Likelihood / Frequency Criteria

Almost certain - The Event is to be expected to occur in most circumstances - incident could happen daily to weekly Likely - The Event will probably occur in most circumstances - Incident could happen weekly to monthly Moderate - The Event should occur at some time Incident could happen monthly to yearly Unlikely - The Event may occur only in exceptional circumstances

Consequences
Minor Medium Serious First Aid Treatment Off-site medical treatment required Serious injury/illness

Major

Permanent disability > 2 people seriously injured Fatality / Death Potential /actual breach of legal requirements

Importance Criteria
Consequences
Likelihood Almost Certain Likely Moderate

Minor
M L L

Medium M M L

Serious H

Major H H H

H
M

Unlikely

Legend : H = High Risk, M = Medium Risk, L = Low Risk

RISK RANKING
To determine the level of risk you must combine the likelihood of a hazard occurring with its severity.
RISK = Likelihood x Severity

There are many different methods used to determine severity and likelihood. The system adopted for this course is patterned after the Lickert Scale which has five levels.
LIKELIHOOD Rare Unlikely Possible Likely Almost certain SEVERITY Insignificant Minor Moderate Major Catastrophic

MEASURES OF LIKELIHOOD - 1
Level
1 2 3 4 5

Descriptor
Rare Unlikely Possible Likely Almost Certain

Example Detailed Description

May only occur in exceptional circumstances (e.g. once in 20 years) Could occur some time (e.g. once in 10 years) Might occur some time (e.g. once in 5 years) Will probably occur at some time (e.g. every year) Is expected to occur in many circumstances (e.g. many times per year)

MEASURES OF LIKELIHOOD - 2
Level
1 2 3 4 5

Descriptor
Rare Unlikely Possible Likely Almost Certain

Example Detailed Description

Once in every 40 years / a 2.5% probability of occurrence in any 1 year Once in every 10 years / a 10% probability of occurrence in any 1 year Once in every 5 years / a 20% probability of occurrence in any 1 year Once every 2 years / a 50% probability of occurrence in any 1 year At least once a year (impact should reflect full year's effect of such a risk)

MEASURES OF SEVERITY - 1
Level
1 2

Descriptor
Insignificant Minor

Example Detailed Description

No injuries, no environmental damage, no operational/financial or reputation loss First aid treatment, on site releases of pollutant is immediately contained, minor operational/financial and reputation loss Medical treatment required , off-site pollutant release causing moderate environmental damage, moderate operational/financial and reputation loss Extensive injuries (e.g.) permanent disability, loss of production capability, off-site pollutant release causing major environmental damage, major operational/financial and reputation loss Fatality, off-site pollutant release causing severe environmental damage, huge operational/financial and reputation loss

Moderate

Major

Catastrophic

MEASURES OF SEVERITY - 2

Level Descriptor
1 2 3 4 5 Insignificant Minor Moderate Major Catastrophic

Example Detailed Description Equivalent to less than 1% of annual EBIT Between 1% and 5% of annual EBIT Between 5% and 10% of annual EBIT Between 10% and 25% of annual EBIT Greater than 25% of annual EBIT

RISK ASSESMENT MATRIX

Severity
Likelihood Almost 5 Likely 4 Possible 3 Unlikely 2 Rare 1
Legend: L

Insignificant 1 M (5) M (4) L (3) L (2) L (1)

Minor 2 H (10) M (8) M (6) L (4) L (2)

Moderate 3 E (15) H (12) M (9) M (6) L (3)

Major 4 E (20) E (16) H (12) M (8) M (4)

Catastrophic 5 E (25) E (20) E (15) H (10) M (5)

M H E

Low Risk considered acceptable. No further action of RCMs are necessary Moderate Risk relatively acceptable. However, further RCMs should be considered and existing RCMs should be monitored High Risk unacceptable level of risk. RCMs must be developed and implemented in short to medium term Extreme Risk unacceptable level of risk. RCMs must be immediately implemented or the risk eliminated (i.e case activity)

Risk Assessment Form

Task :

CONSEQUENCE
S E V E R I T Y

INCREASING PROBABILITY
1 2
Heard of Incident in Industry

3
Incident has occurred in our Industry

4
Happens Several Time Per Year in Industry

5
Happens Several Time Per Year in Location

People

Assets

Environment

Reputation

Never Heard of in Industry

0 1

No Injury Slight Injury Minor Injury Major Injury Single Fatality Multiple Fatalities

No Damage Slight Damage Minor Damage

No Impact
Slight Impact Minor Impact Localized Impact Major Impact Massive Impact

No Impact
Slight Impact Limited Impact Considerable Impact Major National Major International

3 4 5

Local Damage
Major Damage Extensive Damage

MANAGE FOR CONTINUOUS IMPROVEMENT is an area where the risk is low and the existing H & S arrangements is adequate INCORPORATE RISK REDUCTION MEASURES where the frequency and severity is fairly high and warrant specific risk reduction measures, such as the use of procedures for controlling the risk or making hardware improvement INTOLERABLE where the number of incidents and the severity are clearly intolerable and warrant a H & S Case

Risk = Probability x Severity

Low (Manage for improvement whereby risk reduction is not normally undertaken) 5 - 12 Medium (Incorporate risk reduction measure to demonstrate ALARP) 13 - 25 High (Intolerable and needs changes to designs and procedures)

0-4

EHS Hazard Identification and Risk Assessment Another Example

Hazard Identification and Risk Assessment

No. Area/ Process/ Function Product/ Services Equipment Inputs Outputs Infrastructu (Consumabl (waste) re es ESH Hazards D/I N/A/E Consequences (Environment, Safety & Health Impacts People Environme nt Assets Operations Reputati ons Remarks

Risk Assessment Matrix

CONSEQUENCE (SEVERITY)
LEVEL PEOPLE ENVIRON MENT ASSETS OPERATION S REPUTA TIONS

LIKELIHOOD (PROBABILITY)
A B C D E F

Never Occurred in the company 0 No injury/ Illness Slight Injury/ Illness Zero Impact Slight Impact Zero Damage Slight Damage Zero Damage No Effect

Occurred in the Company once

Occurred more than once but not yearly in the company

Occurred more than once a year but not monthly in the company

Occurred more than once a month in the company

Occurs under normal condition

Slight Damage

Slight Effect

Blue

Blue

Minor Injury/ Illness

Serious Injury/ Ilness PTD

Minor Impact
Local Impact Major Impact Massive Impact

Minor Damage
Local Damage Major Damage Extensive Damage

Minor Damage

Limited Effect
Blue Blue

Blue

Blue

Blue

Yellow

Local Damage Local Effect Major Damage Extensive Damage National Effect Internatio nal Effect

Yellow

Yellow

Yellow

Red

Blue

Yellow

Yellow

Red

Red

Red

Fatality

Yellow

Red

Red

Red

Red

Red

Risk Based Control Plan

Clear: Negligible Risk Blue: Low Risk Yellow: Moderate Risk Risk is negligible/ acceptable. No additional controls or actions are required. No documentary records need to be kept Risk is low, relatively acceptable. Monitoring and measurements of EHS parameters with internal and or legal limits. Use of appropriate personal protective equipment (PPE), where applicable Risk is moderately intolerable. Efforts should be made to reduce the risk document procedures with defined operating criteria, including training of relevant personnel where applicable, monitor and measure EHS parameters with internal, corporate or legal limits. To be considered in setting-up Objectives, Targets and Programs. Risk is extremely intolerable. Efforts shall be made to reduce the risk document procedures with defined operating criteria, monitor and measure EHS parameters with internal and/ or legal limits. Proposed additional measure and actions shall form part of the organizations EHS programs.

Red: High Risk

Risk Assessment Criteria:

The above Risk Assessment Matrix (RAM) shall be used as a tool in standardizing qualitative risk assessment. The matrix axes are consequences and likelihood. A scale of consequences from 0 to 5 shall be used to indicate increasing severity. After assessing the potential outcome, the likelihood on the horizontal axis shall be estimated on the basis of historical evidence or experience that such incident/ event has occurred within the industry and in the organization.

LIKELIHOOD/ PROBABILITY DEFINITION ABHazard has never occurred in the company Hazard has occurred once in the company

CDEF-

Hazard has occurred more than once but not yearly in the company
Hazard has occurred more than once a year in the company Hazard has occurred more than once a month in the company Hazard occurs under normal condition

HARM TO PEOPLE
No injury or damage to health - Discomfort not more than half day, no effect in the work performance. Slight Injury or Illness (including first aid case) No lost time injury; discomfort lasts not more than a day but not affecting work performance. Extent of impact is limited to the immediate operator. Minor Injury or Illness (Lost Time Injury) Injury or illness affecting work performance such as restriction to activities or a need to take a few days (less than 1 month) to fully recover, e.g., skin irritation, temporary hearing loss, food poisoning bacteria, carpal tunnel syndrome, etc. Extent of impact is confined to the work area only. Serious Injury or Illness (including Permanent Partial Disability and Occupational Illness) Affecting work performance in the longer term, such as a prolonged absence from work (one month but not more than 3 months, e.g., permanent hearing loss, chronic back injuries, sensitization, hand/ arm vibration syndrome, repetitive strain injury. Extent of impact is confined within the companys premises. Permanent Total Disability Affect work performance totally (major disability rendering victim not capable to perform usual or similar work), i.e., sterility, loss of both arms/ legs, etc. Extent of impact extends outside the companys premises but not more than 500 meters. Fatality (Single to Multiple) Agents are capable to cause fatalities e.g. chemicals with deadly toxic effects to human beings. Extent of impact extends outside the companys premises more than 500 meters.

ENVIRONMENTAL IMPACT
Discharges/ Releases
Zero impact Discharge/ release is causing no physical changes or alteration to the environment - zero extent or negligible impact to air, water and land Slight impact Discharge/ Release causing physical changes/ alteration to the environment but causing no harm or environmental damage, i.e., repulsive odor, change in color, texture, etc. Mitigation not required or mitigation cost is negligible. Cost of mitigating the effect is not more than PhP10, 000. Discharge/ Release is within the fence and/ or within a designated work area. Minor impact Discharge/ Release causing minor environmental damage, but will not cause adverse effects on the current use. Discharge/ Release extends outside the fence and/ or outside the designated work area. Cost of mitigating the damage is not more than PhP100, 000. Agents are non-regulated substances. Local impact Discharge/ Release extends outside the fence and/ or outside the designated work area. Discharge/ release causing environmental damage that could affect the neighborhood but will not result to interference in their day-to-day activities, Discharges/ Release could cause minor irritation, illness or injury among community members. Cost of mitigating the damage is more than PhP100, 000 but not more than PhP1, 000,000. Discharge/ release with known pollutive substances (regulated pollutants), i.e., ODS, COx, NOx, SOx, particulates, BOD, COD, TSS, oil and grease, etc Major impact Discharge/ Release extends outside the fence and/ or outside the designated work area, causing severe environmental damage resulting to occasional stoppage of activities in the plant and/ or certain sector of the community, damage livelihood of the community, i.e., fish kill, crop damage, The company is required to take extensive measures to restore the damaged environment. Discharge/ Release resulting to breaches of statutory or prescribed limits, or complaints from external interested parties. Cost of mitigation is more than PhP 1,000,000 but not higher than PhP5, 000,000 Massive impact Discharge/ Release extends outside the fence and/ or outside the designated work area, causing persistent severe environmental damage or severe nuisance extending over a large area, resulting to complete stoppage of activities in the plant and/ or certain sector of the community, immediate danger on the lives of people in the community. Damage could not be reversed within a year, i.e., loss of commercial, recreational use or nature conservancy. Extended breaches of statutory or prescribed limits (e.g., wastewater, air emission, etc). Cost of mitigation is more than PhP5, 000,000

ENVIRONMENTAL IMPACT
Resource Depletion (applicable only to resource usage)
0 No impact - Goods or material is from natural resource, readily renewable and available, but of no or low commercial value. Slight impact - Goods or material is man-made, synthetic or by-product; non-dangerous/ hazardous; readily available and is over the counter purchase Minor impact - Goods or materials is man-made, synthetic or by-product, non-dangerous/ hazardous; supply or access is not regulated but requiring safe handling, storage and use; customer-supplied materials; goods or materials from renewable resource but of high commercial value- paper, cartons, etc Local impact - Goods or material comes from non-renewable natural resource and supply or access is getting scarce, e.g. fuel oil, coal, metal/ mineral deposits, water, springs Major impact - Supply or access is regulated but the required permit, license, certificate, prescription, reports, or specification with the installations for the supply or access to the goods or materials are being complied with Massive impact - Supply or access is regulated and the required permit, license, certificate, prescription, reports, or specification with the installations for the supply or access to the goods or materials are not being complied with

ASSET DAMAGE (Philippine Peso) Zero Damage No damage

Slight damage Cost of repair or replacement is less than 10,000

Minor damage Cost of repair or replacement is less than 100,000 Local damage Cost of repair or replacement is less than 500,000 Major damage Cost of repair or replacement is less than 1,000,000 Extensive damage Cost of repair or replacement is more than 1,000,000

OPERATIONAL LOSS (Philippine Peso) Zero Damage No disruption or loss in the operation Slight damage Negligible disruption in the operation, cost is less than 10,000 Minor damage Brief disruption, cost is less than 100,000 Local damage Partial shutdown in the operation, cost is less than 500,000. Major damage Total shutdown in the operation, cost is less than 1,000,000.

Extensive damage Total shutdown in the operation for days (cost is in excess of 1,000,000)

IMPACT ON REPUTATION (to be rated when hazard affects people or environment)

0 No impact Awareness limited to the company and family dependents; no public awareness (discomfort, first aid not required; environmental issue contained within the work area) 1 Slight impact Public awareness may exist (immediate community/ barangay) but there is no concern (first-aid required but non-lost time injury; environmental issue is extended outside the work area but within the company premises) 2 Limited impact Public awareness exist with some concern (municipal/ city government); reporting requirement to regulatory body (disabling injury/ illness; environmental issue extend outside the company premises but no breach of legal requirements) 3 Local impact Public awareness exist with concern from regional government units; investigation from the local government unit and/ or regulatory body (permanent partial disability; environmental issue results to breach of legal requirements) 4 National impact Public awareness exists with adverse attention in the national media; effect on national policies with potentially restrictive measures and/or impact on grant of licenses (single fatality; environmental issue results to extended breach of legal requirements) 5 International impact International public attention - adverse attention in international media, international policies with potentially severe impact on access to new areas, grants of licenses and/ or tax legislation (multiple fatalities; environmental issue caused concerns from international communities)

Environmental Aspects & Impacts Rating Sheet

Activity Environmental Aspect Environmental Impact L I Business Risk C P BR O (9L+7I+ 5C+4P) Environmental Risk D I ER (O x D x I) Rating (SR)

Environmental Risk Rating System

Business Risk
Legal (L) Image (I) Cost PhP (C) Procedural (P) Occurrence (O)

ESH Risk
Detection (D) Impact (I) Man Environment Eco-system Environment

Non-compliance which may cause permanent closure, CDO, suspension of operations, and criminal and administrative sanctions
Non-compliance to regulatory standards which may cause warning or closure or penalty

Global

Above 2 million

No system, no document, and no practice

Daily

No monitoring

Death

Major Damage (fish kill)

National

1,500,001 to 2,000,000

With procedure but not implemented

Weekly

Annual

Major injury/ Permanent Disability or sickness/ Loss of limbs Minor injury. Temporary disability

Serious 50% damage/ 1 hectare

Non-compliance to regulatory standards which may cause warning or reminder from regulatory bodies to address non-compliance immediately Non-compliance to future law or to company set standards.

Regional (NCR)

1,000,001 to 1,500,000

With procedure but needs major revision. Practice needs documentation With procedure, needs minor revision With implemented procedure

Once-amonth

Quarterly to Semi-annual

Minor 20% damage/ half hectare

Local (Barangay)

500,000 to 1,000,000 Below 500,000

Quarter or Semiannual Annual/ Never

Monthly

Slight injury/ sickness

Slight repairable

Always compliant

Internal (No effect)

On-line to weekly

No effect

No-effect

Reference Environmental Aspects and Impacts

ENVIRONMENTAL ASPECT
Regulated Industrial Waste Generation

POTENTIAL ENVIRONMENTAL IMPACT

-Land and/ or water pollution/ contamination -Disturbance of flora/ fauna -Human illness -Violation of regulatory laws; penalties/ fines -Community complaints/ alarms -Land and/ or water pollution/ contamination -Disturbance of flora/ fauna -Human illness -Violation of regulatory laws; penalties/ fines -Community complaints/ alarms -Air pollution -Disturbance of flora/ fauna -Human illness -Violation of regulatory laws; penalties/ fines -Community complaints/ alarms -Land and/ or water pollution/ contamination -Disturbance of flora/ fauna -Human illness -Violation of regulatory laws; penalties/ fines -Community complaints/ alarms -Fish kill

Hazardous Waste Generation

Atmospheric Emissions

Effluent Discharges

Reference Environmental Aspects and Impacts

ENVIRONMENTAL ASPECT
Use/ Storage of Chemicals

POTENTIAL ENVIRONMENTAL IMPACT

-Land and/ or water pollution/ contamination -Disturbance of flora/ fauna -Human illness -Violation of regulatory laws; penalties/ fines -Community complaints/ alarms -Salination of source aquifer -Hydraulic pressure on the source aquifer -Depletion of source aquifer -Community complaints/ alarms -Noise pollution -Violation of regular laws; penalties/ fines -Community complaints/ alarms

Water Consumption

Noise Generation

List of Operation/ Process that may have Potential Impact on the Environment
1. 2. 3. 4. 5. 6. 7. 8. Construction Demolition Cooling Water System HVAC Systems Machine Shop Operations Mechanical Assembly Operations Parts Washing and Cleaning Operation Lighting and Alarm System Maintenance (bulbs/ batteries/ ballasts) 9. Painting Operations

10. Pest Control Operations 11. Petroleum/ Fuel Bulk Storage 12. Waste Storage and Processing 13. Transport of Hazardous Materials 14. Waste Storage and Processing 15. Utilities (water/ sewage/ electric. etc.)