The Importance of Risk Assessment In Preparing ERP For SMEs by Dr Mohd Rafee Ibrahim

The Importance of Risk Assessment

in Preparing ERP for SMEs

COSH 2011@KLCC

in Preparing ERP for SMEs

19.07.2011

Dr. Mohd Rafee Baharudin

The government aims to reduce the workplace

accident rate to THREE (3) cases for each 1,000

workers by 2020 compared to the (SIX (6) cases

per 1,000 workers at present (2010).per 1,000 workers at present (2010).

DG of DOSH: Datuk Dr Johari Basri.

20814

43,885

40,617

38,657

35,092 34,394

25000

30000

35000

40000

45000

50000

Nu

mb

er

of

acc

ide

nt

commuting

17297 17704 1768219041

20814

0

5000

10000

15000

20000

2005 2006 2007 2008 2009

Nu

mb

er

of

acc

ide

nt

Year

commuting

industrial

3

CAUSE OF ACCIDENTS

UNSAFE ACTS & UNSAFE CONDITIONS

80%

UNSAFE ACTS

14%14%

UNSAFE CONDITIONS

4%

AOG

2%

Emergency (NFPA)

• A serious situation or occurrence that happens

unexpectedly and demands immediate action.

• A fire, explosion, or hazardous condition that poses• A fire, explosion, or hazardous condition that poses

an immediate threat to the safety of life or damage

to property.

Major accident

• means an occurrence including a majoremission, fire, or explosion resulting from anuncontrolled development in an industrial activitythat leads to serious danger to persons (immediateor delayed) inside or outside of the facility, to theenvironment, and involving one or more hazardoussubstances.environment, and involving one or more hazardoussubstances.

OSH(Control of Industrial Major Accident Hazards) Reg. 1996

BRIGHT

SPARKLESSPARKLESSungai Buloh

7th MAY 1991

Port Klang

19921992

BINTULU 1997BINTULU 1997

Disaster

• an incident that occurs in a suddenmanner, complex in nature, resulting in the lossof lives, damages to property or the environmentas well as affecting the daily activities of the localcommunitycommunity

• requires the handling of resources, equipment, frequency and extensive manpower from various agencies as well as effective coordination

adapted: Directive No. 20

Known Disaster in MalaysiaYear Location Event Type Fatality Injury Evacuated

1988 Butterworth, Penang Jetty collapse 32 1674 -

1991 Sungai Buloh, Selangor Fire/Explosion 22 103 -

1992 Port Klang, Selangor Fire/Explosion 10 - -

1993 Hulu Kelang, Selangor Building collapse 48 - -

1995 Genting, Pahang Landslide 20 22 -

1996 Genting, Pahang Road Accident 17 - -

1996 Pos Dipang, Perak Mud slide 44 - -1996 Pos Dipang, Perak Mud slide 44 - -

1996 West Coast, Sabah Tropical storm/ Ribut GREG 230 -4925 homes

destroyed-

1997 Sibu, Sarawak Virus Outbreak/Coxsackie 25 - -

1998 Nation wide, Malaysia Haze ? ? ?

2004 Northern Coastal, Malaysia Tsunami 68 - 13 villages

2006 Nation wide, Malaysia Haze ? ? ?

2008 Bukit Antarabangsa, Selangor Landslide 5 13 3000 residents

HIGHLAND

TOWERSTOWERS11th DECEMBER 1993

Bukit Antarabangsa

Emergency Disaster

Emergency or Disaster ?

Objectives Of ERP

• MINIMIZE personal injury, property & environment DAMAGE

• Provide immediate resumption of • Provide immediate resumption of NORMAL OPERATIONS

• Provide a basis for TRAINING & increasing PREPAREDNESS ability for all personnel and community affected by the event

• Meet LEGISLATIVE requirement.

Purpose of ERP

• The purpose:

– To LOCALIZE the emergency within

the site

– To MINIMIZE the effects of the – To MINIMIZE the effects of the

incidence on people, community

and property within the site

– To ensure effective and efficient

COOPERATION AND COORDINATION

amongst Authority Having

Jurisdiction (AHJ), community and

the affected site.

Advantages of ERP

• Provide “guidance” on actions to be taken to organize personnel and resources during

Is this person Is this person Is this person Is this person Is this person Is this person Is this person Is this person

trained??trained??trained??trained??trained??trained??trained??trained??organize personnel and resources during emergency

• Ensuring emergency equipment is maintained, ready for use.

• Personnel and community are TRAINED and prepared

Advantages of ERP (cont.)

• Provide:

– Clear identification of the site

– Potential hazard

– Safe Entry and Exit route for Responding Agencies and evacuation of

affected community

• Coordinate the responses of on-site and off-site emergency services

– Multi-Jurisdictional cooperation and coordination

– Community/local ERT support

1st Emergency Level Trigger

hourshours monthsmonthsdaysdaysminutesminutes

Stages of an Emergency

escalation?escalation? End ofemergencyincident

trigger

EMERGENCY

hourshours monthsmonthsdaysdaysminutesminutes

EMERGENCYPRE-EMERGENCY

RECOVERY

TimeLEVELS

Levels of Emergencies

Depends on severity of the incident and capability of the organisation

• Level 1

If within the capabilities of the organisation

• Level 2

If external assistance is required: mutual aid, district or other agencies. MKN Arahan 20 may apply.

• Level 3

State or National Disaster. MKN Arahan 20 takes over.

High

SS

EE

VV

EE

RR

Response Effort

ConsequencesConsequences

High ResponseHigh Response

SuccessSuccess

OBJECTIVEOBJECTIVE

Effective ERP Preparedness

Low

RR

II

TT

YY

Incident Begins

Low ResponseLow Response

SuccessSuccess

Time Lapse

Lifeline service:

Maximum timeframe for loss of service

• Electricity 8-10 hours

• Gas 24 hours

• Water 2-4 hours

• Sewage 2-4 hours• Sewage 2-4 hours

• Rail 24 hours

• Road 2 hours

• Communications 8-12 hours

Basic concepts

Hazard (MS 1722:2003)

A source or a situation with a potential for harmin terms of human injury or ill health, damage toproperty, damage to the environment or acombination of these.combination of these.

Danger

Danger is the relative exposure to a hazard. Ahazard may be present but there may be littledanger because of control measures taken.

• Risk means a combination of the likelihood of

an occurrence of a hazardous event with

specified period or in specified circumstances

and the severity of injury or damage to theand the severity of injury or damage to the

health of people, property, environment or

any combination of these caused by the event.

• Risk assessment means the process of

evaluating the risks to safety and health

arising from hazards at work.

• Risk management means the total procedure

associated with identifying a hazard, assessing

the risk, putting in place control

measures, and reviewing the outcomes.

Risk life cycle

Risk is present in every aspect of the life cycle

of a facility. Therefore it requires us to identify

the risks in every phase of the life cycle and

develop methods to manage them.develop methods to manage them.

.

Types of Risk Assessment

Quantitative Qualitative

Scientific studies & measurements Semi-quantitative or non scientific

Comparison of results with limit values Judgment decisions with technical

knowledge

Occupational hygiene, noise, structural

design, ergonomics etc.

Professional and personal

experiences/biasesdesign, ergonomics etc. experiences/biases

Extremely subjective

Personal and individual variations

May not be bought in to by any medium

to large scale organization

Probability and consequence model

Choose the correct R.A.M

Slightly harmful Harmful Extremely

harmful

Highly unlikely Trivial Risk Tolerable Risk Moderate Risk

Unlikely Tolerable Risk Moderate Risk Substantial RiskUnlikely Tolerable Risk Moderate Risk Substantial Risk

Likely Moderate Risk Substantial Risk Intolerable Risk

British Standard BS 8800

Three categories of harm

• Slight Harm: Harm that is of a temporary

nature, e.g. headache or muscle strain that

dissipates.

• Harm : Harm that results in permanent minor • Harm : Harm that results in permanent minor

disability, e.g. slight deafness, small reductions

in lung function, minor back problems.

• Extreme harm : Premature death or

permanent major disability.

Risk Level Description

Trivial No action nor documentary records needed - but good

practice to record the assessment

Tolerable

Risk

Improvement not mandatory, but record and monitoring

required to ensure controls are maintained. Go for cheap

improvements where possible.

Moderate

Risk

Aim to reduce risk but costs of prevention may be limited.

Measures should be tied to a timetable

Substantial Where the risk involves work in progress urgent action Substantial

Risk

Where the risk involves work in progress urgent action

should be taken otherwise work should not start until the

risk has been reduced. Considerable resources may have

to be allocated.

Intolerable

Risk

Work should not be started or continued until the risk has

been reduced. If it is not possible to reduce risk even with

unlimited resources work has to remain prohibited.

Severity Index Description

4 Fatality & Permanent Disability

3 > 4 days MC

2 < 4 days MC

1 First aid cases

Severity Index Description

4 Fatality

3 Permanent Disability

2 Temporary Disability

1 First aid cases

Likelihood

Severity

Hazard(s) Effect Likelihood Severity Risk

Fire 1 5

2 4

3 3

4 2

5 1

Some criteria for assessing risk

treatment optionsCriteria Questions

Cost Is this option affordable? Is it the most cost-effective?

Timing Will the beneficial effects of this option be quickly

realised?

Leverage Will the application of this option lead to further risk-

reducing actions by others?reducing actions by others?

Administrative

efficiency

Can this option be easily administered or will its

application be neglected because of difficulty of

administration or lack of expertise?

Continuity of effects Will the effects of the application of this option be

continuous or merely short-term?

Criteria Questions

Compatibility How compatible is this option with others that may be

adopted?

Jurisdictional authority Does this level of government have the legislated

authority to apply this option? If not, can higher levels

be encouraged to do so?

Effects on the economy What will be the economic impacts of this option?

Effects on the environment What will be the environmental impacts of this option?

Risk creation Will this option itself introduce new risks?

Equity Do those responsible for creating the risk pay for it’s

reduction?

When the risk is not man-made, is the cost fairly

distributed?

Criteria Questions

Risk reduction potential

reaction

What proportion of the losses due to this risk will

this option prevent?

Political acceptability Is this option likely to be endorsed by the relevant

governments?

Public and pressure group Are there likely to be adverse reactions to

implementation of this option?

Individual freedom Does this option deny basic rights?

Don 't have a spoon?

I can fix that!

Seatbelt broken?

I can fix that!

New TV too big for the old cabinet?

I can fix that!

Room too dark using compact

fluorescents? I can fix that!

Electrical problem?

I can fix that!

Car stereo stolen?

I can fix that!

Can't afford a real GPS?

I can fix that!

Can't read the ATM screen?

I can fix that!

Car imported from the wrong country?

I can fix that!

Satellite go out in the rain? I can fix

that! (TAKE THAT ASTRO!)

Electric stove broken & can't heat

coffee? I fixed that

Wiper motor burned out?

I can fix that!

Display rack falling over?

I can fix that!

Tires worn out? I fixed that. Might be a

little hard to steer.

Desk overloaded?

I can fix that!

Car can't be ordered with the "Woody"

option? I can fix that!

Exhaust pipe dragging?

I can fix that!

Gotta feed the baby AND do the laundry

at the same time? I can fix that!

Cables falling behind the desk?

I can fix that!

No skate park in town?

I can fix that!

BEST of ALL!

Out of diapers? I can fix that too!

Training Cost

Course Fee

1 SHO 4,000.00

2 CHRA 4,700.00

3 OFA 850.00

4 Confined

Space 850.00Space 850.00

5 Scaffolding 5,000.00

6 ERP 800.00

7 OSHA 800.00

8 FMA 1,200.00

18,200.00

Estimating Accident Cost

• Annual number of temporary disablement

injuries ____ x RM1,431.62 =________

• Annual number of permanent disablement

injuries ____ x RM21,473.75 = ________injuries ____ x RM21,473.75 = ________

• Annual number of fatality injuries ____ x

RM446,440.01 = ________

Cost of fatality injuries

Daily

Rate

Age

Died

Prod.

Age

Amount

(RM)

Mean (SD) 53.23

(24.39)

32.54

(10.42)

22.46

(10.42)

1112.06

(878.16)

Median (IQR) 43.00

(46.75)

29.00

(17.50)

26.00

(17.50)

505.02

(1539.52)

Minimum

23.50 18.00 6.00 288.10

Maximum

88.50 49.00 37.00 2708.05

Range

65.00 31.00 31.00 2419.95

Response

• Response encompasses the decisions and

actions taken to deal with the immediate

effects of an emergency.

• Response encompasses the effort to deal not• Response encompasses the effort to deal not

only with the direct effects of the emergency

itself (e.g. fighting fires, rescuing individuals)

but also the indirect effects (e.g. disruption,

media interest).

Fastest Response Time

• Effective use of resources

• Integrating transportation system and

emergency management system

• Decide the type and number of response units • Decide the type and number of response units

to send to the scene

• Minimize delays in response time

• Maximize emergency response resources

Ambulance response time (ART)

• ART and emergency medical dispatcher

program: a study in Kelantan, Malaysia

– 913.2 +/- 276.5 seconds

(J Trop Med Public Health. 2008 Nov;39(6):1150-4)(J Trop Med Public Health. 2008 Nov;39(6):1150-4)

National Fire Protection Association's

(NFPA) 1710

• On all EMS calls, the NFPA 1710 standard

establishes a turnout time of one minute, and

four minutes or less for the arrival of a unit

with first responder or higher level capability with first responder or higher level capability

at an emergency medical incident. This

objective should be met 90% of the time.

Basic Elements of Emergency Preparedness

and Response Management

1: Organise emergency management team

2: Identify the accident scenarios and emergency

128

consequences

3: Identify resources, equipment and facilities

4: Develop plans and procedures

5: Train, drill and exercise

6: Review system

Drill

• An exercise involving a credible simulated

emergency that requires personnel to perform

emergency response operations for the

purpose of evaluating the effectiveness of thepurpose of evaluating the effectiveness of the

training and education programs and the

competence of personnel in performing

required response duties and functions.

ICS

Guiding Principles

An emergency will be determined by a range of factors which will include:

• the nature and demands of the emergency, specifically context,

• geographical extent, duration, complexity and • geographical extent, duration, complexity and potential impacts;

• local experience and the designated lead agency;

• local circumstances, priorities and experience; and whether or not there is regional, national or international involvement in the response and recovery effort.

Framework for Understanding the

Impact of Emergencies

Recovery

Structures and Organisations

The Management

of the Emergency Response

• Concepts of Command, Control and Co-

ordination

• Command is the exercise of vested authority• Command is the exercise of vested authority

that is associated with a role or rank within an

organisation, to give direction in order to

achieve defined objectives.

• Control is the application of authority,

combined with the capability to manage

resources, in order to achieve defined

objectives. Some organisations defineobjectives. Some organisations define

command and control together, but the key

element of control is the combination of

authority with the means to ensure command

intent is communicated and results monitored

• Co-ordination is the integration of multi-

agency efforts and available capabilities,

which may be interdependent, in order to

achieve defined objectives. The co-ordinationachieve defined objectives. The co-ordination

function will be exercised through control

arrangements, and requires that command of

individual organisations’ personnel and assets

is appropriately exercised in pursuit of the

defined objectives.

IT’S ALL GOD’S WILL…

BUT EFFORT MUST BE DONE.

Thank You