Understanding the First Step in the Composite Risk Management Process
Identifying hazards is the first step in the Composite Risk Management process. Anything that could harm people, damage property, or impact the environment can be considered a hazard. Physical hazards like dangerous machinery or hazardous chemicals and non-physical hazards such as financial or reputational risks are included. It is crucial to conduct a thorough risk assessment by reviewing past incidents or accidents, conducting site visits, and consulting subject matter experts to pinpoint hazards.
Following hazard identification, a risk assessment must be conducted for each hazard. Analyzing the likelihood and potential impact of each hazard is involved in risk assessment. Prioritizing risks and determining which ones demand immediate attention becomes possible through this process. Factors to consider during the assessment include the probability of hazard occurrence, the severity of potential consequences, and the degree of control that can be exercised over the hazard.
The development of controls to mitigate risks is the subsequent step after risk assessment. Administrative, engineering or personal protective equipment can be used as controls. Changes in how people work, such as implementing new procedures or policies, are examples of administrative controls. Physical alterations to the work environment, like installing safety guards or barriers, are engineering controls. Personal protective equipment, such as hard hats or safety glasses, is worn by workers to shield them from hazards. Controls aim to reduce the likelihood and potential impact of each hazard.
Control implementation is the next step after development. This entails putting controls in place and ensuring their effectiveness. Employee training on new procedures or policies, equipment installation, and monitoring the effectiveness of controls over time may all be part of the implementation.
Continuous evaluation and improvement of the risk management system is the final step in the Composite Risk Management process. Monitoring the effectiveness of controls and making necessary adjustments are involved in this step. Regular reviews of the Composite Risk Management process are essential to ensure effective risk management and incident prevention.
Orbital Risk, an operational risk management consultancy, can assist with the challenges of implementing a comprehensive Composite Risk Management process. With extensive experience in creating effective risk management systems, we can help your organization conduct thorough risk assessments, develop controls to mitigate risks and implement and monitor the effectiveness of those controls.
Our team of experts will collaborate with your organization to create a tailored Composite Risk Management process that suits your specific needs. We offer training for employees on new procedures and policies and ongoing support to guarantee that your risk management system remains effective and current.
In summary, the Composite Risk Management process begins with hazard identification and continues with:
Risk assessment.
Development of controls to mitigate risks.
Implementation of those controls.
Continuous evaluation and improvement of the risk management system.
Orbital Risk can support your organization in implementing an effective Composite Risk Management process that reduces operational risks and ensures the safety of your employees and assets.
Reach out to us today at info@orbitalrisk.com to schedule a consultation and discover more about how we can help your organization manage its operational risks.