Risk is a function of the probability of occurrence of an undesired event together with a measure of its adverse consequences. Risk analysis seeks to answer questions such as, how likely and how seriously can things go wrong. What is the potential loss or damage, or what can go wrong? How likely is it, and what the impacts are.
There are various types of health, safety and environment risk. Generally risks associated with the hazards of activities include
* Potential loss of life, asset, production, insurance.
* Potential damage to health including injury and sickness, environment,asset,reputation.
All these types usually manifest in serious financial and adverse consequences.
The Objective of Risk Assessment are Assessed to:
. Provide a clear framework in which all available information is used
. Compare alternatives, particularly in the design phase
. Optimize the use of scarce resources, money, people, and time
. Meet regulatory requirements
. Identify potential economic vulnerability
. Identify hazardous situations and procedures
. Provide knowledge of patterns of events and identify critical parts of the operation.
The Risk Assessment Matrix: The risk assessment matrix is a tool that standardizes qualitative risk assessment and facilitates the categorization of all threats to health, safety, environment and reputation. The matrix axes, consistent with the definition of risk, are consequences and probability or like hood. A scale of consequences from 0 to 5 is used to indicate increasing severity. The consequences are those of credible scenarios (taking the prevailing circumstances into consideration) that can develop from the release of a hazard. the potential consequences, rather than the actual ones, are used. These are defined as the consequences that could have resulted from the released hazard if circumstances had been less favorable.
The probability on the horizontal axis is estimated on the basis of the historical evidence or experience that the identified consequences have materialized within the industry, the company or a smaller unit. Note that this should not be confused with the probability that the hazard is released; it is the probability of the estimated potential consequences occurring.
Classification Of Potential Consequences: The consequences of the release of a hazard or effect are identified in each of the four categories (harm to people, asset damage, environment effect and potential impact on the reputation of the company). The probability or the likelihood of the occurrence of an undesired event following the release of a hazard. The scale is indicatively defined.
1: Never heard of in the….industry
2: Heard of in the ….industry
3: Has occurred in our company
4: Happens several times per year in company
5: Happens several times per year in location.
This assessment is based on experience and is indicative of the likelihood of undesired consequences materializing. Note again that this should not be confused with the probability that the hazard is release; it is the probability of the estimated potential consequences occurring.
In smaller operating units or new ventures where experience is limited it is recommended that the probability is assessed on the basis of knowledge from similar operations in other operating units. in new ventures, the potential consequences scale only can be used and investigations carried out for all incidents with potential 3 or higher. By doing so, every opportunity is used for learning from the potentially serious incidents, no matter how unlikely their occurrence may be.
The focus provided by using the risk assessment matrix in this way enables company management to determine whether the risk levels inherent in the company’s operations are tolerable and whether they fit with current corporate policies and objectives. For example, if an operation would result in scenarios, which lie in an area on the risk assessment matrix that the company would normally, regard as intolerable in policy terms, then alternative ways of carrying out the operation should be investigated. if there are no alternative ways, then management must decide whether the operation should proceed or not. if it has to proceed, then special treatment in regards to the level of control must be implemented before the operation takes place.
A company should consider using the risk assessment matrix as part of its implementation of the health, safety and environment management system and of health and safety cases.