ARC 515 - 18

SPECIALIZATION 2:
RISK MANAGEMENT

First Semester 2022-2023

AR. OWEN L. RAMOS

RESEARCH 3:
RISK ASSESSMENT

TIERRA, MONIQUE C.
18 – 11329 – 958 | 5-AR1

1 ARC515-18 SPECIALIZATION 2
TABLE OF CONTENTS

What is Risk Assessment? ....................................................................................... 3

When do you perform a Risk Assessment? ............................................................... 4
3 Types of Risk Assessment ...................................................................................... 4
Examples of Risk Assessment ................................................................................... 4
What is Qualitative Risk Analysis? ........................................................................ 5
What is Quantitative Risk Analysis? ..................................................................... 5
Difference between Qualitative and Quantitative Risk Analysis .............................. 5
Qualitative Risk Analysis Steps ................................................................................. 5
Quantitative Risk Analysis Steps ............................................................................... 6
Tools and Techniques ................................................................................................ 7
Summary .................................................................................................................... 8
References: ................................................................................................................. 9

2 ARC515-18 SPECIALIZATION 2
What is Risk Assessment?
During the risk assessment process, employers review and evaluate their organizations to:

o Hazard Identification - Identify processes and situations that may cause harm,
particularly to people.
o Risk Analysis and Evaluation - Determine how likely it is that each hazard will occur and
how severe the consequences would be.
o Risk Control - Decide what steps the organization can take to stop these hazards from
occurring or to control the risk when the hazard can't be eliminated.
It’s important to note the difference between hazards and risks. A hazard is anything that
can cause harm, including work accidents, emergency situations, toxic chemicals, employee
conflicts, stress, and more. A risk, on the other hand, is the chance that a hazard will cause harm.
As part of your risk assessment plan, you will first identify potential hazards and then calculate the
risk or likelihood of those hazards occurring.
The goal of a risk assessment will vary across industries, but overall, the goal is to help
organizations prepare for and combat risk. Other goals include:
o Providing an analysis of possible threats
o Preventing injuries or illnesses
o Meeting legal requirements
o Creating awareness about hazards and risk
o Creating an accurate inventory of available assets
o Justifying the costs of managing risks
o Determining the budget to remediate risks
o Understanding the return on investment
Businesses should perform a risk assessment before introducing new processes or
activities, before introducing changes to existing processes or activities (such as changing
machinery), or when the company identifies a new hazard. The steps used in risk assessment form
an integral part of your organization’s health and safety management plan and ensure that your
organization is prepared to handle any risk.

3 ARC515-18 SPECIALIZATION 2
When do you perform a Risk Assessment?
Beyond complying with legislative requirements, the purpose of risk assessments is to eliminate
operational risks and improve the overall safety of the workplace. It is employers’ responsibility
to perform risk assessments when:

o New processes or steps are introduced in the workflow;

o Changes are made to the existing processes,
o Equipment, and tools; or new hazards arise.

3 Types of Risk Assessment

While the exact details of risk assessments may vary greatly across different industries, HSE
distinguishes three general risk assessment types:

o Large Scale Assessments - This refers to risk assessments performed for large scale
complex hazard sites such as the nuclear, and oil and gas industry. This type of assessment
requires the use of an advanced risk assessment technique called a Quantitative Risk
Assessment (QRA).
o Required specific assessments - This refers to assessments that are required under specific
legislation or regulations, such as the handling of hazardous substances (according to
COSHH regulations, 1998) and manual handling (according to Manual Handling
Operations Regulations, 1992).
o General assessments - This type of assessment manages general workplace risks and is
required under the management of legal health and safety administrations such as OSHA
and HSE.

Examples of Risk Assessment

Risk assessments are essential to identify hazards and risks that may potentially cause harm to
workers. There are a variety of risk assessments used across different industries tailoring specific
needs and control measures. Here are common risk assessment examples:

o Health and Safety Risk Assessment – a type of risk assessment used by safety managers
to determine health and safety risks associated with the job, work environment, and current
processes. Hazards can be identified as biological, chemical, energy, environmental, and
the like.
o Workplace Risk Assessment – performed by office managers and school administrators,
this tool helps ensure that a workplace is free from health and safety threats. This
assessment also helps boost employee morale and productivity.
o Fall Risk Assessment – performed by the nursing staff of aged care units or centers to
evaluate the possibility of falling. This checklist will ensure that the facilities, equipment,
and other factors are safe for elderly patients.
o Construction Risk Assessment – a vital assessment used in the construction site to help
safety teams implement corrective measures and stakeholders comply with safety
regulations.

4 ARC515-18 SPECIALIZATION 2
What is Qualitative Risk Analysis?
Qualitative risk analysis is the process of rating or scoring risk based on a person’s
perception of the severity and likelihood of its consequences. The goal of qualitative risk
analysis is to come up with a short list of risks which need to be prioritized above others.

What is Quantitative Risk Analysis?

Quantitative risk analysis is the process of calculating risk based on data gathered. The
goal of quantitative risk analysis is to further specify how much the impact of the risk will cost
the business. This is achieved by using what’s already known to predict or estimate an outcome.

Difference between Qualitative and Quantitative Risk Analysis

The key difference between qualitative and quantitative risk analysis is the basis for
evaluating risks. As mentioned earlier, qualitative risk analysis is based on a person’s perception
or judgment while quantitative risk analysis is based on verified and specific data.

Another difference is the values associated with risks. In qualitative risk analysis, this value
is the risk rating or scoring. A risk may be rated “Low” or given a score of 1 to indicate that the
risk does not require immediate attention. In quantitative risk analysis, the value associated with
the risk is often in percentages and indicates the probability of the risk occurring or of it causing a
specific negative effect on project objectives.

Qualitative Risk Analysis Steps

1. Identify hazards

The first step to creating your risk assessment is determining what hazards your employees and
your business face, including:
o Natural disasters (flooding, tornadoes, hurricanes, earthquakes, fire, etc.)
o Biological hazards (pandemic diseases, foodborne illnesses, etc.)
o Workplace accidents (slips and trips, transportation accidents, structural failure,
mechanical breakdowns, etc.)
o Intentional acts (labor strikes, demonstrations, bomb threats, robbery, arson, etc.)
o Technological hazards (lost Internet connection, power outage, etc.)
o Chemical hazards (asbestos, cleaning fluids, etc.)
o Mental hazards (excess workload, bullying, etc.)
o Interruptions in the supply chain
2. Evaluate the risks
To evaluate a hazard’s risk, you have to consider how, where, how much and how long individuals
are typically exposed to a potential hazard. Assign a risk rating to your hazards with the help of a
risk matrix. Using a risk matrix can help measure the level of risk per hazard by considering factors
such as the likelihood of occurrence, and severity of potential injuries. Meanwhile, performing
an environmental analysis lets you gauge potential risks and their impacts on your business
environment.

5 ARC515-18 SPECIALIZATION 2
3. Decide on control measure to implement
Now that you have gathered a list of potential hazards, you need to consider how likely it is that
the hazard will occur and how severe the consequences will be if that hazard occurs. This
evaluation will help you determine where you should reduce the level of risk and which hazards
you should prioritize first.

4. Document your findings

If you have more than five employees in your office, you are required by law to write down your
risk assessment process. Your plan should include the hazards you’ve found, the people they affect,
and how you plan to mitigate them. The record—or the risk assessment plan—should show that
you:
o Conducted a proper check of your workspace
o Determined who would be affected
o Controlled and dealt with obvious hazards
o Initiated precautions to keep risks low
o Kept your staff involved in the process
5. Review your assessment and update if necessary
Your workplace is always changing, so the risks to your organization change as well. As new
equipment, processes, and people are introduced, each brings the risk of a new hazard. Continually
review and update your risk assessment process to stay on top of these new hazards.

Quantitative Risk Analysis Steps

Risk assessments should be carried out by competent persons who are experienced in assessing
hazard injury severity, likelihood, and control measures. To start off, good planning will be
essential in order to implement a risk assessment effectively. Consider the following 4 elements
as stated by the Occupational Safety and Health Administration (OSHA):

1. What is your scope?

Determining the scope when planning your risk assessment can help you figure out what resources
you would need. Be specific about what you’re assessing. Are you assessing a product? An
organizational process? Or a workplace area?

2. What resources do you need?

Determine the kind of training, tools, and equipment your team needs to effectively carry out the
risk assessment. You should also determine the risk analysis measures you are going to use and
know why they are the best choice for your purpose.

3. Who is involved?

Note the personnel involved in your risk assessment planning and implementation. They could be
managers, supervisors, workers, or suppliers. This helps you identify additional resources that can
help you improve the effectiveness of your risk assessment.

4. What laws, regulations, and internal policies do you need to comply with?

Non-compliance could lead to hefty fines and other offenses that can spell trouble for your
operation. Determine the laws, regulations, codes, standards, and internal policies you need to
consider when conducting your risk assessment.

6 ARC515-18 SPECIALIZATION 2
Tools and Techniques
1. Risk Assessment Chart

Even though you need to be aware of the risks facing your organization, you shouldn’t try to fix
all of them at once—risk mitigation can get expensive and can stretch your resources. Instead,
prioritize risks to focus your time and effort on preventing the most important hazards. To help
you prioritize your risks, create a risk assessment chart.
The risk assessment chart is based on the principle that a risk has two primary dimensions:
probability and impact, each represented on one axis of the chart. You can use these two measures
to plot risks on the chart, which allows you to determine priority and resource allocation.

2. Risk Matrix
A risk matrix is often used during a risk assessment to measure the level of risk by considering the
consequence/ severity and likelihood of injury to a worker after being exposed to a hazard. The
two measures can then help determine the overall risk rating of the hazard. Two key questions to
ask when using a risk matrix should be:
o Consequences: How bad would the most severe injury be if exposed to the hazard?
o Likelihood: How likely is the person to be injured if exposed to the hazard?

7 ARC515-18 SPECIALIZATION 2
3. Assess Consequences
In assessing the consequences of a hazard, the first question should be asked “If a worker is
exposed to this hazard, how bad would the most probable severe injury be?”. For this consideration
we are presuming that a hazard and injury is inevitable and we are only concerned with its severity.
It is common to group the injury severity and consequence into the following four categories:
o Fatality – leads to death
o Major or serious injury – serious damage to health which may be irreversible, requiring
medical attention and ongoing treatment
o Minor injury – reversible health damage which may require medical attention but limited
ongoing treatment). This is less likely to involve significant time off work.
o Negligible injuries – first aid only with little or no lost time.
To illustrate how this can be used in the workplace we will use the example of a metal shearing
task. A hazard involved could include a piece of metal flying out of the equipment while in use. In
this example the probable most severe injury would be “Major or Serious Injury” with the
possibility of bruising, breakage, finger amputation.

4. Assess Likelihood
In assessing the likelihood, the question should be asked “If the hazard occurs, how likely is it that
the worker will be injured?”. This should not be confused with how likely the hazard is to occur.
It is common to group the likelihood of a hazard causing worker injury into the following four
categories:
o Very likely – exposed to hazard continuously.
o Likely – exposed to hazard occasionally.
o Unlikely – could happen but only rarely.
o Highly unlikely – could happen, but probably never will.

Summary

Qualitative Risk Analysis Quantitative Risk Analysis

Risk-level Project-level

Subjective evaluation of probability and impact Probabilistic estimates of time and cost

Quick and easy to perform Time-consuming

No special software or tools required May require specialized tools

8 ARC515-18 SPECIALIZATION 2
References:
https://www.pmlearningsolutions.com/blog/qualitative-risk-analysis-vs-quantitative-risk-
analysis-pmp-concept-1

https://safetyculture.com/topics/qualitative-and-quantitative-risk-analysis/
https://safetyculture.com/topics/risk-assessment/
https://www.lucidchart.com/blog/risk-assessment-process

9 ARC515-18 SPECIALIZATION 2