Presentation on theme: "Risk Management an Element of Loss Control"— Presentation transcript:
1 Risk Management an Element of Loss Control A Review of RiskManagementFundamentalsContributed by: Ben Sheppard, CMSPBWS&A – Building Stones, Inc.P.O. Box 90Cataldo, ID 83810Phone:A.4
2 The Fundamentals of Risk Management Recognize that loss potential existsIdentify all loss potentialsEliminate or control all potentials to an acceptable level
3 Assessment and Management of Hazards Hazard IdentificationRisk AssessmentRisk ControlMeasurement and Record Keeping
4 Hazard Identification – consists of identifying any condition that has potential to cause a loss to persons, property, production or planet.
5 Risk Assessment– consists of determining what the actual loss potential may be.
6 Risk Control– consists of eliminating and/or reducing the risk to an acceptable level
7 Measurement and Record Keeping – consists of measuring the control and documenting the results.
8 Hazard/Nonconformance Inspections Record each nonconformance/substandard act and/or practiceCategorize each nonconformance* Establish a numerical system forprioritizing each nonconformance
9 Developing Categories for Establishing Priorities Establish a system of classification that will set a priority for fixing or correcting each nonconformance found during an inspection.* I.E., class etc. or class A-B-C-D-etc.Give each item on the nonconformancelist a number or letter that sets a firmaction priority.
10 Priority Actions - Examples Class 1 or A = Emergency – Correct ImmediatelyClass 2 or B = Urgent – Correct within 24 hoursClass 3 or C = Correct within one weekClass 4 or D = Correct within one MonthEtc.
11 Priority ActionsPriorities are based on event consequences and/or probability of occurrenceOr another way of saying the same thingFrequency of exposure and severity potential
12 Priority Actions – Hazard Classifications Class “A” Hazard A condition or practice likely to cause permanent disability, loss of life or body part, and/or extensive loss of structure equipment or material.Example 1 - a large slab of loose hanging wall at ahaulage cross cut.Example 2 - unmarked and unplugged misfire in a facebeing drilled.
13 Priority Actions – Hazard Classifications Class “B” Hazard A condition or practice likely to cause serious injury of illness (resulting in temporary disability) or property damage that is disruptive, but less severe than Class “A.”Example 1 - Loading operations in a blasted endcommencing before watering down.Example 2 - Missing step in the middle of astepladder.
14 Priority Actions – Hazard Classifications Class “C” Hazard A condition or practice likely to cause minor (non-disabling) injury or illness or non-disruptive property damage.Example 1 - Worker handling timber without using gloves.Example 2 - Slippery footwall in travel way.
15 6 Key Subjects for Risk Decisions CLASSIFICATION OF EXPOSUREPROBABILITY OF OCCURRENCECOST OF CONTROLDEGREE OF CONTROLALTERNATIVESJUSTIFICATION
16 6 Key Questions of Risk Decisions 1. CLASSIFICATION OF EXPOSUREWhat is the potential severity of loss ifan incident occurs?A - MajorB - SeriousC - Minor
17 6 Key Questions of Risk Decisions 2. PROBABILITY OF OCCURRENCEWhat is the probability that a loss will occur from this exposure of hazard?A - HighB - ModerateC - Low
18 6 Key Questions of Risk Decisions 3. COST OF CONTROLWhat is the cost of the recommended control?A - High (establish meaningful cost ranges for your own organization)B - MediumC - Low
19 6 Key Questions of Risk Decisions 4. DEGREE OF CONTROLWhat degree of control will be achievedby this expenditure?A - Substantial or Complete ( %)B - Moderate ( %)C - Low (1 - 33%)
20 6 Key Questions of Risk Decisions 5. ALTERNATIVESWhat are the alternative controls?6. JUSTIFICATIONWhy is this one suggested?
21 Identifying HazardsHazard identification is the most important and critical component of risk assessment.AndHazard analysis is the most important safety process.If these fail – all other processes will most likely be defective.
22 Identifying Hazards ASK THE QUESTION(S) HOW COULD PERSONS BE INJURED? HOW COULD PROPERTY BE DAMAGED?HOW COULD PRODUCTION BE DELAYED?HOW COULD THE ENVIRONMENT BE HARMED?
23 A few examples of methods used to identify hazards Identifying HazardsA few examples of methods used to identify hazardsCommon sense & experiencePotential contacts with energy and/or substanceStandard reviewsUtilize the manufactures recommendationsUtilize the operator or process userUtilize similar processesUtilize checklistsAnalyze incident reportsAnalyze industry historical informationEtc.
24 Reduce or Eliminate Risk Beginning with the Most Effective Control Measures and Ranking to the Least Effective ControlEliminate or control hazards and risks through System design and redesign.Reduce risk by utilizing materials and methods that reduce the hazard and risk.Utilize barriers (I.e., guards, fences, that prevent contact)Utilize warning systems (I.e., alarms, lights and etc.)Utilize administrative controls (I.e., training, exposure frequency, etc.)Utilize Personal Protective Equipment (PPE)
25 Risk Assessment Updating Risk assessments should be updated when:A design is changedThe process is changed in any wayControls are changed or modifiedContiguous processes with potential to affect are modified
26 Review Questions (Answers on the next slide) In order to eliminate or reduce risk, the use of PPE should be the ______ choice utilized:FirstLastWhat is the first step in the assessment and management of risk?.Hazard identificationRisk assessmentRisk controlCost analysisWhich of the following should not be a factor in risk management decisions?SeverityProbabilityCost of controlDegree of controlLegal cost of no action
27 Answers to the Review Questions In order to eliminate or reduce risk, the use of PPE should be the ______ choice utilized:b. LastWhat is the first step in the assessment and management of risk?.Hazard identificationWhich of the following should not be a factor in risk management decisions?e. Legal cost of no action
28 Answers to the Review Questions A Hearing Conservation Program includes all of the following, except:b. Predictive Equipment Maintenance___ dBA, called the Action Level, are required to be enrolled in a Hearing Conservation Program.a. 85A Standard Threshold Shift (STS) is a decrease in a miner’s hearing by an average of ___ dB compared to his baseline audiogram.b. 10