Risk -
Sharon Currie HWL OH&S Adviser
“A difficulty with much of the literature stems from the impression that risk management is a self-contained entity, in reality, it is an integral part of managers’ day-to-day activity.”Dowlen, 1995
Illustration of Shewart Cycle or Deming Wheel
Risk Management Process
Identification
•What are the risks?
Assessment
•Likelihood/severity?
Control
•Measures to reduce impact?
Monitoring
•Effectiveness of controls?
•Emerging risks?
Sources of Risk
Risk in Procurement Process
Strategic Commercial Financial Environmental Reputational Quality Cultural Acquisition
Strategic Commercial Financial Environmental Reputational Quality Cultural Acquisition
Organisational Projects Procurement Acquisition Funding Security Health and
Safety Failure
Organisational Projects Procurement Acquisition Funding Security Health and
Safety Failure
Personal Technical Cost Schedule Resource Operational
Support Quality Provider
Failure
Personal Technical Cost Schedule Resource Operational
Support Quality Provider
Failure
Technical Cost Schedule Resource Provider
Failure Operational
support Quality Environmental
Infrastructure
Technical Cost Schedule Resource Provider
Failure Operational
support Quality Environmental
Infrastructure
SG Procurement Process Risk Management
Risk Rating
Likelihood
5 – Very likely
4 – Likely
3 – Fairly likely
2 – Unlikely
1 – Very Unlikely
Consequence
5 – Catastrophic
4 – Major
3 – Moderate
2 – Minor
1 – Insignificant
17 - 17-25 Unacceptable
10-16 Tolerable
5-9 Adequate
1-4 Acceptable
Strategies
Risk :
• Avoidance
• Reduction
• Transfer (Sharing)
• Retention
Tolerate
Avoidance
Reduction
Item No
Description Risk or opportunity
Likelihood Severity RiskLevel
Action Action by
Status
1 Professional Inability to deliver service•Absence/ Turnover•Failure to recruit skilled personnel
5 3 15 Contingency Planning •Multi skilling•Succession planning•Trainee programme
2 Technical Information Security •Loss of equipment•Hacking
Loss of key systems •IT failure /Website
3 3 9 • Protocols & Policies – IT Security
• Back up systems
• Protocols
3 Legal 5 5 25
Simple Risk Register
Excessive pressure of work
Excessive noise
Stress
Hearing loss
Occupational Asthma
Chronic Obstructed Pulmonary Disease
Silicosis
Dermatitis
Hazardous substances
Asbestos fibre
Wood dust
Respirable Crystalline Silica
Portland cement
Excessive vibration from handheld tools and equipment
Health Risks in construction
Hand-arm vibration
Whole-body vibration
Resources:http://www.scotland.gov.uk/Topics/Government/Procurement/buyer-information/spdlowlevel/risk
http://healthyworkinglives.com
