Risk management is a process of thinking systematically about all possible risks, problems or disasters before they happen and setting up procedures that will avoid the risk, or minimise its impact, or cope with its impact. It is basically setting up a process where you can identify the risk and set up a strategy to control or deal with it
The reason for conducting risk assessments is to control work proactively, to reduce the probability and consequences of unexpected or unplanned events and to ensure compliance. Risk assessments will, if used correctly by all involved, reduce accidents and consequential losses.
In other words we can say:
“Risk management is recognised as an integral part of good management practice. It is an interactive process consisting of steps, which, when undertaken in sequence, enable continual improvement in decision making.
The risk management process includes:
- Identification of a hazard
- Identification of the associated risk
- Assessment of the risk (which includes:)
- the likelihood
- the consequence
- assigning a priority for rectification
- Control of the risk (using a hierarchy of control measures consisting of [in order of preference
- Engineering controls
- Administrative controls (SOPs, training)
- Personal Protective Equipment
- Documentation of the process
- Monitoring and review of the process.