FAQs on risk management
What is risk management?
Risk management, in the occupational health and safety context, refers to a systematic process by which management policies, procedures and practices are applied to identify the workplace hazards, assess the risks associated with those hazards, determine the appropriate control measures and monitor and review the risk management process for effectiveness in providing a safe and healthy workplace.
Commonwealth OHS legislation requires employers to risk manage all reasonably foreseeable hazards arising from work.
Risk management is a four step process whereby the employer is required to:
1. Identify - all hazards associated with a system of work. A hazard is something that can or has the potential to cause injury or illness.
2. Assess - the level of risk posed by the hazard. What is the likelihood that a person will be harmed and how severe would the consequences be?
3. Control - the risk. Decide on appropriate control measures such as elimination and substitution using the hierarchy of controls. Note that the employer is required to take all reasonably practicable steps to protect the health and safety at work of the employer’s employees. This may require consideration of a number of issues that influence the effectiveness and practicality of the risk control measures.
4. Review and monitor - the process. Have the control measures eliminated or reduced the risks? Have the control measures introduced any new hazards?
More information on the legislative requirements of risk management can be found in Part 1 of the Occupational Health and Safety (Safety Standards) Regulations 1994. Other parts of the Safety Standards Regulations refer to risk management obligations for specific hazards, activities and places where work is performed.
Part 1 of the OHS Code 2008 addresses Risk Management and provides practical guidance to employers.
When do employers need to apply risk management principals?
Where employers have identified a hazard or an employee has made them aware of a hazard, they should ensure that an assessment is made of the risks associated with that hazard in line with Part 1 of the OHS Code 2008. As a minimum, employers should ensure that a risk assessment is conducted before:
- the introduction of any new plant (equipment) or substances
- the introduction of a new work practice or procedure, and
- any change in a workplace, work practice, activity or process where the change may give rise to a health or safety risk.