The Risk Management Process
Overview
Step 1. Identify Hazards
Step 2. Assess the Risks
Assess the Likelihood & Consequences
Classify the Risk
Step 3. Control the Risks
The hierarchy of risk control can be used as a guide
Step 4. Monitor / Review Control Measures
Overview
The Risk Management Process
Definitions
What is a hazard?
Something that has the potential to cause harm to people,
property or the environment.
What is a risk?
A risk is the chance or probability of that hazard causing harm
or damage to people, property or the environment.
What is a control?
A control is a mechanism or process that minimises the risk of
the hazard becoming actual so protects people, property or
the environment from the identified hazard.
Definitions
The Risk Management Process
Step 1 Identify Hazards
How can hazards be identified?
o
Incident report forms
Self-Inspection Checklists
Observation & consultation
Regular maintenance checks
Specialists assisting with specific issues
in the workplace
Knowledge sharing
Example of DETs playground
self-inspection checklist.
Step 1 Identify Hazards
The Risk Management Process
Step 2 Assess Risks
A hazard has been identified how can the risk the
hazard poses be assessed?
1. Assessing likelihood
How likely is it that someone will be exposed to the
hazard?
The likelihood will depend on probability and frequency of
exposure to a hazard
2. Assessing consequences
Realistically, what is the likely outcome?
The severity or range of the potential consequences
resulting from the hazard.
Step 2 Assess Risks
The Risk Management Process
Step 2 Assess Risks
How can a risk be assessed?
Plot likelihood and consequence on the risk matrix to find the risk level.
EXAMPLE
Likelihood
Consequences
Insignificant
Minor
Moderate
Major
Severe
Very High
Probability
Low
Medium
High
Extreme
Extreme
High
Probability
Low
Medium
High
High
Extreme
Equal
Probability
Low
Medium
Medium
High
High
Low
Probability
Low
Low
Medium
Medium
High
Very Low
Probability
Low
Low
Medium
Medium
High
Hazard = Small raise/crack in pathway
What is the probability of this
hazard causing harm - the risk?
The assessor rates the likelihood as high. The
path is frequently used by both employees and
visitors daily, therefore there is a high probability
that someone will be exposed to the hazard.
The assessor rates consequences of a trip in
this section of path as moderate with a sprain
or break the worst foreseeable outcome.
Therefore the risk rating for this particular hazard
was assessed as high.
Step 2 Assess Risks
The Risk Management Process
Step 2 Classify Risks
What does the risk level mean?
Extreme /
High Risk
Medium
Risk
Low Risk
Imminent / Serious danger. Immediate action required stop work. Identify and implement controls (temporary
or permanent) to reduce risk to as low as reasonably
practical
Moderate danger. Action as soon as possible to
implement controls (long & short term) to reduce the
risk to as low as reasonably practical.
Minor to negligible danger. Assess if further action can
be taken. Take steps to monitor the controls so the
hazard is maintained as low if the hazard cannot be
eliminated completely.
Step 2 Assess Risks
The Risk Management Process
Step 3 Control Risks
How are controls implemented?
Often a series of controls should be implemented to reduce the
risk posed by a hazard. The hierarchy of risk control (next slide)
is useful in determining appropriate or interim risk control
measures.
The best method of controlling a risk is to eliminate
the hazard (it is not always possible to do this immediately)
The aim of implementing controls is to get as many controls in
place so the risk is reduced to as low as possible.
Step 3 Control Risks
The Hierarchy of Risk Control
Elimination
Completely eliminate the hazard by removal from the
workplace
Most
effective
control
Substitution
Replace the activity, process or substance with a less
hazardous one
Engineering
Isolate the hazard from employees with mechanical aids
Administration
Implement safe work practices, procedures and policies
Personal Protective Equipment
Provide suitable PPE to cover and protect an employee
Least
effective
control
The Risk Management Process
Step 3 Control Risks
Example Using the Hierarchy of Risk Control
Hazard = Small raise/crack in pathway
Elimination - Engage a contractor to repair the section of path
therefore completely eliminating the hazard
Most
effective
control
Substitution - Use a different path/walkway to get from A to B
Engineering - Rope the section of path off to employees/visitors
Administration - Ensure all path users are aware of the hazard,
paint the rise yellow. Have systems in place to inspect paths
regularly so that paths are repaired before injuries occur.
PPE - Provide employees with knee and elbow pads (unrealistic!)
Step 3 Control Risks
Least
effective
control
The Risk Management Process
Step 2 Assess Risks
How is the risk re assessed?
Plot likelihood and consequence on the risk matrix to find the risk level with
controls in place.
EXAMPLE
Likelihood
Consequences
Insignificant
Minor
Moderate
Major
Severe
Very High
Probability
Low
Medium
High
Extreme
Extreme
High
Probability
Low
Medium
High
High
Extreme
Equal
Probability
Low
Medium
Medium
High
High
Low
Probability
Low
Low
Medium
Medium
High
Very Low
Probability
Low
Low
Medium
Medium
High
The assessor rates the likelihood as low.
The assessor rates consequences as still
moderate with a sprain or break the worst
foreseeable outcome.
Hazard = Small raise/crack in a pathway
The rating was assessed as high when no
controls were in place.
Controls in place:
1. Path is cleaned and examined on a weekly
basis to ensure it is free from mould and trip
hazards (sticks, gravel, seed pods, damage etc)
2. Each month the school grounds are inspected
using a checklist.
3. Staff are encouraged to complete
Incident/Injury Report forms if hazard indentified
The rating is now assessed as Moderate
Step 2 Assess Risks
The Risk Management Process
Step 4 Monitor / Review Controls
Do I have to document any identified hazards and controls?
All indentified hazards and their controls should be documented
usually referred to as a Hazard Register.
Hazards and controls need to be reviewed regularly but at least
every 5 years or when:
New plant or substances are introduced to the workplace
Before work of a type not previously performed at the workplace is
commenced
When there is a change in the type of work, work practices or plant that
may result in an increased risk to workers or others
When information becomes available concerning work, work practices,
plant or substances that may impact of workers or others
Step 4 Monitor & Review Controls
How are controls monitored?
Ensure audits and workplace inspections are
conducted; and
Ensure listed control measures are in use and
maintained.
Risk Register reviewed on regular basis
It is an ongoing process and should be integrated into all
workplace activities.
Hazard Management is the responsibility of both employees
and management.
Further Information
DET OHS Webpage
[Link]
DET OHS email - [Link]@[Link]
DET OHS Phone - 8901 4985
DBE OHS Information
[Link]
