UAP MT KANLA-ON CHAPTER

Continuous Learning Program

By. Jorge M. Mission

Risk Management
An Overview of ISO 31000
Seminar Workshop
 SAMPLE
RISK MANAGEMENT PLAN

Case Assumption:

With the context below, a group of government employees was called to form a Risk
Management Team in order to formulate a Risk Management Plan for a new project –
Corn Processing and Trading Center.

Name of Selected Project: Corn Post Harvest Processing and Trading Center
Location: Sagay City, Negros Occidental

Purpose

This document describes how Risk Management will be structured and performed
on this project. The risk management plan includes methodology, roles and
responsibilities, budgeting, timing, risk categories, definitions of risk probability and impact,
probability and impact matrix, reporting formats, and tracking.
This Project Risk Management Plan will be utilized as primary reference and
guideline.

Note: The originator of this document would like to consider other informations However; informations
collected are only within the time, scope and resources acquired in a one –day. Some informations are
assumed, but without compromising the principles, concepts and procedures of Risk Management in the
context of ISO 31000.

A. The Context

1. The Context Established

The project is the subject of evaluation on Risk Management is the Corn Post
Harvest Processing and Trading Center of Sagay City .This project was created for the
benefit of the of the local corn producers in order to assist them in the marketing of their
products as well as those wholesalers, not only in the surrounding areas but in the regional
or national as well.

Being the first plant in the entire region, this plant has a corn plantation source of six
hectares. This has four (4) drying bins with a capacity of 50,000 kg capacity each, with a
total of 200,000 kg of corn with Moisture Content (MC) requirement of 30%. Corn is
processed from 30% up to 14% moisture content within 36 hours.

There could be a lot of risks innate in the project as part of the project operations.
The risk aspects of this shall be given attention. The following are:
 A. Technical Aspect
1. Site Development
2. Building Design
2.1. Building space Requirements
2.2. Building Layout

3. Machine and Equipment Layout

3.1Equipment and Machine Maintenance
3.2. Qualification of Technicians

B.Legal Aspects

1. Environmental

2. Risk Assessment

2.1. Risk Identification

Possible sources of risks could be identified in the operation of the Corn

Processing Plant. This could be on the following points:

1. Site Security
2. Site Development and
3. Safety Measures

2.2. Risks Analysis

1. Site Security

1.1. No permanent perimeter fencing around the structure.

2. Site Development

2.1Unpaved and unleveled grounds

3. Safety Essentials

3.1. Unsafe components, insufficient safety measures

noticed within the processing plant premises
2.3. Risks Description

1. Site Security
A.1.No permanent perimeter fencing around the structure
Temporary fencing may cause interested parties, and other unwanted
elements to intrude the area. Eventually, when unfavorable elements
get inside the premises, uncertain disturbances during plant operation
may be created and would affect the production target objective.
Intruding elements may be curious enough to observe the operations
and be exposed in restricted areas that may cause accidents.
Persons of unknown identity may enter the area and properties may
be exposed to theft when opportunity favors.

2. Site Development

2.1 Unpaved and undeveloped soil grounds. Due to muddy and

slippery topsoil properties when wet, may cause unmanageable entry
and maneuvering of trucks transporting for the delivery of raw
materials.

Dusty grounds during summertime may cause ill- breathing to

personnel and stakeholders.

3. Safety Essentials

3.1 Unsafe components, insufficient safety measures detected

within the processing plant premises accidents especially during
plant operations. A case of a discharge pit with low rails
(See Photo 1) is a risk for accidental fall

Another risk is much evident on the direct access of person

(See Photo2) to be exposed to a temperature of 80 degrees
Celsius emitted by corn bin dryers.

Photo 1 Photo 2
Low rail barriers at discharge pit Open access of person to Dry Bins
 Risk Assessment Table
Corn Post Parvest Processing Plant and Trading Center

Adequacy **** **Level of

The Consequences Consequences of of Existing Consequences *Likelihood ***Risk
Risk
Rating Priority
Risk of Event Event Solution Rating Impact
Happening Happening (Qualitative) (Quantitative)
Project Threat Conse- * Like-
Function quence lihood
Theft Temporary
001 Site Unwanted of Likely Fencing
Security Encroachment Property Insigni- Is not Medium(9)
3 3 3
(Trespassing) ficant enough

002 Difficulty
Site Discomfort of
Development of movements Truck Likely Clearing of
due to Delivery Serious Grounds
Unpaved On rainy Is
And Days/ Insufficient High(16)
Undeveloped
Soil Hazard- 4 4 2
Grounds ous
Breathing
On dry
Days

Slippage
Of Uses
On wet
Days

003 Safety
Essentials Accidental Injury Very Height of
Fall Likely Railing is Extreme(2
Due to Low Major deficient
0) 4 5 1
Railing

Rate Scale:

*Likelihood:_____1-Very Unlikely_____2-Unlikely_____3-Likely_____4-Very Likely (See Appendix 1)

** Risk Level: _____1-5_______1 is the Lowest _____5 is the Highest

***Risk Priority:____1- High Priority_____2- Medium Priority_____3- Low Priority

****Consequences Rating:_____High_____Medium _____Low

3.**Risk Evaluation - Refer to Risk Assessment Table

4.***Risk Decision – Refer to Risk Assessment Table

5.Risk Treatment

1.Site Security

Construction of Perimeter Fence with permanent materials (Concrete

Hollow Blocks) is constructed around the functional space of the processing plant.
This Fence should have a height not lower than the requirement of the National
Building Code of 1.80 meters.

Fence shall provide a gate as a means of control .Access for delivery trucks
and of pedestrian shall be provided of functional and reasonable width .

Lightings be provided in strategic points of the perimeter fence as a means

to monitor trespassers especially during the night.

2.Site Development

Provision of Concrete Pavement could improve the mobility of delivery

trucks and keep the workers and other stakeholders of the project safe of
breathing from polluted air .

Concrete pavements can also help the mixing of soil dusts and the corn.

3.Safety Essentials

Raising the height of Railings at discharge pit could help prevent

anybody from accidental fall especially those workers in charge

Provide measures to limit or prevent stakeholders the possibility of coming

nearer to the corn bin during operation. This could make anybody be protected
and secured and be exposed from a damaging heat produced by the corn bins

Measures could be in terms of Safety signs, Safety instructions labels

distributed in the premises, Visual safety posters, and Physical Protective
Equipments for the personnel.

6.Risk Monitoring

1.Site Security
 Once permanent fence is constructed ,regular inspection of the state of
existing walls especially on the outside face of the walls that are not visible from
the inside. A person shall be in charge to update the present condition of the wall.

Lightings shall be installed to make the area secure from unexpected

aggressions. Roving security personnel night and day shall be provided.

Permanent Security Guard shall be posted at the gate and be constructed

with guardhouse.

2.Site Development

As soon as the grounds are paved , a layout of truck movement shall be

marked with painted lines to facilitate truck positions especially on the parking or
delivery positions and entrance or exit traffic.

Regular cleaning of the pavement to avoid dusty or muddy surfaces. This

shall be done before and after daily operations as long as the plant exists.

3.Safety Essentials

Periodic assessment of safety aspect and physical condition of these railing

barriers installed. Possible tearing of structural elements could happen due to sack
loads of corn hitting the railing accidentally.

This railing shall always be in dry condition to avoid rusting of any part
especially joints of structural elements. Use stainless steel materials to lessen much
maintenance on painting and rust proofing.

There must be a checklist on safety procedures and safety measures

especially before plant operations.

B. Risk Management Strategy

1.Identification process

Every department shall present the functions and activities of the job to
perform. This could be done in writing down logical sequencing of activities or steps in the
accomplishment of objectives. Once these steps and activities are formulated, a list of all
the risks and their likelihood of occurrence shall be identified. List of risks could be taken
from the following sources:

1. Final project reports

2. Risk Response Plan
 3. Experiences of stakeholders or of others in the organization
4. Published information such as commercial databases or academics
studies.

The output for this process is a RISK LIST.

2.Evaluation and Prioritization

Once these risks are identified, they shall be evaluated in order to qualify
their impact to the objectives or the operations of the organization. Evaluation or
assessment shall be determined according to the degree of impact to the objectives of the
project. Degree of impact is determined as High, Medium, and High. Finally Risks shall be
rank according to the degree of impact level .Each level shall be given corresponding
value . High Impact shall be equated with the highest priority equivalent to rank 1 and
followed by a lower impact as 2, and so forth.

3.Risks mitigation options

Risk Mitigation shall be depending on the urgency and impact to the

objective of the business organization. It shall also depend on the availability of resources
and the priority of risk identified.

However, readiness of the mitigation shall always involve cost. An amount

shall be allocated as Risk Fund in order to spend for whatever mitigations applicable or
appropriate for the risk that shall trigger in the future.

4.Risk Plan Maintenance

The following are the approaches or methods in order to maintain the Risk
plan.

1.Risk plan maintenance shall be included in regular meetings of the

organization. Every risk owner or person in charge shall give report or give updates on the
status of the implementation.

2.as need arises, risk plan shall be reviewed according to the log updates
submitted by the person in charge.

3.A Risk register shall be created as a checklist and review document for
whatever updates and precautions in line with the risks identified.

5.Risk Management Responsibilities

Individual Responsibility
 1.Identify continuous potential risks every plant operation.

2.Implement Risk prevention strategy according to the Risk Management plan

Safety officer formulated by the Risk Management Team

3.Monitor current implementation of the Risk Management plan

4.Generate report on the above responsibilities and submit these reports during
the regular meeting for documentation and update of the risk register.
5.Submit Incident , Injuries, Near Miss reports. (See Appendix 2)
1.Identify continuous potential risk within the Buildings and grounds of the
Buildings and processing plant.

Grounds
2. Implement Risk prevention strategy according to the Risk Management plan
Administrator and develop means of other mitigations applicable.

3.Monitor current implementation of the Risk Management plan

4.Generate report on the above responsibilities and submit these reports during
the regular meeting for documentation and update of the risk register.

5.Submit Incident , Injuries, Near Miss reports. (See Appendix 2)

Security 1.Identify continuous potential risks in all security aspects of the whole activities
Officer of the plant for 24 hours round the clock.

2.Implement Risk prevention strategy according to the Risk Management plan

and develop means of other mitigations applicable.

3.Monitor current implementation of the Risk Management plan.

4.Generate report on the above responsibilities and submit these reports during
the regular meeting for documentation and update of the risk register.

5.Submit Incident , Injuries, Near Miss reports.(See Appendix 2)

C. Risk Analysis Summary

Probability Impact Impact Time Frame

 Risk No. Risk Area Risk Name Occurrence Level Description

001 Site Security Trespassing/ 3 3 Loss of 3 Months

Theft Property

Site Discomfort
Development of movements
002 due to 4 4 Loss of time, 3 Months
undeveloped/ Expenditures
unpaved Of
grounds Resources

Safety Accidental
003 Essentials Fall due to 3 Months
Low Railings Physical
Of Discharge Injuries,
Pit ,
4 5
Uninformed of
safety
due to
Insufficient
safety
instructions

Note: 1.Probability of Occurrence is the percentage of likelihood that the risk will occur
2.Impact level is a score of 1 to 5. 1 is the least impact and 5 is the highest.
3.Prove time frame in fiscal years and quarters if known.

D. Risk Response Summary

Risk Priority Risk No Risk Name Responsible Mitigating Response
Person Action(s) Trigger

Priority 1 003 Safety Safety Officer

Essentials Raising the First Aid
height of
(Accidental Railings
Fall due to
Low Railings
Safety signs,
Of Discharge
Safety
Pit , ) instructions
labels
(Uninformed of distributed in
safety the premises,
due to
Insufficient Visual safety
safety posters, and
instructions) Physical
Protective
Equipments

Priority 2 002 Site

Development
Provision of People
Concrete
(Driving Difficulty Buildings and Assistance
Pavement
and stucking up) Grounds
Administrator
(Mixing of Dirt
And Corn))

Construction
Priority 3 001 Site Security Security Call for
(Encroachment) Officer of Perimeter Assistance
Fence

E. Mitigation Cost

Risk Priority No : 1
Risk No : 003
 Risk Name : Safety Essentials
Risk Treatment: : 1.Raising the height of railings
2: Safety signs, Safety instructions labels, etc

Cost
**LIN ITEM DESCRIPTION Duration (Pesos) Remarks
Total
1.0 Internal staff Buildings and Grounds 1 year *109,200.0 Annual
Administrator 0 Salary
2.0 Development Monitor sheets, computers, As 35,000.00 Package
Tools Seminars on Safety required
3.0 Materials and Visual aids, safety labels, Annual 30,000.00 Package
Supply Poster prints
Co
4.0 Construction of Materials and Labor -existent 5,000.00 Lump
Pavement with plant sum
operation
s
5.0 Contingency 10,000.00
Tota For
l 179,200.00 Approval
Cost

*Assumption :

Rate /day 350.00

No. of days per month: 26
Total Annual salary: 350 x 26 x 12 = 109,200.00

** Line Item Number

Risk Priority No : 2
Risk No : 002
Risk Name : Site Development
Risk Treatment: : Provision of Concrete Pavement
 Cost
**LIN ITEM DESCRIPTION Duration (Pesos) Remarks
Total
1.0 Internal staff Buildings and Grounds 1 year *109,200.0 Annual
Administrator 0 Salary
2.0 Development Monitor sheets, computers, As 35,000.00 Package
Tools Seminars on Safety required
3.0 Materials and Visual aids, safety labels, Annual 30,000.00 Package
Supply Poster prints
Co
4.0 Construction of Materials and Labor -existent Lump
Pavement with plant 100,000.00 sum
operation
s
5.0 Contingency 10,000.00
Tota For
l 274,000.00 Approval
Cost

*Assumption :

Rate /day 350.00

No. of days per month: 26
Total Annual salary: 350 x 26 x 12 = 109,200.00

Risk Priority No : 3
Risk No : 001
Risk Name : Site Security
 Risk Treatment: : Provision of Permanent Fence

Cost
**Ll ITEM DESCRIPTION Duration (Pesos) Remarks
N
Total
1.0 Internal staff Security Officer 1 year *109,200.00 Annual
Salary
2.0 Development As
Tools required 35,000.00 Package
3.0 Materials and Security Paraphernalias
Supply 1 Year 10,000.00 Package
4.0 Co
Provision Materials and Labor -existent
Of Permanent with plant 150,000.00 Lump
Fence operation sum
s
5.0 Contingency 15,000.00
Total For
Cost 319,200.00 Approval

*Assumption :

Rate /day 350.00

No. of days per month: 26
Total Annual salary: 350 x 26 x 12 = 109,200.00

Appendix 1
Risk Assessment Matrix
Likelihood, Impact, Risk Level

Appendix 2
 Proposed Incident Report Form
Adapted from Risk Management Manual
Association of Bay Area Government

Corn Post Harvest Processing Plant and Trading Center

To: The Risk Manager From:

_____________________ ________________________

_____________________ ________________________

Date and Time of Accident:______________________________________________________

Department:__________________________________________________________________

Location:_____________________________________________________________________

Injured Party:

Name : ________________________________________________________

Address: _______________________________________________________

Phone:_________________________________________________________

Description of Incident:

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

Date:____________________ Submitted by:_____________________ Phone:___________

Appendix 2A
Accident Investigation Format
 Adapted from Risk Management Manual
Association of Bay Area Government

Fact Finding

1.Emphasis is placed on gathering facts, not placing blame or determining the cause
Of the accident.

2.Inspect the accident site before any changes to it occur.

3.Preserve essential and critical evidence.

4.Take photographs or make sketches of the accident scene.

5.Interview the injured party and witnesses as soon as possible after an accident.
Record pre-accident conditions, the accidents sequence of events, and post- accident conditions.

6.Document the location of the injured party, witnesses, machinery, equipment,

Energy sources, and hazardous materials.

7.Ask who, what, when, where, why, and how during interviews.

8.Re-interview the injured party and witnesses to resolve any conflicting accounts.

9.Remain completely objective during interviews and in documentation.

10.Keep complete and accurate notes.

Interviews

1.Get preliminary statements from injured party and witnesses as soon as possible.

2.Explain the purpose of the investigation (accident prevention) and put the witness
At ease.

3.Let the witness speak freely and take notes without distracting the witness.

4.Record the exact words used by the witness to describe each observation.

5.be sure that the witness understands each question.

6.Identify the witness completely (name, occupation, years of experience, phone number).

7.Supply each witness with a copy of his or her statement (signed statements are desirable).

Investigation Reporting
1.Provide complete, thorough information about the accident.

2.Describe the accident. Document the sequence of events and identify the extent of

the injury or property damage.

3.Identify hazardous conditions and/or unsafe work practices for each event of the
accident.

4.Identify the root cause of each hazardous condition or unsafe work practice.

5.Provide short-term and long-term corrective actions that prevent or eliminate the
identified hazardous conditions, unsafe work practices, and root causes.

6.Describe the corrective actions recommended, the persons accountable for each
corrective action, and the approximate timeframe for completion of each corrective action.

Corrective Actions

1.Recommend immediate corrective actions to eliminate or reduce hazardous

conditions and/or unsafe work practices.

2.Recommend long-term corrective actions that correct policies, programs, plans,

processes, and/or procedures.

3.Recommend engineering controls, administrative controls, or personal protective

equipment.

4.Estimate the cost to implement each immediate and long-term corrective action.

5.Develop an action plan for each corrective action.

6.Monitor implementation of the action plan to ensure appropriate corrective action

is taken.

Appendix 2b
Supervisor's Report Format Sample
 Adapted from Risk Management Manual
Association of Bay Area Government

Supervisor’s Report of Employee Injury, Illness, or Near Miss.

This form should be completed by supervisory/management staff to report all incidents, injuries, or illnesses
sustained by agency staff. This form should also be completed to document any “near miss” situations.

Company Name: ________________________________________

Employee Name: ________________________________________

Age: __________ Department:_____________________________ Job Title: _______________

Current Position: ______________________ Date of Hire: ________________________

Employee Status:
Full Time :_____________Part Time ____________Seasonal__________ Volunteer ____________

Date of Incident: ________________________Time of Incident: _____________________________

Supervisor’s Name: ____________________________________

Telephone Number: ____________________________________

Was the employee injured? Yes___________No _________

Did the employee leave work? Yes __________ No__________

Was this a “first aid only” incident? Yes________ No _________

What type of Illness/Injury was sustained by the employee and what body part was involved?
(cut to left index finger, low back strain, burn to right leg, etc.)

Names of Witnesses:______________________________________________________

Name ____________________________ Telephone Number__________________

1. Describe fully and as with as much detail as possible, where the incident occurred (facility,
department, office, workstation, if outdoors). Was equipment or property damaged? Use
additional sheets of paper if needed.

2. Describe fully and as with as much detail as possible, what events led up to the incident
(condition of the work area, weather conditions). Use additional sheets of paper if needed.

3. Was equipment being used at the time of the incident? Yes____ No___
If YES, was equipment in proper working order? Yes _____ No ____
If NO, what problems were occurring? Use additional sheets of paper if needed.
4. Describe as fully and as with as much detail as possible what the employee was doing at
the time the incident occurred. (What specifically caused the injury; i.e. cut, burn, struck
by object.) Use additional sheets of paper if needed.

5. Does this job require use of personal protective equipment (PPE)? Is there a relationship
between the severity of the injury and using PPE?

6. Have similar incidents occurred? Yes No If YES, list dates and locations.

7. What can management do to prevent recurrence of this type of incident?

8. What immediate actions have been taken to prevent recurrence? By whom?

9. What long-term actions are needed? By Whom? Target date for completion?

10. What post-loss actions should be taken (Early Return-to-Work program, other actions to
mitigate overall severity of loss?)

11. Additional Comments:

Name of Supervisor/Manager Completing Report:

Date:

Investigated By: ___________________________________________

Date:___________________________________________________
Person(s) Accountable for __________________________________
Target Completion Date: ____________________________________
Corrective Action: _________________________________________
Reviewed By: ____________________________________________
Comments: _____________________________________________
Sr. Mgmt.________________________________________________
Review Date: ____________________________________________