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HAZARD AND RISK ASSESSMENT

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Page 1: HAZARD AND RISK ASSESSMENT. Today’s Session 1.Taking a look at hazard and risk assessment. 2. Definitions. 3.What hazard and risk management does for

HAZARD AND RISK ASSESSMENT

Page 2: HAZARD AND RISK ASSESSMENT. Today’s Session 1.Taking a look at hazard and risk assessment. 2. Definitions. 3.What hazard and risk management does for

Today’s Session

1. Taking a look at hazard and risk assessment.

2.Definitions.

3. What hazard and risk management does for

us.

4.Risk treatment.

5.Round off with some practice.

6.Information is Standards and Advisory

Circular based.2

Page 3: HAZARD AND RISK ASSESSMENT. Today’s Session 1.Taking a look at hazard and risk assessment. 2. Definitions. 3.What hazard and risk management does for

Is there a Purpose – or Just More Buzz Words?

TO REDUCE UNCERTAINTY and AVOID CRISIS

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RECRIMINATIONSUNPLANNED COST

ADVERSE PUBLICITY

TRIAL BY MEDIA

ACCOUNTABILITY in LAW

Page 5: HAZARD AND RISK ASSESSMENT. Today’s Session 1.Taking a look at hazard and risk assessment. 2. Definitions. 3.What hazard and risk management does for

Why Bring Hazard and Risk Assessment To Aviation?

1. Aircraft accident rate has plateaued 2. Many more aircraft flying = more accidents3. Technology is extremely reliable4. Focus on systems and human performance5. Good for triple bottom line6. Business becomes predictable7. Society is driving accountability

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Page 6: HAZARD AND RISK ASSESSMENT. Today’s Session 1.Taking a look at hazard and risk assessment. 2. Definitions. 3.What hazard and risk management does for

Santiago Airport One Month After March 2010 Earthquake

Nairobi Airport Terminal Fire

What is a Hazard?

Hazard Definition (CAANZ)An object or condition with the potential to:• Cause injuries to personnel• Cause damage to equipment or structures• Cause loss of material• Reduce ability to perform a prescribed function

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Charles de Gaulle Design Failure

Page 7: HAZARD AND RISK ASSESSMENT. Today’s Session 1.Taking a look at hazard and risk assessment. 2. Definitions. 3.What hazard and risk management does for

What is Risk?Risk Definition (CAANZ)The effect of uncertainty on objectives, resulting in a deviation from the expected.

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Objective:We want more sun on the deck…….!!!

Effect!

Uncertainty

Deviation

ExpectedTree lies here

Outcome: Great sun…. No House!!

Page 8: HAZARD AND RISK ASSESSMENT. Today’s Session 1.Taking a look at hazard and risk assessment. 2. Definitions. 3.What hazard and risk management does for

Hazard Assessment 101

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What does hazard assessment enable PNAL to do?

1. Increase the likelihood of achieving objectives

2.Consider and plan to identify and treat risk

3. Improve the identification of opportunities and

threats

4. Improve on existing controls, be confident in their

effectiveness

5.Enhance your health and safety performance and

environmental protection

6. Improve organisational resilience (recover quickly)

Page 9: HAZARD AND RISK ASSESSMENT. Today’s Session 1.Taking a look at hazard and risk assessment. 2. Definitions. 3.What hazard and risk management does for

What is Risk Management?

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Coordinated activities to direct and control an organisation, with regard to risk.

1. Set of standard principles and guidelines

2.Creates and protects value

3. Integral to the organisation ‘whole of operation’

4. Part of decision making

5. Clearly and in detail addresses uncertainty

6.Systematic, structured and timely

Page 10: HAZARD AND RISK ASSESSMENT. Today’s Session 1.Taking a look at hazard and risk assessment. 2. Definitions. 3.What hazard and risk management does for

What is Risk Management?

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7. Based on best available information

8.Tailored to suit each organisation

9. Takes account of human and cultural factors

10.Is transparent and inclusive

11.Is dynamic, iterative (applied repeatedly)

and responsive to change

12.Facilitates continual improvement

Page 11: HAZARD AND RISK ASSESSMENT. Today’s Session 1.Taking a look at hazard and risk assessment. 2. Definitions. 3.What hazard and risk management does for

Risk Management Simplified

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Put simply, an event, or series of events that:

• Generate an outcome

• Have consequences (positive or negative)

• Have a value of likelihood of occurring

• Something needs to be done

• Are managed through development and

implementation of control measures

A ‘Cycle of Managing’

Page 13: HAZARD AND RISK ASSESSMENT. Today’s Session 1.Taking a look at hazard and risk assessment. 2. Definitions. 3.What hazard and risk management does for

Threat Management Criteria

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Increasing Expertise Required

Low hazard threat or simple process

High hazard threat or complex process

Operations people – observe, assess risk, make changes, hazard report.

Expert Team – define objectives, budget, analysis, procedures, reporting, implementation, monitoring

Page 14: HAZARD AND RISK ASSESSMENT. Today’s Session 1.Taking a look at hazard and risk assessment. 2. Definitions. 3.What hazard and risk management does for

What is Risk Treatment?

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1. The process of modifying identified risks

2.Risk treatment can involve:

i. Not starting an activity

ii. Taking risk to pursue opportunity

iii. Remove risk source

iv. Changing likelihood

v. Changing the consequences

vi. Share risk with another party

vii. Retain risk by informed decision

BUT REMEMBER – risk treatment can create new

risks or modify existing risks = awareness!!

Page 16: HAZARD AND RISK ASSESSMENT. Today’s Session 1.Taking a look at hazard and risk assessment. 2. Definitions. 3.What hazard and risk management does for

1. The aim is to be able to generate a comprehensive list of risks.

2. Including risks associated with not pursuing opportunities.

3. Important words:• Significant – extensive or important enough

to merit attention• Consequences – result or effect (good and

bad)• Likelihood – the chance of something

happening• Severity – the level to which something

happens4. Identify origin, probability, magnitude of

risks and action to take.

Risk Summary

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Page 17: HAZARD AND RISK ASSESSMENT. Today’s Session 1.Taking a look at hazard and risk assessment. 2. Definitions. 3.What hazard and risk management does for

When in Doubt – STOP - Stay Cool and THINK!!!

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Page 18: HAZARD AND RISK ASSESSMENT. Today’s Session 1.Taking a look at hazard and risk assessment. 2. Definitions. 3.What hazard and risk management does for

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Let’s Try to Identify the Risks

Scenario:

Normal business at Palmerston North Airport, as the result of an earthquake doing long term damage to Wellington Airport’s runway.

Delays and Cancellations

Traffic Chaos

Congestion

Unplanned R and M

Adverse Publicity

Frustration/Anger