A Canadian Perspective on Applying the ISO 31000

Risk Management Principles

Presented by:Holly Elke, CRSP, CSP, CHRP, CMQ/OE

Senior QHSE AdvisorSH&E System Solutions

THE “HAZARD – BASED” APPROACH

Control and mitigate sources of harm or loss (hazards)

that may be encountered by personnel.

THE “HAZARD – BASED” APPROACH

HAZARD SOURCES

P eople

E quipment

M aterial

E nvironment

CHANGE

HAZARD BASED REGULATIONS

ALBERTA: OHS CODE – PART 2 –Hazard Assessment, Elimination and Control.

BRITISH COLUMBIA: WCA –DIVISION 3 – General Duties Of Employers & PART 3 OHS Regs –OHS Program Contents

HAZARD BASED REGULATIONS

SASKATCHEWAN: OHS Act – S.9 Duty to Provide Information.

MANITOBA: WHS Act – S.4 –Further Duties of Employers.

OSHA (US): Regs 1910 (General) and Regs 1926 (Construction) –Subparts focus on specific hazards and control measures.

TERMINOLOGY

RISK“Effect of uncertainty on objectives”

Effects – positive or negative deviations from what is expected.

Uncertainty – Lack of information, understanding or knowledge of an event, its consequence, or likelihood.

Objectives - financial, production, operational, HSE goals that are strategic, corporate, project, product or process driven.

ISO Guide 73/ ANSI Z690

TERMINOLOGY

RISK

Combination of the likelihood of an occurrence of a hazardous event or

exposure(s) and the severity of injury or ill health that can be caused by the

event or exposure(s).

OHSAS 18001

THE RISK – BASED APPROACH

Control and mitigate sources of harm or loss (hazards, risk factors) based upon the level of foreseeable risk potential.

*Hazards can be a risk source*

RISK BASED REGULATIONS

9(3) If a hazard cannot be eliminated or controlled under subsection (2), the employer must use administrative controls that control the hazard to a level aslow as reasonably achievable.

ALBERTA OHS CODE – PART 2 – Hazard Assessment, Elimination and Control

RISK BASED REGULATIONS

"as low as reasonably achievable" or "ALARA" means, in reference to a substance, that measures must be taken to keep a worker's exposure to a level as low as is reasonably achievable;

BC OHS Regs: Part 5 Chemical Agents and Biological Agents

RISK BASED REGULATIONS SASKATCHEWAN: OHS

Regulations – Part III General Duties (S. 22 OHS Program).

MANITOBA: WSH Regs – MSIs, Working Alone, Violence.

OSHA (US): 1910.119 - Process Safety Management Standard.

OSHA: I2P2 (Injury & Illness Prevention Program) – proposed.

RISK BASED STANDARDS OHSAS 18001: 2007

ANSI Z10 (USA)

CSA Z1000- 06 (CANADA)

ANSI/ASSE Z590.3 – Prevention Through Design

ISO 31000:2009 and ANSI/ASSE Z690.2-2011 “Risk Management Principles and Guidelines”

WHY USE A RISK-BASED APPROACH ?

Standardizes risk management goals and methods to be used = increase in process efficiency.

Consistent framework that can be used by all business units and work groups = increase in process & employee effectiveness.

Due Diligence (defensible).

WHAT APPROACH DOES YOUR COMPANY USE?

RISK MANAGEMENT PROCESS

Communicate/Consult Stakeholders

Establish Risk Management Goals Internal and External factors Consider company resources &

capability

Define Risk Criteria to be used Frequency, likelihood, consequences

to be measured ALARA or ALARP

RISK MANAGEMENT PROCESS

Establish Risk Assessment Methods Risk Identification

Risk Analysis

Risk Evaluation (Prioritization)

Determine Risk Treatment Options Avoidance, Elimination, Substitution

Engineering, Administrative, PPE

RISK MANAGEMENT PROCESS

Monitor and Review Changes

New and emerging risks

Improvement opportunities

Efficiency & Effectiveness of Risk Treatment Options

RISK ANALYSIS: LIKELIHOOD

Frequency of Exposure Probability Loss = Likelihood

FREQUENCY OF EXPOSURE:

4 - Frequent (5+ per week/job)3 - Occasional ( 1+ per week/ 3+ per job )2 - Rare ( 1+ per moth/ 2+ per job)1 - Very Rare (1+ per year/job)

PROBABILITY OF LOSS:

4 - Expected/Likely (“Happens often”; > 1 per year)3 - Probable/ Occasional (1 occurrence in 3 years)2 - Possible/Rare ( 1 occurrence in 5 years) 1 - Remote/Very Rare (“Once in the life of the facility or

company”)

RISK ANALYSIS: LIKELIHOOD

PROBABILITY OF LOSS

FREQUENCY 1 2 3 4

1 1 2 3 4

2 2 4 4 8

3 3 6 9 12

4 4 8 12 16

RISK ANALYSIS: SEVERITYSEVERITY

CATEGORY HEALTH SAFETY ENVIRONMENTAL IMPACT

FINANCIAL LOSS PUBLIC IMPACT

6 One or more fatalities

Catastrophic – mutual aid required

Major environmental impact to neighbouring

receptors (public streams, vegetation, air, ground

water)

Extensive damage & extended downtime

(Corporate)

Serious impact -large community

5

Serious injury -permanent

disability, life-threatening

occupational illnesses

Significant Event - full disaster

response

Off-site release or repeated non-compliance issues with potential for

significant adverse impact

Major downtime (Division / Area)

Serious impact -small community

4

Serious injury -disabling

occupational illnesses

Serious threat -emergency response

(external agencies involved)

Contained within the facility - large impact or repeat non-compliance

issues

Minor damage or downtime

(Department)

Minor –families affected

3

Temporary disability - minor injuries, acute health effects

Important occurrence -potential emergency

response

Contained within facility -minimal impact &

regulatory reporting required

Minor damage or downtime (Individual processes)

Minor – limited no. of individuals

affected

2 First Aid or less Noticeable occurrence -reportable

Contained within facility with no adverse impact -below reportable levels

Minor damage & no downtime Minimal to none

RISK ANALYSISSeverity Likelihood = Risk Level or Priority Number

SEVE

RIT

Y

4 4 8 12 16 24 32 36 48 64

3 3 6 9 12 18 24 27 36 48

2 2 4 6 8 12 16 18 24 32

1 1 2 3 4 6 8 9 12 16

1 2 3 4 6 8 9 12 16

LIKELIHOOD (Fr x Pb)

RISK EVALUATION

RISK LEVEL PRIORITIZATION

1-9 = Minimal Risk Acceptable12-16 = Marginal Risk Acceptable with controls18-27 = Serious Risk Further controls suggested32-64 = Critical Risk Further controls required

RISK TREATMENT OPTIONS Avoidance – choose to not perform

the task or work activity.

Elimination – Remove the hazard (i.e. design valve handles to be accessible at floor level)

Substitution – Use a less harmful substance (solvent replacement for Toluene/Xylene/Varsol).

Share the Risk – hire competent personnel to perform the task

RISK TREATMENT OPTIONS

Engineered – Guards, Ventilation, Interlocking isolation systems (pipelines), Ergonomic equipment

Administrative – Safe Work Procedures, Practices, Rules, Training, Job rotation/schedule.

Share the Risk – hire competent personnel to perform the task

PPE

RISK METHOD SELECTION

CAN/CSA 31000“Risk Assessment Techniques”

(Based upon IEC/ISO 31010:2009)

HAZOP, What if, FMEA/FMECA, FTA, HACCP, Root cause analysis, etc.

PHA, Consequence/ Probability matrix & Human Reliability Assessment provide the foundation for our hybrid THA/JSA methods.

Task Hazard Assessment Form – Alberta Government

Task Hazard Assessment Template – Excel worksheet

Data base demonstration using the Task Hazard Assessment method.

APPLICATION OF THE RISK MANAGEMENT PROCESS

Types of WorkList all types of work done at

the work site.

Work Related ActivitiesList all work related activities

for each type of work.

HazardsList the hazards for each work

related activity. List both health and safety hazards.

Risk (1–4) Rank(Priority)

ControlsList the proposed control(s) for each

hazard.

Completion Date

List the date the controls will be in

place.

Consequences

Frequency

Probability

Total

Task Hazard Assessment Form

http://humanservices.alberta.ca/working-in-alberta/268.html

Task Hazard Assessment Template

Data base demonstration using the Task Hazard Assessment method.

APPLICATION OF THE RISK MANAGEMENT PROCESS

QUESTIONS ?

CONTACT INFORMATION

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OFFICE: 403-475-0937

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