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Lecture 2.

RISK MANAGEMENT

Pauli Verhel, pauli.verhela(a)savonia.fi / 044-7856082

Risk management process


Identify and Assess
Evaluate
Probability
Concequences

Manage risks

Avoid
Reduce
Transfer
Accept

Measure / Monitor
2

Risk assessment/evaluation
(BS8800 + OHSAS)
CONSEQUENCES

LIKELIHOOD

MINOR
mild effects, bruises,
sprains, discomfort; not
any actual material
damage

MODERATE
persistent mild effects or longterm serious harm; fractures,
burns; mild damage to
property

SEVERE
permanent serious damage:
disability, death: serious
material damage

INSIGNIFICANT RISK

MINOR RISK

MODERATE RISK

MINOR RISK

MODERATE RISK

SIGNIFICANT RISK

MODERATE RISK

SIGNIFICANT RISK

INTOLERABLE RISK

UNLIKELY
Random incident that
occurs rarely but it can
not be ruled out.

POSSIBLE
Incident or threat of
that is repeated but not
regular; near misses
have occurred
LIKELY
Incidents occur
frequently and regularly.
Accidents have
occurred.

Risk management ACTION 1


INSIGNIFICANT RISK
The risk is so small that
the measures are not
necessary

MINOR RISK
Measures may not be
needed
Consider for better
solutions, which do not
cause additional costs
The situation should be
monitored, the risk
remains under control

MODERATE RISK
Steps must be taken to
reduce the risk.
Measures the
profitability must look
closely
If the risk is associated
with extremely harmful
consequences (for
example, serious injury
or factory fire), it is
necessary to determine
the probability of the
event in more detail
4

Risk management ACTION 2


SIGNIFICANT RISK
Risk reduction is
necessary
Risky activities should
not be started until the
risk has been reduced
Risky activities can
continue, but all must
be aware of the risk and
action needs to be
stopped quickly

INTOLERABLE RISK
The risk of removal is
necessary.
These measures should
be initiated immediately
Risky activities should
not be started
Risky activities should
be discontinued until
the risk has been
removed.

Risk management
measures

AVOID RISK
?

REDUCE RISK
?

TRANSFER RISK
?

ACCEPT RISK
?

O
H
!

K
R
O
W
E

SAFETY CULTURE
SAFETY POLICY
Includes procedures and measures to implement
safety management
SAFETY & SECURITY MANAGEMENT
Managing methods
and procedures:
Risk assessment,
Risk evaluation,
Education

Leadership
(managing people)
Motivation,
Commitment,
Competences

Dimensions of corporate
safety and security
Occupation
al safety
Production
and
activities

Rescue and
first aid

Environment

Persons
Reputation
Information
Property
Environment

Real estate
and
premises

Personal
safety

Informatio
n / IT

(customers,
visitors,
staff)

Crime

Foreign
affairs