Main Elements of the Hazard Identification and Risk Management Process - Coursework Example

Safety Management Name: Institution: Course Title: Tutor: Date: 1.0 Introduction Business world is full of uncertainties. These uncertainties greatly predetermine business stability. Businesses should have continuity planning so that in an event of unforeseen hazard they can be able to rise up. This then calls for hazard/ risk identification and risk management process. The risks and uncertainties that business phase can originate from natural factor or manmade factors. Moreover, they can be tied to environmental factors, economic factors and socio-political factors. The aviation industry has various associated hazards such as noise and air pollution as result of the extreme noise and fossil fuel combustion. The next hazard is possibility of being grounded due to political instability and economic recession. Other risks/ hazards are possibility of failures and thus causing death in extreme conditions which translates to huge compensation. This paper lists and describes the main elements of the hazard identification and risk management process. In addition, it includes consideration of how the effectiveness of risk management controls can be measured in an airline. 2.0 Hazard Identification There are various risks associated with aviation industry. The key obstacles are how to conceptualize model and visualize risks, define and monitor the risks’ impacts, analyze the probability of risk occurrence and mitigate the negative impact of risks (Stewart and Melchers1997, p. 1, 6 and 7). One key component of risk management is business continuity planning. Risks management entails the protection of firm’s valuable components from a threat. The protection can be in term of physical security, back up of data, and insurance. Risk management help in mitigating of operational risks associated with certain business (Smith, 2003, p. 49). The assessment in great deal helps firms detect areas of concern so as to prioritize use of resource in order to maximize response and recovery efforts. The process exposes operations that are subject to a single point of failure. Risk assessment is one of the key components in risk management. Risk assessment entails the predetermination of qualitative and quantitative value of risks connected to a situation and a likely threat or hazard. Qualitative approach to risk assessment entails calculations of two components of risks, magnitude of the potential loss and the probability for loss occurring. In engineering field assessments are done especially in relation to threat to life, social impacts, threat to environment or machine functionality. Risk assessment can also be carried out in relation to financial stability and business recovery plan, and information system vulnerability/ security (Hurst, 1998, p.42 and 43). An organization can estimate possible loss as a result risks, threats or vulnerability of an asset. This kind of estimation can be achieved through quantitative risk assessment of calculating annualized loss expectancy. The results from the assessment can then be used by an organization to justify their expenditure to implement measures of protecting that asset (LaGoy, 1994, p. 2). One key component of risk management is business continuity planning. For the realization of business continuity in an event of adverse situations, there is need for business continuity policy/plan (Hiles, 2004, p. 2, 3, 4 and 5). Thus, within the context of project management, risk assessment can be applied to guarantee continuity in the event of uncertainties occurring. The key objective of business continuity planning is to guarantee a competitive advantage and value system integrity in the event of these threats. These adverse conditions include vandalism, theft, fire, earthquakes and floods. In more detailed and precautionary approach, any instance that might curtail or threaten organisations operation should be treated as adverse condition worth planning for. The adverse effects can be felt in supply chain interruption (Blyth, 2009, p. 39). Safety management or risk and hazard identification can be understood in two paradigms. The first is the risk that is posed to that industry or the risk it poses to other sectors. 2.1 Approaches to Hazard Identification and Measurement in Aviation Industry 2.1.1 Environmental Impact Assessment (EIA)/ Pollution Since the realization, of human interdependence on environment, the nexus of safety and environmental management has had a phenomenal growth and application. To offer a balance to conflicting views EIA major utilizes two tools (Abdullah, 2007, p.2-6). The first relates to environment impact assessment report/ plan or environmental action plan. The second tool is through the use of environmental audit reports. These tools are able to analyze the probable impact of a project on economic, social, political and environmental aspects of human lives (Mitchell, 2009, p.25). The environmental audit program ensures a guaranteed continual improvement on environmental management. The approach usually encourages firms to examine how well facility operations or development programs are complying with regulations stipulated out by the authorities such as local governments, state government or federal government. The concept and principle of the audit program is on technical assistance and compliance rather than enforcement. It is driven with the motive that a firm, which carries out, an audit has a higher probability of pinpointing the problem. This allows for timely redress (DIANE, 1995, P.2-6).The audit report is on how the company will mitigate pollution through pollution prevention plan. Usually the company utilizes audit checklists such as air quality, hazardous wastes, solid wastes, storm water. In addition to the above, the company conducts industry check lists in relation to asphalt plant, vehicle maintenance, spills and sand and gravel handling. One major platform that EIA advocates for is about sustainable development. This concept recognizes the need of present and future. The need for present is acknowledged that human need to exploit their environment but in a sensible manner. Sustainable practices not only make sense to the environment but also to the long term profitability of business (Goumans, Peter and guy, 2000). The concept chief concern is all about finding a common ground for three human development needs in the form of economic, social and environmental. Human economic needs are diverse and the environment is availed for human utilization but within a reasonable limit. Secondly, it aims at offering social satisfaction and lastly, while achieving the two earlier ones, it also ensures a proper conservation of environment. The concept does not advocate for total conservation thus it is able to address various conflict views of extremist by offering a mid ground. The other avenue that EIA offers in order to address conflicting views is through sustainability reporting. The concept of sustainability reporting has continually developed over the last 12 years becoming a norm rather than exception in mainstreaming ethical practices into business operations. The greatest benefit of sustainability reporting is the protection of environment from degradation as a result of firm’s economic activities (Geraghty, 2010, p.141, 142 and 143). The adoption of the sustainability reporting by a firm is a true indication of how they value the physical environment they operate in, and which forms and dictate their future existence. Sustainability reporting shows the level of commitment that a company has towards social responsibility. In addition, it offers a platform for benchmarking (Aras and Crowther, 2008, p. 279 and 280). 2.1.2 Life Cycle Assessment This is a concept developed in order to assess the overall environmental impact of products, processes, or services right from design up to disposal. The assessment across the life cycle is also called cradle to grave approach. The noted effects are either beneficial or destructive in nature. This concept is also referred to as life cycle analysis (LCA). The LCA process entails collection and evaluation of quantitative data on the inputs and outputs of material, energy and waste flows related to the product over its whole life cycle so as to determine the environmental impacts (RSC, 2010, p. 1; Horne, Grant and Verghese, 2009, p. 2 and 3). According to international standardization (ISO) reference number ISO 14040: 1997 (E) potential effects analyzed include fossil fuel depletion, other non renewable resource use, water use, global warming, and ozone depletion among others (Carmody and Trusty, 2005, p. 1 and 2). 2.1.3 Security and Safety Grounds Aviation forms one of the integral sectors on a nation’s economy. Despite of this integral role, over the years it has faced numerous obstacles. Amongst these numerous obstacle is the terrorism on aviation (Hancock, 2002). Aviation industry has been a subject of unleashing terror due to global ideological differences. The aviation industry has been a major target for terrorists over the years because of its vulnerability once attacked. This is true because any mishap caused by the hijacker can lead to massive loss of life and fatal destruction of properties. This known vulnerability has acted as a source of comparative advantage to the terror groups. Thus, aviation sector has witnessed attacks after attacks since its inception where people have turned it as a tool of bargain once they have committed criminal act or want to air their grievances (Avihai, 2009). Thus, airline industry should put in security measures to avert these possibilities. These include avoiding risky skylines based on historical trends. 3.0 Risk Management Process According to Bogue (2005), there are four steps in risk management as steps towards reducing risks. The first entry point that he recommends is the phase of inventory. This phase involves identification of probable source of risks and the risks themselves. This phase should be able to capture internal factors like resource shift and sponsor availability. The second consideration is the external variables like change in company direction. The last phase under this stage is the inventory of new encounters in terms of technology. The second stage in risk management is the evaluation and ranking of the probable risks. This engagement allows the manager and his team to know the most vulnerable point and thus, being able to allocate resources for mitigation. After the second stage, the third involves prioritization of the risks in terms of the magnitude of the impact and probability of occurrence. This will inform the final decision on control and mitigation. Thus, the last step is control and mitigation. The sub step here is to identify those that controllable and formulate resource allocation for them. Conclusion There are various hazards and risks associated with the aviation industry. The probable hazards include fire as a result of failure or bombing. The next possibility is when the airplane is hijacked and used as weapon as mass destruction as in the case of September attack in USA. Closely connected to this is possibility of being hijacked for political reasons. Apart from these, there are various possible hazards that emanate from this industry that are catastrophic to environment and people living near airports. These include sound pollution and air pollution from the emission of carbon dioxide during combustion of fossil fuel. Apart from these there are those risks that are particular to the industry operations and include political instability and economic recession. Safety management or risk and hazard identification can be understood in two paradigms. The first is the risk that is posed to that industry or the risk it poses to other sectors. In a nutshell, this is a holistic view that looks at associated risks in a two way approach. Thus, it is integral for businesses to invest in risk management so as to ensure business continuity. References Abdullah, A. M. (2007). Introduction to environmental management systems. Kuala Lumpur: Penerbit UTM. Aras, G. and Crowther, D. (2009). Corporate sustainability reporting: a study in disingenuity. 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Waste material in construction: WASCON 2000: Proceedings of the international conference of the science and engineering of recycling for environmental protection, Harrogate England, 31 May, 1-2 June 2000. Hancock, N. (2002). Terrorism and the law in Australia: supporting materials. Law and Bills. Digest Group, research paper no. 13 2001-02. Retrieved on 20th June 2012 from: www.aph.gov.au/library/pubs/rp/2001-02/02rp13.htm Hiles, A. (2004). Business continuity: world class business continuity management. Connecticut: Rothstein associates. Horne, R., Grant, T. and Verghese, K. (2009). Life cycle assessment: principles practice and prospects. Collinwood, Victoria: CSIRO publisher. Hurst, N. W. (1998). Risk assessment: the human dimension. Cambridge: Royal Society of Chemistry. LaGoy, P. K. (1994). Risk assessment: principles and application for hazardous wastes and related sites. New Jersey: Noyes Publications. Mitchell, R. B., (2009). International politics and the environment. London: Sage publishers. RSC-Royal Society of Chemistry committee of Environment, Health and Safety (2010). Life cycle assessment. Piccadilly, London. Smith, M.R. Weather can make or break your business. Retrieved on 20th June 2011 from: http://www.weatherdata.com/services/news_makeorbreak.pdf. Stewart, M. G. and Melchers, R. E. (1997). Probabilistic risk assessment of engineering systems. London: Chapman and Hall Read More