Risk Management Essay Example

  • Category:
    Management
  • Document type:
    Assignment
  • Level:
    High School
  • Page:
    2
  • Words:
    1105

Lecturer

Risk Management

Activities to Complete when Identifying Risks

Identify the Context for Risk Management

Context for risk management refers to the internal and external parameters to consider when managing risks. Identifying the context is the first step in risk management even before risk identification is done. Doing so as the first step ensures that risk identification and evaluation are properly done using the appropriate context (Pickett 16). For example, risks facing a plumber are different from risks facing a kitchen worker. If the same risk management context is used, then risk identification will not be comprehensive or will be wrong. In addition, internal stakeholders will face different risks from external stakeholders.

Identify Risks using Tools, Ensuring all Reasonable Steps have been Taken to Identify all Risks

There are tools such as risk registers that aid in risk identification. These tools are designed to ensure that the risk management team identifies all the risks associated with an organisation, department, division, area of operation or specialisation. Therefore, using these tools is extremely important to ensure that no risk is left behind despite how insignificant it may appear. It is worth noting that failure to identify risk means that the risk will be missed in all the steps that follows, which eventually means that the risk will not be managed. Therefore, the team must take all reasonable steps to identify all risks.

Document Identified Risks in Accordance with Relevant Policies, Procedures, Legislation and Standards

There are policies, procedures, legislation and standards associated with every type of risk. These items guide in risk management by requiring that certain steps or actions must be taken whenever these risks are identified. Therefore, documenting identified risks in accordance with relevant policies, procedures, legislation and standards not only ensures conformance, but ensures that appropriate measures are taken to control or avoid the risks.

Activities to Complete when Analysing and Evaluating Risks

Analyse and Document Risks in Consultation with Relevant Stakeholders

Stakeholder involvement in risk management should actually start with risk identification to ensure that all risks are identified. During risk analysis and identification, stakeholder involvement is required to properly analyse and evaluate the risks. The impact of risk is different for different stakeholders (Ikeda 18). Therefore, consulting relevant stakeholders help in ensuring that comprehensive analysis and evaluation is done. This is so especially in risks with high scientific uncertainty and/or value of stakeholder in relation to the risks is highly complicated (Ikeda 18).

Undertake Risk Categorisation and Determine Level of Risk

Risks are categorised based on appropriate factors such as type of risk, source of risk or area of risk. Risk categorisation helps decision-making and risk management because the categorisation forms as the basis for assessing legislation, policy or procedure requirement (Pickett 19). For example, all risks of fall may require the implementation of a given policy for control. Risk levels depend on the probability of occurrence and risk intensity. High level risks have high probability of occurrence and great impact such as death. Determining the level of risks helps the risk management team to make appropriate decisions regarding risk management such the level of investment required to control the risk. For instance, a high level risk may require more investment in terms of employee training and the provision of necessary equipment while for a low level risk, posters may be enough.

Document Analysis Process and Outcomes

Documenting analysis process and outcomes and consequent storage of the documentation safely is important for two main reasons. Firstly, organisation will often be required to show evidence of comprehensive risk analysis. The documentation serves to show the evidence. Secondly, the organisation will often require revisiting risk analysis processes in future. Some risks may be no more while others will remain so long as the organisation is operational. To make future risk analysis more effective, it is worth revisiting previous risk analysis processes and outcomes. In that case, documenting the process and its outcomes is extremely important.

I was previously involved in managing the risk of fire in the engineering workshop in my workplace. This project was initiated after a case of fire resulting from a welding job after sparks fell on a carton full of papers, igniting them and causing fire. Although project involved managing risks for the entire workshop, I was given the task of managing fire-related risks in the workshop. I started with the identification of all fire-related risks in the workshop as shown in table 1. During risk identification, analysis and evaluation, I communicated constantly with the workshop supervisor and technicians in the workshop. I conducted focus group discussions with technicians whereby we discussed about risks of fire in the workshop. In the process, I managed to identify all risks. In consultation with the supervisor and technicians, I analysed and evaluated the risks focusing on probability of occurrence and severity of the risk. I then used risk assessment matrix to rank the risks identified. Through this assessment, I identified one high level risk, two serious risks and two medium level risks. I then documented my research process, analysis and findings as a report named workshop fire risk report. I did not refer any area or risk to others. Finally, in collaboration with the workshop supervisor and the chief engineer, we revisited relevant legislations regarding fire risks in the workplace. In particular, I realised that we were not complying with AS2444 (selection and location of portable fire extinguishers) (Occupational Health and Safety [OHS]). There was only one fire extinguisher, which had not been inspected. The workshop had also violated the company policy regarding training because none of the employees had undergone training on fire safety especially on how to escape in the case of fire. Technicians also did not know how to use fire fighting mechanisms. I presented my recommendations to the management for implementation.

Risk Register

Activity

Workshop fire risk assessment

July 20 – 24 2015

Production assistant manager

Consequences

Adequacy of existing controls

Consequence rating

Likelihood rating

Level of risk

Risk priority

Gas explosion

Inadequate

Probable (B)

Catastrophic (1)

Fire from gas flames

Inadequate

Remote (D)

Catastrophic (1)

Fire from welding sparks

Inadequate

Remote (D)

Catastrophic (1)

Fire from hot metals

Inadequate

Occasional (C)

Critical (2)

Fire from electric sparks

Inadequate

Remote (D)

Critical (2)

Works Cited

Ikeda, Saburo. “Risk Analysis, the Precautionary Approach and Stakeholder Participation in Decision Making in the Context of Emerging Risks from Invasive Alien Species.” Assessment and Control of Biological Invasion Risks. 2006: 15-25.

Occupational Health and Safety. Fire & Emergency Evacuation. 2015. Web. October 27, 2015 <
http://www.ohsrep.org.au/hazards/workplace-conditions/fire-and-emergency-evacuation>

Pickett, Spencer K. Auditing the Risk Management Process. Hoboken, NJ: John Wiley & Sons, Inc. 2005. Print.