Benefits of Risk Management

• Proactive Approach
• Incident Prevention
• Risk Profile Reduced
• Operating
Efficiency/Costs Reduced
• Better Management of
Resources
• Employee
Engagement

Risk Management Framework

Establishing thecontext
Establishing the context
Risk Assessment
Risk identification
Communicatio
n and Risk analysis Monitoring
Consultation and
Review
Risk evaluation

Risk treatment
ANSI/ASSE Z690

1
The Language of Risk
ANSI/ASSE Z690
• Risk
• Hazard
• Exposure
• Consequences/outcome
• Probability/Likelihood
• Trigger event

Risk Management – ANSI/ASSE Z690

Definitions

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The Language of Risk
• Risk –

• Hazard –

• Exposure –

The Language of Risk

• Likelihood/probability –

• Consequences -

3
The Language of Risk
• Risk Acceptance –

• Risk Appetite –

• Risk Attitude –

Risk Management – ANSI/ASSE Z690

Communicating Your Top 5 Risks - Video

12

4
Risk Management – ANSI/ASSE Z690

Risk Assessment – Three Steps

13

Risk Assessment – Risk Identification

5
Risk Assessment
Step 1: Risk Identification
• Review tasks by department,
Establishing thecontext
Establishing the
context
process, project, etc.
Risk Assessment
Risk identification
• During Incident/Near Miss
Communication and Monitoring
Investigations
• Identify the hazards and
Consultation Risk analysis
and
Review

Risk evaluation
the additional aspects that
Risk
characterize risk – sources,
treatment
energy, trigger event(s),
consequences

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Risk Identification Techniques

Evidence Based Methods - information gathered by
employees or outside resources to identify
hazards

Examples:

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Risk Identification Techniques
Systematic Team Approaches – information is
gathered in groups of internal/external stakeholders to
identify hazards.

Examples:

Risk Identification Techniques

Inductive Reasoning Techniques – technique used to
provide evidence for identifying hazards

Examples:

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Hazard and Energy – Key Connection
• All risks derive from hazards
• For OSH, injuries/illnesses derive from hazards
• No hazard - no injury/illness
• Energy (risk source) is intertwined with OSH hazards
o Energy is the source of harm for OSH hazards
o Hazard with no energy - no injury/illness
o Exposure to energy from hazard creates outcome

Hazards, Energy and Trigger Events

Trigger event(s) are also intertwined with hazard:
• Trigger event is the actual cause of the injury –
how energy from hazard impacts the individual,
piece of property, environment, etc.

Hazard + Energy + Trigger Event = Injury/Illness

No Energy + Trigger Event = No Injury/Illness

8
 Risk Identification
The fundamental goal then -
• Eliminate the hazard - energy doesn’t matter
• Can’t eliminate the hazard - control the energy

Risk Identification
Activity Hazard (How Energy Trigger Consequence
(Task being can harm (Risk Events (Harm/Severity)
performed) occur?) Source) (Scenarios)

Risk Identification
Risk Identification

Activity – Lifting Hazard - Energy – Weight Trigger Event – Consequence –

40# boxes 8 Overexertion of the boxes Lifting, bending Back strain with lost
hours/day twisting time or restricted duty
Working on a
ladder
Using a bench
grinder

Wading in
stream taking
depth
measurements

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 Risk Identification
Using the last two incidents that resulted in lost
time/restricted duty or a significant near miss
at your organization, complete the table below.
Risk Identification
Activity Hazard Energy Trigger Event Consequence

Risk Assessment – Risk Analysis

Risk Assessment
Establishing thecontext
Establishing the
context

Step 2: Risk Analysis Risk Assessment

Risk identification

• Initial/Inherent risk - no controls

Communication Monitoring
Risk analysis

• Existing Risk – current controls

and Consultation and
Review

• Residual Risk
Risk evaluation

• Risk Factors – defined by Risk

treatment

organization
• Risk Levels – actions defined by
organization

Risk Analysis Tools

Make sure the tool selected:

• Identifies hazards and risks
• Assesses risk based upon
existing controls
• Evaluates need for
additional controls to obtain
acceptable risk
ASSE Sells Standards
You can purchase one or all of the ANSI/ASSE Z690
series here -
http://www.asse.org/ansi/asse-z690-3-2011-risk-
assessment-techniques-national-adoption-of-iec/iso-
31010-2009-/

Price per Standard

• $110.00 – PDF
• $154.00 - Print

Qualitative vs. Semi-quantitative

SEVERITY Catastrophic Critical Marginal Negligible
PROBABILITY I II III IV

Qualitative F= Frequent 1 3 7 13

ISO 31010/Z690 P = Probable 2 5 9 16

O= Occasional 4 6 11 18

R= Remote 8 10 14 19

I= Improbable 12 15 17 20

Semi-Quantitative – MIL
STD 882

Also
✓ANSI Z10
✓ANSI B11.0
 Risk Factors
• Consequence/Severity) - Outcome of event or
exposure
• Likelihood/Probability) - Chance that it will happen
• Frequency of exposure (number of events per unit time)
• Frequency of occurrence (number of times before event)
• What else?

Risk Matrix – Defining Risk Factors

Terms are defined differently by each organization
and type of business/risk
Outcome/Injury or Illness
Catastrophic Significant Moderate Minor
4 3 2 1
High High Serious Medium
4 16 12 8 4

High Serious Medium Low

3 12 9 6 3

Serious Medium Low Very Low

2 8 6 4 2

Medium Low Very Low Very Low

1 4 3 2 1
 Risk Factor – Consequence/Severity
Consequence or ANSI Z10 ANSI B11.0
Severity
(CAT) Catastrophic Death or permanent total disability Unable to return to work

Disability in excess of 3 months,

(C) Critical Able to return to work at
hospitalization of > 3 people
some point
per event

(M) Marginal Minor injury, lost workday incident Able to return to same job

(N) Negligible
First aid or minor medical Little or no lost work time
treatment

Risk Factor – Consequence/Severity

From B11.0 (Table C.1) - Severity of Harm by Injury Type

Risk Factor - Likelihood
MIL STD 882E Suggested Probability Levels
Description Category Environmental, Safety, and Health Result Criteria
Frequent A Likely to occur often in the life of an item, with a probability of occurrence
greater than 10-1 in that life. Continuously experienced.
Probable B Will occur several times in the life of an item, with a probability of
occurrence less than 10-1 but greater than 10-2 in that life. Will occur
frequently.
Occasional C Likely to occur some time in the life of an item, with a probability of
occurrence less than 10-2 but greater than 10-3 in that life. Will occur
several times.
Remote D Unlikely but possible to occur in the life of an item, with a probability of
occurrence less than 10-3 but greater than 10-6 in that life. Unlikely, but
can reasonably be expected to occur.
Improbable E So unlikely, it can be assumed occurrence may not be experienced, with
a probability of occurrence less than 10-6 in that life. Unlikely to occur,
but possible.

Risk Factor - Likelihood

Risk Factor - Exposure

Likelihood Frequency of Hazard

Frequent Hazard(s) likely exists throughout the duration of the task.

Probable Hazard(s) will occasionally exist throughout the duration of the

tasks.
Occasional Hazard will sometimes exist throughout the duration of the tasks.

Remote Hazard will seldom exist throughout the duration of the tasks.

Improbable Hazards will not likely exist during this tasks.

Exposure to hazards rather than tasks

Risk Factor - Exposure

Frequent Task is performed several times an hour and/or duration may
approach at least 4 hours a day.
Probable Task is performedSample
several times a day and/or duration
approaches 1 hour a day.
Occasional Task is performed several times a day, and/or in typical
durations under one hour.
Remote Task is performed less than one or two times a day, or duration
may be under a few hours a month.
Improbable Task may occur only under exceptional circumstances and be
completed in just a few minutes.
 Risk Management – ANSI/ASSE Z690

Risk Analysis: Choosing a Risk Matrix

and Risk Factors - Video

39

Customizing a Risk Matrix

Outcome/Injury or Illness
Catastrophic Significant Moderate Minor
4 3 2 1
High High Serious Medium
4 16 12 8 4

High Serious Medium Low

3 12 9 6 3

Serious Medium Low Very Low

2 8 6 4 2

Medium Low Very Low Very Low

1 4 3 2 1

Work in your groups to define “acceptable risk”

– color, score, other?
Cause and Effect Analysis
• Also known as fishbone
• In use since 1960s
• Works well for incident
analysis
• Six elements reviewed to
determine cause
• Each element has multiple
aspects

Cause and Effect Elements

Man (People)
• Anyone involved with the process
Methods
• How the process is performed, requirements for
performing → policies, procedures, rules, regulations,
laws and other methods
Machines
• Equipment, machines, and tools required to complete
the task
Cause and Effect Elements
Materials
• Parts, raw materials, supplies, etc. used in
the process or to produce the product
Management/Measurements
• Data generated to manage/motivate
conformance
Environment
• Conditions (location, time, temperature, and culture)
in which the process operates

Fishbone Diagram - Brainstorming

Effect:
1. Back strain with lost
time or restricted duty
2. Concussion, broken
bones
3. Eye injury/ blindness
4. Torn rotator cuff

*Each cause
requires
evaluation for
possible
control.
Risk Assessment - Risk Evaluation

Risk Assessment

Step 3: Risk Evaluation Establishing thecontext

Establishing the context

• Evaluate controls to determine if Risk Assessment

Risk identification

the risk is acceptable

Communication Monitoring

• Consider additional controls for

and Consultation Risk analysis
and
Review

unacceptable risks Risk evaluation

• Create data to make decisions Risk

treatment

and monitor future actions

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 Risk Reduction

Can we use the hierarchy

to quantify risk
reduction?

By points, by
percentage?

Risk Management – ANSI/ASSE Z690

Quantifying Risk Reduction

48
 Risk Reduction
Inherent Risk (no controls) =
Outcome X Likelihood

Residual Risk =
Inherent Risk - Control
Reduction

Acceptable risk? Continue to

evaluate controls.

Risk Reduction - Example

Outcome X Likelihood = Inherent Risk 4 X 3 = 12
• Risk is not acceptable

Residual Risk = Inherent Risk - Control Reduction

Controls in place? Training
Reduction obtained? 20% (0.2)
Inherent Risk X Control Reduction = Risk Reduction 12 X .2
= 2.4 Inherent Risk – Risk Reduction = Residual Risk 12 –
2.4 = 9.6

Acceptable?
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Risk Management – ANSI/ASSE Z690

Moving Forward -
Applications at Your Organization

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Risk Assessment
Workshop

• Questions
• Comments
• Closing