HEALTH & SAFETY
THE RISK ASSESSMENT MATRIX
CONSEQUENCES
Never heard of in
HELPING YOU MANAGE RISK EFFECTIVELY!
In previous issues, Risktec Solutions has discussed the five basic steps of an effective Risk Management Process [see Figure 1], including how to perform the first step of ‘Hazard Identification’, and introduced the concept of ‘Tolerability of Risk’; the basis for deciding whether a risk is or is not worth taking. In this issue, Risktec continues its series of articles on Risk Management by introducing one of the most widely used tools, the Risk Assessment Matrix [RAM].
STEP 1:
Identify Unwanted Event
STEP 2: Assess Likelihood STEP 3:
Assess Consequences STEP 4:
Evaluate Risk STEP 5:
Manage/Control Risk
Hazard Identification Frequency Analysis
Consequence Analysis Risk Evaluation
Assessment of acceptability
Identification of risk reduction measures
Implementation of risk reduction measures
SHE Management System Steps aided/supported/facilitated/informed by a Risk Assessment Matrix
Figure 1: Elements of an effective Risk Management Process
Risk is the combination of the likelihood that an unwanted event will occur [release of a hazard] and the severity of its consequences. A RAM [see Figure 2 for an example] presents a qualitative means of categorising the likelihood and consequences of an unwanted event along separate axes, allowing the magnitude of the associated risk to be determined and presented in a simple display. It is extremely versatile in that it can aid, support, facilitate and inform all risk management steps other than ‘Hazard Identification’. If implemented correctly it is easy to use.
The RAM should be tailored to reflect the range of likelihoods and consequences covering all credible hazards and should be broken down into logical, clearly defined and unambiguous bands. If using your RAM to cover multiple effects, ensure that each band within each consequence category is consistent. Figure 3 presents an example.
Impact Types Severity
Financial Impact
6 5 4 >100 million
Health & Safety
>10 fatalities or very serious irreversible
injury/illness to >50 persons.
£10 million – £100 million
<10 fatalities or very serious irreversible
injury/illness to >20 persons.
£1 million - £10 million
Single fatality, or significant irreversible
injury/illness to one or more persons.
3
£100,000 - £1 million
Moderate irreversible
injury/illness to one or more persons.
Reversible 2
1 0
£10,000 - £100,000
injury/illness requiring
hospitalisation to one or more persons.
<£10,000 None
No medical treatment required.
None
Minor effects on biological or physical
environment. Limited damage
to minimal area of low significance.
None Natural Environment
Significant impact on highly valued species, habitat or ecosystem.
Very serious, long-term
environmental impairment of ecosystem function.
Serious medium term
environmental effects.
Moderate, short- term effects but not affecting ecosystem function.
Social/Cultural Heritage
Irreparable damage to
structures/items of great cultural significance.
Irreparable damage to structures/items of cultural significance.
Irreparable damage to commonplace
structures/items or major repairable damage to structures/items of cultural significance.
Major repairable damage to commonplace structures/items or
moderate repairable damage to
structures/items of cultural significance.
Moderate repairable
damage to commonplace structures/items or minor repairable damage to structures/items of cultural significance.
Minor repairable damage to commonplace structures.
None
Minor, adverse local public or media attention and complaints.
Public concern
restricted to local complaints.
None Low-level legal issue. None Minor legal issues,
non-compliances and breaches of regulation.
Community, Government, Reputation & Media
International public or media condemnation.
Serious public or
media outcry with international coverage.
Serious adverse
national media/public attention.
Legal Potential jail terms
for executives and/or very high fines for
company. Prolonged, multiple litigation.
Very significant
prosecution and fines. Very serious litigation.
Major breach of
regulation and fines. Major litigation.
Attention from media and/or heightened concern by local community.
Serious breach of regulation with investigation or
report to authority with prosecution
and/or moderate fine possible.
Hazard Identification Risk Analysis
Risk-based Decision Making
Risk Assessment Risk Reduction
Risk Management
Electricity Industry
0 INCREASING LIKELIHOOD
Heard of in Electricity Industry
Incident has occurred in Offshore Wind
Industry None 1 Slight Health Effect/Injury 2 Minor Health Effect/Injury 3 Major Health Effect/Injury 4
Single Fatality
5 Multiple Fatalities None Slight Damage Minor Damage
Localised Damage
Major Damage
Extensive Damage
None Negligible Minor Impact
Moderate Impact
Significant Impact
Severe Impact
None Slight Impact
Limited Impact
Local Impact
National Impact
International Impact
Happens several
times per year in
Offshore Wind
Industry Happens
several times per year on a UK
Offshore Wind Farm
Figure 2: Example Risk Assessment Matrix for Offshore Wind Industry Here are a few helpful tips to allow you to construct and use a RAM effectively.
1 Cover the effects you are worried about Whilst the health and safety of people is always the primary concern, hazards will have other potential effects [e.g. harm to environment, asset damage, business interruption, reputation loss, etc.]. Use your RAM to assess all possible effects by providing separate consequence categories [see Figure 2].
2 Tailor to suit your needs There are no rules as to the size and shape of a RAM. Build it to suit your specific needs. A simple 3x3 matrix is adequate when you need a crude indication of risk. When making more informed decisions, you’ll need the greater resolution offered by a larger matrix [e.g. 5x5].
22
www.windenergynetwork.co.uk
SEVERITY People Assets Environment
Reputation
Figure 3: Example ‘user-friendly’ consequence bands
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