HIRARC Risk Management Terms

RISK MANAGEMENT TERMS

1.HAZARD
2.RISK
3.DANGER
4.PROBABILITY
5.SEVERITY
6.RISK ASSESSMENT
7.RISK MANAGEMENT
8.GAMBLING

HAZARD

A condition with the potential for causing injury, damage, or mission degradation

What is a hazard?
A hazard is any activity, situation or substance that can cause harm. Occupational hazards are divided into two broad categories:

1. health hazards, and

2. safety hazards

Generally, health hazards cause occupational illnesses, such as noise induced hearing loss. Safety hazards cause physical harm, such as cuts, broken bones and so forth. Hazards exist in all workplaces.

RISK
An expression of possible loss in terms of severity and probability

DANGER
Exposure or vulnerability to harm or risk or a source or an instance of risk or peril.

Inter-relationship between hazard, risk and danger can be understand more with the following example;
Concentrated Hydrochloric acid is one of the most chemical hazard because of the intrinsic corrosive factor, which can harmful to health and some materials. High risk to the worker works with this acid without face shield. It is danger to use mouth to draw HCL into a pipette.

PROBABILITY
What is probability?
Probability is the chance that a hazard will cause harm. In risk management systems, probability is often categorized as:

1.frequent (workers are frequently at risk)
2.probable (the hazard is likely to cause harm)
3.occasional (workers are occasionally at risk)
4.remote (the hazard could cause harm, but is very unlikely to do so)
5.improbable (the hazard is unlikely to ever cause harm)

SEVERITY

What is severity?
Severity is the seriousness of the harm that could result from contact with a hazard. It is described as:

1.catastrophic (death and/or severe destruction)
2.critical (serious injury and/or property damage)

3.marginal (minor injury and/or property damage)

RISK ASSESSMENT

Using sound concepts to detect HAZARDS and estimate the risk they pose.

OPERATIONAL RISK MANAGEMENT

The process of dealing with risk associated with risk operations, which includes;

1.Risk Assessment,
2.Risk Decision Making
3.Implementation of Risk Controls.

RISK MANAGEMENT PROCESS

1.Identify Hazards
2.Assess Hazards
3.Make Risk Decisions
4.Implement Controls
5.Supervise

RISK MANAGEMENT RULES

1.Integrate into planning
2.Accept no unnecessary risks
3.Make risk decisions at the proper level
4.Accept risk if benefits
5.Outweigh the cost

MAKE RISK DECISIONS

1.Consider Risk Control Options
i.Start with Most Serious Risk First
ii.Refer to preliminary Hazard Analysis Causes
2.Does Benefit Outweigh Risk
3.Communicate with Higher Authority, if Required

GAMBLING

Making risk decisions without reasonable or prudent assessment or management of the risk involved

SUMMARY

Risk management is a systematic way of thinking.
The risk management process increases awareness of hazards and risks involved in an operation