A/Prof Ilje Pikaar
Week 3 - Semester 1, 2025
ISO 31000 Risk Management Framework
Step 1: Establish the scope.
Step 2: Risk Identification.
Step 3: Risk Analysis.
Step 4: Risk Evaluation.
Step 5: Risk Treatment.
Step 6: Monitoring and reviewing risk.
Example Focus: Filling a road tanker at a Tanker Depot (steps 1 and 2).
Definition: Risk management is the systematic application of management policies, procedures, and practices for tasks such as communication, consultation, establishing context, identifying, analyzing, evaluating, treating, monitoring, and reviewing risk.
Importance of Risk Assessment: A conscious effort to evaluate the probability and consequences (positive or negative) of taking an action.
Key Components:
Communication and consultation
Risk Assessment
Risk Identification
Risk Analysis
Risk Evaluation
Risk Treatment
Scenario Identification
Control Analysis
Control Management
Planning
Monitoring and review
Various types of risks relevant to the profession include:
Work Health & Safety (WH&S)
Environmental
Social
Financial
Project-related risks
Risk Identification Techniques: Numerous techniques available; none are perfect. Commonly used technique:
Risk matrix (qualitative)
Principles of Risk Management:
Hierarchy of Controls
Inherently Safe Design
Defence in Depth (layers of protection)
ALARP
Bowtie analysis: A common risk management tool.
Remember: There is no such thing as ZERO RISK!
Risk management is a continuing process emphasizing good documentation and communication.
Risk: Effect of uncertainty on objectives.
Risk Identification: Finding, recognizing, and describing risks.
Hazard: A potential source of harm (e.g., electricity, gas at pressure, fluids, falling objects).
Threat: Something that can release a hazard (e.g., corrosion).
Risk Analysis: Estimation of likelihood and consequences of an event.
Likelihood: Frequency of occurrence (e.g., 1/year).
Consequence: Impact of an event (e.g., injury, asset loss).
Exposure: Entities of value at risk during potential incidents.
Risk Evaluation: Deciding if a risk is acceptable or requires treatment.
Risk Treatment: Identifying controls to prevent or mitigate risks.
Unwanted Event: Unplanned release of a hazard.
Control: Device or action to arrest or mitigate an unwanted event.
ALARP Demonstration Questions:
How to demonstrate ALARP?
Look at cost, previous successes, practicality of options.
Identify risk treatment options:
Reduce exposure occurrence, eliminate threats.
Correct statements:
HAZID identifies risks using hazard sources; HAZOP identifies risks with process deviations.
Quantitative methods apply more than qualitative methods.
FMEA identifies risks associated with equipment failures.
Focus Areas Include:
Stakeholder & Reputation Risk Management
Safety & Health
Environmental Impacts
Cybersecurity
Financial Performance
Key Activities:
Identify, Assess and Treat Risks
Monitor and Review Risk Management
Scenario: Performing a Risk Assessment & completing a Risk Register for filling a road tanker at a Tanker Depot.
Depot receives petrol and diesel via pipelines from a refinery.
Pumps fuel into road tankers.
Site equipped with basic safety measures: spill kits, emergency stop systems, and cleanup equipment.
Unleaded Petrol:
Solubility in Water: Nil
Flash Point: -40°C
Hazards: Highly flammable.
Diesel:
Solubility in Water: Nil
Flash Point: >61.5°C
General Hazards: Flammable.
Scope Consideration Table (PLEATESO framework):
People: Identify involved and impacted individuals.
Locations: Areas where risk exists.
Equipment: Tools and machinery involved.
Activities: Operations/tasks evaluated.
Timing: Schedule and duration of tasks.
Environmental conditions: Weather impacting risks.
Scenarios: Known risk scenarios.
Other assumptions: Information on potential hazards and controls.
Determine objectives of the risk assessment.
Identify stakeholders to involve in the process.
Establish the scope including included/excluded factors.
Select risk assessment approaches and document context for clarity.
Task: Create a scope table for filling a road tanker.
Use: The 'Risk Register 2025 blank - Project 1A'.
Framework: PLEATESO.
Duration: 20 minutes to draft, note any missing information.
Project Name: Risk assessment for filling petrol at the tanker filling depot.
In Scope:
Operators and teams dealing with fuel management.
Locations, equipment, and activities involved outlined in detail.
Out of Scope:
Situations not relevant to immediate risk assessment.
Components Include:
People, Locations, Equipment, Activities, Environmental considerations, Scenarios, Other assumptions.
Must be clearly understood and useful as a communication tool in risk management.
Unwanted Event Scenarios: Clear definitions and examples of hazards/risks.
Hazard: Mechanical - moving vehicles.
Described with specific scenarios (e.g., tankers hitting workers).
Common Errors: Misidentifying unwanted events as hazards.
Task: For each unwanted event, clearly outline potential causes and consequences.
Consequence Considerations: Capturing multiple impacts of the event.
Importance of Documentation: Ensuring clear communication and identification of necessary actions.
List potential causes and consequences for various scenarios involving hazardous materials and mechanical risks.
Final considerations for risk treatment involve defining controls, expected outcomes, and monitoring methodologies.
Open floor for inquiries and clarification on risk assessment processes in context.
Encourage interaction and questions to solidify understanding.