Risk Management
Supply evidence of the companies risk management process, methods and implementation.
The Risk Management process will establish the context of identifying, analysing, assessing, treating, monitoring and
communicating task applications.
Examples would include a risk management procedure guiding workers in the risk
assessment process such as the development of Safe Work Method Statements or Job Safety Analysis.
The Risk Management is a five step process:
Risk Management Methodology
Risk Management Procedure/Methodology developed in accordance with ISO 31000:2009 and AS/NZS 4801:2001
4.3.1 Planning identification of hazards, hazard/risk assessment and control of hazards/risks.It’s a legal requirement under WHS law for an organisation to establish a plan and guidelines for development, implementation and measurement of a risk management process for the control of foreseeable WHS risks identified in the work place. There is a range of material which outlines processes for their application including the current Act and Reg’s, associated codes of practice and international standards such as ISO 31000:2009 – Risk Management – Principles and Guidelines.
Any organisation’s work activities involve a certain amount of risk which requires management. The amount of risk is dependent on the scope of work being conducted, location of the work site, workers involved etc.
Underpinning the entire process of risk management is the need to consult with workers and other persons who have duties under safety law and actively assess and manage risk together. Consultation is the key to Risk Management where workers are involved in the identification, development, implementation and the review of risk management strategies.
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With respect to risk management, a Person Conducting a Business or Undertaking (PCBU) has a duty under the WHS Act to ensure health and Safety by eliminating risks to health and safety, so far as reasonably practicable, or reduce those risks as far as reasonably practicable. Therefore, risk management can be seen is a systematic process that involves several basic steps in identifying hazards, assessing hazards or risks, and eliminating, controlling or managing reasonably foreseeable risks:
The current WHS Act of 2011 states in section 17 - A duty imposed on a person to ensure health and safety requires the person: (a) to eliminate risks to health and safety, so far as is reasonably practicable, and (b) if it is not reasonably practicable to eliminate risks to health and safety, to minimise those risks so far as is reasonably practicable. Furthermore, the Australian Standard AS/NZS 4801:2001; section 4.3.1, states 4.3.1 Planning Identification of Hazards, Hazard / Risk Assessment and Control of Hazards / Risks:
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Assessment Detail
Fully Compliant
controls (How to control the hazard/risk identified using the hierarchy of controls) and monitors (How to monitor the controls put in place to ensure the control is appropriate and relevant) hazards/risks in the workplace.
Adequately Compliant
Risk Management Policy/Procedure that briefly describes the risk management process with no detailed methodology.
Partially Compliant
Supplied a SWMS/JSA or equivalent with no detailed Risk Management Procedure/Methodology for identifying, assessing, controlling and monitoring hazards/risks in the workplace.
Not Compliant
No evidence sighted of Risk Management Procedure/Methodology or anything pertaining to managing hazards/risks in the workplace.
Risk Management Procedure - SWMS/JSA for works conducted
Completed SWMS/JSA or equivalent stating the task to be performed, Job steps involved in completing the task:
- Identifying hazards involved with job step.
- Assessing inherent risk and residual risk using Risk Matrix.
- Applying appropriate control measures using hierarchy of control.
SWMS should also include:
- Minimum number of workers required to complete task
- Personal protective equipment required to complete task safely
- Trade licence required to complete task if applicable
- Additional qualifications, permits and/or experience required to complete task
- Any Legislation, Regulations, Codes of practice and Standards required to complete task.
- Section to include any unforeseen hazards or any hazards that may arise while performing task.
- Sign off and acknowledgment by workers involved in completing task.
Assessment Category
Assessment Detail
Fully Compliant
Adequately Compliant
Non-completed (template) SWMS/JSA or equivalent covering most of the elements stated above.
Partially Compliant
Non-completed (template) SWMS/JSA or equivalent that meets some of the elements stated above
Not Compliant
No evidence sighted of SWMS/JSA or equivalent.
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Risk Management Procedure - hierarchy of controls
The use of Hierarchy of Controls sighted either through Risk Management Procedure/Methodology or through SWMS/JSA or equivalent.
Assessment Category | Assessment Detail |
Fully Compliant | Hierarchy of control sighted through either the Risk Management Procedure/Methodology or SWMS/JSA or equivalent. |
Not Compliant | No evidence sighted of the use of the hierarchy of controls |
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Risk Register
Risk Register that identifies all hazards, risks and associated controls relevant to the organisation. This document should be used for monitoring and review processes and risk planning activities prior to commencing of new task.
Assessment Category
Assessment Detail
Fully Compliant
Completed risk register that identifies all hazards relevant to the organisation. Has suitable controls in place.
Adequately Compliant
Not completed (Template) risk register.
Partially Compliant
Risk register may be referenced throughout the safety management system or risk management process however no evidence sighted of risk register.
Not Compliant
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There are many ways to manage hazards and risks in the workplace. The most common approach is to implement what is known as the Hierarchy of Control (HOC):
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Developing and implementing a Risk Register is a vital part of an organisation’s Risk management process. Quite often, a Broad-Brush Risk Assessment (BBRA) is completed within the organisation to capture hazards associated with all activities within the organisation. This register requires reviewing on a regular basis and made available to interested parties inclusive of workers. Risk registers are an essential tool in managing risk and it’s advisable that these registers are linked and form part of an integrated risk management framework.
There are many risk management tools which are used in the risk management process. Such tools include, Pre-task risk assessments (such as Take 5, 60 seconds), Job Safety Analysis (JSA’s), Safe Work Method Statement (SWMS), Safe Work Procedures (SWP’s). Basically, they all do the same job and assist workers in identifying and controlling risk. A pre-task risk assessment (a Take 5) ensures that any non-routine jobs are quickly assessed prior the commenced of work being conducted. A routine job, that has been assessed previously, can be carried out on a SWMS / JSA as long as the job scope is reflective of the hazards identified in the completed SWMS.
The risk assessment and treatment process should be developed using consultation, communication, supervisory and review processes consistent with the workplace’s health and safety management system. Organisations, should expand their respective systems to incorporate not just WHS but all areas of organisational risk (eg financial, operational risk etc). An integrated RM framework is an appropriate and effective way of measuring risk throughout an organisation. Documenting and sharing information about RM is essential to ensure that appropriate people within the organisation are made aware and informed of the risk(s) being managed. |
