Republic of the Philippines

BATANGAS STATE UNIVERSITY

Gov. Pablo Borbon Campus II, Alangilan Batangas City, Philippines 4200
College of Engineering, Architecture & Fine Arts
www.batstate-u.edu.ph Tel. No. (043) 425-0139 loc. 118

Chemical and Food Engineering Department

ChE 530
Industrial Waste Management and Control

Risk Assessment: Risk Analysis

Mayo, Charlene Mench

Mendoza, Angie Lyka Joy M.
Panopio, John Romar C.

March 26, 2018

RISK
- Risk is the chance or probability that a person will be harmed or experience an adverse
health effect if exposed to a hazard.
- Risk is made up of two parts: the probability of something going wrong, and the negative
consequences if it does.

Risk = Severity x Likelihood

Risk vs. Hazard

o a hazard is anything that may cause harm, such as chemicals, electricity, working from
ladders, an open drawer etc.
o the risk is the chance, high or low, that somebody could be harmed by these and other
hazards, together with an indication of how serious the harm could be

Risk Assessment
- A risk assessment is a thorough look at your workplace to identify those things,
situations, processes, etc. that may cause harm, particularly to people.
- Risk assessment is a term used to describe the overall process or method where you:
 Identify hazards and risk factors that have the potential to cause harm (hazard
identification).
 Analyze and evaluate the risk associated with that hazard (risk analysis, and risk
evaluation).
 Determine appropriate ways to eliminate the hazard, or control the risk when the
hazard cannot be eliminated (risk control).

Risk analysis
- A process for comprehending the nature of hazards and determining the level of risk.

(1) Risk analysis provides a basis for risk evaluation and decisions about risk control.
(2) Information can include current and historical data, theoretical analysis, informed
opinions, and the concerns of stakeholders.
(3) Risk analysis includes risk estimation.

- Risk analysis is useful in many situations:

 When you're planning projects, to help you anticipate and neutralize possible
problems.
 When you're deciding whether or not to move forward with a project.
 When you're improving safety and managing potential risks in the workplace.
 When you're preparing for events such as equipment or technology failure, theft, staff
sickness, or natural disasters.
 When you're planning for changes in your environment, such as new competitors
coming into the market, or changes to government policy.

How to Use Risk Analysis

1. Identify Threats
- Identify the existing and possible threats that you might face.
 - These can come from many different sources: human, operational, reputational,
procedural, project, financial, technical, natural, political, or structural.

You can use a number of different approaches to carry out a thorough analysis:
 Run through a list such as the one above to see if any of these threats are relevant.
 Think about the systems, processes, or structures that you use, and analyze risks to any part
of these. What vulnerabilities can you spot within them?
 Ask others who might have different perspectives. If you're leading a team, ask for input from
your people, and consult others in your organization, or those who have run similar projects.

2. Estimate Risk
- Calculate out both the likelihood of these threats being realized, and their possible
impact.
- One way of doing this is to make your best estimate of the probability of the event
occurring, and then to multiply this by the amount it will cost you to set things right if it
happens. This gives you a value for the risk:

Risk Value = Probability of Event x Cost of Event

Types of Risk Analysis

1. Quantitative Risk Analysis

- A risk model is built using simulation or deterministic statistics to assign numerical
values to risk.
- Inputs which are mostly assumptions and random variables are fed into a risk model.
- For any given range of input, the model generates a range of output or outcome.
- The model is analyzed using graphs, scenario analysis, and/or sensitivity analysis by risk
managers to make decisions to mitigate and deal with the risks.

2. Qualitative Risk Analysis

- Qualitative risk analysis is an analytical method that does not identify and evaluate risks
with numerical and quantitative ratings.
- Qualitative analysis involves a written definition of the uncertainties, an evaluation of the
extent of impact if the risk ensues, and countermeasure plans in the case of a negative
event occurring.
- Examples of qualitative risk tools include SWOT Analysis, Cause and Effect diagrams,
Decision Matrix, Game Theory, etc.