Page 115 - Petrosphere - Loss Control Management (LCM) Training Manual V 1.0

114 Module 14: Roles of Safety in Risk Management Loss Control Management (LCM)

Module 14: Roles of Safety in Risk Management

Scope
• Basic Definitions
• Risk Classification
• RM Process
• Table Guides and Matrix
• Risk Strategies

• RM Program
• Safety’s Contributions
• Benefits of RM

Definitions
• Risk Management – Systematic method to bring risks to acceptable levels. It is an iterative
process where risks are continuously monitored to detect any changes and ensure controls are

effective.
• Hazard - A source of potential harm or a situation with a potential to cause loss.
• Risk - The chance of an incident occurring that has an impact upon business objectives. It is
measured in terms of likelihood and severity.
RISK = Likelihood x Severity

• Risk Assessment – a process of analyzing risks associated with an activity, function or process.
• Likelihood - A measure of the probability and frequency of an incident occurring.
• Severity - The potential consequences/impact of the incident occurring.

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