1. ENVIRONMENTAL RISK ASSESSMENT Session 8 RISK MANAGEMENT
Parichart Visuthismajarn, Dr. phil., Asst.Prof.
Faculty of Environmental Management
Prince of Songkla University

2. Objectives Risk management definition Approaches to risk management
Aspects of risk management
Principles & challenges of risk management
Risk Tradeoffs
Impact of perception
Urban air pollution
Remedial action risk management process
Use of risk management in the military
Labeling systems for risk management (DOT, NFPA)
Management systems – ISO 14001
Environmental audit process
Qualitative risk management systems, several examples

3. Risk management
Risk Management is reducing risks to an acceptable level, which is?
Zero risk? – no risk is acceptable – unrealistic
Acceptable risk? – who defines what is acceptable
De Minimus and De “Manifestis” Risks
de minimus, that is trivial risks
Often considered less than 1 in 1,000,000 risk
de “manifestis” that is obnoxious risk
Controlled without regard to cost; risk greater than 1 in 1000
Risk Assessment complicates management by exposing
Uncertainty and variability
Differences in stakeholder understanding and perceptions
multiple perspectives make consensus building difficult

4. How Risk Management fits into the process
: esn/risk/risktext.htm
source: ci/2001/march/

5. Environmental management methods
Economic Instruments
Indirect Regulation
Direct Regulation
Emissions trading
Deposit-refund
Consumption fees
Performance bonds
Grants, loans
Tax relief
Subsidy Removal
Government spending
Information
Publicizing behavior
Reporting performance
Education
Standards
Regulations
Inspections
Penalties

6. Risk = Hazard x Exposure
If this is true, then risk management is a function of reducing or eliminating:
Hazards
Exposure
Consequences (harm) of expsoure
Risk management must be formulated in the context of the culture
Socio-economic
Socio-political

7. Risk Management Involves decision-making that incorporates:
Prioritizing risks
Determining acceptable level of risk
Determining resources to reduce risks to an acceptable level
Determining the greatest benefit for the resources to be expended
Planning
Implementing
Monitoring and evaluating effectiveness

8. Risk assessment & management integrated systems framework
Define
Objectives
Identify
Resources,
Assess Risk
Develop risk
Reduction &
Avoidance Alt.
Prioritize
Opportunities
Implement &
Review
Results
Corporate objectives
EHS policies
Site specific goals
Driving forces
Analytical boundaries
Worker
Public
Ecological
Consumer
Financial
Likelihood
Magnitude
Eliminate
Reduce
Respond
Communicate
Threshold criteria
Benefit estimation
Cost estimation
Time sensitivity
Benefit to cost ratio
Resource allocation
Schedule milestones
Independent review
Continuous improvement
Adapted from Autenrieth

9. Use of Risk Management in the Military
The use of risk assessment methods in the military varies
Quantitative Health Risk Assessment follows generally accepted principles
Qualitative methods are also used for decision-making

10. Six Steps of Risk Management in Military
IDENTIFY HAZARDS DURING MISSION ANALYSIS
CONDITIONS THAT HAVE THE POTENTIAL OF POLLUTING THE AIR, SOIL, WATER, OR DEGRADE NATURAL CULTURAL RESOURCES
Step 2
ASSESS THE PROBABILITY OF ENVIRONMENTAL DAMAGE AND VIOLATIONS
ENVIRONMENTAL RISK ASSESSMENT MATRICES
Step 3
MAKE DECISIONS AND DEVELOP MEASURES TO REDUCE HIGH RISKS

11. Six Steps of Risk Management in Military
BRIEF THE CHAIN OF COMMAND AND APPROPRIATE DECISION MAKERS
PROPOSED PLANS AND RESIDUAL RISKS
Step 5
IMPLEMENT ENVIRONMENTAL MEASURES
INTEGRATE THEM INTO PLANS, ORDERS, SOPs, TRAINING PERFORMANCE STANDARDS, AND REHEARSALS
Step 6
SUPERVISE AND ENFORCE ENVIRONMENTAL STANDARDS
TRAIN TO THESE STANDARDS

12. Management Systems
Plan
Act Do
Check

13. Environmental Management System
4.2 Environmental policy
4.6
Management
review
4.3 Planning
4.5
Checking and corrective action
4.4
Implementation and operation

14. Compliance & Management Systems
(adding context)
High
Good Performance But
Not Sustainable
Sustainable
Zone
Compliance Status
Weak Systems &
Poor Performance
Ineffective
Systems
Low
Early
Mature
Management Systems Development

15. Social Risk Management Framework: Basic thrusts:
The poor are typically most exposed to diverse risks
traditional and modern
The poor least equipped to deal with these risks
The poor are most vulnerable
High vulnerability makes them risk averse and thus unable or unwilling to engage in higher risk/high return activities
SRM seeks to account for multiple sources of risk and their characteristics to address vulnerability
Operates with multiple strategies (prevention, mitigation, coping) and arrangements (informal, market-based, public) to deal with risk
Attempts to match the multiple suppliers of risk management instruments (such as households, communities, NGOs, and governments) with key demand groups (formal, informal-urban and informal-rural workers)
Adapted from Holzmann, 1998

16. Sources and Forms of Social Risk
Micro Meso Macro
(idiosyncratic) (co-variant)
Natural Rainfall Earthquake
Landslide Floods
Volcanic eruption Drought
Strong winds
Health Illness Epidemic
Injury
Disability
Life-cycle Birth
Old-age
Death
Social Crime Terrorism Civil strife
Domestic violence Gangs War
Economic Unemployment Resettlement Output collapse
Harvest failure Financial
Business failure or currency crisis
Technology
Political Ethnic discrimination Riots Default on social prog.
Environmental Pollution
Deforestation
Nuclear disaster
Adapted from Holzmann, 1998

17. Risk Management Strategies
Prevention Strategies - to reduce the probability of down-side risk
Mitigation Strategies - to decrease the impact of a future down-side risk
Portfolio diversification
Insurance
Hedging/Risk exchange
Coping Strategies - to relieve the impact once the risk (the event) has occurred
Adapted from Holzmann, 1998

18. Risk Management Arrangements
Informal arrangements, e.g.
marriage, real assets, mutual community support
Market-based arrangements, e.g.
cash, bank deposits, bonds and shares, insurance contracts
Publicly provided or mandated arrangements
social insurance, transfers in cash and kind, subsidies and public works
Adapted from Holzmann, 1998

19. Matrix of Social Risk Management (examples)
Adapted from Holzmann, 1998

20. Framework for studying vulnerable populations
Policy
Social and Community-oriented Medical care and Level Ethical norms
Perspective economic policy health policy public health policy of analysis and values
Community
resources
People
Ties between
people
Neighborhoods
Vulnerable
Populations
At-risk
Community
health Needs
Physical
Psychological
Social
Community
(-)
Statistical
(aggregate)
lives
Common Good
Reciprocity
Interdependence
(+)
Resource
availability
(+)
Relative
risk
(+)
Health
status
(+)
Community and
Individual Well-
Being
Individual
Resources
Social status
Social capital
human capital
Vulnerable
Individuals
Susceptible to:
harm
or neglect
Individual
Health Needs
Physical
Psychological
Social
Individual
(-)
Individual
(identifiable)
lives
Individual Rights
Autonomy
Independence
(+)
Note: (+) indicates direct relationship (likelihood of outcome increases as predictor increases; (-) indicates inverse
relationship (likelihood of outcome decreases as predictor increases)
Source: Aday (1994)