HAZARD AND RISK ASSESSMENT

Today’s Session 1.Taking a look at hazard and risk assessment. 2. Definitions. 3.What hazard and risk management does for us. 4. Risk treatment. 5. Round off with some practice. 6. Information is Standards and Advisory Circular based. 2

Is there a Purpose – or Just More Buzz Words? TO REDUCE UNCERTAINTY and AVOID CRISIS 3 RECRIMINATIONS UNPLANNED COST ADVERSE PUBLICITY TRIAL BY MEDIA ACCOUNTABILITY in LAW

What is Driving Hazard and Risk Assessment? Piper Alpha oil rig disaster 167 people lost their lives Systemic failure (planning) Human factors/fallibility 4

Why Bring Hazard and Risk Assessment To Aviation? 1. Aircraft accident rate has plateaued 2.Many more aircraft flying = more accidents 3. Technology is extremely reliable 4. Focus on systems and human performance 5.Good for triple bottom line 6. Business becomes predictable 7. Society is driving accountability 5

Santiago Airport One Month After March 2010 Earthquake Nairobi Airport Terminal Fire What is a Hazard? Hazard Definition (CAANZ) An object or condition with the potential to: Cause injuries to personnel Cause damage to equipment or structures Cause loss of material Reduce ability to perform a prescribed function 6 Charles de Gaulle Design Failure

What is Risk? Risk Definition (CAANZ) The effect of uncertainty on objectives, resulting in a deviation from the expected. 7 Objective: We want more sun on the deck…….!!! Effect! Uncertainty Deviation Expected Tree lies here Outcome: Great sun…. No House!!

Hazard Assessment What does hazard assessment enable PNAL to do? 1. Increase the likelihood of achieving objectives 2. Consider and plan to identify and treat risk 3. Improve the identification of opportunities and threats 4. Improve on existing controls, be confident in their effectiveness 5. Enhance your health and safety performance and environmental protection 6. Improve organisational resilience (recover quickly)

What is Risk Management? 9 Coordinated activities to direct and control an organisation, with regard to risk. 1.Set of standard principles and guidelines 2. Creates and protects value 3. Integral to the organisation ‘ whole of operation ’ 4.Part of decision making 5.Clearly and in detail addresses uncertainty 6. Systematic, structured and timely

What is Risk Management? 10 7.Based on best available information 8. Tailored to suit each organisation 9.Takes account of human and cultural factors 10.Is transparent and inclusive 11.Is dynamic, iterative ( applied repeatedly ) and responsive to change 12.Facilitates continual improvement

Risk Management Simplified 11 Put simply, an event, or series of events that: Generate an outcome Have consequences (positive or negative) Have a value of likelihood of occurring Something needs to be done Are managed through development and implementation of control measures A ‘ Cycle of Managing ’

The Risk Management Cycle 12

Threat Management Criteria 13 Increasing Expertise Required Low hazard threat or simple process High hazard threat or complex process Operations people – observe, assess risk, make changes, hazard report. Expert Team – define objectives, budget, analysis, procedures, reporting, implementation, monitoring

What is Risk Treatment? 14 1.The process of modifying identified risks 2. Risk treatment can involve: i. Not starting an activity ii. Taking risk to pursue opportunity iii. Remove risk source iv.Changing likelihood v.Changing the consequences vi. Share risk with another party vii. Retain risk by informed decision BUT REMEMBER – risk treatment can create new risks or modify existing risks = awareness!!

What Risk Management Isn’t… 15 It is not a scatter gun attempt to cover all eventualities…… to the point where no one takes any notice of anything!

1.The aim is to be able to generate a comprehensive list of risks. 2.Including risks associated with not pursuing opportunities. 3.Important words: Significant – extensive or important enough to merit attention Consequences – result or effect (good and bad) Likelihood – the chance of something happening Severity – the level to which something happens 4.Identify origin, probability, magnitude of risks and action to take. Risk Summary 16

When in Doubt – STOP - Stay Cool and THINK!!! 17

18 Let’s Try to Identify the Risks Scenario: Normal business at Palmerston North Airport, as the result of an earthquake doing long term damage to Wellington Airport’s runway. Delays and Cancellations Traffic Chaos Congestion Unplanned R and M Adverse Publicity Frustration/Anger