Los Angeles City College Risk Assessment and Evaluation Discussion

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Los Angeles City College

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For item 1, write at least 500 words. For item 2, your comment/reply to a classmate will be separate, write at least 50 words total to one or more classmates (remember to be thoughtful, positive, and constructive). Note: Do NOT copy and paste. It is considered plagiarism. Use your own words. Cite your sources.

1. Provide a detailed analysis of Chapter 6 (PDF file) included in Week 9 Lecture Materials. Compare Chapter 6 (week 9) course materials with ASSE's RAI video "Risk ALARP Concepts".

2. Peer review. Comment to at least one classmate's post. With professional courtesy, provide additional analysis, constructive criticism, and additional facts and solutions. I want to see a paragraph of 50 words or more. (Note the word counter in the lower right corner of your posting window).

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Risk Evaluation Developed by Dr. Georgi Popov, QEP, SMS, CMC Risk Evaluation • Overview of Risk Evaluation Analysis methods and selected tools (different from RA certificate program) • • • • • ALARP Concept Risk Heat Maps Current State Cascading Bow-Ties analysis Current State Cascading Bow-Ties analysis including ERM Risk Based Decision Making Risk Evaluation • ISO 31000 states: The purpose of risk evaluation is to assist in making decisions on prioritization and treatment of risk. • Risk evaluation involves comparing the results of the risk analysis with the established risk criteria. Risk Heat Maps and ALARP • Decisions should take account of the wider context (ERM) of the risk and the actual and perceived consequences for internal and external stakeholders. Decisions should be made in accordance with legal, regulatory and other requirements. • The risk evaluation should lead to a decision to consider risk treatment options; to undertake further analysis, to maintain existing controls, or to reconsider objectives. • The outcome of risk evaluation should be recorded, communicated and confirmed by top management. Cascading Bow-Tie Analysis to communicate RISK. Consider Improvements and Future State Source: https://quotefancy.com/quote/664243/Peter-Ducker-The-best-way-to-predict-the-future-is-to-create-it Risk Evaluation • Risk assessment is comprised of three sequential phases: hazard/risk identification; risk analysis; and risk evaluation. Once a risk has been identified and analyzed, and its level estimated, a decision must be made regarding its acceptability or need for treatment. • Risk evaluation involves comparing the estimated risk level from the analysis to the organization’s established risk criteria, as well as ranking and prioritizing risks within the organization’s recorded risks, and determining whether the estimated risk is acceptable or if risk reduction measures are required. Risk Evaluation • The process of evaluating risk involves considerations of the organization’s objectives and how the perceived risk might impact those objectives. • Risk-based decisions resulting from the evaluation are used by decision makers to determine whether risks should be: ✓Avoided, ✓Treated (including severity and probability reduction), ✓Transferred, according to risk priority or ✓Accepted by the organization Risk Evaluation • Methods for defining risk criteria can range from simple two risk categories (those requiring treatment, and those that do not require treatment), to more complex methods using multiple risk levels with graduated degrees of actions. ISO 31010 presents a simple concept of dividing risks into three bands used in evaluating risk. These categories can be described as follows: • unacceptable - where the activity is to be avoided or reduced before continuing • marginal or ALARP – where the costs and benefits of further risk treatment are evaluated before continuing • acceptable – where the risk level is considered negligible requiring no further risk treatment ALARP • The three scale approach follows the ALARP concept ‘as low as reasonably practicable’-which is used to determine when the ‘cost’ of further risk reduction exceeds the ‘benefit’ gained in the risk reduction. • The middle category can be further divided into subcategories where certain actions are requires such as cost benefit analysis for lower risks, and required risk reduction for higher risks Risk evaluation – Additional Considerations • Risk evaluation may involve a cost/benefit analysis or business impact analysis (which are provided in Risk Treatment) to provide a comparison of financial and nonfinancial benefits to the costs of a proposed control measures. ROI Annual Loss $ % Risk reduction Cost of Control $ ROI= 1000 20000 0.3 5000 Prevention through Design and Risk Evaluation • The ANSI Z590.3 risk assessment model (which was originally adapted from Bruce Main, 2004) differs slightly with several additional steps as illustrated here Risk-based Decision Making process Communicate Effectively Risk Evaluation - Communicate Effectively • Risk Heat Maps • The risk scores produced from the risk analysis tool (such as the RISKID presented) are plotted in the risk heat map for visual comparison. Cascading Bow-Ties: Communicate Operational Risks Causes Operational Human Error Overfill Thermal Expansion Corrosion Preventive Controls Operational Event SOPs Operational Consequences Hazards Loss of Product Causes Preventive Controls SH&E Risk Management SH&E Event Mitigative Measures Vehicle Ignition SH&E Consequences Fatalities and Injuries SOPs PM, Inspections Loss of Containment SOPs Source: ASSE PSJ – November 2017 Business Interupt Property Damage Methanol Vapors Hazards SH&E Risks Static Discharge Hotwork SOP, Bonding Grounding Hotwork SOP Fire & Explosion Emergency Response, Distance, Auto Fire Suppression Plant & Community Evacuation Environmental Damage Cascading Bow-Ties including ERM: Communicate Operational Risks Causes Operational Human Error Overfill Thermal Expansion Corrosion Preventive Controls Operational Event SOPs Operational Consequences Hazards Loss of Product Causes Preventive Controls SH&E Risk Management SH&E Event Mitigative Measures Vehicle Ignition SH&E Consequences Fatalities and Injuries SOPs PM, Inspections SOPs Loss of Containment Business Interupt Methanol Vapors Hazards SH&E Risks Property Damage Source: ASSE PSJ – November 2017 Static Discharge Hotwork SOP, Bonding Grounding Hotwork SOP Fire & Explosion Emergency Response, Distance, Auto Fire Suppression Plant & Community Evacuation Environmental Damage Enterprise Risk Management Business Impact Mitigation Catastrophic Business Event WC/Liab Insurance Warning Alarm Catastrophic Business Impact Recovery Measures Business Consequences Business interuption Insurance Financial Losses Public Relations Loss of business investors Backup Inventory Low productivity Reputation Damage
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RISK EVALUATION AND ASSESSMENT

Risk Assessment and Evaluation
Student’s Name
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RISK EVALUATION AND ASSESSMENT
Risk Assessment and Evaluation
Risk evaluation is very instrumental in making decisions on how to prioritize as well as
to treat risk. The process involves comparing the results obtained from risk analysis with preestablished risk criteria that are risk heat maps and ‘as low as reasonably practicable’ – ALARP.
When making these decisions, you should first consider the broader context of the risk both real
and perceived significances for internal as well as external stakeholders. The decisions made
should tally with the regulatory, civil and other requirements. Appropriate risk evaluation should
lead direct an entrepreneur towards considering risk treatment options, undertake furthe...


Anonymous
Really great stuff, couldn't ask for more.

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