Risk management Be aware. Take care. Hazards exist wherever you work. They can place you and others at risk.

Managing risk Risk management is a process to help people to eliminate or reduce the risk of injury or illness to people and loss or damage to property. The process has three steps: 1 identifying the hazard 2 assessing the risk 3 controlling the risk.

1 Identifying the hazard A hazard has the potential to cause: • harm, that is, injury or illness • loss, that is, damage to property or equipment.

2 Assessing the risk To measure risk you need to: • determine the likelihood and consequences • conduct a risk assessment.

Likelihood and consequences The likelihood of a hazard causing harm or loss is rated on a scale ranging from rare to probable. The consequence of a hazard causing harm or loss is rated on a scale ranging from insignificant to catastrophic. rare unlikely possible probable insignificant minor major catastrophic moderate

Conduct a risk assessment Use a grid to establish the level of risk. Plot the likelihood on the vertical axis and the consequences on the horizontally axis of the grid 2 Find the point where the likelihood and consequence of something going wrong meet. The colour of the area in which the likelihood and consequence of something going wrong meet indicates the level of risk which ranges from low to extreme.

Risk assessment grid LIKELIHOOD C O N S E Q U E N C E Extreme risk Probable LIKELIHOOD High risk Likely Medium risk Possible Unlikely Low risk Rare Insignificant Minor Moderate Major Catastrophic C O N S E Q U E N C E

3 Controlling the risk To control risk you need to: • eliminate the hazard • reduce the likelihood or consequences of the hazard.

To eliminate the hazard you can: • remove • replace • repair. To reduce the likelihood or consequence of a hazard you should: • follow safe work practices (conduct yourself responsibly and use equipment appropriately) • wear protective gear such as eyewear, footwear, clothing.