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Principals of Risk Management
Risk management can be defined as:
The eradication or minimisation of the adverse
effects of risks to which an organisation is
exposed
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Stages in Risk Management
1. Identifying the hazards.
2. Evaluating the associated risks.
3. Controlling the risks.
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Risk Assessment Framework
Tier 1 Risk assessment
• Initial qualitative risk assessment process generally referred as Activity
Based Risk Assessment (RA)
• Applied to all stages of the project including design, construction,
operations, maintenance and close out.
• Also, commonly termed as Hazard Identification and Risk Assessment
(HIRA) under various safety management systems such as OHSAS 18001
or ISO 45001.
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Risk Assessment Framework
• Risk Assessment (RA) shall cover all routine as well as non-routine
activities.
• A separate RA shall be required and recommended for all jobs requiring
permit to work - also known as Job Safety Analysis (JSA)
• Tier 1 is a primary risk screening process and ensures that management
controls are identified prior to the execution of the task
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Risk Assessment Framework
Tier 2 - Risk assessment
• In case of extreme or high risks involving more complex situations such as
storage, handling and processing of hazardous chemicals or in process
hazardous material
• In principle, all events with a major accident hazard potential shall be directly
passed to Tier-2 RA (detailed out in Process Hazard Analysis guideline)
• Detailed risk assessment using specialized tools (such as Hazard & Operability
Studies (HAZOP) or Quantitative Risk Assessment)
• Commonly used PHA tools are HAZOP, Consequence analysis, What-if, Bow- tie
analysis etc.
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BASICS FOR Risk
Assessment
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HAZARD ?
Any thing that
has “Potential
To cause
Damage”
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TYPES OF HAZARDS
• Line of Fire
• Caught in Between
• Struck by flying/ Moving Objects
• Slip, Trip & Fall
• Exposure to Gas
• Electrical Hazard
Etc…
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Identifying HAZARDS
Fall of
Material- In the
Line of fire
In the “Line of
Fire”- Hit by/
Caught in
between
In the “Line of
Fire”- Struck/
hit by
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Identifying HAZARDS
Struck by-
swinging load
Caught in
between
rotating parts
Potential Cave
in or Fall of
material/
dropped
object
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EXAMPLES OF HAZARDS
• Height Untrained Plant
• Depth worker ? Engineer not
• Voltage trained in
Safety?
• Wet floor
• Machine without guard
• Fork Lift moving with high speed
• Defective alarm etc.
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RISK ?
The Damage
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RISK = CONSEQUENCE X PROBABILITY
OR
RISK = HAZARD x EXPOSURE
Voltage Worker
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RISK ASSESSMENT MATRIX
Evaluate/ Assess Risk of activity/ scope using ABG RA Matrix
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CAUTION
Use ONLY CREDIBLE scenarios
Consider the POTENTIAL SEVERITY
The Quality Of RA would depend on the
Quality of Hazards Identified
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A Conveyor system
conveyor installed in the
basement
Steps leading
Into basement
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The right hand rail ends just
Unguarded zone where the moving part of
conveyor
the conveyor (indicated by
arrow) begins.
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Lets Summarize
• Anything that has potential to cause damage is defined as Hazard
• Risk = Consequence * Probability
Or
Risk = Hazard * Exposure
• Type of Risk Assessment as per ABG standard
Tier-1- Initial qualitative Risk Assessment
Tier 2- Advance/ Detailed risk assessment for high risk scenarios
• Risk Assessment shall cover all Routine and Non- routine activities
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Baseline Risk & Residual Risk
Baseline Risk is the risk due to the normal process operations / activities
(without accounting for control measures)
The risk shall be estimated considering the existing controls measure(s)
in place and their effectiveness.
The effectiveness of existing control measures and previous incident data
helps to decide probability of an incident to get realized. This risk is
residual risk.
If this residual risk is assessed as “Extreme” or “High” additional control
measures shall be identified and implemented to bring the risk to at least
ALARP level as per the Risk Assessment Matrix.
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WHAT …AFTER RA ??
Focus on Reducing the Highest Risk To….
As Low As Reasonably Practical
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As mentioned before……….
RISK = Consequence x Probability
Consequence = The impact/ extent of damage because
of release of the Hazard
Probability = The likelihood of the release of the
hazard
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To bring down The Risk To “ALARP” Level ?
Either
Reduce the
Reduce the Severity
Probability Of
Of The OR
Release Of The
Consequence
Consequence
Mitigating Measures Preventive Measures
23
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The Impact Of Risk
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Risk impacts…
P
A
E
R 25
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Points to Remember….RA
• RA is a Group Activity – must not be done alone
• Only the highest Risk is to be considered
• Out Of “PEOPLE”, “ASSETS”, “ENVIRONMENT” &
“REPUTATION” consider only that category where
the RISK RATING IS THE HIGHEST
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Controlling Risk
• Risk Avoidance – This strategy involves a
conscious decision on the part of the organisation
to avoid completely a particular risk by
discontinuing the operation producing the risk e.g.
the replacing a hazardous chemical by one with
less or no risk potential.
• Risk Retention – The risk is retained in the
organisation where any consequent loss is
financed by the company. There are two aspects
to consider here, risk retention with knowledge
and risk retention without knowledge.
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Controlling Risk
• Risk Transfer – This refers to the legal
assignment of the costs of certain potential
losses from one party to another. The most
common way is by insurance.
• Risk Reduction – Here the risks are
systematically reduced through control
measures, according to the hierarchy of risk
control.
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Using Hierarchy of Hazard Control for
ALARP
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SOME EXAMPLES OF EXISTING CONTROLS
1. Safety Interlocks
2. Machine guarding
3. Special tools and equipment
4. Wearing PPE
5. Permit-to-work
6. Standard Operating Procedures
7. Standard Maintenance Procedures
8. Work Instructions
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SOME EXAMPLES OF ELIMINATION
1. Modify the design
2. Modify process to eliminate the need for
hazardous process e.g. : Auto sampling
3. Fully automate the process
4. Outsource the task
Elimination of Tarpaulin tying activity by prohibiting storage of Pulp
bales in open areas is a classic example of elimination of hazard
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Design improvements over time
Design improvements are based on certain assumptions.
What happens if you operate outside those assumptions ??
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Fall of Pulp bale
Incident details: While pulling the tarpaulin cover from Pulp bale, one unit fell from the upper
stack on the victim causing serious injury leading to fatality eventually
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Fall of Pulp bale
Key Factors/ Assumptions:
1.Risk Assessment for Pulp bale stacking inside warehouse was assumed as it is for
bale stacking in open areas (impact of wind, stacking height etc. was not evaluated) .
2.SOP / Risk Assessment for Tarpaulin tying and removing activity- considering Line of
fire hazard, requirement of supervision etc. not assessed
Key Findings:
1.Inadequate Risk Assessment- Two layer stacking of Pulp bales in open and Unpaved
areas.
2.Contractor competency- Lack of Supervision of the tarpaulin tying activity
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SOME EXAMPLES OF SUBSTITUTION
1. Use Alternate material
2. Mechanical handling instead of manual handling
Classic example of substitution of hazard:
• Use of molten sulphur instead of solid sulphur
reduces the hazards of manual handling and storage
(dust) of Sulphur
• Use of Sodium hypochlorite instead of chlorine
reduces the risk of handling toxic chlorine etc.
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EXAMPLES OF ENGINEERING CONTROL
1. Installing interlocks
2. Modifying equipment
3. Use special tools for the job
4. Redesign workplace layout
Classic example of engineering control:
5. Install noise enclosure • Installation of proximity sensors
interlocked with Baler operation to
6. Machine guarding prevent baler operation during human
activity/ presence
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EXAMPLES OF ADMINISTRATIVE CONTROLS
1. Implementing Permit-to-Work system
2. Barricading area
3. Job rotation (to reduce fatigue)
4. Following job procedures /work Instructions
5. Working in pairs
6. Testing for hazardous atmosphere
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EXAMPLES OF PPE
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RACI Chart for Risk
Assessment
RACI CHART: ROLES & RESPONSIBILITIES FOR IMPLEMENTATION OF Risk Evaluation
and Management
Employee / Concerned Safety Experts (Internal /
Line Organization Unit Safety Business Safety & Health
supervisor External)
List Job, sub-activity
R A I
(sequence of work)
Identification of
R A/R C C C
hazards
Define safety
R A/R C C C
Precautions
Identify person
responsible for
R A/R C
implementing safety
precautions
Document acceptable
criteria / reference to R A/R C
any document
Inspect tools and
R A/R C/I C
tackles
Job execution R A C
Assessment for
R A I R
compliance
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To reduce the risk to ALARP level, we need to either reduce the
severity (consequence) or reduce the probability of consequence
Risk impacts People, Environment, Asset, Reputation
Hierarchy of Controls
o Elimination
o Substitution
o Engineering Control
o Administrative Control
o PPE
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1. When we fail to consider all major hazards
2. When we either underestimate the severity or
the probability of the consequence
3. When the controls are assumed to be in place
but are missing in reality
4. When we bypass the controls
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Sample HIRA
HAZARD IDENTIFICATION & RISK ASSESSMENT (HIRA)
Task Based Risk Assessment Worksheet
Area Evaporator Process Activity : Pump change over, pump servicing & maintenance
Risk Assessment Team Members Shivakumar, Shyam Kulkarni, Avinash Date :
HAZARD IDENTIFICATION RISK ASSESSMENT RISK CONTROL
Consequences Controls
Additional
Ref No People, Prevent, Control Responsible Completion Refer to SOP /
Description of Task Step Hazard Baseline Risk Residual Risk
(Equipment No.) Assets, detect, Measures / Person date SMP / JSA etc.
Reputation mitigate Actions
C P R C P R
1 Gland packing renewal,
1.Pump to be
2 Bearing change of pump drained completely
ensure that no
3 Pump Impeller changing Physical, liquor is coming
Chemical out of the drain.
4 Pump replacement for People, Prevent,
Evaporator Pumps and 4 2 8 2. Cold water to be 2 1 2 B. Shivakumar 31.12.2018 RC002
abnormal sound & Reputation mitigate
Environm flushed by
vibrations ent providing
5 Pump Casing leakage additional nipple.
3. Ensure lototo
procedure
6. Pump change over
1 HBL transfer from Tank 1
to tank 2 or NHBL tank
Physical, Prevent,
HBL tank agitators 2 Gearbox replacement People 2 1 2 _ 2 1 2 B. Shivakumar _ RC002
Chemical mitigate
3 HBL tank inside checking
and maint work
C: Consequence, P: Probability, R: Risk
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Sample HIRA
HAZARD IDENTIFICATION & RISK ASSESSMENT (HIRA)
Task Based Risk Assessment Worksheet
Area Lime Kiln Process Activity : Pump change over, pump servicing & maintenance
Risk Assessment Team Members Date :
HAZARD IDENTIFICATION RISK ASSESSMENT RISK CONTROL
Consequences Controls
Additional
Refer to SOP /
Ref No Description of Task People, Prevent, Control Responsible Completion
Hazard Baseline Risk Residual Risk SMP / JSA
(Equipment No.) Step Assets, detect, Measures / Person date
etc.
Reputation mitigate Actions
C P R C P R
Physical, 1. Interlock change
Belt alignment and Chemical, People, Prevent, over
Lime Kiln Belt Conveyor 2 2 4 1 2 2 B. Shivakumar 30.11.2018 RC012
replacement Ergonomics, Reputation mitigate 2. Engage belt pull
Environment cord
Physical,
Lime Kiln Drag chain Conveying chain maint and Chemical, Detect & Local lock switches
People 3 2 6 2 1 2 B. Shivakumar 31.12.2018 RC012
conveyor Flights replacement work Ergonomics, control to be provided
Environment
C: Consequence, P: Probability, R: Risk
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Sample HIRA
HAZARD IDENTIFICATION & RISK ASSESSMENT (HIRA)
Task Based Risk Assessment Worksheet
Process Activity: Lifting of bales from forte machine area to stacking position area in
Area Fibre Warehouse
ware house.
Risk Assessment Team Members Date :
HAZARD IDENTIFICATION RISK ASSESSMENT RISK CONTROL
Consequences Controls
Refer to SOP /
Ref No Description of Task People, Prevent, Additional Control Responsible Completion
Hazard Baseline Risk Residual Risk SMP / JSA
(Equipment No.) Step Assets, detect, Measures / Actions Person date
etc.
Reputation mitigate
C P R C P R
Forte Machine barricaded
with I channel to prevent
Lifting of ejected bales
Physical, Prevent, impact of forklift fork.
from forte machine by People, Asset 4 2 6 3 2 2 Abhijith 30.11.2019 RC012
Ergonomics mitigate Fork lift path way marked.
forklift
Lifting of bales from Only Trained drivers allow to
drive forklift.
forte machine area to
stacking position area
Fall of bales from • Fork lift path way marked.
in ware house. fork due to • Forklift drive only in reverse
Stacking of 8 bale at uneven floor or direction during the shifting
Prevent,
stacking position area in imbalance during People, Asset 5 2 10 of bales & bales shifting 3 2 6 B. Shivakumar 31.12.2018 RC012
mitigate
ware house the shifting which restricted upto 4 bales.
impacted to • Speed limit of forklift is
human body restricted at 08 Km/Hours.
C: Consequence, P: Probability, R: Risk
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Let us summarize the…....
Key Stages of RA Framework
• Establishing the scope and context of the risk
assessment;
• Hazard Identification and Analysis;
• Risk Assessment using ABG Risk Matrix;
• Risk Management and Control (Elimination,
Substitution, Control etc.);
• Risk Recording, Monitoring and Periodic Review;
and
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• When a significant change (i.e. change of process,
project, legislation, etc. as defined in site’s
management of change procedures) is introduced;
• After an accident;
• If better information
becomes available; and
• A new legislation is
introduced.
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Remember
Risk Assessment is a
Dynamic Tool
USE IT REGULARLY
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