A8 Risk Control Flashcards
Risk retention- loss financed by own funds
Main advantages
Can be cheaper than insurance
Increased incentive to identify and control risks
Losses dealt with quickly
Income earned from investment
Only alternative if insurance not possible
Disadvantages
Exposure to random losses
Inability to cover large losses
Risk transfer limitations
Premiums may be too high Not all losses insured (indirect) Rarely gives complete compensation Excessive demands by insurers Reduced incentive to control risk
Risk transfer advantages
Losses dealt with smoothly Cash available for claimant Insurance can deal direct with third parties Tax not paid on premiums Reduced uncertainty Known costs - easier to budget
Prevention principles MHSWR regulation 4
Avoid risks Evaluate risks that can’t be avoided Control hazards at source Adapt work to individual Adapting to technical process Replacement with less/non dangerous Coherent prevention policies Give priority to collective control measures Provide appropriate training, information and supervision
Permit to work- information required
Who is involved What is to be done How is the work to be done Where is the work to be done When is the work to be done The risk and precautions Communication and emergency actions
Employers duty to provide safe systems of work
HSWA section 2(2)a
provision and maintenance of plant and systems of work that are, so far as is reasonably practicable, safe and without risks to health
MHSWR reg 5
Common law - employers duty of care (Wilson and Clyde coal v English)
What are the main risk management strategies
Risk avoidance or elimination Risk reduction Risk retention- with or without knowledge Risk transfer Risk sharing
Define permit to work
A permit to work is a formal written document of authority to undertake a specific procedure and is designed to protect personnel working in hazardous areas or activities
Definition of risk management
The identification, measurement and economic control of the risks which threaten the assets or earnings of a company
Risk controls can be split into what 4 categories
Loss control
- Risk avoidance - Avoid the Risk (take the train to avoid a car crash)
- Risk reduction - Buy an expensive car with driver assistance etc (Hierarchy of control = Reducing the hazard, isolating the hazard, control via training and information and finally PPE)
Risk financing
- Risk transfer- insurance picks up the costs if you crash or take a taxi
- Risk retention - all that’s left
Risk retention (with or without knowledge)
With knowledge means you have made a decision to bear the burden of losses.
Without knowledge means it was done without and consideration whether or not to insure
Factors to consider in risk control management
Availability of technology - how it can contribute to safety. Public expectancy - Legal requirement Economic state of company Levels of insurance premiums Human factors Competence of risk manager
Categories of risk management control measures
ERICPD Technical (Elimination, reduce, Isolate) - design - fencing - ventimtion etc Procedural (Control) -safe systems of work -PTW Behavioural (PPE discipline) -information, training,
Information that should be included in a SSoW
- Clear description of work activities or area of work.
- Significant risk or hazards involved in the work.
- Persons involved in the work, noting who should not be involved.
- Levels of training or competence required.
- Communication arrangements
- need for PTW, LOTO or other controls
- Supervision
- Need for Equipment
- PPE required
- Emergency arrangements
- Date of creation, ie is it in date. And review date
OHSAS General hierarchy of controls when dealing with risk
Elimination Substitution Engineering controls Signage, warnings or administrative controls PPE
