The Residual Risk Reduction, or R3 Process, assigns numerical values to risk. As risk is reduce via hazard control measures, the R3 value is reduced and easily tracked.
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R3 Process Training
1. Mike Sloop 2012 REVISED 2013
R I S KM A N A G E M E N T
R E S I D U A LR E S I D U A L
M A N A G E M E N T
2. Mike Sloop 2012 REVISED 2013
R I S K
RISK, defined, is exposure to
hazard or danger. Risk is all
around us…all day…at home
and at work. Every time we
walk, drive, use a tool, swim,
etc., we expose ourselves to
hazards. This exposure is risk.
3. Mike Sloop 2012 REVISED 2013
R I S K
Safety experts sometimes say
that our goal should be to
eliminate ALL risk. It is
impossible to eliminate all risk
in our lives, but we can take
action to eliminate, reduce, and
manage risk on the job and at
home.
4. Mike Sloop 2012 REVISED 2013
OF F A L L I N G
Let’s look at stairs…
Hazard Control Measures:
• Building codes
• OSHA standards
• Handrails
• Midrails
• Kickplates
• Anti-slip treads
• Rules & procedures
R I S K
Stairs exist in almost every manmade
structure on Earth. We go up and down
stairs every day…all day, and never think
about the risk involved. We take
measures to ensure that our stairs are as
safe as they can be. These are called
Hazard Control Measures and some of
them are listed below.
5. Mike Sloop 2012 REVISED 2013
OF F A L L I N G
However…
The RISK of falling is ALWAYS present!
R I S K
No matter what we do, no matter how
safe we make our stairways, the RISK of
falling up or down the stairs is ALWAYS
present! The ONLY way to eliminate
the risk is to eliminate the stairway.
Since we cannot eliminate all risk
associated with a stairway, regardless
of the hazard control measures we
employ, the risk that remains is called
the RESIDUAL RISK.
6. Mike Sloop 2012 REVISED 2013
R I S K
So…we have seen that it is
impossible to eliminate all risk.
We can however, through hazard
recognition and hazard control
measures, MANAGE and REDUCE
risk. Every time that risk is
removed or reduced, the entire
facility becomes safer.
7. Mike Sloop 2012 REVISED 2013
R I S K Management:
There are 5 ways to manage RISK:
ELIMINATE the hazard.
The BEST way to manage risk is to eliminate
the hazard. For example, no one will EVER
drown in my pool…because I do not have one. I
made the decision that the risk involved with
owning a pool was too great for my familly.
8. Mike Sloop 2012 REVISED 2013
R I S K Management:
There are 5 ways to manage RISK:
SUBSTITUTE the hazard.
Another effective way to manage risk is to
substitute a less dangerous hazard for a more
dangerous hazard. For example, let’s say that
currently you use a dangerous chemical to clean
machine parts…and learned that a natural citrus
cleaner cleaned the parts just as well. You
substitute the citrus chemical for the dangerous
chemical and remove a LOT of risk.
9. Mike Sloop 2012 REVISED 2013
R I S K Management:
There are 5 ways to manage RISK:
Engineering Controls.
Engineering controls include railings around
platforms and stairs and machine guards.
Catwalks are common around industrial
equipment, and most of us use them without
much thought. What if these same catwalks did
not have rails around them…now that would
make things different…would YOU walk across a
catwalk 50 feet high without guardrails?
10. Mike Sloop 2012 REVISED 2013
R I S K Management:
There are 5 ways to manage RISK:
Administrative Controls.
Administrative controls are another way to
manage risk, by scheduling work to be done
when the hazard is less or absent. Let’s say that
you had a job mowing a rifle range. Would you
rather do the job while the range is in use…or
when it is not in use? This is a no-brainer.
11. Mike Sloop 2012 REVISED 2013
R I S K Management:
There are 5 ways to manage RISK:
Personal Protective Equipment (PPE)
Personal protective equipment, or PPE, is the
last resort in safety. Because the hazard cannot
be controlled, we put protective gear on the
human as a last way to protect them from
exposure.
12. Mike Sloop 2012 REVISED 2013
R I S K
We now know that residual risk is the
risk that remains after all hazard control
measures have been taken. We also
know that residual risk is present in
every job task.
R e s i d u a l
13. Mike Sloop 2012 REVISED 2013
R3
Residual
Risk
Reduction PROCESS
Now we will look at the Residual Risk Reduction, or R3 Process tool. This process was
developed by Liberty Mutual, and assigns numerical values to risk based upon the
frequency of the job task, the likelihood of any injury, and the potential severity of the
injury.
14. Mike Sloop 2012 REVISED 2013
R3 Process Components Defined
FREQUENCY (F):
What is the exposure? How often is the
task done?
LIKELIHOOD (L):
How likely is it that an injury may occur?
SEVERITY (S):
If an injury occurs…how severe is it likely to
be?
15. Mike Sloop 2012 REVISED 2013
RR = F x L x S
R3 Process / Project
Risk Rating = Frequency x Likelihood x Severity
RR = F x L x S
To complete a R3 project, we first must know where we are
regarding risk. We need to calculate a Risk Rating score using
the formula as shown below.
To determine the numerical value for Frequency, Likelihood,
and Severity, we use a RISK RATING SCALE, as shown on the
next slide. Each factor will be 1 – 5 as shown.
16. Mike Sloop 2012 REVISED 2013
R3 Process
R3 Risk Rating Scale
Rating Frequency (Exposure) Likelihood
(Chance)
Severity (Degree of
Harm)
1 Less than 1x per month Highly unlikely First aid
2 Less than 1x per week Unlikely Medical treatment
3 Less than 1x per shift Possible Lost time with full
recovery
4 Greater than 1x per shift Probable Some permanent
disability
5 At all times Highly likely Major permanent
disability or death
17. Mike Sloop 2012 REVISED 2013
R3 Process / Project
ACME
APPLE PROCESSING COMPANY
Now Hiring!
Now, let’s look at an example. Let’s say that you
accept a new job at ACME Apple Company.
18. Mike Sloop 2012 REVISED 2013
R3 Process / Project
Workplace Example:
YOU have a new job in an apple factory. Your job
task is to hold an apple in the palm of your left
hand. Then you are to grasp a very sharp knife in
your right hand and cut the apple in half while
holding the apple in your left hand. You do this
task continuously for 8 hours a day. You do not
wear ANY PPE. What are the chances of you
cutting your left hand or fingers?
19. Mike Sloop 2012 REVISED 2013
R3 Process / Project
Workplace Example:
OBVIOUSLY…this is a dangerous job. This is a good
opportunity for an R3 Project!
An R3 Project is where hazard control measures
are taken to reduce the residual risk of the job or
job element.
To complete an R3 Project for this job, we first need to calculate the risk
rating for FREQUENCY (F), LIKELIHOOD (L), and SEVERITY (S).
20. Mike Sloop 2012 REVISED 2013
R3 Process / Project
• What is the Frequency of the task? 5 because the job is done
continuously all day.
• What is the Likelihood of an injury? 5 because there is no
protection, currently, for the employee.
• What is the probable Severity of an injury? 2 at least since a
laceration with a sharp knife would undoubtedly need medical
attention.
Rating Frequency (Exposure) Likelihood
(Chance)
Severity (Degree of Harm)
1 Less than 1x per month Highly unlikely First aid
2 Less than 1x per week Unlikely Medical treatment
3 Less than 1x per shift Possible Lost time with full recovery
4 Greater than 1x per shift Probable Some permanent disability
5 At all times Highly likely Major permanent disability or
death
21. Mike Sloop 2012 REVISED 2013
R3 Process / Project
What is the RR rating BEFORE hazard controls?
RR = F x L x S
RR = ____ x ____ x ____
RR = 5 x 5 x 2
RR = 50
Rating Frequency (Exposure) Likelihood (Chance) Severity (Degree of Harm)
1 Less than 1x per month Highly unlikely First aid
2 Less than 1x per week Unlikely Medical treatment
3 Less than 1x per shift Possible Lost time with full recovery
4 Greater than 1x per shift Probable Some permanent disability
5 At all times Highly likely Major permanent disability or death
22. Mike Sloop 2012 REVISED 2013
R3 Process / Project
What is the Frequency now? 5
What is the Likelihood now? 1
What is the Severity now? 2
Job Task Process Improvement: NOW, you are
REQUIRED to wear a kevlar glove at all times on
your left hand. This is a hazard control measure.
23. Mike Sloop 2012 REVISED 2013
R3 Process / Project
What is the R3 rating AFTER hazard controls?
RR = F x L x S
RR = ____ x ____ x ____
RR = 5 x 1 x 2
RR = 10
Job Task Process Improvement: NOW, you are
REQUIRED to wear a kevlar glove at all times on
your left hand. This is a hazard control measure.
25. Mike Sloop 2012 REVISED 2013
R3 Process
THE BOTTOM LINE:
You can look at any job or job task from a
residual risk standpoint, putting a numerical
value to risk.
As you apply hazard control measures, you
reduce residual risk and can easily track the
values as they show improvement.
R3 is a quantitative look at SAFETY.
26. Mike Sloop 2012 REVISED 2013
R3 Process Forms
This is the basic R3
Project form.
27. Mike Sloop 2012 REVISED 2013
R3 Project CASE STUDY
Test Your Knowledge:
Use the following case study and this form
template to do an R3 project on your own.
When you are finished, compare it to the
solution provided.
28. Mike Sloop 2012 REVISED 2013
A
R3 Project CASE STUDY
CATWALK
Let’s say that your job required you to climb Tank A and cross over via
the narrow yellow catwalk pictured to Tank B once per hour. You do
not like walking across the catwalk and feel that your job can be made
safer by using hazard control measures…so you decide to do an R3
Project on the catwalk.
B20’
Please complete the R3 Project NOW.
When complete, you can review the
solution that follows.
29. Mike Sloop 2012 REVISED 2013
A
R3 Project SOLUTION
CATWALK
First, you calculate a risk rating, remembering that the risk rating formula is:
RR = F X L X S.
Frequency = 5
Likelihood = 3
Severity = 3
RR = 5 X 3 X 3 = 45
B20’
NOTE that this is MY
solution….YOURS
may be different!
30. Mike Sloop 2012 REVISED 2013
A
R3 Project SOLUTION
CATWALK
Now you add a protective railing to the catwalk as a hazard control measure.
What will the NEW risk rating be?
RR = F X L X S.
Frequency = 5
Likelihood = 1
Severity = 3
RR = 5 X 1 X 3 = 15
B20’
NOTE that this is MY
solution….YOURS
may be different!
31. Mike Sloop 2012 REVISED 2013
R3 Project SOLUTION
Using the R3 form template
as shown at right, it is easy
to see that adding the
protective railing to the
catwalk reduced the risk of
falling by 67%.
32. Mike Sloop 2012 REVISED 2013
Summary:
The R3 process is a simple way to assign numerical values to
risk. As we add hazard control measures to make things safer
we reduce the risk values, making the improvements easy to
track. The R3 process can be applied to almost any job, job
element, or task.
Editor's Notes
Welcome to the Residual Risk Management seminar. Today, we will look at the definitions of risk, residual risk, and introduce the R3 Process tool.
Risk, defined, is the exposure to hazard or danger.
Some safety experts say that all risk should be eliminated. We will see that this is not reasonable, and in fact is impossible.
Let’s look at stairs. Almost every structure on Earth has stairs. And, even though we have standards as to the construction of stairs, and even though we add handrails, and bottom rails, and slip-resistant coverings on stair treads, there is nothing preventing us from falling down stairs.
The risk of falling down stairs is always present….no matter what we do. This remaining risk is referred to as “residual risk”.
It is impossible to eliminate all risk. However, through hazard recognition and hazard control measures, we can manage and reduce risk. Every time that risk is removed or reduced, the entire facility becomes automatically safer.
The best way to manage risk is to eliminate the hazard. For example, no one will ever drown in my pool…because I do not have one. I have made the decision that the risk involved with owning a pool was too great for my family.
Substitution is another way that we manage risk. Substitute a lesser hazard for a more dangerous hazard.
Engineering controls include railings around platforms and stairs and machine guards. Catwalks are common around industrial equipment, and most of us use them without much thought. What if these same catwalks did not have rails around them…now that would make things different.
Administrative controls are another way to manage risk, by scheduling work to be done when the hazard is less or absent. Let’s say that you had a job mowing a rifle range. Would you rather do the job while the range is in use…on when it is not in use. This is a no-brainer.
Personal protective equipment, or PPE, is the last resort in safety, because the hazard cannot be controlled, so we put protective gear on the human.
Residual risk is the risk that remains after all hazard control measures have been taken. Residual risk is present in every job task.
Now we will look at the Residual Risk Reduction, or R3 Process. This process was developed by Liberty Mutual, and assigns numerical values to risk, based upon the frequency of the job task, the likelihood of any injury, and the potential severity of the injury.
Frequency is exposure and relates to how often the task is done. Likelihood is chance and relates to our opinion of how likely is it that an injury will occur? Severity is potential and relates to how severe is an injury likely to be if it occurs.
Residual risk, calculated, equals Frequency times Likelihood times Severity, as shown on this formula.
The R3 risk rating scale, shown here, provides a numerical rating for Frequency, Likelihood, and Severity.
Now let’s look at an example…as you accept a job at the ACME Apple Processing Company.
The easiest way to understand the R3 Process is to look at an example. In this example, YOU have a new job in an apple factory. YOUR job task is to hold an apple in the palm of your left hand, grasp a very sharp knife in your right hand, and then cut the apple in half. You do this job task continuously for 8 hours a day, and you are not required to wear any PPE. What are the chances of you cutting your left hand or fingers?
The easiest way to understand the R3 Process is to look at an example. In this example, YOU have a new job in an apple factory. YOUR job task is to hold an apple in the palm of your left hand, grasp a very sharp knife in your right hand, and then cut the apple in half. You do this job task continuously for 8 hours a day, and you are not required to wear any PPE. What are the chances of you cutting your left hand or fingers?
First, we need to calculate the risk rating for the current situation, using the R3 formula and the risk rating scale. For the current situation, the Frequency would be a 5, since the task is done continuously. The Likelihood would be highly likely, 5, as there is no protection for the employee. Severity would be at least a 2, as a laceration with a sharp knife would undoubtedly need medical attention and probably require stitches.
Now that we have assigned values to Frequency, Likelihood, and Severity, we can calculate the risk rating. The current risk value would be 50, as shown here.
Now, let’s say that we have implemented a hazard control measure, and now require that a cut resistant kevlar glove be worn on the left hand at all times. Because of this hazard control measure, we can now recalculate the risk value. Because of the kevlar glove PPE requirement, the Likelihood of an injury is now a 1. The other two R3 values stay the same.
Now we can calculate the NEW risk rating, which is now a 10 as shown.
The reduction in risk rating from 50 to 10 is an 80% improvement in risk.
In summary, residual risk is present in all job tasks. Using the R3 process, this risk can be assigned numerical values that can be tracked, as process improvement hazard control measures are implemented. The R3 process is a quantitative look at safety.
I have created two simple forms to use to complete an R3 Project. One is manual and the other is automatically calculated.
I have created two simple forms to use to complete an R3 Project. One is manual and the other is automatically calculated.
I have created two simple forms to use to complete an R3 Project. One is manual and the other is automatically calculated.
I have created two simple forms to use to complete an R3 Project. One is manual and the other is automatically calculated.
I have created two simple forms to use to complete an R3 Project. One is manual and the other is automatically calculated.
I have created two simple forms to use to complete an R3 Project. One is manual and the other is automatically calculated.
