1. Risk Assessment: A Practical Guide to Assessing Operational Risk
Chapter 2:
Risk Assessment Standards and Definitions

2. Risk Assessments: Their Significance and the Role of the Safety Professional
Objectives
Introduce the Need for Risk Assessments
Review Compliance Standards that Require Hazard Determination and Analysis
Review Consensus Standards that Prescribe Risk Assessment
Define Key Risk Assessment Terminology

3. Introduce the Need for Operational Risk Assessments
The single most important component within operational risk management is the process of identification, analysis and assessment of risk. Without this element, there is little hope of managing risk.
The purpose of risk assessment is to identify and analyze hazards, and assess their risks so that management can properly avoid, mitigate and manage operational risks.

4. Key Standards Requiring Risk Assessments
In Europe, Australia, New Zealand, Canada and other parts of the world, occupational risk assessments have become a common practice. This is largely due to the fact that these countries have national standards requiring risk assessments in the workplace. For instance in the United Kingdom, the Health and Safety Executive (H&SE) has legally required all employers with five or more employees to perform risk assessments since 1999.

5. Key Standards Requiring Risk Assessments
However, few risk assessments are mandated in the United States, with the exception of the Occupational Safety and Health Administration (OSHA) 29 CFR Process Safety Management of Highly Hazardous Chemicals standard, and the Environmental Protection Agency (EPA) 40 CFR Part 68, Risk Management Plan standard.

6. Key Standards Requiring Risk Assessments
OSHA formed in 1970
OSHA’s stated mission is to assure safe and healthful workplaces by setting and enforcing standards, and by providing training, outreach, education and assistance.
Before OSHA can issue a standard, it must go through an extensive and lengthy process that includes substantial public engagement, notice and comment periods. This is known as OSHA's "rulemaking process."

7. Key Standards Requiring Risk Assessments
According to the ‘OSHA Rulemaking Process’ flowchart, the process begins with an identified health or safety hazard, and includes hazard analyses and risk assessments.
In fact, many of the standards are in direct response to a serious accident or large loss such as the , Process Safety Management of Highly Hazardous Chemicals standard and the Union Carbine Bhopal methylisocyanate (MIC) gas release tragedy of 1984.

8. OSHA Standards which include Hazard Analysis
, Personal Protective Equipment Standard

9. OSHA Standards which include Hazard Analysis
, Process Safety Management Standard
What-If Analysis
Checklists Analysis
What-If/Checklists Analysis
Hazard and Operability Study (HAZOP)
Failure Mode and Effects Analysis (FMEA)
Fault Tree Analysis (FTA)
Chapter 6
Chapter 8

10. OSHA Standards which include Hazard Analysis
, Permit-required Confined Space standard requires an initial evaluation of the workplace to identify confined spaces and determine if they are “permit- required” spaces, the identification and evaluation of hazards prior to entry into Permit spaces
, Hazard Communication standard requires an inventory of hazardous chemicals and a hazard determination be made.
Thus, risk assessments, while not specifically required, are a technique that should be used to comply with these requirements.

11. Management Systems and Risk Assessment
ANSI/AIHA/ASSE Z , Occupational Health and Safety Management Systems
Assessment and Prioritization – Section 4.2
Risk Assessment – Section & Appendix F
Design Review and Management of Change – Section & Appendix H

12. Management Systems and Risk Assessment
BSI OHSAS , Occupational Health and Safety Management Systems
Hazard Identification, risk assessment and determination of controls – Section 4.3.1
ILO OHSMS-2001
Initial Review – Section 3.7
Continual Improvement – Section 3.16
Management of Change – Section
OSHA VPP – 2008
Hazard Analysis of Routine Jobs, Task, and Processes
Worksite Analysis
Hazard Analysis of Significant Changes
Pre-use Analysis

13. Consensus Standards requiring Risk Assessment
ISO 31000/ANSI/ASSE Z690 Risk Management Series
ANSI/ASSE Z , Vocabulary for Risk Management (National Adoption of ISO guide 73:2009)
ANSI/ASSE Z , Risk Management Principles and Guidelines (National Adoption of ISO 31000:2009)
ANSI/ASSE Z , Risk Assessment Techniques (National Adoption of IEC/ISO 31010:2009)

14. Consensus Standards requiring Risk Assessment
ANSI Z690 Risk Management Process

15. Consensus Standards requiring Risk Assessment
ANSI/ASSE Z , Prevention through Design
developed to provide consistent procedures for conducting hazard analysis and risk assessment in the design and redesign process
standard is unique in that it is intended to by applied at pre- operation, operational, post incident and/or post operational stages of products, processes and operations

16. Consensus Standards requiring Risk Assessment
ANSI B , Safety of Machinery, General Requirements and Risk Assessment
applies to new, existing, modified and rebuilt power driven stationary machines used to shape or form materials through cutting, impact, pressure, electrical and other processing methods

17. Consensus Standards requiring Risk Assessment
ANSI B11.TR3-2000, Risk assessment and risk reduction – A guide to estimate, evaluate and reduce risks associated with machine tools
A Technical Report that defines a method for identify hazards associated with a particular machine or system when used as intended
provides a procedure to estimate, evaluate and reduce the risks of harm to individuals associated with these hazards under the various conditions of use of that machine or system

18. Consensus Standards requiring Risk Assessment
National Fire Protection Association’s 2015 NFPA 70E: Standard for Electrical Safety in the Workplace
standard addresses workplace electrical safety and includes guidance for performing risk assessments of arc flash, shock, and electrical hazards exposures

19. Military Standards requiring Risk Assessment
MIL-STD-882 is one of the earliest U.S. standards on risk assessment which outlines the following system safety steps:
1. Document the System Safety Approach
2. Identify and Document Hazards
3. Assess and Document Risk
4. Identify and Document Risk Mitigation Measures
5. Reduce Risk
6. Verify, Validate and Document Risk Reduction
7. Accept Risk and Document
8. Manage Life-Cycle Risk

20. Key Terms and Definitions
Hazard: The potential for harm. (ANSI/ASSE Z ) Risk: An estimate of the probability of a hazard-related incident or exposure occurring and the severity of harm or damage that could result. (ANSI/ASSE Z )

21. Key Terms and Definitions
Likelihood: Chance of something happening. (ANSI/ASSE Z ) Probability: An estimate of the likelihood of an incident or exposure occurring that could result in harm or damage for a selected unit of time, events, population, items or activity being considered. (ANSI/ASSE Z ) Consequence: Outcome of an event affecting objectives. (ANSI/ASSE Z ) Severity (of consequence): An estimate of the magnitude of harm or damage that could reasonably result from a hazard-related incident or exposure. (ANSI/ASSE Z )

22. Key Terms and Definitions
Risk Assessment: A process that commences with hazard identification and analysis, through which the probable severity of harm or damage is established, followed by an estimate of the probability of the incident or exposure occurring, and concluding with a statement of risk. (ANSI/ASSE Z ) Risk Assessment Process: The entire process of identifying hazards, assessing risk, reducing risk, and documenting the results. (ANSI B )

23. Key Terms and Definitions
Risk Identification: Process of finding, recognizing and describing risks. (ANSI/ASSE Z ) Risk Analysis: Process to comprehend the nature of risk and to determine the level of risk. (ANSI/ASSE Z ) Risk Evaluation: Process of comparing the results of risk analysis with risk criteria to determine whether the risk and/or its magnitude is acceptable or tolerable. (ANSI/ASSE Z )

24. Key Terms and Definitions
Level of Risk: Magnitude of a risk or combination of risks, expressed in terms of the combination of consequences and their likelihood. (ISO Guide 73/ANSI/ASSE Z ) Risk Matrix: Tool for ranking and displaying risks by defining ranges for consequence and likelihood. (ANSI/ASSE Z )

25. Key Terms and Definitions
Acceptable Risk: That risk for which the probability of an incident or exposure occurring and the severity of harm or damage that may result are as low as reasonably practicable (ALARP) in the setting being considered. (ANSI/ASSE Z ) Control: Measure that is modifying risk. (ANSI/ASSE Z ) Residual Risk: The risk remaining after risk reduction measures have been taken. (ANSI/ASSE Z )

26. Key Terms and Definitions
Hierarchy of Controls: A systematic approach to avoiding, eliminating, controlling, and reducing risks, considering steps in a ranked and sequential order, beginning with avoidance, elimination, and substitution. (ANSI/ASSE Z ) Hazard/Risk Avoidance: Prevent entry of hazards into a workplace by selecting and incorporating appropriate technology and work methods criteria during the design processes. (ANSI/ASSE Z ) Hazard/Risk Elimination: Eliminate workplace and work methods risks that have been discovered. (ANSI/ASSE Z )

27. Key Terms and Definitions
Prevention through Design: Addressing occupational safety and health needs in the design and redesign process to prevent or minimize the work-related hazards and risks associated with the construction, manufacture, use, maintenance, retrofitting, and disposal of facilities, processes, materials, and equipment. (ANSI/ASSE Z )

28. Key Terms and Definitions
Operational Risk: Risks that are generated from work related hazards. (Authors) Operational Risk Management System: A management system that encompasses all operational risks such as occupational safety, health, environmental, liability, and other risks that must be managed to achieve and sustain the organization’s business objectives through a continually improve process. (Authors)

29. Conclusion
Safety, health and environmental professionals should develop an understanding of standards and guidelines prescribing operational risk assessment for organizations, and their importance in shaping the SH&E professional’s role in occupational safety and health.