Process and Tools Overview for CSSE Nova Scotia Chapter

Fred Leafloor CHSC, CRSP, CRM February 16, 2012

Introduction This session outlines Risk Management practices from the point of view of the OHSE Practitioner

The approach we follow is not “tactical” workplace documentation, but is a more strategic evaluation of the processes

The definitions and approaches within this session reflect the most recent Canadian and international standards on risk management that may not yet be incorporated into domestic applications

Risk Scope Risk Management is a broader field than just health

and safety, but those two aspects are fundamentals of a successful business. Others can include:

Business (Enterprise) Risk Management: Financial Contract (Liabilities) Property / Assets Operating Risk Warrantees / Guarantees Insurance arrangements

Risk Scope

Risk Management …. has been defined as the “process of making and

carrying out decisions that will minimize the adverse effects of accidental loss upon an organization”..

Risk Management is not just for large organizations

Risk Management is often a more critical approach for small organizations that have less ability to absorb loss in: Health and Safety Finance and Contract Enterprise Risk Management (operating, growth, development)

Risk Management Hazard versus Risk …..

….. the inside story

Managing the Risk Terminate Treat Tolerate Transfer

Risk Management Process Hazard Identification Hazard Analysis Risk Assessment Risk Evaluation Risk Mitigation and Control Risk Communication

Hazard Identification

Hazard Identification Requirement established in most health and safety

legislation or regulation (in Canada)

Workplace specific application

Various tools to assist Supervisor and Worker in recognizing and properly identifying hazard (training, manuals, checklists, etc)

Relies heavily upon knowledge and competence of the workplace parties

Hazard Analysis Generally conducted in the workplace

Many models in current use (JSA, SJA, JHA, TA, ….)

Baseline assessment of hazard potential in terms of a “what can go wrong?” approach

Tasks are broken down into steps and each step is analyzed for potential harm that could arise

Most Hazard Analysis tools include initial risk control actions (“what can I do about what can go wrong?”)

Hazard Analysis

Risk Assessment Risk Assessments expand hazard identification with the

concepts of likelihood and magnitude of potential consequence(s)

Best done as a group activity by knowledgeable persons

Qualitative versus Quantitative assessments

Allows prioritization of risks based upon either the likelihood of harm or the magnitude of harm

Group work is normally ‘formalized’ and documented

Personal risk assessment activities are worker-centric

Personal Risk Assessment What should the Worker be thinking about ?

Personal Documented Model Job Observations Card Job Risk Assessment (JRA) Last Minute Risk Assessment (LMRA)

Personal Mental Model DuPont “Take 2 for Safety” Step Back 5 x 5

Personal Risk Assessment

Risk Evaluation Organizationally-specific weighting of relative importance

Organization establishes which factors are of greatest interest or impact to the company: Potential for injury Equipment reliability / equipment damage Environmental sensitivities Public perception and response Regulatory action Other issues

Risk Evaluation “Acceptable Risk” standards

ALARA (US) ALARP (UK / CAN) BATNEEC (UK) SFAIRP (UK)

Most regulatory jurisdictions (in Canada) establish basic performance goals for injury prevention that do not consider ALARP (As Low As Reasonably Practicable)

UK - HSE

A L A R P ALARP is the baseline for many Risk models

For a risk to be ALARP it must be possible to demonstrate that the cost involved in reducing the risk further would be grossly disproportionate to the benefit gained

The ALARP principle should not be understood as simply a quantitative measure of benefit against detriment. It is more a best common practice of judgment of the balance of risk and societal benefit.

(Wikipedia)

ALARP is frequently decided by those who do not actually encounter the immediate risk

A L A R P ….. Whoops !

Risk Mitigation and Control Mitigation in the broader sense includes elimination of

the hazard, which will (usually) eliminate the risk Control achieved through:

People, Equipment, Materials, Environment, Systems

Hierarchy of Control

ALARP mitigation choices impacted by: Level of anticipated potential consequence(s) Management vision of company viability Likelihood of intervention success External factors (social, regulatory, public interest)

Risk Mitigation and Control ….. any conscious act, or decision not to act, that may

reduce the frequency or severity of undesired loss

Control actions deal not only with the issues arising from the original risk, but any issues that are created with the implementation of the initial risk controls – which may create “residual risks”

Risk Control Commonalities Areas of Control outside of the direct workplace:

Regulatory Reaction Finances Reputation Assets (other than equipment, such as property / product) Community / Public Reactions Media Attention

Election of the company to retain risk or transfer risk

Risk Control

Risk Communication Regulatory requirement in many jurisdictions

Communication must include: Existence and identification of hazard Risk potential Recommended Control Measures Residual risk Acceptable personal behaviours surrounding this risk

Successful Communication/Messaging techniques

Risk Tools: Risk Screening Pre-project high level review

Tables provide sample screening factors to promote lateral thinking (focus, but no boundaries)

Process Flow: Definition of activities Hazard identification using the tables Establishment and ranking of risks for further definition

Use worksheet to record findings

Risk Tools: Risk Screening Table

Risk Tools: Risk Screening

Risk Tools: Risk Screening

Risk Tools: Risk Matrix Simple ‘4 x 4’ or ‘5 x 5’ matrix Point of loss factors:

Personnel, Public Environmental, Regulatory Financial, Reputation Property, Equipment

Loss Likelihood versus Severity of Consequence Consequences levels specifically defined Risk origins defined within output descriptions

Risk Tools: Risk Matrix

Summary Risk Assessment and Risk Management are value-adding

activities for an organization and workplace Many of the tools are similar in design, and can be

tweaked to reflect organizational needs Local workplaces can leverage this resource to enhance

safety performance in a meaningful way Don’t be afraid to change the parameters when using risk

models – “play” with them a little and develop what works for Your needs and Your workplace!

Questions ?

Thank You for your Attention !!

Fred Leafloor CHSC, CRSP, CRM