Sample Risk Ranking Tools Qualitative measure of consequence

BSBOHS403B IDENTIFY HAZARDS AND ASSESS OHS RISKS – Element 4.4 Prioritise risk
Sample Risk Ranking Tools
1 AS/NZS4360:1999 Risk Management (Appendix) (Standards
Australia, 1999)
Qualitative measure of consequence
Level
Descriptor
Example detail description
Description should be modified to suit the needs of the
organisation and activity
1
2
Insignificant
Minor
3
Moderate
4
Major
5
Catastrophic
No injuries, low financial loss
First aid treatment, on-site release immediately
contained, medium financial loss
Medical treatment required, on-site release
contained with outside assistance, high financial
loss
Extensive injuries, loss of production capability, off
site release with no detrimental effects, major
financial loss
Death, toxic release off site with detrimental effect,
huge financial loss
Qualitative measures of likelihood
Level
A
B
C
D
E
Descriptor
Almost certain
Likely
Possible
Unlikely
Rare
Description
Is expected to occur in most circumstances
Will probably occur in most circumstances
Might occur at some time
Could occur at some time
May occur only in exceptional circumstances
Qualitative risk analysis matrix – level of risk
Likelihood
Insig’ant
1
A
B
C
D
E
Almost certain
Likely
Moderate
Unlikely
Rare
H
M
L
L
L
Minor
2
H
H
M
L
L
Consequence
Moderate
Major
3
4
E
E
H
E
H
E
M
H
M
H
Catastrophic
5
E
E
E
E
H
Number of categories should reflect the needs of the risk being assessed
Where:
E:
H:
M:
L:
extreme risk; immediate action required
high risk; senior management attention needed
moderate risk; management responsibility must be specified
low risk; manage by routine procedures.
Refer also to Section 6 of the Risk management handbook.
(Standards Australia, 2004)
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SAFETYLINE INSTITUTE
FEBRUARY 2012
BSBOHS403B IDENTIFY HAZARDS AND ASSESS OHS RISKS – Element 4.4 Prioritise risk
2 Nomogram (Kinney & Wiruth, 1976)
Table 1
T
Table 2
To use the nomogram:
1. identify the estimated value for the variables likelihood and exposure
draw a straight line through the estimated value of each variable and
extend the line to the tie line
2. estimate the possible consequences
3. draw a straight line from the point on the tie line through the estimated
possible consequences and extend the line to the risk score
Then if required:
4. transfer the resultant risk score to Table 2
5. estimate the risk reduction
6. draw a straight line to join the values for risk score and reduction and
extend the line through the tie line
7. estimate the costs for correction
8. draw a line from the point on the tie line through the estimated costs for
correction to the justification factor
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SAFETYLINE INSTITUTE
FEBRUARY 2012
BSBOHS403B IDENTIFY HAZARDS AND ASSESS OHS RISKS – Element 4.4 Prioritise risk
References
Kinney, G. F., & Wiruth, A. D. (1976). Practical Risk Analysis for Safety Management.
China Lake, CA: NWC Technical Publication 5865, Naval Weapons Centre.
Standards Australia. (1999). AS/NZS 4360:1999 Risk Management: Standards
Association of Australia.
Standards Australia. (2004). HB 436:2004 Risk Management Guidelines Companion to
AS/NZS4360:2004. Sydney: Standards Australia International Ltd.
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SAFETYLINE INSTITUTE
FEBRUARY 2012