Fundamental Techniques

The act of identifying operational hazards, assessing their risk exposures, and applying appropriate control measures is the key to risk management, and one of the most important functions performed within an operational risk management system. This chapter provides a review and outline of fundamental analysis and assessment methods commonly used by organizations, frontline workers, supervisors and safety, health, and environmental professionals. Several key components commonly found in Operational Risk Management Systems include: management commitment and employee involvement, hazard analysis and risk assessment, and risk management and control. Select a formal method or technique of analysis and assessment; review and identify hazards/ risk sources associated with the task; determine the characteristics of hazards and their affects. Develop a statement of risk for the chosen hazard‐related scenario and consequence. Likely the most common hazard‐based analysis technique used in operational risk management is the job hazard analysis or sometimes referred to as job safety analysis.