Risk Management
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 – Principals 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.
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.
- Establish the Context
- Identify the Risks
- Analyse the Risks
- Control the Risks
- Review the 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.
The organisation shall establish, implement and maintain documented procedures for hazard identification, hazard/risk assessment and control of hazards/risks of activities, products and services over which an organisation has control or influence, including activities, products or services of contractors and suppliers.
The organisation shall develop its methodology for hazard identification, hazard/risk assessment and control of hazards/risks using the Hierarchy of control, based on its operational experience and its commitment to eliminate workplace illness and injury. The methodology shall be kept up-to-date.
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).
- Elimination – Eliminate the hazard and therefore the risk altogether
- Substitution – Substitute the hazard with something safer
- Isolation – Isolate the hazard for people
- Engineering – Engineering control measures such as mechanical devices, guarding etc
- Administration – Training. PPE gear, signage etc
1. Elimination Level 1 Control | The most effective control measure is elimination eg eliminate the risk of fall from height by doing the work at ground level. | Most Preferred & Most Effective
Least Preferred & Least Effective | |||
2. Substitution Level 2 Control | Substitute the hazard with something safer eg replace solvent based paints with water based ones. | ||||
3. Isolation Level 2 Control | Isolate the hazard from people. This involves physically separating the source of harm from people by distance or using barriers eg install guard rails around exposed edges in floors, use remote control systems to operate machinery, store chemicals in a fume cabinet. | ||||
4. Engineering Level 2 Control | Change the workplace, equipment or work process (engineering controls) For instance, use mechanical devices such as trolleys or hoists to move heavy loads, place guards around moving parts of machinery, install residual current devices (electrical safety switches), set work rates on a production line to reduce fatigue.
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5. Administration Level 3 Control | For instance, develop procedures on how to operate machinery safely, limit exposure time to a hazardous task by job rotation, carry out preventative maintenance on machinery and equipment, provide training and instruction on safe handling for a manual task, use signs to warn people of a hazard. | ||||
6. PPE (Personal Protective Equipment) Level 3 Control | Provides protection but does not remove the risk. Examples of PPE include breathing protection, hard hats, gloves, aprons and protective eyewear. PPE limits exposure to the harmful effects of a hazard but only if workers wear and use the PPE correctly. |