The Objective or Purpose Of Risk Assessment

Risk assessment is the identification of risks and the estimation of associated losses. The goal of risk assessment is to develop a plan that will minimize the probability and/or impact of adverse events. Every business faces some level of risk, but not all businesses are prepared to handle them. That’s where risk assessment comes in. By identifying potential risks and taking steps to mitigate them, you can protect your business from costly damages.

There are a number of different methods that can be used to assess risk. The most important part is to select the right method for your particular business and situation. Once you’ve done that, you can begin to identify potential risks and develop a plan to mitigate them.

Risk assessment is an important tool for any business, but it’s especially critical for small businesses. Small businesses often don’t have the resources to weather a major setback, so it’s important to take steps to protect them. By identifying risks and taking steps to mitigate them, you can help ensure that your business remains successful.

If you’re not sure where to start with risk assessment, there are a number of resources available to help you. The Small Business Administration offers a number of helpful guides, and there are also many private consultants who specialize in risk assessment. Whatever route you choose, taking the time to assess risks and develop a plan to mitigate them is critical to the success of your business.

Objective Of Risk Assessment

The main objective of risk assessment is to determine the measures required by the organization to comply with the relevant health and safety legislation and, thereby, decrease the level of occupational injuries and ill health. The objective of risk assessment is to identify risks and estimate the potential losses associated with those risks. Some of the objectives of risk assessment are as follows:

• To provide a framework for the organization to make decisions about how to deal with risks associated with its activities.
• To ensure that risks are identified, analyzed, and responded to in a consistent manner.
• To communicate the results of the risk assessment process to stakeholders.
• To provide a basis for monitoring and review of the risk management process.
• To ensure that risks are continually reassessed and managed in a proactive manner.
• To provide input into the decision-making process regarding the allocation of resources.
• To support the organization in achieving its objectives.

The goal is to help the employer or the self-employed person to define the measures required to comply with their legal statutory duty under the HSW Act 1974 or its associated Regulations. The risk assessment will need to cover all those who may be at the risk, such as the customers, the contractors, and the members of the public.

In the case of shared workplaces, the overall risk assessment may be needed in partnership with the other employers.

The important distinction between the direct and indirect costs of the accidents is reiterated here. Any accident or the incidence of ill health will cause both direct and indirect costs and incur insured and uninsured costs.

It is necessary that all of these costs are taken into account when the full cost of the accident is estimated. In a study undertaken by the HSE, it was shown that the indirect costs or the hidden costs could be 36 times greater than the direct costs of the accident.

In other words, the direct costs of the accident or the disease represent the tip of the iceberg when compared with the overall costs ( The Cost of Accidents at Work HSG96).

Direct costs are the costs that are directly associated with the accident. They may be insured (claims on employers ’ and public liability insurance, the damage to buildings, the equipment, or the vehicles) or uninsured (fines, sick pay, the damage to the product, equipment, or the process).

The Indirect costs may be insured (business loss, the product or the process liability) or the uninsured (loss of goodwill, the extra overtime payments, the accident investigation time, the production delays).

There are many reasons for the seriousness of the hazard not to be obvious to the person exposed to it. It may be that the hazard is not visible (radiation, certain gases, and biological agents) or have no short-term effect (work-related upper limb disorders).

The common reasons include lack of attention, lack of experience, the wearing of PPE, sensory impairment, and inadequate information, instruction, and training.

How Often Should You Perform Risk Assessments

There is no single answer to this question as the frequency of risk assessments will vary depending on the specific industry, business, and environment. However, it is generally recommended that organizations conduct risk assessments on a regular basis in order to identify and mitigate potential risks in a timely manner. Additionally, risk assessments should be conducted anytime there are significant changes to the business or operating environment.

Accident Categories

There are several categories of the accident, all of which will be dealt with in more detail in later chapters. The principal categories are as follows:

• contact with moving machinery or material being machined; 
• struck by moving, flying, or falling object; 
• hit by a moving vehicle; 
• struck against something fixed or stationary; 
• injured while handling, lifting, or carrying; 
• slips, trips, and falls on the same level; 
• falls from a height; 
• trapped by something collapsing; 
• drowned or asphyxiated; 
• exposed to, or in contact with, a harmful substance; 
• exposed to fire; 
• exposed to an explosion; 
• contact with electricity or an electrical discharge; 
• injured by an animal; 
• physically assaulted by a person; 
• another kind of accident. 

Health risks 

Risk assessment is not only concerned with injuries in the workplace but also needs to consider the possibility of occupational ill-health. Health risks fall into the following four categories: 

• chemical (e.g., paint solvents, exhaust fumes); 
• biological (e.g. bacteria, pathogens); 
• physical (e.g., noise, vibrations); 
• psychological (e.g., occupational stress). 

There are two possible health effects of occupational ill-health. They may be acute, which means that they occur soon after the exposure and are often of short duration, although in some cases, emergency admission to the hospital may be required. They may be chronic, which means that the health effects develop with time. The associated disease may take several years to develop, and the effects may be slight (mild asthma) or severe (cancer).