Evaluation and management of risk
17.02.2016
Risk evaluation and management is the identification and implementation of effective instruments for reducing risk.
Risk evaluation
Risk evaluation consists of comparing to risk acceptance criteria, identify and assess measures. Here we must find various instruments that could be used to reduce risk. The measures may reduce probability or consequences. Risk evaluation provides the basis for risk management, which is performed by management.
Risk management
Risk management consists mainly of management's assessment and decisions. The following points should be reviewed during risk management:
- Assess what effects the proposed measures have on the risk.
- Look at all aspects of risk, cost and benefit.
- Avoid looking only at risk figures from the matrix; a total picture of the risk is necessary.
- The final decisions must be endorsed in line management.
- Be clear about who is responsible for performing the measures, preferably with a time limit.
- Document decisions that have been taken in the action plan.
- Line managers are responsible for following up on the work of implementing the measures.
Examples of measures:
1. Reduce probability, examples of preventive measures:
- Training
- Instructions and routines
- Documentation
- Maintenance, replacement of equipment
- Follow-up and control measures
- Alarming/marking
2. Reduce consequences, examples of measures:
- Barriers/protective measures
- Back up
- Protective measures
- Alarms (electronic, guards)
- Emergency preparedness
- Exercises
Insurance
