Hazards and Risks: Identification and Assessment Flashcards
(20 cards)
What is the role of risk management?
Provide a framework for decision-making and prioritizing H&S issues.
Definition - Hazard
A source of potential harm, or a situation with a potential for causing harm, in terms of human injury; damage to health, property, the environment, and other things od value; or some combination
Define - Risk
The chance of injury or lose defined as a measure of probability and severity of an adverse effect to health, property, the environment, or other things of value.
Define - Probability
The likilhood that something will occur
Define - Severity
The extent of the damage to the organization, it’s people, and it’s goals and objectives resulting from a risk event occurring.
Define - Risk Rating
Risk rating refers to the classification of risks and their impact on a business in terms of reputation or economic damage to an organization or a sector.
Define - Controls
Methods used to preserve integrity of valuable information, meet operational or finical targets, and/or communicate management policies.
Define - Governance
Processes and structures implemented to communicate, manage, ans monitor organizational activities.
Define - Inherent Risk
Risk that is inherent to the process, taking into consideration the likelihood and impact of a risk.
Define - Likelihood
The probability of a risk occurring.
Define - Residual Risk
Risk remaining after considering the existing control environment.
Define - Risk Appetite
A statement that broadly considers the risk level that management deems acceptable.
Define - Risk Assessment
The prioritization of potential business disruptions based on the impact and likelihood of pccurrence; includes analysis of threats based on the impact to the organization, it’s customers, processes and finical markets.
Define - Risk Tolerance
A metric that sets the acceptable level of variation around organizational objectives and provides assurances that the organization remains within its risk appetite.
Define - Vulnerability
An entity’s susceptibility to the risk event as determined by the entity’s preparedness, agility, ans adaptability.
Why are Risk Assessments Useful?
They provide a suitable decision-making method that the best forward actions will be identified to solve the issue.
Risk Management allows…
- The organization to consider the full range of risks it faces.
- examines the relationship between hazards and/or sources, which cause risk and the cascading impact they could have on the organization’s strategic goals.
Principles of risk management (5)
PACED
Proportionate - risk management activities must be proportionate to the level of risk faced by the organization.
Aligned - Risk management activities need to be aligned with the other activities in the organization.
Comprehensive - in order to be fully effective, the risk management approach must be compressive.
Embedded - Risk management activities need to be embedded within the organization.
Dynamic - risk management activities must be dynamic and responsive to emerging and changing risks.
Components of Risk Assessment?
Leadership and commitment
Integration, design, implementation, evaluation, and improvement.
PDCA
Plan- Do - Check - Act