Risk Management Approach

 The generally accepted risk management model subdivides the risk management process into the following headings.

Step 1: Define Objectives

Defines the goals and objectives the project sets out to achieve. A Work Breakdown Structure list of work and checklists can be used to define the objectives. This defines what you have to achieve to be successful and establishes a basis for dealing with risk and future decisions. (See example below)

Yard Clean-up Work Breakdown Structure (WBS)

Step 2: Identify the Risk

Identifies areas of risk, uncertainty, limitations and restrictions, which may impact on your project, and limit or prevent you from achieving your objectives.

Step 3: Quantify Risk

Evaluates the risks and prioritise the level of risk and uncertainty and quantify their frequency of occurrence and impact on the objectives.

Step 4: Develop the Response

Defines how you are going to respond to the identified risks. The response could be a combination of any of the following processes to help eliminate the risk.

Construction site hazards:

If your work involves any kind of building, demolishing, or other physical labour, you will likely face a variety of physical hazards, such as:

• Working at height
• Falling objects
• Moving objects and vehicles
• Structural collapse
• Harmful materials
• Manual handling

You can eliminate hazards such as manual handling by using alternative, mechanical, means of lifting, moving, or operating heavy or unwieldy loads, or by splitting a bulky load into smaller, more manageable parts. If a hazard can’t be avoided completely, you can minimize risk by providing training, restricting access to hazardous work, and providing Personal Protective Equipment (PPE).

Telecoms industry hazards:

This field covers a broad area of vital networks of connectivity, from telecommunications masts to setting up modems and internal networks. Typical hazards could include:

• Working at height (e.g. telecoms masts and towers)
• Electrical hazards
• Inclement weather
• Equipment failure
• Structural collapse of towers

One simple way to eliminate the risk of inclement weather is to make it a rule to suspend any activities that involve working at height until the weather improves. You should also provide appropriate training and protective equipment to ensure that only qualified and well-prepared workers have access to risk areas.

Warehouse hazards:

If your business concerns storing and shipping goods or equipment, there are a variety of common hazards that you are likely to encounter. Your warehouse might have some of the following hazards:

• Forklifts
• Loading docks
• Conveyors
• Storage systems
• Manual handling
• Falling objects
• Slips, trips, and falls
• Fire hazards
• Energised Equipment

To eliminate hazards such as falling objects, you should make sure that your storage systems are secure and appropriate to the load. Avoid unbalanced and loose loads, and make sure that hard hats are provided, as necessary. You should also make sure that specialised equipment such as forklifts and conveyors are only operated by trained employees who have full and proper protective equipment, and hazards such as loading areas are clearly signposted to keep people away from risk.

Catering and hospitality:

If your business involves food or hospitality services, there will likely be hazards that present a risk to both your workforce and members of the public.

Typical hazards could include:

• Slips, trips, and falls
• Cleaning chemicals
• Manual handling
• Knife accidents
• Poor ventilation and extreme temperatures
• Cooking equipment
• Biological hazards and germs (germs and viruses)
• Dermatitis (inflammation of the skin)

Some hazards, such as a water spill on a tiled floor, can be eliminated quickly and easily, while others will need more attention. You might decide that the best way to eliminate a hazard such as knife accidents for kitchen staff is to outsource knife sharpening to a specialised service, or that some hazardous chemicals can be replaced by safer alternatives. Always make sure that food-preparation storage and preparation areas are in a hygienic and sanitary condition, to prevent bacteria from developing.

Mitigate the Risk

Avoid the risk entirely by eliminating the potential problem. Transfer the risk to another party (e.g. appoint a subcontractor) through contractual clauses and insurance. Reduce the risk by planning effective action in the cases where the problem shows. Accept the risk.

Prevent the Risk

Methods include all techniques and management practices that help to prevent unnecessary or foreseeable risks.

Control the Risk

Controls are typically policies and procedures or technical safeguards that are implemented to prevent problems and protect the assets of an organisation.