Risk assessment

RISK MANAGEMENTRISK MANAGEMENTRISK MANAGEMENTRISK MANAGEMENT

RAJASHREE POLYFIL RAJASHREE POLYFIL (A DIV. OF CENTURY ENKA LTD.)

BY : PANNALAL SONIBY : PANNALAL SONI

GENERAL

Risk is the potential of losing something of value. (such as health & wealth)

A probability or threat of damage, injury, liability, loss or any other negative impact that is caused by external or internal vulnerabilities (inability to withstand the effects) and that may be avoided through sound preventive action.

In Companies In Companies : Risk is "an uncertain event or condition : Risk is "an uncertain event or condition that, if it occurs, has a positive or negative effect on a that, if it occurs, has a positive or negative effect on a companies goal" and it companies goal" and it is is inherentinherent with any of our activity.with any of our activity.

SEQUENCE OF RISK MANAGEMENT

● RISK IDENTIFICATION

● RISK QUANTIFICATION/MAPING

● RISK CLASSIFICATION

● RISK PRIORITIZATION

● RISK MITIGATION

OCCUPATINAL HEALTH & SAFETY RISK MANAGEMENT OCCUPATINAL HEALTH & SAFETY RISK MANAGEMENT

Health & Safety Risk is the outcome of Hazards hence, Health & Safety Risk is the outcome of Hazards hence, Hazard Identification is must to Assess & Mitigate such RISKHazard Identification is must to Assess & Mitigate such RISK







● Common Hazards at Shop Floor

● Risk associated with each Hazards

● Risk Assessment / Risk maping

● Risk Management Procedure





● Risk Assessment / Risk maping


1. Physical Hazards1. Physical Hazards2. Mechanical Haz.2. Mechanical Haz.3. Electrical Haz. 3. Electrical Haz. 4. Chemical Haz.4. Chemical Haz.5. Biological Haz. 5. Biological Haz. 6. Human Hazards 6. Human Hazards a. Physiologicala. Physiological b. Psychologicalb. Psychological7. Other Hazards 7. Other Hazards

1. Physical Hazards1. Physical Hazards2. Mechanical Haz.2. Mechanical Haz.3. Electrical Haz. 3. Electrical Haz. 4. Chemical Haz.4. Chemical Haz.5. Biological Haz. 5. Biological Haz. 6. Human Hazards 6. Human Hazards a. Physiologicala. Physiological b. Psychologicalb. Psychological7. Other Hazards 7. Other Hazards




● Risk Assessment / Risk Maping


1. Injury1. Injury2. Ilness2. Ilness3. Diability3. Diability4. Death4. Death5. Fire5. Fire6. Explosion 6. Explosion 7. Toxicity7. Toxicity8. Env. Damage8. Env. Damage9. Health impairment9. Health impairment10. Other 10. Other

1. Injury1. Injury2. Ilness2. Ilness3. Diability3. Diability4. Death4. Death5. Fire5. Fire6. Explosion 6. Explosion 7. Toxicity7. Toxicity8. Env. Damage8. Env. Damage9. Health impairment9. Health impairment10. Other 10. Other





● Risk Management Procedure Quantification of Risk

or Risk evaluation

Quantification of Risk

or Risk evaluation





● Risk Management Procedure Quantification of Risk

or Risk evaluation


or Risk evaluation

RiskRisk = LikelihoodLikelihood XX ImpactImpactRiskRisk = LikelihoodLikelihood XX ImpactImpact


Easy ExampleEasy Example Easy ExampleEasy Example

BusinessBusiness Risk AssessmenRisk Assessment



RiskRisk = Likelihood of occurrences Likelihood of occurrences XX ImpactImpactRiskRisk = Likelihood of occurrences Likelihood of occurrences XX ImpactImpact





or Risk evaluation


or Risk evaluation

RiskRisk = Likelihood of occurrences Likelihood of occurrences XX ImpactImpactRiskRisk = Likelihood of occurrences Likelihood of occurrences XX ImpactImpact

Score Likelihood Definition

01 Rare Existing Control Very Strong to mitigate the risk

02 Unlikely Existing Controls robust and adequate to mitigate the risk

03 Possible Existing controls reasonable to mitigate the risk but may still require improvement

04 Likely Existing Controls inadequate to mitigate the risk and required improvement

05 Almost certain Existing Controls unsatisfactory to mitigate the risk





or Risk evaluation


or Risk evaluation


Score Impact Definition

01 Negligible 0% loss or almost negligible loss of business in terms of money

02 Low 1% to 2% loss of business in terms of money

03 Moderate Up to 10% loss of of business in terms of money

04 High Up to 25% loss of business in terms of money

05 Very High up to 50% loss of business in terms of money




RiskRisk = LikelihoodLikelihood XX ImpactImpactRiskRisk = LikelihoodLikelihood XX ImpactImpactBusinessBusiness

Risk AssessmenRisk Assessment








Likelihood or Frequency

of Occurrences/Failure



1

2

3

4

5








1

2

3

4

5




Impact or Consequence






1 2 3 4 5

1

2

3

4

5










1 2 3 4 5

1 1 2 3 4 5

2 2 4 6 8 10

3 3 6 9 12 15

4 4 8 12 1616 2020

5 5 10 1515 2020 2525










1 2 3 4 5

1 1 2 3 4 5

2 2 4 6 8 10

3 3 6 9 12 15

4 4 8 12 1616 2020

5 5 10 1515 2020 2525








RISK MATRIXRISK MATRIXRISK MATRIXRISK MATRIX





or Risk evaluation


or Risk evaluation

1 2 3 4 5

1 1 2 3 4 5

2 2 4 6 8 10

3 3 6 9 12 15

4 4 8 12 1616 2020

5 5 10 1515 2020 2525







Score Risk Definition

1 -3 1 -3 Insignificant Impact can be easily absorbed without requiring management effort

4 – 6 4 – 6 Minor Impact can be readily absorbed but some management effort is required

8 – 10 8 – 10 Moderate Impact can not be managed under normal operating conditions, requiring moderate level of resource and management inputs

12 – 16 12 – 16 Major Impact requires a high level of management attention and resources to rectify

20 – 25 20 – 25 Catastrophic Disaster with potential to lead to business collapse and requiring almost total management attention to rectify


or Risk evaluation


or Risk evaluation

RiskRisk =

Frequency of OccurrencesFrequency of Occurrences / /LikelihoodLikelihood XX Severity of Consequences /Severity of Consequences / ImpactImpact

RiskRisk =


Score

Likelihood

Definition

Occupational Health Occupational Safety

01 Rare Not likely to occur more than five years

Not likely to occur more than five years

02 Unlikely Once / twice in a year Once / twice in a year

03 Possible Once / twice in a month Once / twice in a month

04 Likely Once / twice in a week Once / twice in a week

05 Almost certain

Once / twice or more in a day Once / twice or more in a day

SAFETYSAFETY Risk AssessmenRisk Assessment



or Risk evaluation


or Risk evaluation

RiskRisk =


RiskRisk =


Score

Consequences

Definition

Occupational Health Occupational Safety

05 Very High Illness causing loss of life/permanent disease

Fatality / Permanent Disablement or Heavy Property damage

04 High Illness causing time loss more than 10 days

Temporary disablement time lost more than 10 days / Moderate Property damage

03 Moderate

Illness causing loss of time more than 10 days but less than 48 hours

Temporary disablement time lost more less than 10 days but more than 48 hours/ Low Property damage

02 Low Medical treatment & Loss of time less than 48 hours

Time lost less than 48 hours / Very low Property damage

01 Very Low Required normal medical attention without loss of time

First aid injury / negligible property damage or no property damage



1 2 3 4 5

1 1 2 3 4 5

2 2 4 6 8 10

3 3 6 9 12 15

4 4 8 12 1616 2020

5 5 10 1515 2020 2525








RISK MATRIXRISK MATRIXRISK MATRIXRISK MATRIX





or Risk evaluation


or Risk evaluation

1 2 3 4 5

1 1 2 3 4 5

2 2 4 6 8 10

3 3 6 9 12 15

4 4 8 12 1616 2020

5 5 10 1515 2020 2525







Score Risk Definition

1 -3 1 -3 Insignificant Impact can be easily absorbed without requiring management effort

4 – 6 4 – 6 Minor Impact can be readily absorbed but some management effort is required

8 – 10 8 – 10 Moderate Impact can not be managed under normal operating conditions, requiring moderate level of resource and management inputs

12 – 16 12 – 16 Major Impact requires a high level of management attention and resources to rectify

20 – 25 20 – 25 Catastrophic Disaster with potential to lead to business collapse and requiring almost total management attention to rectify

Example – 3Example – 3 Example – 3Example – 3

Legal Risk Legal Risk Assessment Assessment Legal Risk Legal Risk Assessment Assessment

LEGAL RISK ASSESSMENT AND MANAGEMENT

Risk Rating Methodology (Quantification of Risk)

PROBABILITY / LIKELIHOOD RATING

SCORE LIKELYHOOD DEFINITION

1 Rare Existing Control robust and Very Strong to mitigate the risk

2 Unlikely Existing Controls adequate to mitigate the risk

3 Possible

4 Likely Existing Controls inadequate to mitigate the risk and required improvement

5 Almost certain Existing Controls unsatisfactory to mitigate the risk

Definition of Legal Risk : The Risk which has a Legal issue as its source and it is a set of facts that are assessd under a set

of Legal Norms

Existing controls reasonable to mitigate the risk but may still require improvement

IMPACT RATING

SCORE IMPACT DEFINITION

1 Negligible Almost negligible loss / Non compliance almost Ignored by Authorities

2 Low Verbal guidance / Direction to comply with

3 Moderate

4 High

5 Very High

Written Notice to Comply without penalty / Lost time Injury /Temporary Disablement / bad Image amongst Govt. authority

Short term cessation of any particular activity / Show Cause Notice and Normal Penalty or short term Imprisonment / Financial loss covered by Insurance

Closure Notice / Withdrawal of License /Long term Imprisonment / Very High Penalty / Financial Loss never covered by Insurance

RISK MATRIX

RISK = PROBABILITY X IMPACT

Risk MatrixIMPACT / CONSEQUENCES

1 2 3 4 5

PRO

BABIL

ITY

/ LI

KEL

YHO

OD 5 5 10 15 20 25

4 4 8 12 16 20

3 3 6 9 12 15

2 2 4 6 8 10

1 1 2 3 4 5

CATEGORY OF RISK RISK SCORE DEFINITION ACTION REQUIRED

Insignificant/Very Low 1 to 5

Minor/Low 6 to 9 This Quarter

Moderate 10 to 12 This Month

Major/High 16 to 20 This week

Catastrophic 25 Immediate or today

Impact can be easily absorbed without requiring management effort

Maintain Existing Control

Impact can be readily absorbed but some management effort is required

Impact can not be managed under normal operating conditions, requiring moderate level of resource and

management inputs

Impact requires a high level of management attention and resources to rectify

Disaster with potential to lead to business collapse and requiring almost total management attention to rectify

Risk Matrix cum Action PlanRisk Matrix cum Action PlanRisk Matrix cum Action PlanRisk Matrix cum Action Plan






1. Risk Elimination1. Risk Elimination2. Risk Reduction2. Risk Reduction3. Risk Transfer3. Risk Transfer4. Risk Acceptance4. Risk Acceptance









1. Changes & Modification2. Replacement3. Avoidance

1. Changes & Modification2. Replacement3. Avoidance







1. Awareness, Education & Training 2. Engineering Control 3. SOP, WI, PTW, LOTO etc. 4. Use of PPE 5. Good Housekeeping 6. Enforcement & Penalization 7. Motivation for Safety 8. Involvement








1. Outsourcing1. Outsourcing

2. Contract2. Contract

3. Insurance3. Insurance

1. Outsourcing1. Outsourcing

2. Contract2. Contract

3. Insurance3. Insurance








Taking Risk Taking Risk

HUMAN RISKHUMAN RISK

a. Physiologicala. Physiological

b. Psychologicalb. Psychological



1. Poor Hearing2. Poor Vision 3. Colour blindness4. Low weight5. High weight6. Illness7. Sex8. Individual difference9. Poor Oxygen uptake10. Allergic to workplace11. Mentally retarded









RMP : Selection of

Suitable employee

RMP : Selection of

Suitable employee






1. Egoist 2. No safety attitude 3. Fearful4. Disloyal5. Absent minded6. Lazy7. Crazy8. Superior's attitude9. Co-worker's attitude10. Non cooperative11. Facilities & Workplace12. Awards/Rewards/Motivations









Tools to Manage

Tools to Manage










Tools to Manage

Tools to Manage

Date post:	02-Aug-2015
Category:	Education
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