Safety and Risk – Assessment of Safety and Risk

– Risk Benefit Analysis and Reducing Risk -

Respect for Authority – Collective Bargaining –
Confidentiality – Conflicts of Interest –
Occupational Crime – Professional Rights –
Employee Rights – Intellectual Property Rights
(IPR) – Discrimination

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 SAFETY AND RISK
 Safety is defined as the risk that is known and judged as
acceptable.
 But, risk is a potential that something unwanted and
harmful may occur.
 It is the result of an unsafe situation, sometimes
unanticipated, during its use.
 Probability of safety = 1 – Probability of risk
 Risk = Probability of occurrence × Consequence in
magnitude
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 A product is safe with respect to a person or a group at a given time,
if its risks are fully known, if the risks are judged to be acceptable
 Safety can be incorporated during design, pre-testing ,operation,
field applications etc.
 The perception varies from person to person
 Factors that influence the perception of risk are:
◦ The probability of the risk
◦ Consequence of the risk
◦ Voluntariness – for thrill , amusement or under compulsion
◦ Magnitude – number of people involved
◦ Proximity – closeness in relationship to those affected

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 SAFETY AND RISK….
 Safety = 1-probablity of risk ;
 Risk = Probability of occurrence X consequence in magnitude
 Different methods are available to determine the risk (testing for safety)
 Testing on the functions of the safety-system components.
1) Destructive testing: In this approach, testing is done till the component
fails. It is too expensive, but very realistic and useful.
2) Prototype testing: In this approach, the testing is done on a proportional
scale model with all vital components fixed in the system.
3) Simulation testing: With the help of computer, the simulations are done.
The safe boundary may be obtained.

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 Riskanalysis is used for the assessment of the hazards
associated with an industrial or commercial activity
1.Scenario Analysis:
 Starting from an event, different consequences are studied.

This is more a qualitative method.

 A scenario is a synopsis of events or conditions leading to an

accident and subsequent loss.

 Scenarios may be specified informally, in the form of narrative,

or formally using diagrams and flow charts.

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 Steps for Risk Assessment
 1. Identification and characterization of risk - What can go

wrong that could lead to an outcome of hazard exposure?

 2. Quantification of risk, likelihood, and magnitude - How

likely is this to happen?

 What are the consequences

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2. Failure Mode & Effect Analysis:
 In this mode various parts or components of the system and their
mode (patterns , propagation and nature ) of failure are studied .
 Causes of failure or the interrelationships between the components are
not studied
 FMEA is a qualitative tool introduced in 1960s by aerospace companies
 Thus, FMEA is defined as a systematic tool to
◦ (a) identify possible failure modes in the products/process,
◦ (b) to understand failure mechanism (process that leads to failure),
◦ (c) risk analysis, and
◦ (d) plan for action on elimination or reduction of failure modes.

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STEPS TO CONDUCT FMEA;
1. Product/process and its function must be understood first.

2. Block diagram of product/process is created and developed -shows logical

relationship of components.
3. Header on FMEA form is completed. FMEA form includes part/process name, model
date, revision date, and responsibility
4. The items/functions are listed logically in the FMEA form, based on the block
diagram.
5. The failure modes are identified. A failure mode is defined wherein a component,
subsystem, system, and process could potentially fail to meet the design intent.
6. Each failure should be listed in technical terms. Listing should be done component-
or process-wise

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STEPS TO CONDUCT FMEA;
7. the effects of each risk/failure mode are described. Then a numerical ranking is
assigned to each risk or failure in the scale, No.1 -no effect and 10 - very severe
failure.The failures can be prioritized and real critical risks can be addressed first.
8. Then the causes of each failure mode have to be identified.
9. The probability factor indicating the frequency of occurrence is considered. A
standard scale with 1-not likely and 10 – inevitable is used.
10. The design or process mechanism which can prevent the cause of failure or detect
failure before it reaches the customer has to be identified.
11. Assessment of detection rating is done by assigning a numerical weightage.
12 Risk Priority Number (RPN) is calculated RPN=Severity X Probability X Detection
13. Recommended actions are determined for risk with high RPN
14. Revalidate each action by reassessing severity , probability and detection.

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STAGES OF FMEA:

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FMEA DOCUMENT:

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3. Fault – Tree Analysis:
 This is a qualitative method and was originated by Bell

Telephones.
 It is technology-based deductive logic.
 The failure (undesirable event) is initially defined, and the

events (causal relationships) leading to that failure are

identified at different components level.
 This method can combine hardware failures and human
failures

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3. Fault – Tree Analysis:
The Car does not start

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4. Event – Tree Analysis:

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4. Event – Tree Analysis:

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 SAFE EXIT
In the study of safety, the ‘safe exit’ principles are recommended.
The conditions referred to as ‘safe exit’ are:
1 The product, when it fails, should fail safely
2 The product, when it fails, can be abandoned safely (it does not harm
others by explosion or radiation)
3 The user can safely escape the product (e.g., ships need sufficient
number of life boats for all passengers and crew; multi-storied
buildings need usable fire escapes)

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 RISK-BENEFIT ANALYSIS
 Risk- benefit analysis is a method that helps the engineers to analyze the
risk in a project and to determine whether a project should be implemented
or not. It is very much closer to cost-benefit analysis.
 Risk – benefit analysis is being conducted for finding out answers for the
following questions:
I. Is the product worth applying the risk-benefit analysis?
II.What are the benefits?
III.Do they over weigh the risks?
 The major reasons for the analysis of the risk benefit are:
1.To know risks and benefits and weigh them each
2.To decide on designs, advisability of product/project
3.To suggest and modify the design so that the risks are eliminated or reduced

Dr Gnanasekaran Thangavel 05/06/24 19

Dr Gnanasekaran Thangavel 05/06/24 20
Dr Gnanasekaran Thangavel 05/06/24 21
Dr Gnanasekaran Thangavel 05/06/24 22
 Respect for Authority
Decisions can be taken by a few people, but putting into action
requires larger participation from different groups of people, such as
operation, purchase, sales, accounts, maintenance, finance etc.
In effectively-and efficiently-transferring decisions to actions, the
authority comes into play a great role. Otherwise the individual
discretions may ruin the activities.
Further the authority fixes the personal responsibility and
accountability uniquely on each person. This is necessary to ensure
progress in action.

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 Institutional Authority
It is the authority exercised within the organization. It is the right
given to the employees to exercise power, to complete the task and
force them to achieve their goals.
Duties such as resource allocation, policy dissemination,
recommendation, supervision, issue orders (empower) or directions
on subordinates are vested to institutional authority, e.g., Line
Managers and Project Managers have the institutional duty to make
sure that the products/projects are completed successfully.
The characteristics features of institutional authority are that they
allocate money and other resources and have liberty in execution.

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 Expert Authority
On the other hand, the Expert Authority is
(a) the possession of special knowledge, skills and competence to
perform a job thoroughly (expertise),
(b) the advice on jobs, and
(c) is a staff function.
It is also known as ‘authority of leadership’.
These experts direct others in effective manner, e.g., advisers,
experts, and consultants are engaged in an organization for a specific
term.

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 It
is the bargain by the trade union for improving the
economic interests of the worker members.
 The process includes negotiation, threatening
verbally, and declaration of ‘strike’.
 Itis impossible to endorse fully the collective
bargaining of unions or to condemn.
 There exist always conflicting views between the
professionalism and unionism.

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 Professional societies refuse to accept the ‘collective coercive
action’ of unionism, holding the principles of professional
integrity as right.
 Example: as per NSPE code III, i.e., engineers shall not promote

their own interest at the expense of the dignity and integrity of

the profession.
 They are expected to perform an ethical duty to their employer

as faithful agent or trustee.

 Actions of the unions are interpreted as unprofessional and

disloyal

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 In cases where the safety of the workers have been ignored
for a long period or the employees were under-paid for years.
 Can we still hold the action unethical?
 It can be concluded that:

◦ Employee need not sacrifice self-interest in carrying out his duty for the
employer.
◦ Being faithful or trustee does not nullify the right for safe and hygienic
working conditions
◦ Right to disobey illegal or unethical activities
◦ Can collective and coercive action be resorted , when all other efforts
have failed?

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 Service to the public is of foremost importance
 But unions promotes the interests of a few members only.
 Public Welfare should not suffer because of their actions
 Example: medical practioners & ambulance services going on

strike
 Collective bargaining by engineers through union of

association should act within the limit set by public welfare.

 It should be constructive ,persuasive, firm based on mutual

understanding and not disruptive or harming persons or

property.

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 Moral assessment on Union is a complex process

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 Confidentiality means keeping the information on the employer and
clients, as secrets.
 It is one of the important aspects of team work.

Justification for Confidentiality

 Confidentiality can be justified by various ethical theories.
 Rights-based theory - rights of the stakeholders, right to the
intellectual property of the company are protected by this practice.
 Duty theory - employees and employers have duty to keep up
mutual trust.
 The Utilitarian theory holds good, only when confidentiality produce
most good to most people.
 Act utilitarian theory focuses on each situation, when the employer
decides on some matters as confidential.

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 Further, the following moral principles also justify the concept of
‘confidentiality’:
1. Respect for Autonomy
 It means respecting the freedom and self-determination of individuals

and organizations to identify their legitimate control over the personal

information of themselves.
2. Respect for Promises – employees should not disclose the promises
given to the employers
3.Trustworthiness – Maintaining confidentiality with lawyers ,
accountants
4. Respect for Public welfare – moral considerations is necessary in
professional transactions. Eg: Between doctor and patients

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Types of confidential information
1. Privileged information
 Information that is available by the privilege of being employed on that
assignment
 Eg: The Engineer working on a defense project knows about the missile
2. Proprietary information
 It is the information owned by the organisation
 It is protected legally by the organisation from use by others , including
employees.
 Trade secret & Quality manual are proprietary information
3. Obvious information – data related to products yet to be released
4. Information of lesser confidentiality – number of employees,
vendor details.

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 A. Is Switching Job Ethical?
 When persons change jobs will reveal they information to the new employer
or sell it to a competitor of the former employer
 Employee who left General Motors and joined Volkswagen with secret
documents . This violation of trade secret, lead the V W to pay huge
compensation to GM in cash and compulsion to buy parts from GM for
seven subsequent years.
 B. Management Policies
 Involves protecting the rights of the employers and at the same time
recognizing the genuine personal rights and other rights of the
engineers/employees
◦ Restrict the future employment of employees, by using employment contracts at the
time of their exit.
◦ A lump sum post-employment payment or compensation over a specific period may
offered as incentive to restrict him.
◦ Tighter controls on internal information flow on trade secrets and other vital features.

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 A conflict of interest (COI) is a situation in which a
person or organization is involved in multiple
interests, financial or otherwise, one of which could
possibly corrupt the motivation or decision-making
of that individual or organization.

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 “ Conflict of interest” is different from “ conflicting interests”
 Eg: Employee serving as a consultant for a competitor’s
company.
 There is a possibility of pursuing all the conflict of interest,
thereby inviting a moral problem.
 “ conflicting interests”
 Eg: A student has to four competitions to participate , but has
time to prepare for only three.
 Two or more desires cannot be fulfilled under a given
circumstance. But there is no moral problem in pursuing all the
interests.

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 Actual Conflict of Interest – refers to a situation where the objectivity is
lost in decision making and inability to discharge the duty to the
employer.
 Eg: Outside Interests threatening professional judgment in awarding a
contract in a bid.
 Apparent Conflict of Interest – refers to a situation where the official
duties are influenced by the “private or personal” interest.
 Eg: Commission based on percentage of designs created leading to
increase in design cost.
 Potential Conflict of Interest - refers to a situation where the official
duties are influenced in the future by the “private or personal”
interest.

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 Favorable Contact – spouse is working for a contractor or
vendor
 Bribe and Gift – accepting large gift from suppliers(difference)
 Moonlighting - It is a situation when a person is working as
employee for two different companies in the spare time.
 Insider Information - using ‘inside’ information to establish a
business venture or get an advantage for oneself or one’s
family or friends
 Bootlegging – research in which individuals secretly organise
the research without official permission of the management.

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 Treat all clients fairly
 Do not provide advice on official matters termed as
confidential by the employer
 Make sure that more than one officer is involved in making
decisions
 Avoid borrowing money from people with official dealings
 Do not take up paid or unpaid employment outside which may
create potential conflict of interests

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 An occupational crime may be committed by
 (1) wrong actions of a person through one’s lawful employment

or
 (2) crime by an employee to promote ones own or employer’s

interest or
 (3) theft or

 (4) Pilferage - stealing things of small value

 (5) Damage to properties or an employees own organization

 They are also called white collared crimes

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 Examples of Occupational crime are:
 1.Price Fixing – quoting pre decided low price on bids
 2.Endangered Lives – endangering the lives of employees
knowingly
 3. Industrial Espionage (Spying) – theft of trade secrets
 4. Bootlegging – Manufacturing , selling , transportation of
products prohibited by law

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 They are moral and legal rights that are obtained by the status of
being an employee
 Professional Rights
 Basic Human Rights
 Institutional rights or contractual employee rights – profit sharing ,

annual increment, scale of pay

 Non- contractual employee rights – common rights

◦ Right to privacy
◦ Right to choose outside activities
◦ Right to due process from employer
◦ Right to Equal Opportunity—Non-discrimination, Sexual Harassment in the
Workplace, Affirmative action or Preferential treatment

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 Underprofessional rights, the following provisions are
protected:
 1. Right to form and express professional judgment
 2. Right to refuse to participate in unethical activities
 3.
Right to fair recognition and to receive remuneration for
professional services
 4. Right to Warn the public about dangers
 5.Right to talk publicly about the job and engage in activities
of professional society

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 Human rights are defined as moral entitlements to treat one
with dignity and respect.
 Organizations and engineers are to be familiar with the

minimum provisions under the human rights.

 Provisions under ‘human rights’ are as follows:

1. Right to pursue legitimate personal interest

2. Right to make a living
3. Right to privacy
4. Right to property
5. Right of non-discrimination
6. No sexual harassment

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 It is defined as conveying information by an employees, on a moral
problem to somebody to take action on the problem.
 Aspects:
 Basis of disclosure: The basis for disclosure may be intentional, or under
pressure from superiors or others not to disclose.
 Relevance of topic: The whistle blower believes that the information is
about a significant problem
 Agent : The person disclosing the information may be a current or former
employee or a person having a close link to the organization
 Recipient - who receives the information, is in a position to
 remedy the problem or alert the affected parties.

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 Internal - the information is conveyed to a person within the organization
 External - the information is transmitted outside the organization. Eg:
minister , municipal chairman
 Open - The originator reveals his identity as he conveys the information
 Anonymous - The identity is concealed
 Partly anonymous - the individual reveals his identity to the journalist,
but insists that the name be withheld from others

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 Intellectual property rights (IPRs) are the protections granted to the
creators of IP, and include
 trademarks, copyright, patents, industrial design rights, and trade
secrets.
 IP permits people to have fully independent ownership for their

innovation and creativity, like that of own physical property.

 This encourages the IP owners towards innovation and benefit to the

society.
 It is an asset that can be bought or sold, licensed, and exchanged.

 It is intangible i.e., it cannot be identified by specific parameters.

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 IP plays an essential role to stabilize and develop the economy of a nation.
 This protection actually stimulates creativity, research, and innovation
 The IP serves many purposes, namely
(a) it prevents others using it,
(b) prevent using it for financial gain,
(c) prevent plagiarism
(d) fulfill obligation to funding agency.
(e) provides a strategy to generate steady income.
 Some of the challenges in the acquisition of IP are:
(a) Shortage of manpower in the industry. Educational institutions can play a vital
role in providing the same.
(b) High cost of patenting and lengthy procedure., and
(c) Lack of strong enforcement mechanism.

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1. Patents
 Patent is a contract between the individual (inventor) and the

society (all others).

 Patents protect legally the specific products from being

manufactured or sold by others, without permission of the

patent holder.
 Patent holder has the legally-protected monopoly power as

one’s own property.

 The validity is 20 years from the date filing the application for

the patent.
 It is a territorial right and needs registration.

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 Patent is given to a product or a process, provided it is entirely
new, involving an inventive method and suitable for industrial
application.
 While applying for a patent, it is essential to submit the
documents in detail regarding the problem addressed:
◦ its solution, extent of novelty or innovation, typical applications,
particulars of the inventor, and the resources utilized.
 Inventions are patentable and the discoveries are not
 Types of Patents
 Utility patent - for new process, machine
 Industrial design patent – idea conception regarding features of

shape , configuration
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2. Copyright
The copyright is a specific and exclusive right, describing rights
given to creators for their literary and artistic works.
 This protects literary material, aesthetic material, music, film,
sound recording, broadcasting, software, multimedia, paintings,
sculptures, and drawings including maps, diagrams, engravings
or photographs.
 There is no need for registration and no need to seek lawyer’s
help for settlement.
 The life of the copyright protection is the life of the inventor or
author plus 50 years.
 Copying the idea is called ‘plagiarism’ and it is dealt with
separately.

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3. Trademark
 Trademark is a wide identity of specific good and services, permitting differences to be
made among different trades.
 It is a territorial right, which needs registration.
 Registration is valid initially for 10 years, and renewable.
 The trademark or service mark may be registered in the form of a device, a heading, a
label, a ticket, a letter, a word or words, a numeral or any combination of these, logos,
designs, sounds, and symbols.
 Trademark should not be mistaken for a design, e.g., the shape of a bottle in which a
product is marketed, can not be registered as a trademark.
 There are three functions of trademark:
1. Just as we are identified by our names, good are identified by their trademarks. For
example, the customer goes to the shop and asks for Lux soap. The word ‘Lux’ is a trade
mark.
2. 2. The trademark carries with it an inherent indication or impression on the quality of
goods, which indirectly demonstrates that it receives the customer’s satisfaction.
3. 3. The trademark serves as silent sales promoter. Without a trademark, there can be no
advertisement.

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3. Trade secret
 A trade secret is a formula, practice, process, design,
instrument, pattern, commercial method, or compilation
of information not generally known or reasonably
ascertainable by others by which a business can obtain
an economic advantage over competitors or customers.

 They are not registered, but kept confidential

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 Discrimination means morally unjustified treatment of
people on arbitrary or irrelevant grounds.
 Discrimination because of caste, sex, religion, creed,

and language are regressive actions.

 Discrimination which means a morally unjust treatment

of people in the workplace is damaging to the human

dignity.

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