Risk Management Principles
UTS aims to integrate risk management into everything we do. We want to identify all hazards, assess the risk and take action to eliminate or minimise the risk.
This section provides an overview of the risk management process.
What is a hazard?
A hazard is anything with the potential to cause damage to people, the environment, property, plant or equipment.
What is a risk?
Risk is the chance that an event will occur that will impact upon the University's objectives. For example, risk is the chance of harm to people, property and the environment. It is measured in terms of consequence and likelihood.
The Steps of Risk Management
The process of identifying, assessing and controlling risks must be done in consultation with staff. This process is:
- Identifying hazards
- Assessing risk presented by hazards
- Controlling risk
- Monitoring controls to make sure they are working
Risk management is integral to occupational health and safety legislation, which imposes an obligation on employers to follow a risk management process in consultation with employees.
Step 1: Identify The Hazard
Hazards include such things as noise, computer workstations, electricity, radiation and chemicals. Detail on the procedures the University has in place to address a range of hazard types is found under the "Hazard Guidelines" section.
Hazards are usually linked to activities, so first look at the activities, tasks or projects undertaken in your workplace and ask yourself: "What types of hazards are present?". Thinking about the work environment where tasks are carried out can help identify hazards.
It is often useful to list the steps involved in a task or project. Breaking the activity into steps can make hazard identification simpler.
By law, management must identify hazards in consultation with employees as part of the risk management process.
Step 2: Assess Risk
Once hazards have been identified, we must assess the level of risk. That is, we must determine how likely it is that someone could be harmed by the hazards and how serious the injury or illness could be.
First, consider the:
- Severity (or the consequence) of an accident occurring -
- how serious would the injury or illness be?
- how many people are at risk?
- Likelihood of the accident occurring -
- has it happened before?
- how often might it happen?
- when is it most likely to happen?
NOTE: Consider what is already in place to control risk when estimating consequence and likelihood. For example, personal protective equipment may already be used, or guarding may be in place.
Think also about the way different hazards linked to an activity may interact to affect the severity or likelihood of an accident occurring.
Then, the level of risk is determined by combining consequence and likelihood. This risk matrix from the standard on risk management AS/NZS 4360 is one way of allocating a risk level based on consequence and likelihood.
| CONSEQUENCE | ||||||
|---|---|---|---|---|---|---|
| Insignificant | Minor | Moderate | Major | Catastrophic | ||
| L I K E L I H O O D |
Almost certain | H | H | E | E | E |
| Likely | M | H | H | E | E | |
| Possible | L | M | H | E | E | |
| Unlikely | L | L | M | H | E | |
| Rare | L | L | M | H | H | |
- E: Extreme Risk - Immediate action required
- H: High Risk - Senior management attention needed
- M: Medium Risk - Management responsibility must be specified
- L: Low Risk - Manage by routine procedures
- CONSEQUENCE (or severity) might be:
- Catastrophic: multiple fatalities or significant irreversible effects to more than 50 persons
- Major: single fatality and/or severe irreversible disability to one or more persons
- Moderate: moderate irreversible disability or impairment to one or more persons
- Minor: objective but reversible disability requiring hospitalisation
- Insignificant: no medical treatment required
- LIKELIHOOD (or chance) might be:
- Almost certain: the event will occur on an annual basis
- Likely: the event has occurred several times or more in your career
- Possible: the event might occur once in your career
- Unlikely: the event does occur somewhere from time to time
- Rare: heard of something like this occurring elsewhere
Step 3: Controlling The Risk
Based on the level of risk presented by the hazards identified, decisions can be made about the best way to remove the risk, or if not 'reasonably practicable', to lessen the risk of harm to the lowest possible level.
A range of strategies should be considered in controlling (or managing) the risk. Use the hierarchy of controls to determine the actions that can be taken to eliminate or control hazards. Eliminating the hazard is the preferred action, whereas personal protective equipment (PPE) is the option used when there is no other solution.
Responsibilities
The person who is in control of a system of work, a project, work-area, substance or item of plant is responsible for making sure it is safe. That is, they must identify the EHS risks and make sure these risks are managed to a practicable level.
Supervisors must inform staff and students of hazards in their work area and set up appropriate procedures to prevent harm from occurring. The amount of information, training and supervision required depends on the level of risk.
Resources
For assistance in identifying solutions for fixing hazards, see the Help with specific EHS issues section or contact the Safety & Wellbeing Branch.
The Australian/New Zealand Standard AS/NZS 4360: Risk Management provides a generic guide for establishing and implementing the risk management process.