RISK MANAGEMENT 3.

Identify the risks

APPROACHES TO, PROBLEMS WITH, AND EXAMPLES OF 4. Analyse the risks
CONTROLLING RISK. 5. the risks
6. Treat the risks
HAZARD is something that has the potential to harm you Stages in Risk Management
RISK is the likelihood of a hazard causing harm 1. Risk identification
2. Risk analysis
DEFINITION OF RISK MANAGEMENT 3. Risk control
a systematic approach to identify, assess, and understand risk in order to guide 4. Risk financing
further appropriate management decisions and actions. 5. Claims management
RISK IN SOCIETY:
Risk Management Safety and Risk Factors
Managing risk means assessing possible risks and setting up procedures and action plans
designed to limit the possibility of material physical and psychological damage.
PROaction Vs. Reaction
WHAT IS AND ACCIDENT?
What is Risk Management?
1. An unexpected and undesirable event.
■Good management practice
2. Unforeseen incident
■Process steps that enable improvement in decision-making
3. Lack of intention
■A logical and systematic approach
4. Logic
■ Identifying opportunities
HAZARD
■Avoiding or minimizing losses
-existing or potential condition that alone or interacting with othe factors can
cause harm.
DEALING WITH RISK
"Risk management is fundamental to managing the threat, while retaining our quality of RISK
life and living in freedom. Risk management can guide our decision-making as we -a measure of the probability and severity of a hazard to hatm human health,
examine how we can best organize to prevent, protect against, respond and recover from property, or the environment
an attack." SAFETY - Freedom from danger or harm
Risk factors:
PURPOSE OF RISK MANAGEMENT  Management – lack of systems & procedures
"To minimize the potential harm of a risk event by implementing strategies and  Environment – natural disasters
actions to control and reduce risk"  Design and Equipment – workplace layout/maintenance
 Human behavior
MANAGEMENT AND PERCEPTION Human behavior is a function of:
▪︎Risk management is influenced by what is perceived to be risky. ☆Activators – (what needs to be done)
▪︎Risk perception guides opinions on risk and risk management ☆ Competencies – (how it needs to be done)
▪︎Perception depends on past experiences, preparedness, perceived control, etc. ☆ Consequences – (what happens if it is/isn’t done)
Human Behavior
VARYING PERCEPTIONS - PUBLIC OR EXPERT? A) Soon (immediate)
■ Experts consider probability, public prioritizes consequences B) Certain (they happen every time)
■Public may feel helpless to a hazard, perceiving it as high risk C) Positive (a nicotine high)
■Public has first-hand experience for what is going on A) Late (years later)
■ Experts disagree amongst themselves, public which to believe B) Uncertain (not all smokers get lung cancer)
C) Negative (lung cancer)
Who uses Risk Management? Attitudes – can be changed by changing behaviors.
Risk Management practices are widely used in public and the private sectors,
covering a wide range of activities or operations. ACCIDENTS HAS POSITIVE AND NEGATIVE OUTCOMES
▪︎Finance and Investment •Insurance ● Direct costs ☆ Medical ☆ Insurance ☆ Lost time ☆ Fines
▪︎Health Care • Public Institutions • Government ● Indirect costs ☆Lost productivity ☆ lowered morale ☆ reputation damage
etc.
APPROACHES TO MANAGEMENT ● “Real" costs
1. Proactive
■Pre-disaster activities associated with reducing risk Proactive safety
■Developing mitigation strategies, spreading awareness, etc.  safety committees
2. Reactive  Emergency plan
■Post-disaster activities associated with reducing impacts  Emergency action Plan
■Emergency relief, reconstruction, etc.  Record keeping and updating
 Immediately report
How is Risk Management used?
The Risk Management process steps are a generic guide for any organisation, HAZARD ANALYSIS
regardless of the type of business, activity or function.  orderly process used determine if hazard exists in the workplace
There are 7 steps in the RM process  Condition with the potential to cause personal injury, death and
1. Establish the context property damage
2. Identify the risks STEP 1. IDENTIFY HAZARDS
3. Analyse the risks STEP 2. ASSESS HAZARDS
4. Evaluate the risks - Probability
5. Treat the risks - Severity
The basic process steps are: Levels of Risk Awareness
'Risk' is dynamic and subject to constant change, so the process includes  Unaware ●Engaged Awareness
continuing:  Post awareness ● Proactive Awareness
6. Monitoring and review STEP 3. MAKE RISK DECISIONS
7. Communication & consultation STEP 4. IMPLEMENT CONTROLS
STEP 5. SUPERVISE