4. Risk management
4.1 Hazards and risks
4.2 The risk management process
This Code of Practice should be used on the basis that an appropriate workplace health and safety risk management process is applied. This section examines the basics of such a process.
4.1 Hazards and risks
Hazards and risks are NOT the same thing. A hazard is something with the potential to cause harm. This can include substances, plant, work processes or other aspects of the work environment. Risk is the likelihood that death, injury or illness might result from the hazard.
For example, the energy in electricity-which has the potential to cause an electric shock and result in a serious or even fatal injury-forms a hazard. The associated risk is the likelihood that a worker might be electrocuted when he or she comes into contact with exposed live electrical parts.
The relationship between hazard and risk is sometimes represented simply as:
Risk = Hazard X Exposure
In the above relationship, the terms:
Exposure would cover factors such as frequency of exposure to the hazard and probability of an incident caused by the hazard; and
Hazard would include the possible consequences of an incident due to such a hazard eg death, severe injury or property damage or all three.
4.2 The risk management process
There are five basic steps in the risk management process:
Identify the hazards in a particular work situation. If there is a regulation or ministerial notice about the hazards, you must implement those requirements.
Assess the risks of injury or property damage that may result from the hazards. This step will help to determine the level of risk associated with the identified hazards and establish a priority list based on risk levels. The desired outcome is a priority list for control measures.
Decide on control measures to eliminate the hazard or minimise the risk of injury or property damage. If there is a code of practice, you should either do what the code says or use another method of managing risk exposure. The preferred hierarchy of control is:- Eliminate the hazard
- Substitute with a less hazardous material, process or equipment
- Redesign equipment or work process
- Isolate the hazard
- Introduce administrative controls
- Use appropriate personal protective equipment In deciding which control measure to adopt, you should start at the top of the hierarchy and work your way down.
Implement the control measures.
Monitor and review the effectiveness of the control measures. It may be necessary to modify the control measures or the way they were implemented if the measures were not effective or if new problems arose as a result of the original control measures.
The five steps of the risk management process are illustrated in Figure 4.1.

Figure 4.1:The Workplace Health and Safety Risk Management Process
Last updated July 16, 2009