Risk Assessment: A Practical

Guide to Assessing Operational

Risk
Chapter 2:
Risk Assessment Standards and Definitions
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
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.
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.
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 1910.119 Process
Safety Management of Highly Hazardous Chemicals
standard, and the Environmental Protection Agency (EPA)
40 CFR Part 68, Risk Management Plan standard.
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."
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 1910.119,
Process Safety Management of Highly Hazardous
Chemicals standard and the Union Carbine Bhopal
methylisocyanate (MIC) gas release tragedy of 1984.
OSHA Standards which include Hazard
Analysis
1910.132, Personal Protective Equipment Standard
OSHA Standards which include Hazard
Analysis
1910.119, Process Safety Management Standard
• What-If Analysis
• Checklists Analysis
Chapter 6
• What-If/Checklists Analysis
• Hazard and Operability Study (HAZOP)
• Failure Mode and Effects Analysis (FMEA) Chapter 8

• Fault Tree Analysis (FTA)

OSHA Standards which include Hazard
Analysis
• 1910.146, 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
• 1910.1200, 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.
Management Systems and Risk Assessment
ANSI/AIHA/ASSE Z10-2012, Occupational Health and
Safety Management Systems
• Assessment and Prioritization – Section 4.2
• Risk Assessment – Section 5.1.1 & Appendix F
• Design Review and Management of Change – Section 5.1.3 &
Appendix H
Management Systems and Risk Assessment
BSI OHSAS 18001-2007, 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 3.10.2
OSHA VPP – 2008
• Hazard Analysis of Routine Jobs, Task, and Processes
• Worksite Analysis
• Hazard Analysis of Significant Changes
• Pre-use Analysis
Consensus Standards requiring Risk
Assessment
ISO 31000/ANSI/ASSE Z690 Risk Management Series
• ANSI/ASSE Z690.1-2011, Vocabulary for Risk Management (National
Adoption of ISO guide 73:2009)
• ANSI/ASSE Z690.2-2011, Risk Management Principles and Guidelines
(National Adoption of ISO 31000:2009)
• ANSI/ASSE Z690.3-2011, Risk Assessment Techniques (National
Adoption of IEC/ISO 31010:2009)
Consensus Standards requiring Risk
Assessment

ANSI Z690 Risk Management Process

Consensus Standards requiring Risk
Assessment
ANSI/ASSE Z590.3-2011, 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
Consensus Standards requiring Risk
Assessment
ANSI B11.0-2015, 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
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
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
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
Key Terms and Definitions
Hazard: The potential for harm. (ANSI/ASSE Z590.3-2011)
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 Z590.3-2011)
Key Terms and Definitions
Likelihood: Chance of something happening. (ANSI/ASSE Z690.1-
2011)
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 Z590.3-
2011)
Consequence: Outcome of an event affecting objectives. (ANSI/ASSE
Z690.1-2011)
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 Z590.3-2011)
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
Z590.3-2011)
Risk Assessment Process: The entire process of identifying
hazards, assessing risk, reducing risk, and documenting the
results. (ANSI B11.0-2015)
Key Terms and Definitions
Risk Identification: Process of finding, recognizing and describing
risks. (ANSI/ASSE Z690.1-2011)
Risk Analysis: Process to comprehend the nature of risk and to
determine the level of risk. (ANSI/ASSE Z690.1-2011)
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 Z690.1-2011)
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 Z690.1-2011)
Risk Matrix: Tool for ranking and displaying risks by defining ranges
for consequence and likelihood. (ANSI/ASSE Z690.1-2011)
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 Z590.3-2011)
Control: Measure that is modifying risk. (ANSI/ASSE Z690.2-2011)
Residual Risk: The risk remaining after risk reduction measures have
been taken. (ANSI/ASSE Z590.3-2011)
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 Z590.3-2011)
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 Z590.3-2011)
Hazard/Risk Elimination: Eliminate workplace and work methods
risks that have been discovered. (ANSI/ASSE Z590.3-2011)
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 Z590.3-2011)
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)
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.