Risk Assessment Methods and Measures
Risk Control Methods
- Avoidance – There’s a great deal of risk. You don’t want to assume the risk and it can’t be transferred, so you avoid the risk altogether. This method eliminates any possibility of loss. It is achieved either by abandoning or never undertaking an activity or asset.
- Loss Prevention – Reduces the frequency or likelihood of a “particular” loss. Examples include:
- Improve security measures to reduce the possibility of arson or theft.
- Improve maintenance of facilities to reduce the possibility of a tripping hazard.
- Loss Reduction – Reduces the severity or cost of a “particular” loss. Examples include:
- Require the use of seatbelts to reduce the chance of bodily injury in a vehicle collision.
- Require the use of hearing protection to reduce the chance of a hearing loss.
- Reduce the cost of workers’ compensation claims through the use of return to work programs.
- Segregate Losses – Arrange your agency’s activities and assets to prevent one event from causing loss to the whole. There are two methods – duplication and separation.
- Separation – your activities or assets are distributed among multiple locations.
- Duplication – relies on spare or duplicates that are only used if assets or activities suffer a loss.
- Contractually transfer the risk.
Examples of Risk Control Measures
- Personal Protective Equipment
- Tools and Equipment
- Policies, Procedures, Processes
- Contract Management and Administration
- Performance Expectations
Icons from www.flaticon.com