CSP Domain 3: Risk Management Flashcards
What is a limited scope audit
Examines only one program at a time, which allows for increased thoroughness and efficiency
Ex. Hearing conservation program
What method is the MOST effective at determining potential problems in a system?
Failure Mode and Effect Analysis
Poor countermeasures and a weak causation analysis are examples of
Safety Program Defects
Designation for risk management professionals from The National Alliance for Insurance Education and Research
Certified Risk Manager (CRM)
What are the 3 dimensions of measurement when discussing health and safety performance?
Capability, Compliance, and Deployment
What is an accurate definition or formula to measure loss ratio?
(Losses)/ ((Premium)*(Emod))
What is the difference between loss prevention and loss reduction
Prevention-reduces the likelihood a loss will occur -Training
Reduction-reduces severity of a loss- Installing firewalls, sprinklers, and equipping a fire brigade
What is the final step in the risk management?
Administering the process
List the major elements of an effective health and safety program:
- Management Comittment
- Employee Involvement
- Worksite Analysis
- Hazard Prevention and Control
- Health and Safety Training.
Designation for risk management professionals from Institutes for Risk and Insurance Knowledge Group
Associate in Risk Management (ARM)
What are the three levels of accident causation?
Direct causes
Indirect causes
Basic/Root causes
What is the William Fine method for?
To decide if there is a justification for the cost to correct a hazard and how quickly to react.
How does Fine’s risk method calculate a risk score?
Consequences * Exposure * Probability
What determines the overall risk assessment using a risk matrix
The highest level of risk
Risk analysis method for allocating funds to achieve the greatest risk reduction across several departments within a plant
Logical process risk analysis
What is true of enterprise risk management
- Prioritizes and manages exposures as a comprehensive group (not individual clusters)
- Designed to emphasize a wide array of risks
- Applies to a broad range of functions
Which calculation is used to evaluate when an investment will pay for itself based on savings
Time value of money
Hierarchy of controls from most effective to least preferred
Elimination
Substitution
Engineering
Administration
PPEPartial injury
When an employee can still work after being injured but cannot perform normal tasks
What are the four major factors that should be investigated with each incident?
Human
Management Systems
Work Environment
Equipment/Tools
What needs to be identified during an incident investigation:
- Management system that failed
- Unsafe act or conditions that led to a release of energy
- Source of the energy that was release
*Should not focus on finding fault or fixing blame
What are risk perception factors that lead to overestimation?
- Unknown
- not understood
- uncommon
- dramatic
- Media coverage
- Controversial
- you in control
- non-voluntary
- work risks
- many injuries/events
What is a limit to cost-benefit analysis?
Not all cost and benefits can be easily converted to quantitative or financial terms
According to the Severity Rating Table, catastrophic severity is:
Ideath or permanent disability,
complete project failure or the loss of ability to complete the project, and
loss of major critical systems or equipment
According to the Hazard Probability rating table what is the ratio for an incident to be considered occurring SPORADICALLY?
Occur occasionally but less often than 1/1000 exposures
According to the Severity Rating Table, negligible severity includes:
First aid or minor medical treatment, little or no adverse impact on project capability, and slight equipment or system damage.
When dealing with worker compensation claims, if en employee has a pre-existing condition and it is not documented, how would workers comp handle the claim?
Would have to pay 100% for new injury
What are two key control measures for implementing controls?
The cost of the control and the degree of hazard reduction.
What are the 5 controls included in the control development and decision-making process?
- Support
- Standards
- Training
- Leadership
- Individual
Why is it important for the safety professional to know basic financial information?
To justify safety recommendations
What is the maximum number of “days away” that can be recorded for a single injury on an OSHA log?
180 days
Who is responsible for making sure that controls are implemented throughout the risk management process?
Managers and supervisors
What is the leading cause of fatalities in crane operations
Contact w electrical power lines
What part of assessing the exposure of chemicals is the scaling factor between species related to?
Dose/Response assessment
According to the Severity Rating Table, critical severity is:
Includes permanent partial disability or temporary total disability of employees, severely degraded project capability, and extensive major damage to equipment or systems.
Provides detailed information about the cost of a workers compensation claim
Company loss runs
According to the Hazard Probability rating table what is the ratio for an incident to be considered LIKELY to occur?
1/1000
One out of every 1000 employees performing task
When dealing with workers’ compensation insurance premiums, the average rate for a particular class of work is called what?
Book rate or manual rate
Insurance companies use a multiplier to calculate and provide worker’s comp insurance which is known as:
EMR = (adjusted actual losses + ballast)/(expected losses + ballast)
According to the Hazard Probability rating table what is the ratio for an incident to be considered to occur FREQUENTLY?
1/500
Injury occurs once out of every 500 exposures
Temporary Injury
One which employee is expected to completely recover
Ex. Sprained ankle
When calculating employee modification rate, what is an accurate description of ballast?
An amount added to both the numerator and denominator of the EMR formula to reduce the differences between large credits and large debts
According to Heinrich, for every serious/fatal accident, there are:
29 minor accidents
300 near misses
He postulated these numbers without being able to verify their accuracy
A number used to calculate workers comp premiums
E-mod
Notes:
It is long term indicator of safety performance. Takes into account 3 of the 4 previous years.
E-Mod of 1 is industry avg. 0.5 is excellent and means your companies premiums cost 50% of industry avg.
The number of compensate claims (small claims) has a greater effect on E-Mod than a single costly claim
Total injury
When an employee is so injured on the job that they cannot work
What is the primary purpose of incident investigation?
To prevent future accidents from occurring
According to Frank E. Bird’s theory, for every serious/disabling injury there are:
10 minor injuries
30 property damage incidents
600 incidents with no damage or visible injury
Was able to derive this data empirically from looking through companies loss histories
Permanent injury
Workplace injury which an employee will not recover from
The most appropriate technique to use to analyze system safety at small job sites is:
Job Safety Analysis
The primary reason for safety inspections is:
Identify and correct workplace hazards
What are the 4 steps of a chemical risk assessment?
- Hazard identification
- Dose-response assessment
- Exposure assessment
- Risk characterization
What are the three basic methods for assessing effectiveness of any safety and health program?
Document review and verification
Employee interviews
Site condition reviews
What is false about warning hazards
Depend on people to take actions that will prevent them for being exposed
True: They are effective only if humans perceive them, do not remove a hazard, prevent access to a hazard
What are considered active safeguards in fall protection?
Personal Fall Arrest System
Requires action by the wearer
What are considered to be passive safeguards in fall protection?
Guardrails
Safety nets
Hole covers
What are Type I policy errors?
Having too stringent regulations
- creates false positives
- imposes unnecessary costs on produces
- increases public fears
What are type II policy errors?
Having regulations not stringent enough
- creates false negatives
- can expose citizens and environment to preventable risks
