11 Jul 2023
OCCUPATIONAL SAFETY
AND HEALTH
RISK MANAGEMENT
Presented By:
Engr. JEFF LUGO, ME-CE
MASTERS IN ENGINEERING – CIVIL ENGINEERING
Module description
This module discusses the importance of the risk
management process. This will enable the
participants to proactively determine inherent
risks in the organization’s activities, and develop
solutions to mitigate any form of losses.
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11 Jul 2023
Session objectives:
Understand the basic principles of planning in
the implementation of an OSH Management
system
Make a risk register (HIRAC, Risk assessment)
Determine what are the appropriate OSH
programs needed to addressed risk identified
Session outline
Basic OSH terminologies
Hazard vs. Risk
Conceptual framework for risk management process
Identification of hazards
Creating risk matrix
Determining risk tolerance
Determining likelihood or probability of risks
Risk control action points
Corrective actions – development of OSH programs
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ACCIDENT THEORY
Material
Machine Methods
HAZARDS
Environment Manpower
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Cost of Accident
Medical
VISIBLE Damage to
Treatment
Machines Man Hours Lost Repairs
LESS
Quality Problems
VISIBLE
Confusion
Damage to Tools Production Delays
Warranty Claims Lost Time
Late Charges Duplication of Effort
Rush Deliveries Rejects Turf Battles
Customer Dissatisfaction Absenteeism Grievances
Rework Retraining
Unnecessary Reports
Audit Costs
Miscommunication Blaming & Fault Finding
Surveillance Costs
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Types of Accident
1. Struck by 5. Falls
2. Struck against - Same level
3. Contact with - To below
4. Caught
6. Over-exertion – strain
accident
in/on/between
7. Fire, explosions, etc
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Definition of terms
Employee – shall mean any person hired,
permitted or suffered to work by an employer
Health – shall connote a sound state of body and
mind of the worker
Definition of terms
Occupational Health (WHO/ILO) –
• Promotion and maintenance of the highest degree of
physical, mental & social well-being of workers of all
occupations
• Prevention among its workers of departures from health
caused by their working conditions
• Prevention among its workers of departures from health
caused by their working conditions
• Placing & maintenance of the worker in an occupational
environment adapted to his/her physiological ability
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Definition of terms
Safe or Safety – shall refer to the physical or
environmental conditions of work or employment
Work accident – unwanted, unforeseen,
unplanned events which may lead to personal
injury, property damage, work stoppage or any
combination thereof, which arises out of and in
the course of employment
Definition of terms
Acceptable risk– risk that has been reduced to a
level that can be tolerated by the organization
having regard to its legal obligations
Hazard identification – process of recognizing that a
hazard exists and defining its characteristics
Risk assessment – process of evaluating the risks
arising from the hazards, taking into account the
adequacy of any existing controls, and deciding
whether or not the risk is acceptable.
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HAZARDS - source, situation or act with a
potential for harm in terms of human injury
or ill health , or a combination of these
RISKS - effect of uncertainty. It is often
expressed in terms of combination of the
consequences of an event and the
associated likelihood of occurrence
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Characteristics of risks
Risk is relative and pervasive
Affects everyone
Analysis and evaluation is essential
Why risks exists
Inherent
Complexity (evolving)
Changes, development,
progress
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Internal –
operational
/ hazards
Risk
External –
financial /
strategic
RISK MANAGEMENT
coordinated activities to direct and
control an organization with regard
to risk
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Rationale of risk management:
To improve the chance of realizing
objectives:
Understand risk
Know when and how to treat the risks
Put measures to quantify uncertainties
11 Principles of risk management
Creates and protects value
Integral part of all organizational
processes
Part of decision making
Explicitly addresses uncertainty
Systematic, structured and timely
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11 Principles of risk management
Based on best available information
Tailored
Takes human and cultural factors into
account
Transparent and inclusive
Dynamic, iterative and responsive to
change
Facilitates continual improvement
Risk management is
proactive, predictive
could be preventative
and not reactive.
“ Effective risk
management helps
you run faster. ”
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Establishing the context
Project management
Processes/operational activities
Public health and safety
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Communication and consultation
External / internal stakeholders
May necessitate change management
May need to develop external/internal
communication plan
Identification of risks
(How do we identify risks?)
External
Operational - Dependent upon the scope
of a project, process, or activity
Change – new programs, new projects,
new policies
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Techniques to identify risks
Brainstorming
Questionnaires
Job Hazard analysis
Safety inspections
Accident investigations
Industry benchmarking
The procedure for hazards identification and risk
assessments shall take into account the following:
Routine and non-routine activities
Activities of all persons having access to
the workplace (including contractor and
visitors)
Human behavior, capabilities and other
human factors
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The procedure for hazards identification and risk
assessments shall take into account the following:
Identified hazards originating outside the
workplace capable of adversely affecting
the health & safety of persons under the
control of the organization within the
workplace.
Hazards created in the vicinity of the
workplace by work-related activities under
the control of the organization
The procedure for hazards identification and risk
assessments shall take into account the following:
Infrastructure, equipment and materials at
the workplace, whether provided by the
organization or others
Modifications to the OH&S management
system including temporary changes,
including their impacts on operations,
processes and activities
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ACTIVITY 1
Hazard and risks identification
Per group, Identify at least 5 activities in
the construction industry
Per identified activity, give at least two (2)
hazards and two (2) risks
Identify what are the existing controls by
the organization to mitigate the risks
Report to the group after
ACTIVITY HAZARDS RISKS EXISITNG CONTROLS
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RISK MATRIX
A risk matrix is a chart that plots the
severity of an event occurring on one axis,
and the probability of it occurring on the
other.
It defines the level of risk and assists the
management in decision making
Helps the management establish its risk
appetite
“ There’s no absolute
standard for risk matrix scale,
it depends on its usability
and judgments. ”
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RISK MATRIX
Determine the criteria of severity and
likelihood
Colour can also be used in clarifying risk
significance
Usually risk matrix is a 3x3 table or a 5x5
table
Measures of likelihood
LEVEL DESCRIPTOR EXAMPLED DETAILED DESCRIPTION
May only occur in exceptional circumstances (e.g.
1 Rare
once in 20 years)
2 Unlikely Could occur some time (e.g. once in 10 years)
3 Possible Might occur some time (e.g. once in 5 years)
4 Likely Will probably occur at some time (e.g. every year)
Is expected to occur in many circumstances (e.g.
5 Almost Certain
many times per year)
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Measures of severity
LEVEL DESCRIPTOR EXAMPLED DETAILED DESCRIPTION
No injuries, no environmental damage, no
1 Insignificant
operational/financial or reputation loss
First aid treatment, on site releases of pollutant
2 Minor is immediately contained, minor
operational/financial and reputation loss
Medical treatment required, off-site pollutant
release causing moderate environmental
3 Moderate
damage, moderate operational/financial and
reputation loss
Extensive injuries, permanent disability, loss of
production capability, off-site pollutant release
4 Major
causing major environmental damage, major
operational/financial and reputation loss
Fatality, off-site pollutant release causing
5 Catastrophic severe environmental damage, huge
operational/financial and reputation loss
Risk Matrix
Legend:
L Low Risk – considered acceptable. No further action/controls are necessary
M Moderate Risk – relatively acceptable. However further actions/controls should be considered
H High Risk – unacceptable level of risk. Further actions/controls must be developed and implemented
E Extreme Risk – unacceptable level of risk. Further actions/controls must be immediately implemented or
eliminated
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ACTIVITY 2 – Creation of risk matrix
Per group, Identify your criteria of
likelihood and severity
Create a 5 x5 risk matrix
Decide what are the levels of risk and how
do you address them
Report to the group after
Risk evaluation
Risk evaluation allows an organization to
assess the threats and opportunities posed by
risk
Process of comparing the results of risk
analysis with risk criteria to determine whether
the risk and/or its magnitude is acceptable or
tolerable
Facilitates assessment of current controls (if
available or not) and prioritization
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Risk evaluation steps
1. Assess both inherent risks by multiplying
the severity and likelihood to determine
the risk rating
2. Consider the effectiveness of the
existing controls upon assessing the risks
3. Rank risk according to result,
significance
4. Identify root causes of risk and
contributing factors (internal/external)
ACTIVITY 3 – Hazard and risks
identification
Assess the identified risks on workshop 1
Prioritize the risks after coming up with the
risk rating
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ACTIVITY HAZARDS RISKS EXISITNG Likelihood Severity Risk score Risk Risk
CONTROLS Rating priority
number
Risk control
After assessing the risks and ranking it
according to its priority, the next step is to
think of additional controls, on top of the
existing controls, to either eliminate the
risk or at least lessen its impact.
Additional controls must follow the
HIERARCHY OF CONTROLS
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Hierarchy of controls
Engineering controls
Administrative controls
Personal protective equipment
ACTIVITY 4 – Additional controls
Based on the risk assessment conducted,
think of additional controls to be used to
ensure that the risk will be totally
eliminated or at least it will lessen its
impact
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ACTIVITY HAZARDS RISKS EXISITNG Likelihood Severity Risk Risk Risk Addt’l
CONTROLS score Rating priority controls
number
N/A N/A
Corrective Actions and risk treatment planning
(the development of OSH Program)
Risk treatment (additional controls) shall
be given to those significant risks in the
organization.
Risk treatment shall aim to provide:
Effective and efficient operations
Cost effective internal controls
Compliance with regulatory
requirements
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Risk treatment plan should include
Proposed action Resource requirements
Responsibilities Timing
Performance measures Reporting and
monitoring requirements
ACTIVITY 5 – Risk treatment plan
Based from the identified additional
controls earlier on the previous workshop,
create at least one (1) risk treatment plan
(or OSH Program).
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Risk treatment plan
1. What is the name of the program?
2. Who are persons responsible for the program (Top
management, Managers/supervisors, workers) AND their
responsibilities?
3. What are the resources needed to deliver the program?
4. How frequent will the safety activity be conducted?
5. What are the steps in doing the safety activity?
6. How frequent will the program be evaluated? Who will
evaluate the program?
Monitoring and review
Regular checking – periodic or ad hoc
Helps in ensuring control are effective and
efficient in both design and operation
Helps in obtaining further info to improve RM
process
Facilitates in identifying emerging risks
Looks out for residual risks
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Summary and conclusion
Risk management process must be an
iterative activity
It must involve inputs from co-workers
It must be be communicated to all
involved in the project
It must be a proactive approach in safety
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