2. Risk management
2.1 Hazards and risks
2.2 The risk management process
This Code of Practice should be used on the basis that appropriate workplace health and safety risk management processes are applied. This section examines the basics of such a process.
2.1 Hazards and risks
Hazards and risks are NOT the same thing. A hazard is something with the potential to cause harm. Included in this definition are substances, plant, work processes or other aspects of the work environment, or all of these factors. Risk is the likelihood that death, injury or illness might result from the hazard.
Consider, for example, an unearthed metal street light pole that may reasonably be expected to become energised from the electricity supply system if there is an insulation failure or contact with a conductor. The associated risk is the likelihood that a person might receive an electric shock through contact with exposed conductive parts of the light pole.
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 occurring; and
- Hazard would include the possible consequences of an incident caused by such a hazard eg death, severe injury or property damage, or all of these factors.
2.2 The Risk Management process
There are five basic steps in the risk management process, through which an electricity entity can meet its obligation to ensure electrical safety.
- Identify the hazards present 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 must either do what the code says or adopt another method of managing the exposure. The preferred hierarchy of control is:
- Eliminate the hazard
- Substitute a less hazardous material, process or piece of equipment
- Redesign equipment or work process
- Isolate the hazard
- Introduce administrative controls
- Use appropriate personal protective equipment.
- Carry out the control measures; and
- Monitor and review how effective the control measures are. It may be necessary to modify the control measure or the way it was implemented if the measures are not effective or if new problems arise.
You should always start at the top of the hierarchy. First, you should try to eliminate the hazard eg by turning off the power. If this measure fails or is not practical, only then should you move to the second level, and so on.
The five steps of the risk management process are illustrated in Figure 1.

Last updated July 7, 2005