Operational risk management system

Applied Ergonomics Significance and Opportunity This is the only chapter that addresses one specific technical and managerial element among the many such elements included in an effective operational risk management system. 

Every activity undertaken as a part of an Operational Risk Management System should serve to avoid, eliminate, or control hazards so that the risks deriving from those hazards are acceptable. 

Risk assessment should be the cornerstone of an operational risk management system. 

Superior performers understand risks and have risk assessment and management provisions within their operations risk management systems. They are aware that not all risks are equal and that prioritization is necessary in the decision making for expenditure of funds. 

A Systemic Model for An Operational Risk Management System... 

Achieving substantial reductions in the number of fatalities and the fatality rate will require major innovations in Operational Risk Management Systems. 

Major revisions in internally published Operational Risk Management Systems must be made in relation to the foregoing. 

This author proposes that risk assessments be established as the core of an Operational Risk Management System as a separately identified element, following shortly after the first element, which would be comparable to Management Leadership, Commitment, Demonstrated Involvement, and Accountability. 

To reduce serious injury and fatality potential, this author proposes that prevention through design be established as a separately identified element within an Operational Risk Management System. 

Proposing that Prevention through Design be a specifically defined element in an Operational Risk Management System is also influenced by ongoing transitions observed by this author in the methods to eliminate or reduce the occurrence of human error. 

This chapter makes the case that having an effective Management of Change/Prejob Planning System in place as an element within an Operational Risk Management System will reduce the potential for serious injuries. In this chapter ... 

Three significant studies establish that having a MOC system as an element within an Operations Risk Management System would serve well to reduce serious injury potential. 

A Scorecard/Dashboard lists the elements of the Operational Risk Management System in place and numerical or alpha scores are applied to the elements, often resulting from audits. A color scheme may be applied to indicate the status of the Operational Risk Management System, such as ... 

This implies that the critical processes can be identified and that statistical indicators for breakthrough performance can be developed. This idea—focusing on the processes that are most critical with respect to hazards and the risks that derive from them— would enhance the effectiveness of an operational risk management system. 

In situation one, the organization to which the safety professional gives counsel has OSHA incident and lost-workday case rates (DART rates) three times that of its industry averages. Much needs to be done to bring operational risks down to acceptable levels. Leading indicators selected would be for the basics of an operational risk management system and a measurement system could be established with suitable and attainable goals. 

Evaluate the Operational Risk Management System in place and consider its adequacy in relation to A Systemic Model for an Operational Risk Management System as shown in Chapter 8. This model should also be considered with respect to the content of a Scoreboard/Dashboard. 

They must also arrange for a review system in which elements in the operational risk management system are scored and for a reporting system that advises management of the performance level for each element and for an entity overall. 

The principle lesson to be learned here is that success for any element in an Operational Risk Management System will be achieved only if it is perceived as a part of the overall management system and as in concert with management goals. 

Although the MORT system is an analytical procedure for inquiring into causes and contributing factors of accidents and incidents, it provides an extensive educational base for subjects that should be considered in the design process, both with respect to the physical aspects and, particularly, for the design of work methods and operational risk management systems. 

Since recommendations for improvement in an operational risk management system can be misdirected if the reality of hazards and the risks deriving from hazards is not identified, this subject should be emphasized in the weightings and scorings given in an audit system. 

To minimize the potential for the occurrence of low-probability/high consequence incidents, the operations risk management system should include a distinctly identified activity designed for that purpose—if the inherent risks in an operation indicate that it is needed. 

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