RECO7079 Occupational Health,

Safety & Well-being in Construction

Safety Management Tools -

Risk Management

Dr. Daron Leung

 Outline of Presentation
• Introduction
• Risk perception
• Definitions of Hazard and Risk
• Risk Management Process Model
– HSE 5
steps Risk Assessment
– ASNZS 4360:2004
– ASNZS ISO 31000:2009
• Risk Assessment
– Identification of Risk
– Assessment of Risk
– Analysing of Risk
– Evaluation of Risk
– Risk Control Priorities
• Risk Treatment
• Monitor and Review
Introduction
Development of Risk Management
Risk management

Loss control Insurance

+
(risk reduction) (risk transfer)

Fire, security, pollution,

Loss + product liability,
prevention
business interruption

Damage and near

Safety + miss accidents
 The Inherent Nature of Risk

• Every one takes risks

• “No risk” does not exist
– risk ranges
– benchmarks and criteria
• Risk is a part of all business
– financial, health, safety, environment
• There are positive and negative
risks
 Risk Perception

• The perception of risk depends a great deal on our personal situation.

– drinking tap water: chlorine killed all germs? chlorine produced
chlorinated compounds, which are carcinogens?
– home and offices constructed of concrete blocks contain
radioactive minerals and the derived radon gas, a carcinogen.
– a chest x-ray for tuberculosis or cancer detection introduces a
cancer risk?
– Flying on a plane to Japan save time but fall face terrorist
– Performing an operation in the hospital to keep alive but may die
– Jogging & exercise is good for health but not for the joints
 Activities that increase the risk of
death by 1 per million
Activity Cause of death
• smoking 1.4 cigarettes • cancer, heart disease
• drinking 0.5litre of wine • cirrhosis of liver
• 1 hr in coal mine • black lung disease
• travelling 6000 miles in jet • cancer, cosmic radiation
• two months of second-hand smoke • cancer, heart disease
• eating 40 tbsp peanut butter • cancer, aflatoxin
• drinking 1.25 cases saccharin diet soda • cancer, saccharin
• eating 100 charcoal-broiled steaks • cancer, benzopyrene
• living 2 months in stone or brick home • cancer, radon
• having one chest x-ray • cancer, radiation
• drinking chlorinated water 1 yr • cancer, chlorine
Risk Acceptability

Intolerable

Tolerable

Negligible
Acceptable and Tolerable Risk

• Risks may be tolerated because of

perceived advantages
• A compromise may be reached where the
positive aspects are accepted as
outweighing the negatives
– risk is not accepted, but is tolerated
 Risk Taking

• There may be an inverse relationship

between the magnitude of risk and
perceived value of outcome
– e.g.
• Bungee jumping
• Scuba diving
• Car racing
• Rock Climbing
• Wearing RPE for wood dust exposure
 Factors Affecting Risk Taking

• Control over risk

– voluntary or involuntary
– self-imposed or externally imposed
• Natural Vs. human made
• Understanding of effect
• Gains and benefits
• Cultural norms, beliefs and values
• Society’s acceptance of risk
What is Hazard Vs Risk?
Is this a risk or a hazard ?
 A HAZARD can be defined as:

• An event which has the potential to cause

harm. This can be in the form of death, ill
health and injury to people, damage to
property, plant, products or the
environment; production losses; business
harm and increased liabilities
 A RISK is defined as (AS/ZN 4630)
• The chance of something happening that
will have an impact upon objectives.
• It is measure in terms of consequences
and likelihood.

Risk = Consequences x Likelihood

• Risk = A function of (Consequence and
Likelihood)

• Risk = Consequences x Likelihood

• Risk = Consequences + Likelihood

• Risk = (C × weighting factor) x × (L)y

Risk Management Process
Plan Do Check Act
 Hazard Information Flow for Managing System Safety

Project Phase Trial Operations & Operations Phases

Design Feed back to next project

Hazard Identification
& Resolution
Construction
P Ops
Checking and Verification of
H Design Control Measures H
Testing and
Commissioning
R Validation of Systems R
Functions and Performance Trial
S Operations S
Hazards Monitoring and Procedures
Validation Operations
Service
On-going Operational
Hazard Management
Flow of Hazard information
PHRS: Project Hazard Registration System
Ops HRS: Operations Hazard Registration System
 Handling of Construction Hazards

Designer Constructor
Establish
- produces - reviews & Pass on info on
Generic / Non
construction updates log
Generic residual hazards
hazard log
Construction - implements to operator/
hazard - identifies & mitigation maintainer
Database resolves measures
hazards

Note:
• Focus is on identification and reduction of hazards by design during preliminary/detailed
design stages
• Contractors are already required to identify and rectify hazardous conditions under
F&IU (Safety Management) Regulations
What is RISK ASSESSMENT?
 RISK ASSESSMENT is
• The process used to determine risk
management priorities by evaluating and
comparing the level of risk against predetermine
standards, target risk levels or other criteria
(AS/ZNS 4360)
• The overall process of estimating the magnitude
of risk and deciding whether or not the risk is
tolerable or acceptable (BS8800)
• A risk assessment is simply a careful
examination of what, in your work, could cause
harm to people, so that you can weigh up
whether you have taken enough precautions or
should do more to prevent harm. (HSE)
 Reasons for implementing RA
• The results can be used to
– improve work method, job instruction
– better control on critical jobs.
– correct existing analysis
– protection of plant / equipment and personnel
– minimize occupational accidents caused by unsafe acts.
– prepare for safety legislation
– emergency procedures and provision of
information etc.
 Legal Requirements

• F&IU (Noise at Work) Regulation

• OSH Regulation (Manual Handling)
• F&IU (Display Screen Equipment) Regulation
• F&IU (Safety Management) Regulation
• F&IU (Confined Spaces) Regulation
 Set up RA team
• Supervisor

• Workers who familiar with job

• Other workers who do the job

• Experts or Specialist when

necessary e.g. coach, facilitator,
safety personnel
 HSE 5 Steps to Risk Assessment
• Step 1 Identify the hazards
• Step 2 Decide who might be harmed and how
• Step 3 Evaluate the risks and decide on precautions
• Step 4 Record your findings and implement them
• Step 5 Review your assessment and update if
necessary
Risk Management
AS/NZS 4360:2004
 Risk Management
AS/NZS 4360:2004

• Establish the context

• Identify risks
• Analysis risks
• Evaluate risks
• Treat risks
• Monitor and review
Risk Management Overview
AS/NZS 4360:2004

Establish the Context

Risk Assessment
Identify risks
Communicate
and consult

Monitor
Review
and
Analysis risks

Evaluate risks

Treat risks
 Risk Assessment

3 major process:
• Identification of risk
• Analysis of risk
• Evaluation of risk
 Establishing the Context

• Establish the strategic, organizational

and risk management context in which
the rest of the process will take place.
• Setting the scope and boundary
– Defining the project and establishing its
goals and objectives.
– Defining the extent of the project in time
and location.
 Identification of Risk
• Generate a comprehensive list of events
• Identify what can happen
• Consider possible causes and scenario
• Tools and techniques includes: checklists,
judgment based on experience and
records, flow charts, brain storming,
system analysis, scenario analysis and
system engineering techniques
 The Framework

Electrical Hazards
Mechanical Hazards
Ergonomic Hazards

Man Machine

Chemical &
Physical Hazards
Dust Hazards
Material Env

Biological Hazards
Chemical & Dust Hazards
 Identify Risks
• What can happen
– to generate a comprehensive list of events
for further action
• How and why it can happen
– consider possible causes and scenarios
• Tools and techniques
– checklists
– judgements based on experience and
records,
– flow charts
– brainstorming…
 Some typical Construction Hazards

Work in public highway Flooding

Construction Traffic obstructing public highway Tunnelling
Construction traffic exiting the site Tunnel Ring Erection Equipment
Materials falling from construction traffic Tunnel Boring Equipment
Collision between moving vehicles & personnel Excavation/removal equipment
Electrocution from Utility services Movement of soil & construction materials in
tunnels

Gas explosion or fire due to damaged gas main Compressor failure

Explosion or fire due to damage to fuel pipe lines Failure of pressure hoses on various equipment
Unexploded Bombs Spray from grouting operation
Inspection of large diameter piles & diaphragm Electric supply cables in tunnels
walls

Falls into deep pile or diaphragm wall Air pollution

excavations
Falls into deep shafts and excavations Methane/toxic gas
 Some typical Construction Hazards (Cont’d)

Materials falling into deep shafts or excavations Slips, trips and falls

Vehicles falling into deep shafts or excavations Fire in tunnels/ hot works/ flammable materials

Collapse of temporary strutting of diaphragm Tunnel face collapse

walls supporting deep excavations
Construction of tunnel cross-passages

Ground Settlement due to excavation Typhoon/Landslide

Oxygen deficiency in confined spaces Settlement due to tunnelling

Bumping hazards Work adjacent to or over water

Crane collapse Precast beam falls on highway during erection

Movement of Works Trains Failure of lifting operation

Air quality in tunnels during installation Demolition

Energisation of traction current Asbestos in old buildings

Energisation of station power supplies Hazardous construction materials

Hazards Associated with A Typical Rail Journey

• Station Platform (escalators / stairs, station fire, etc)

• Along & waiting at Platform (fall from platform, hit by
train, trespassing etc)
• Boarding / Alighting (fall between train & platform or
between cars, caught in doors)
• Transit (collision, derailment, train fire, tunnel fire,
falling out)
 Risk Analysis

• By combining estimates of likelihood and

consequences under the existing control
measures.
• Aim to separate the minor acceptable risks from
major risks
• Likelihood and consequences
– past records; relevant experience; industrial practice
and experience; relevant published literature;
specialist and expert judgements.
 Assessment of Risk

• Compare the risk

found with established
risk criteria
• Output is a prioritized
list of risks for further
$
action Benefit

• Decide whether risk

can be accepted
 Analysis of Risk

• Identify existing controls

• Determine the likelihood
• Determine the

Frequency
consequences
• Analysis may be in the
form of qualitative or
quantitative Consequence
MTR Risk Matrix
 Risk evaluation

• comparing the level of risk found during

risk analysis
• decide whether risks can be accepted
• Output of a risk assessment is a
prioritized list of risks for further action
• High risks Vs Low risks
• Risks not acceptable should be treated
 5x5 Risk Matrix
Consequences
Insignificant Minor Moderate Major Catastrophic
Likelihood 1 2 3 4 5
A (almost certain) H H E E E
B (likely) M H H E E
C (moderate) L M H E E
D (unlikely) L L M H E
E (rare) L L M H H

Legend
E: extreme risk; immediate action required
H: high risk: senior management attention needed
M: moderate risk; management responsibility must be specified
L: low risk; manage by routine procedures
3 x 3 Risk Matrix
 Risk Assessment
Risk Regions
Example based on ISO 14971, Fig E.1

Frequent
Intolerable
Probable
Likelihood

Occasional ALARP
As Low As Reasonably
Practicable
Remote

Broadly
Improbable Acceptable

Incredible
Negligible Marginal Critical Catastrophic 53
Severity
Proposed CLP Power Strategic Risks Matrix
 PROBABILITY CATEGORY

Consequence A B C D E
Category Almost Likely Possible Unlikely Rare
Certain
I Loss of Conflict of interest
Scheme of Under SOC
Significant Control (Commercial)
(Regulatory) Wrong E-bill
amount to all
customers(IT)

II Forced Unethical Natural Gas price Substation Fire

Outage of Dealings Increase (Operational)
Major System (PA) (Finance)
Control Centre
(Operational)

III Large scale Staff Interest Rate

Resignation Increase
Moderate (HR) (Finance)

IV
Minor

H Immediate Senior Management Action M Assign Management L Follow Routine

Required to follow-up Procedures
 Specific Consequence Categories
LI “Non-Operational” Impact Category
Type of Impact Sample
Consequence / Operational/ Commercial/ Regulatory/ Human Public Affair Information
Business Financial Planning Resources Technology
Impact

I Significant •Fatalities/Serious impact • Huge finanical loss •Significant regulatory •Large shortfalls Issue of •Massive information
on public • Significant claim change in SOC that of skilled International integrity loss,
•Significant disruption to from service outside CLP resources to run media’s interest •Damaging
large community/Full providers to expectation the business (repeated nformation
scale response (load coroporate level •Significant reduction •Widespread staff occurrence of disclosure,
loss > 200MVA or • Legal breach in business volume issue or morale major events) •loss of processing
affecting > 100k • > HK$ 10 M which may affect stock problem affecting BU's
customers over 1 hour) price and long term viability
•Severe and long-term borrowing capability •multiple sites with
damage of image or •Unable to meet supply broad network effect
reputation obligation

II Major •Serious Injury/Limited • Major finanical loss •Major regulatory •Some shortfalls Issue of •Affiliate or business
impact on public • Significant claim change in SOC that in skilled Government line database
•Significant disruption to from service outside CLP resources to run interest (repeated corrupted
small community (load providers to expectation the business occurrence of •tactical nformation
loss > 50MVA or business level •Major reduction in • Business group moderate events) disclosure
affecting 20k to 100 • Major legal breach business volume staff issue or •loss of processing
customers over 1 hour) • > HK$ 1 - 10 M •Short term inability to morale problem affecting many
•Short term damage of meet supply obligation business cycles with
image or reputation major losses
•remote site work
group network
failures
III Moderate • < 5 serious injuries or • High finanical loss •Moderate regulatory •Lack of some Issue of Public •Workgroup
medical treatment • Moderate claim change in SOC internal resources concern / local information corrupted
required from service •Moderate reduction in which can be media interest •internal working
• Minor disruption (Load providers to business volume outsourced nformation disclosure
loss of > 10MVA or business level •Inability to meet • Business unit •loss of processing
affecting 5k to 20k • Legal non- supply obligation staff issue or affecting one or more
customers over 1 hour) compliance temporarily morale problem business cycles with
• Limited response of • HK$50k to $1M no major losses
short duration •remote site work
group network
IV Minor •Medical treatment • Small finanical loss •Minor regulatory •Lack of internal Issue not of •Individual
required • No claim from change in SOC resources for low concern / local information corrupted
• Power disruption < service providers to •Minor reduction in priority works media interest •Unclassified or
10MVA or affecting 800 business level business volume undamaging
to 5k customers • Legal non- •Inability to meet • individual staff information
• Minor / no response compliance supply obligation in issue or morale disclosure
• < HK$ 50k one odd case problem •loss of processing
 PROBABILITY CATEGORY
LII and LIII Operational Risks Matrix (existing) A B C D E

Frequent Probable Occasional Remote Impossible

CONSEQUENCE CATEGORY

Operational
Generation Safety / Health
Operational Safety / Public Environmental Asset Once per Once per Once in Once in Once in
Effects
Disruption Disruption Health Disruption Impact Loss Month Year Several Every 10 Every 50
(HK$) Years Years Years

A B C D E

I Loss of
of 3load  Fatalities / Multiple Large Major / > 10 M I High High High Medium Medium
Loss or Loss of load
Catastrophic Fatalities / Community Extended
200MVA
more > 200MVA
Power duration/full
generating
Serious disruption Scale
units with
Public response
total capacity
Impact
>1500MW (>100k
customerso
ver 1hr)

II 
Loss of load Serious Injuries Single Fat. / Small Serious / > 1M II High High Medium Medium Low
Loss of 2 or more Loss of load Multiple community significant
Serious 50MVA
generating units Serious
> 50MVA power resource
with total capacity injuries
800 MW<x<1500 disruption commitment
MW Limited (>20k
Public customerso
impact ver 1hr)
III Loss of load Minor injuries / Minor
Minor
Moderate / > 50k III Medium Medium Low Low
High
Moderate Loss10MVA
of any 1 injuries / Limited
Loss of load Power
generating unit Response /
> 10MVA disruption
Little Short
Public duration
Impact (>5k
customers
over 1hr)

IV Loss of load < Minor injuries / Minor Minimal Power Minor / Little < 50k IV Low Low Low Low Low
None injuries Disruption Or no
Minor 10MVA Loss of load (> 800
< 10MVA No public customers response
No public impact over 1hr)
impact
 Risk Treatment
• Risk Avoidance for the risks of high-frequency high-
consequence
• Risk Retention for the risks of low-frequency low-
consequence
• Risk Transfer for the risks of low-frequency high-
consequence (and also high-frequency high-
consequence)
• Risk Reduction for the risks of high-frequency low-
consequence
 Treatment of Risk
• Identify Treatment options
– Avoid
– Transfer
– Reduce consequence
– Reduce likelihood
• Evaluate options
• Prepare treatment plans
• Implement treatment plans
 Risk Control Priorities

❑ Avoidance of Exposure
❑Method
❑Material
❑ Substitution

SUPERVISION
❑ Engineering Control
❑Separation by time & space
❑Provide local control
❑ Administrative Control
❑Written rules & procedures
❑Shifting
❑Time restriction
❑ PPE as a last resort
 Avoid Risk

• Known as Risk Avoidance Strategy:

– Conscious decision (and action)
– to avoid a particular identified risk completely

• Can be applied to risk with

– High consequence
– High frequency
Risk Treatment (AN/NZS 4360:2004)

• Action to reduce or control LIKELIHOOD

– Audit and compliance programs
– Contract conditions
– Formal reviews of requirements, specification,
designs, engineering and operation
– Inspection and process control
– Investment and portfolio management
– Project Management
– Preventive Maintenance
Risk Treatment (AN/NZS 4360:2004)

(cont’d)
• Action to reduce or control LIKELIHOOD
– Quality assurance, management and standards
– Research and development, technological
development
– Structured training and other programs
– Supervision
– Testing
– Organizational arrangement and
– Technical control
Risk Treatment (AN/NZS 4360:2004)

• Action to reduce or control CONSEQUENCE

– Contingency planning
– Contractual arrangement
– Contract conditions
– Design features
– Disaster recovery plans
– Engineering and structural barriers
– Fraud control planning
– Minimizing exposure to sources of risk
Risk Treatment (AN/NZS 4360:2004)

(cont’d)
• Action to reduce or control CONSEQUENCE
– Portfolio planning
– Pricing policy and control
– Separation or relocation of an activity and resources
– Public relations and
– Ex gratia payments
 Reduce Risk

• Know as Risk Reduction Strategy:

– Implement a risk control programme
– Better for risk with low consequence, high frequency

• “risk control” means

– the overall process of developing, implementing and
maintaining the safety procedures and risk control
measures.
– It also includes the review of the safety procedures
and risk control measures
 Transfer Risk
• Know as Risk Transfer Strategy:
– Transfer to legal assignment of the costs of certain
potential losses from one party to another,
commonly by insurance, or by sub-contracting

• Can be applied to risk with

– High consequence
– Low frequency
 Accept Risk
• Known as Risk Retention Strategy:
– Conscious decision to cover
– identified risks with own finance
– or omission to insure against unidentified or partially
evaluated risks

• Can be applied to risk with

– Low consequence
– Low frequency
 Monitoring and Review

• monitor risks, risk treatment plan

 Risk Profile
• Risk profile is a description of the risk level of a
procedure/ project / object/ place being assessed.
• The purpose is to provide a snapshot summary of the risk
inherit for that assessment for comparison and further
management decision.
• The more High Risk issues being identified, the more
resources is needed to be allocated to mitigate the risk.
• It can be simply represented in description e.g. 15 H, 25
M & 1 L or other graphic format easy for the reader to
understand.
 References
• Standards Australia, 2004, “AS/NZS 4360: 2004, Risk
Management”, joint standard, Homebush New South
Wales and Standards New Zealand, Wellington.
• Stranks Jeremy, 1994, Management Systems for Safety,
Bell and Bain Ltd, Glasgow.
• Sutton, I.S., 1992, Process Reliability and Risk
Management, Van Nostrand Reinhold, USA.
• http://www.hse.gov.uk/pubns/indg163.pdf
• http://www.praxiom.com/iso-31000.htm
• http://sherq.org/31000.pdf
Step 1 Step 2

Step 3 Step 4