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DOCUMENT NAME: Risk Management Procedure
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Version #01 Release Date: 1st May 2017 Review Date: 1st May 2018
Authorised by: Craig Randazzo Position: Chief Executive Officer – Skillset
Risk Management Procedure
Purpose
This Risk Management procedure is an integral part of Skillset’s Work Health and Safety
Management System. Risk Management has the key Risk Assessment activities for eliminating /
minimising the risks to the health and safety of workers (including contractors) and visitors.
Commencement of Procedure
This Procedure will commence from 01/05/2017. It replaces all other Risk Management procedures
of Skillset (whether written or not).
Application of Procedure
This Procedure applies to workers (employees, agents, contractors (including temporary contractors
as otherwise defined under WHS legislation) of Skillset, collectively referred to in this procedure as
workers.
Scope
Skillset Limited has specific obligations under the Work Health & Safety Act 2011, to ensure that any
sites controlled by Skillset Limited; any plant or substance provided for use; all systems of work; and
all places of work are safe and without risk to the health of workers (including contractors) and
visitors.
All workers (including contractors) are required to undertake Risk Management activities as part of
their duties and shall apply relevant risk assessment components of this procedure.
References and Associated Documents
WHS Act 2011
WHS Regulation 2011
SafeWork NSW
AS NZS ISO 31000 – 2009 Risk Management Principles and Guidelines
WHS Policy
Workplace Inspection Procedure
Site Specific Risk Assessments (Group orientated)
Incident Reporting
Records Policy – Documents
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Definitions
Term Definition
Hazard
A hazard is anything, including work practices that has the potential to
cause injury or disease to people, damage to the environment,
property, plant or equipment.
Hierarchy of Risk Control
Is the preferred order of risk control:
1 Elimination
2 Substitution
3 Isolation
4 Engineering
5 Administration
6 Personal Protective Equipment
Risk Management
A structured program of WHS Risk Management shall be
implemented and maintained. Procedures incorporated shall be used
to facilitate the early identification of hazards, assessment of risk and
implementation of control and review mechanisms.
Risk Assessment
The process of identifying hazards, assessing the level of risk,
prioritising the order in which hazards will be controlled and
determining appropriate control measures.
Risk The chance of something happening that will have an impact upon
objectives. It is measured in terms of consequences and likelihood.
Control Measure Action taken to eliminate or reduce the risk of harm or injury from
identified hazards.
Description
Conducting a Risk Assessment:
Risk assessment shall be conducted for activities that contain a hazard, potential hazard
or risk.
Risk assessment shall be conducted with the relevant team members in consultation with
workers involved in the task or activity.
If necessary, seek support from supervisor, manager, and/or a specialist area i.e.
HR/safety consultant during the assessment process.
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It may also be appropriate to take photographs and/or video to properly analyse hazards
involved in this activity.
If manual handling risks are involved in the activity the Hazardous Manual Handling Task Checklist
may be used to identify manual handling hazards/risks. This form can be used in-conjunction with
other risk assessment documents. When the Checklist is complete, consider any other issues not
covered on the checklist and list these on the Job Safety Analysis Sheet (JSA) risk assessment
form.
Risk Assessment may be broken down into a number of steps, and may include activities such as:
Identifying the hazard
Observation
Consultation in the workplace
Workplace Inspections (Workplace Inspection Procedure)
Introduction of new plant or equipment
Changes to work practices or shift arrangements
WHS Audits Procedure
Personal Injury report
Incident Report
Hazard Report
Site specific risk assessments (All ‘Site Specific Risk Assessments’ are available from
your immediate supervisor).
Assessing the ‘risk ranking’ for the hazard:
Each identified hazard should have the associated risk ranked with the aid of Skillset Limited`s
Risk Ranking Chart (Appendix A). The risk ranking chart references the consequence associated
with the risk with the likelihood of that consequence happening. They may result in a ranking of
Extreme, High, Moderate, and Low.
Determining appropriate control measures for the hazard:
When determining the appropriate control measure for risks, reference should be made to the
‘hierarchy of risk control’, starting with elimination as the most preferred method of risk control
through to PPE as the last preferred method of risk control:
1. Elimination
2. Substitution
3. Isolation
4. Engineering
5. Administration
6. PPE
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Implementation
The method of risk control shall be selected from the “hierarchy of risk control” and should be
implemented and tested as to its effectiveness.
The order of control measures implemented shall be those with the highest ranking. i.e Extreme first,
follow by high, and then moderate with Low last.
Documents
Skillset Limited has developed several documents to assist facilitate the application of risk
assessments at each site. The documents are as follows:
TAKE 5
Job Safety Analysis (JSA)
Risk Assessment
TAKE 5
The TAKE 5 is a small booklet designed to fit in each workers pocket. The purpose of this booklet is
to enable every worker to perform a 5 minute assessment to identify potential hazards and
appropriate controls.
Job Safety Analysis (JSA)
The JSA is a detailed risk assessment of task or activities performed in the workplace. The JSA
includes a step by step analysis of task and any associated hazards. The JSA also includes the
group risk ranking chart (see Appendix A).
Risk Assessment
The Risk Assessment form is to be used when an assessment is required to be performed when a
detailed assessment is required e.g. analysis of a hazard, part of an incident accident investigation.
This document will usually have a senior manager or a representative from HR as part of the
assessment team.
Review and Monitor
Risk assessments should be regularly reviewed and monitored, to make sure control measures are
adequately eliminating or reducing risk, and that no new hazards have been introduced as a result of
control measures.
Risk Assessment Triggers
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The use of risk documentation will be as per the attached flow chart. The purpose of each document
is listed below:
TAKE 5
Prior to starting any task a TAKE 5 will be completed.
If there is more than one person doing the same task than they will all collaborate to "fill-
out" the TAKE 5.
If the assessment has a risk ranking 0 to 9 (Low/Moderate) then proceed with the task.
If the assessment has a risk ranking 10 to 25 (High/Extreme) then review the SWMS if
no SWMS available complete a JSA
REQUIREMENTS:
The take 5 booklet is to be carried on person when on a Skillset Limited site.
The Take 5 booklet is to be filled in completely.
Completed sheets are to be given to your Supervisor each day
Training is required for all workers in the Take 5 procedure and to detail the company
requirements.
ACTION ON NON-COMFORMANCE:
Notify the;
Section Manager
HR or WHS Manager
Site Manager
Job Safety Analysis (JSA)
A JSA is a specific risk assessment aimed at assessing hazards and risk associated with work
activities or tasks.
The JSA is to be completed prior to starting any task where there is the following conditions:
A high or extreme rating after completing a TAKE 5
No SWMS/ Safe Work Procedure or previously completed JSA
When completing a JSA if the average overall risk ranking outcome is a High or Extreme, the senior
manager from the relevant section or department has to be advised. This will enable a strategy to be
developed to carry out the task in a safe manner.
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Risk Assessment
The risk assessment document will be used to carry out assessments on specific hazards or
incidents.
Record Keeping
A number of risk management activities are to be carried out. These are identified in the Risk
Management Activity Guide and the Risk Management Policy.
Responsibility for Implementation
The, Human Resources Department will be responsible for the implementation of this procedure
throughout Skillset Limited.
Review of Document
This procedure shall be reviewed every two years or earlier. Early review of this procedure shall
occur in response to changes in:
WHS System Management; and/or
Legislation;
Codes of Practice,
Australian Standards.
Breach of this Procedure
All Workers must comply with this procedure at all times. If a worker breaches this procedure, they
may be subjected to disciplinary action including termination of employment. Agents and contractors
(including sub-contractors and temporary contractors) may have their contracts with Skillset
terminated or not renewed.
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Variations
Skillset reserves the right to vary, replace or terminate this procedure from time to time.
Associated Documents
WHS Policy
Risk Management Program
Risk Management Policy
Hazard Report Form
Hazards Register
Job Safety Analysis Template
Risk Register
Safe Work Procedure Template
Hazard Flow Chart
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JOB SAFETY ANALYSIS (JSA) TEMPLATE
Work Order Number: Job Description: ☐ New ☐ Revised
Date: Site Name: Location:
Isolations Required
☐ Electricity (AC & DC) ☐ Pneumatics ☐ Hydraulics ☐ Product
☐ Blowline
☐ Manual Valves ☐ Mechanical ☐ Chemical ☐ Fire System
☐ ___________
Environmental Considerations
☐ Dust ☐ Fumes ☐ Traffic
☐ Noise ☐ Spills ☐ _____
JSA Prepared by (Print Name/s):
Approved by
Signature:
Position of
approving person:
Approved
by Name:
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Activity
Provide a step-by-step breakdown of the
task
Hazards
List all hazards associated with
each step
Controls
Measures that need to be taken
to eliminate or minimise the risk
associated with each hazard
Residual Risk
Remaining risk associated
with each hazard once the
control measures have been
put into place
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Activity
Provide a step-by-step breakdown of the
task
Hazards
List all hazards associated with
each step
Controls
Measures that need to be taken
to eliminate or minimise the risk
associated with each hazard
Residual Risk
Remaining risk associated
with each hazard once the
control measures have been
put into place
I understand and agree to the conditions of this JSA
Highest Residual Risk after completing JSA and implementing controls (Circle) : LOW / MODERATE / HIGH / EXTREME
Low and Moderate risks to be signed by qualified person completing JSA
High/Extreme to be escalated to Manager, Supervisor
(to determine controls are adequate and if further escalation is required)
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Print name Signature Date Print name Signature Date
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Risk Ranking Chart
Risk Score
Consequences
Insignificant 1
Minor 2
Moderate 3
Major 4
Extreme 5
Lik
eli
ho
od
Almost Certain
E
Moderate(11) High (16) High (20) Extreme(23) Extreme (25)
Likely
D
Low (7) Moderate (12) High (17) High (21) Extreme (24)
Possible
C
Low (4) Moderate (8) Moderate (13) High (18) High (22)
Unlikely
B
Low (2) Low (5) Moderate (9) Moderate (14) High (19)
Rare
A
Low (1) Low (3) Low (6) Moderate (10) Moderate (15)
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Risk Ranking Explanation
Consequence Insignificant (1) Minor (2) Moderate (3) Major (4) Extreme (5)
Injury First Aid injury Medical Treatment Injury
Lost Time Injury Permanent disability Fatality
Illness Minor Illness Medical Illness Lost Time Illness Permanent disabling Illness
Potentially fatal illness
Environment Slight impact to areas Minor Effect to areas surrounding
Localised Effect on the Environment
Major effect on environment
Large scale and long term impact site
Infrastructure and equipment damage
Slight or no Damage 1-2 day replacement or repair
2 day – 2 week repair/disruption
Multiple Equipment replacement or repair
4 week+ repair/disruption
Supply continuity Minor disruption Disruption of supply – up to 2 days
All sources for supply disrupted up to 2 weeks
Significant disruption over 2 weeks
4 week + to restore supply
Production / product failure at plant
30 min loss of production waste $5k
Partial output reduction $50K
Production unit offline $500K
Major loss of production (2M+)
Offline or total plant shut down (5M+)
Distribution reliability
Customer minor complaint
Serious or repeated customer complaint
Loss of a customer to competition
National product recall (2M+)
International market recall (5M+)
Reputation / Fines / Quality / Legal
Slight on Reputation Limited impact on reputation
Local area impact on reputation
State wide impact on reputation
National Impact on Reputation
Likelihood
Rare (A) Unlikely (B) Possible (C) Likely (D) Almost Certain (E)
The risk may only occur in exceptional circumstances
The risk could occur at some time; less than 25% chance of occurring
The risk might occur at some time; 25-50% chance of occurring
The risk will probably occur in most circumstances, 50-75%
The risk can be expected to occur in most circumstances
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E (22 –
25)
Extreme
Risk
Stop. Isolate hazard to protect workers and assets from harm. Proceed only on personal approval
of Group Leadership. Potential consequences would threaten the survival of the system, process
and possibly the organisation and requires their written direction.
H (16 –
21)
High Risk
Stop. Protect workers and assets from harm. Proceed only on personal approval of site manager.
Potential consequences would threaten the survival or effectiveness of the system process and
significantly disrupt operations. Permit system must be used for High risk work.
M (8 –
15)
Moderate
Risk
Controlling Actions Required. Area Of Responsibility (AOR) Manager to approve risk controls
before start. System or process subject to significant review or changed way of operating. Permits
and procedures to be used.
L (1 – 7) Low Risk
Controlling Actions Required. Area Of Responsibility (AOR) Manager to approve controls before
start. The efficiency and effectiveness of some aspects of the system or process could be
threatened. Consequences are able to be controlled by routine operations/safe work
procedures/permits
and on-site resources.
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Take 5 Version No 2 04/05/2016
11
Process Flow What’s the task
Write a Take 5
Is there a SWMS or SOP?
ST
OP
Do you have access & understand the SWMS or SOP
Are there new
hazards orchanges to task?
Yes
Yes
No Non-documented
Take 5 done
No STOP
Yes
No
GO No
Yes
Yes
Do the task and monitor for hazards or changes.
Is risk
High or Extreme?
Write a JSEA or update the one that’s in place.
Is the risk controlled i.e. at least Moderate?
No
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