In principle, risk assessment (formerly known as hazard analysis) is an aspect of risk management. Risk management is firmly established in occupational health and safety law, making it an important tool within workplace risk assessment. Read on to find out what it is and how to proceed.
There are legal requirements that make a risk analysis necessary:
- Relevant directives concerning the work equipment used (e.g. the Machinery Directive)
- National legislation (e.g. the German Product Safety Act)
- Various basic standards (e.g. DIN EN ISO 12100:2010, Safety of machinery)
As with workplace risk assessments, analysing risks and defining measures to address them must be documented accordingly.
Table of Contents
What Exactly Happens During a Risk Assessment?
Risk assessment is a procedure for reducing risk. It is a recurring process that includes a risk analysis and concludes with a risk estimation, which is then used in the risk evaluation.
Steps in the Risk Analysis
This stage assesses the limits of the machinery and identifies the hazards. Individual activities are examined, along with the tasks associated with each phase of the machinery's life cycle.
If the risk analysis is not broken down into these individual steps, some processes may not be examined properly and entire life-cycle phases may be omitted from the risk assessment. Once individual hazards have been identified, the existing risk is estimated and the likelihood of the event occurring is assessed.
The Risk Evaluation Stage
The risk evaluation follows the risk estimation, which is based on the risk analysis. The aim of this step is to determine whether the risk of the identified hazard occurring has actually been minimised. The risk assessment process can be concluded if the identified hazard is considered to have been reduced sufficiently. If the risk reduction is deemed insufficient, further measures are initiated. To continue the process, the changed risk is evaluated and the process begins again with a new risk analysis.
Defining Measures Following the Risk Assessment
The risk assessment may identify a need for action. It is always advisable to act on this immediately, as the safety of your employees should be the highest priority.
The important point is always to eliminate the source of the hazard.
- Damaged fixed ladders are removed and replaced with new ones.
- Hazardous substances are replaced with non-hazardous products.
- Technical or structural aids are used to contain hazards.
- Work processes are optimised.
- Company organisation is focused on employee wellbeing.
Once a risk catalogue has been defined, the risks are assessed approximately for every possible scenario. The risk evaluation also addresses the point at which a risk remains acceptable to the risk owner.
For this reason, a tolerated threshold is often shown in the risk landscape. This means that risks below the threshold are still acceptable, while risks above it should no longer be taken.
Risk evaluation usually considers two dimensions:
- The likelihood of a particular event occurring is described in greater detail. This forecast is usually based on a three-year cycle. However, if the company has a strategic planning cycle, this is used as the basis instead.
- The consequences of an event occurring are also described in greater detail. A financial value is normally used for the assessment. As this is not always possible, risks can also be evaluated qualitatively.
Risk Landscape and Risk Matrix — What They Are and How They Work
Probability calculations are used to determine the likelihood of an event that is to be prevented. A table compares the risk of the event occurring with its consequences. This allows risks to be estimated and evaluated systematically. The risk matrix is one method used in risk analysis.
A risk matrix is a two-dimensional representation. The probability of occurrence is plotted on the horizontal axis and the extent of the damage on the vertical axis. Further dimensions can also be added, such as the impact of reputational damage and the frequency of occurrence. This method is known as the Kinney method.
The rows and columns can be labelled using a numerical index (consecutive numbering) or descriptions. Risks are positioned in the matrix so that they can be compared and ranked by importance. Risk areas can be highlighted using colours, with traffic-light colours indicating the severity of the risk. A risk threshold can also be included, showing its position in relation to the occurrence of the risk. Depending on how the risks are positioned, it is possible to decide how quickly they must be addressed. The risk matrix presents both individual risks and risk situations. Overall, it is a practical tool for sorting, estimating and presenting risks.
Advantages and Disadvantages of the Risk Matrix
The applicability and informative value of the risk matrix, particularly in practice, are criticised because of the assumptions it makes. The dynamics of companies and contextual factors are excluded, while the aggregation of risk portfolios assumes that the extent of damage and probability of occurrence can be defined unambiguously for each individual risk. Furthermore, the risk matrix's two-dimensional perspective considers individual risks independently of their interactions and assumes a binomial distribution. These assumptions are considered highly unlikely in business practice.
In addition to criticism of its practical application, the highly simplified representation in a two-dimensional chart gives rise to further concerns. If two risks have the same expected value, they lie on a single line in the risk matrix. This appears to indicate a linear relationship, although the relationship is actually hyperbolic.
Problems in the risk assessment can also be identified. Firstly, the model assumes that risks can be changed easily, which is not possible in reality. Secondly, despite the use of the expected value and the average burden per period that this implies, a consistent basis for the evaluation is not taken into account.
Traffic-Light Model for Risk Assessment
A traffic-light model can be used to assess the level of risk within an organisation. The relevant colour also makes any need for action immediately apparent.
|
Traffic-light colour |
Risk |
Action required |
|---|---|---|
|
Red |
High |
Measures must be taken immediately. |
|
Amber |
Medium |
Measures are required. |
|
Green |
Low |
No measures are required. |
Once a hazard has been identified, the possible countermeasures must be determined. Frequency also plays a role, as explained in our other guides to workplace risk assessment.
For example, a maintenance point that must be accessed may require different levels of action:
- A maintenance point may need to be accessed via a permanently installed ladder two or three times a year. In this case, the traffic-light colour would be green and no further measures would be required.
- If the maintenance point needs to be accessed twice a month, however, measures are required. A staircase would need to be installed to reduce the risk of an accident.
- If the frequency increases and the maintenance point needs to be accessed more often, perhaps once a week, immediate measures must be taken. This would result in a red traffic-light rating. Safe access to the maintenance point must be provided immediately.
Although a green traffic-light rating means that no measures are required, the existing conditions must still be checked regularly. The ladder, for example, may have been damaged in the meantime.
