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What is the goal of risk management?
To prevent or reduce (mitigate) losses — losses cost money
Probability, mode, frequency, severity
Probability = if it will occur; Mode = how; Frequency = how often; Severity = how much damage
Risk management definition
A process of proactive decision making that minimizes the adverse effects of unanticipated losses (key words: proactive efforts and decision making)
First step of risk management
Identify the hazard or potential loss
Four phases of risk management
Risk management, risk control, loss control, loss management
Risk control
A conscious effort, action, or decision NOT to act that reduces the frequency, severity, or unpredictability of losses — management chooses to act or not act
Loss control
Steps taken right AFTER a loss to control its effects and keep the organization functioning at the same level
Loss management
Returning the organization as close as possible to its pre-loss state (it will never be exactly the same)
What is NFPA 241?
Standard for Safeguarding Construction, Alteration, and Demolition Operations — minimum standards; fire departments shall be consulted
Risk Evaluation Pyramid (1 / 100 / 1,000 / 10,000)
1 = death, major loss, major litigation; 100 = serious injury, large loss; 1,000 = non-serious injury, minor loss; 10,000 = near misses / close calls
US construction fires and deaths (2022)
About 4,500 fires; 1,069 deaths (9.6 fatality rate)
Who designates the Fire Prevention Program Manager (FPPM)?
The owner (NFPA 241 4.1.1)
FPPM responsibilities
Carry the fire program to completion, enforce standards, be a competent person in fire codes, protect life and property, and conduct DAILY inspections
NFPA 241 4.2.2 pre-incident plan includes
Emergency communication, hot work operations, reporting emergencies, evacuation, on-site security
How often must construction sites be safeguarded?
Around the clock
Consequences of not complying with NFPA 241
Work stoppage, delays, or costly fines
NFPA 1 vs. NFPA 5000
NFPA 1 = Fire Code; NFPA 5000 = Building Construction and Safety Code
Three emergency action plan requirements
1) Procedures for reporting emergencies and evacuating (type of evacuation, exit routes); 2) Procedures for employees running critical operations before they evacuate; 3) Account for all employees before, during, and after evacuation
What is a risk?
An uncertainty or an unknown — you can't know for sure if, how, how often, or how badly a loss will occur
What is the one thing certain in every business?
Losses will occur — a smart manager prepares to reduce or mitigate them
When does loss control begin?
After the loss occurs — it is the immediate steps management takes to control the effects
What does risk control require management to do?
Do something to avoid further loss
Who has the authority to enforce NFPA 241 provisions on site?
The Fire Prevention Program Manager (FPPM) — NFPA 241 4.1.2
About how many construction injuries occur, and how many result in days away from work?
About 150,000 (upwards of 203,000); over 66,000 result in days away from work, just over 10,000 of them back injuries
Which chapter of NFPA 241 covers General Requirements?
Chapter 4
NFPA 241 Chapters 6 and 7
Chapter 6 = Utilities; Chapter 7 = Processes and Hazards
NFPA 241 Chapter 10
Safeguarding Roofing Operations
Four areas of action and compliance
Storage for equipment, identifying processes and hazards, control of utilities, fire protection