application:

Bow Tie Theory:

How to Develop a Risk Action Plan: 1. Proposed Actions
Based on risk assessments and risk treatment schedule 2. Resource Requirements
What is needed to treat the risk 3. Responsibilities
Who will do what 4. Reporting and Monitoring required
Person responsible for checking and documenting process