Insight into Diverse Risk Assessment Techniques

Enterprise Risk Management through PHA, HAZOP, HACCP Risk Assessment Techniques.

Enterprise Risk Management :

A Business strategy to identify, assess, and prepare for any hazard that may interfere with the organization’s operation and objectives.

Risk Management Standards –“ISO 31010 “

A standard concerning risk management that has been codified by the International organization for standardization and International Electrotechnical Commission (IEC). The standard provides information for the selection and application of risk Assessment Techniques.

Understanding Risk Assessment

It is the overall process of Identifying, Analyzing, and Evaluating the risks

The steps of Risk Assessment are as under:

  1. Identifying the risk and reason for its occurrence.
  2. Identifying the consequences of the risk occurred.
  3. Identifying the probability of their occurring once again
  4. Identifying the factors that reduce consequence.

As per ISO 31000 -Risk assessment is a part of the core elements of risk management which are:

  • Communication and consultation
  • Establishing the context
  • Risk Assessment
  • Risk Treatment
  • Monitoring and reviewing

1. PHA -Risk Assessment technique

Preliminary Hazard Analysis (PHA): PHA is one of the simplest forms of a risk assessment tool that is performed to identify different areas of the organization’s system which may influence the safety and security of the organization by evaluating the major hazards which are associated with the system.

The tool is most effective and generally carried out early in the project when there is not enough knowledge or very little information is available regarding the procedures. However, it can act as a precursor for further study of the system.

PHA involves the following:

• Determining the hazards that might exist in the system and its possible effects.

• Determining the clear set of regulations/guidelines and objectives that needs to be used

2. HAZOP- Risk Assessment Techniques

Hazard and Operability Study (HAZOP): HAZOP is a kind of risk assessment technique that is used to carefully review a processor operating in a systematic manner to find out whether deviations from the original intent would lead to any undesirable consequences. The team uses the technique to find and list out the potential cause and consequence of the deviation and discovers the new safeguard technique required against the deviation.

HAZOP study is one which provides only the qualitative estimates to understand the level of risk exposure of the organization. The other form of limitation in the current technique is that the recommendations are generally safety measures and operations study. HAZOP study is basically used in the manufacturing and chemical industry for the purpose of assessing risk.

HAZOP study follows the following process:

3. HACCP- Risk Assessment Techniques

Hazard Analysis and critical control points: Hazard Analysis and a critical control point (HACCP) is a systematic approach for identifying, assessing, and controlling the risk or hazards. HACCP was designed to focus primarily on food safety hazards but has been successfully applied to various industries. The basic intention of the HACCP risk assessment tool is to help prevent the known hazards that may occur at any point in the organization.

The reduction in the level of risk can be achieved by execution of the following actions:

  • Conduct a Hazard Analysis.
  • Determination of critical control points and establishing the target levels and critical control points.
  • Monitor critical control points.
  • Establishing procedures to verify the effective working of the HACCP system and documenting all the procedures and keeping records of the same.

The HACCP tool is one that emphasizes control and not on the detection or identification. However, the output received is easy to understand. HACCP is unable to quantify the impact of additional controls which might be quite hazardous for the organization. HACCP is a tool to identify the risk in the food industry

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