ISO 14001: 2015

EMS : Risk & Opportunities

identification and mitigation

SUKHDEEEP SINGH
MBA HR, Masters in Clinical Psychology, Masters Sociology, PGD in Safety Management,
Certified Internal Auditor ISO 9001:2015 & 14001:2015
Whats App : 9646043309
 Risks and opportunities
According to ISO 14001 2015, risks are potential adverse effects (or threats) and
opportunities are potential beneficial effects.

Risk

According to ISO 31000 2009, risk is the “effect of uncertainty” and an effect is a positive
or negative deviation from what is expected.

Risk is often expressed as a combination of two factors: probability and consequences.

It asks two questions: what is the probability that a potential event will occur in the
future? And what consequences would this event produce or what impact would it have
if it occurred?

Uncertainty (or lack of certainty) is a state or condition that involves a deficiency of

information and leads to inadequate or incomplete knowledge or understanding. In the
context of risk management, uncertainty exists whenever the knowledge or
understanding of an event, consequence, or likelihood is inadequate or incomplete.
ISO 14001:2015 identifies three possible sources that present
risks and opportunities to the business

1) environmental aspects

2) compliance obligations

3) issues and requirements from the context review.

 Dealing with Risk

Dealing with Risk

replace a high risk activity and remove the
with a low risk activity risk if possible

It is defined by two parameters

The consequences(C). What will The probability( p). What is the
happen if the risk becomes a probability that the risk will become a
problem? problem?

The risk(R) is R = C*p

 1) Aspect/Impact Analysis for Risk & Opportunities
identification & mitigation

Activity Aspects Impacts

(Interaction) (Result)

• Air Emissions
Changing Oil • Consumption of
• Use of Oil, Natural Resources
Absorbents
• Degrade Air Quality
• Recycling of Oil
• Increase Landfill
• Spills Space
• Degrade Water
Quality
2) Regulatory Requirements
THE FOREST (CONSERVATION) ACT, 1980
ENVIRONMENTAL (PROTECTION) ACT, 1986
AIR (PREVENTION AND CONTROL OF POLLUTION) ACT 1981

WATER (PREVENTION & CONTROL ) ACT 1974

WILDLIFE PROTECTION ACT, 1972

HAZARDOUS WASTES (MANAGEMENT AND HANDLING) AMENDMENT RULES, 2003

The Factories Act, 1948

And other applicable law as amended or enacted time to time

3) issues and requirements from the context review.
Typical Model of Risk Assessment
Risk management strategies and measures
 A: Intolerable/Unacceptable Region:
Risks in this region are considered unacceptable or intolerable and cannot be justified, except
in extraordinary circumstances. Immediate measures should be taken to eliminate or reduce
risks at the acceptable/tolerable level irrespective of costs.

B: The “As Low As is Reasonably Practicable” (ALARP) or Tolerability

Region:
Risks in this region may be considered undesirable, in particular those that lie in the upper
boundary but acceptable if they meet ALARP. Undesirable risks may only be acceptable
/tolerable if the risk reduction strategies and measures are impracticable or if the costs are
disproportionate to improvements gained.

C: Broadly Accepted Region:

Risks in this region are considered negligible and broadly accepted. There may be no need for
detailed work to demonstrate ALARP. However, it is necessary to insure that risks remain at this
level.
 Dealing with Risk

Dealing with Risk

replace a high risk activity and remove the
with a low risk activity risk if possible

It is defined by two parameters

The consequences(C). What will The probability( p). What is the
happen if the risk becomes a probability that the risk will become a
problem? problem?

The risk(R) is R = C*p

 Risk analysis techniques

• Hazard Checklists (HCl) • Failure Modes and Effects Analysis

• Preliminary Hazard Analysis (PrHA)
• Hazard Review (HR)
• Preliminary Risk Analysis (PrRA)
• Change Analysis (ChA)
• What-if Analysis
• SWIFT Analysis
• Relative Ranking/Risk Indexing (RI)
• Pareto Analysis (PA)
• Hazard and Operability (HAZOP)
• Fault Tree Analysis (FTA)
• “5 Whys” technique
• Event Tree Analysis (ETA)
• Human Reliability Analysis (HRA)
• Event and Causal Factor Charting
• Other risks analysis techniques
• Cost analysis techniques

“5 Whys” technique

First Why ? Second Why ? Third Why? Fourth Why? Fifth Why?
 Failure Modes and Effects Analysis (FMEA)

Failure Modes and Effects Analysis (FMEA) is a qualitative, systematic and highly structured
technique that is used to investigate how a system or system components can result in
performance problems. The key steps of the analysis process include:

• Identification of causes and contributing factors;

• Description of safeguards in place;

• Identification of actual and potential effects;

• A list of recommendations for managing risks.
 Hazard and Operability (HAZOP)
Hazard and Operation (HAZOP) is a hazard identification technique that uses
a formal, structured and systematic team review of a system or process to:

• Identify possible deviations from normal operations and their causes and
consequences;
• Show what safeguards are in place;

• Recommend appropriate measure to prevent accidents.

The following information is documented in the HAZOP worksheets: section,

intention, deviation, causes, accidents, consequences, safeguards, and
recommendations. This technique primarily generates qualitative results. It is mainly
used for identification of hazards and operability problems of continuous process
systems, especially fluid and thermal systems, procedures and sequential operations.
The technique has primarily been designed for continuous chemical processes.
 Factors affecting the choice of techniques

The purpose of risk analysis

Legal requirements

Type of results/information needed

Data, resources and time available

Complexity and size of risk analysis

Concerning issues
 Company Name
Risk & Opportunities Assessment
Process: Production(Assembly) Name of person: Yoginder Issued by: Approved by: MR
Singh/Sanjeev Mehta/ Prabhu Lal Doc No- QF/PR/419 Rev-A
Date of issue : 01-08-2016 Rev date-01.08.2016
Severity Occurrence RPN
Descripti Risk
Type Rating Description Type Rating
on Type
Once in a
year or
Highly If RPN No is more than 12 then, immediate action
Minimum 1 No effect on process 1 greater Trivial
unlikely required to process control.
than one
year
Some effect on process quality but
Possible/ once in 3 Tolera
Moderate 2 no effect on customer reputation/ 2
Likely months ble
branding
Effect on process performance Once in Moder
Serious 3 Occassional 3
indicators/loss month ate
To increase customer dissatisfaction, Once a Substa
Major 4 Probable 4
business loss week ntial

Potential Potential Effect of Potential Cause, Occurrence R.P.N. Recommended Respons Targe Effectiveness
Sl. No. Subprocess Severity VerificationDone

Failure mode Failure mechanism of failure (O) (SXO) Action ibility t date By

1. Press operation N.S.

1, Noise pollution
2. Hammering N.S.

Assembly of Generation Plug All Air Producti

1 3 3. Air leakage 3 9
Products. of noise 2, Distraction Leakage. on Head
from work. 4. Inspection of
N.S.
product
5. Material Loading
N.S.
/unloading
Review
Process Owners Name Signature
Date
All HOD Review Risk Assessment and there are
REVIEW STATUS no any major changed observed in assessment
sheet.
Severity = Consequences Probability = Occurrence

Type Rating Description Type Rating Description

Minimum 1 No effect on process Once in a year or greater than one

Highly unlikely 1
year

Some effect on process quality

Moderate 2 but no effect on customer
Possible/ Likely 2 once in 3 months
reputation/ branding

Effect on process performance

Serious 3 Occassional 3 Once in month
indicators/loss

To increase customer
Major 4 Probable 4 Once a week
dissatisfaction, business loss

Risk Type

Trivial

Tolerable

Moderate

Substantial
 RPN = Risk Priority Number

Risk rating = Severity score x Occurrence score

If RPN No. is more than 12 then, immediate action required to process control.
Important Definitions

Hazards: Hazard is a “Source or situation with potential for harm in terms of injury or ill
health, damage to property, damage to the work place environment, or a combination of
these”

Hazard Recognition: Hazard recognition is systematic determination of hazards in the

work environment.

Inspections: Systematic analysis of equipment, process and procedures present in the

work environment which may present hazards.

Risk: Risk is the “Combination of likelihood and consequence of a specified hazardous

event occurring”

Near Miss: An undesired event or outcome, which under slightly different circumstances, could
have resulted in an accident.

Risk Assessment: Overall processing of estimating the magnitude of risk and deciding
whether or not the risk is tolerable

Occupational Health & Safety: Conditions and factors that affect the well-being of
employees, temporary workers, contractor personnel, visitors and any other person in
the work place
 Another example of Likelihood Matrix

Likelihood Consequence Total Risk Classification Action Required

L C
Highly Unlikely Slightly harmful When the Total is equal or Operational Control
(1) (2) Likelihood less than 12 Risk is Procedures
X Acceptable.
Unlikely Harmful
Consequence
(2) (4)

Likely Very Harmful -When the Total is more Specific Operational

(3) (6) than 12 Risk is Control Procedures &
Unacceptable . programs
Very Likely Extremely Harmful
(4) (8)

another example of Consequence Matrix

Consequence Human Impact

Slightly harmful Momentary Discomfort
(2)
Harmful Minor Injuries, first aid cases
(4)

Very Harmful Major Injuries, Temporary disability

(6)
Extremely Harmful Fatal or permanent disability & incidence involving large no of
(8) people
Exercise
Thank You