The Importance of Risk Assessment In Preparing ERP For SMEs by Dr Mohd Rafee Ibrahim


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The Importance of Risk Assessment In Preparing ERP For SMEs by Dr Mohd Rafee Ibrahim

  1. 1. COSH 2011@KLCCThe Importance of Risk Assessment in Preparing ERP for SMEs 19.07.2011 Dr. Mohd Rafee Baharudin
  2. 2. The government aims to reduce the workplaceaccident rate to THREE (3) cases for each 1,000workers by 2020 compared to the (SIX (6) casesper 1,000 workers at present (2010). DG of DOSH: Datuk Dr Johari Basri.
  3. 3. 50000 43,885 45000 40,617 40000 38,657 35,092 34,394 35000Number of accident 30000 25000 20814 commuting 19041 20000 17297 17704 17682 industrial 15000 10000 5000 0 2005 2006 2007 2008 2009 Year 3
  5. 5. Emergency (NFPA)• A serious situation or occurrence that happens unexpectedly and demands immediate action.• A fire, explosion, or hazardous condition that poses an immediate threat to the safety of life or damage to property.
  6. 6. Major accident• means an occurrence including a major emission, fire, or explosion resulting from an uncontrolled development in an industrial activity that leads to serious danger to persons (immediate or delayed) inside or outside of the facility, to the environment, and involving one or more hazardous substances. OSH(Control of Industrial Major Accident Hazards) Reg. 1996
  7. 7. BRIGHTSPARKLES Sungai Buloh 7th MAY 1991
  8. 8. Port Klang 1992
  9. 9. BINTULU 1997
  10. 10. Disaster• an incident that occurs in a sudden manner, complex in nature, resulting in the loss of lives, damages to property or the environment as well as affecting the daily activities of the local community• requires the handling of resources, equipment, frequency and extensive manpower from various agencies as well as effective coordination adapted: Directive No. 20
  11. 11. Known Disaster in MalaysiaYear Location Event Type Fatality Injury Evacuated1988 Butterworth, Penang Jetty collapse 32 1674 -1991 Sungai Buloh, Selangor Fire/Explosion 22 103 -1992 Port Klang, Selangor Fire/Explosion 10 - -1993 Hulu Kelang, Selangor Building collapse 48 - -1995 Genting, Pahang Landslide 20 22 -1996 Genting, Pahang Road Accident 17 - -1996 Pos Dipang, Perak Mud slide 44 - - 4925 homes1996 West Coast, Sabah Tropical storm/ Ribut GREG 230 - destroyed-1997 Sibu, Sarawak Virus Outbreak/Coxsackie 25 - -1998 Nation wide, Malaysia Haze ? ? ?2004 Northern Coastal, Malaysia Tsunami 68 - 13 villages2006 Nation wide, Malaysia Haze ? ? ?2008 Bukit Antarabangsa, Selangor Landslide 5 13 3000 residents
  12. 12. HIGHLAND TOWERS 11th DECEMBER 1993
  13. 13. Bukit Antarabangsa
  14. 14. Emergency Disaster Emergency or Disaster ?
  15. 15. Objectives Of ERP• MINIMIZE personal injury, property & environment DAMAGE• Provide immediate resumption of NORMAL OPERATIONS• Provide a basis for TRAINING & increasing PREPAREDNESS ability for all personnel and community affected by the event• Meet LEGISLATIVE requirement.
  16. 16. Purpose of ERP• The purpose: – To LOCALIZE the emergency within the site – To MINIMIZE the effects of the incidence on people, community and property within the site – To ensure effective and efficient COOPERATION AND COORDINATION amongst Authority Having Jurisdiction (AHJ), community and the affected site.
  17. 17. Advantages of ERP• Provide “guidance” on Is this person actions to be taken to trained?? organize personnel and resources during emergency• Ensuring emergency equipment is maintained, ready for use.• Personnel and community are TRAINED and prepared
  18. 18. Advantages of ERP (cont.)• Provide: – Clear identification of the site – Potential hazard – Safe Entry and Exit route for Responding Agencies and evacuation of affected community• Coordinate the responses of on-site and off-site emergency services – Multi-Jurisdictional cooperation and coordination – Community/local ERT support
  19. 19. Stages of an Emergency 1st Emergency Level Trigger escalation? End of incident emergency trigger minutes hours days monthsPRE-EMERGENCY EMERGENCY RECOVERY EMERGENCY LEVELS Time
  20. 20. Levels of EmergenciesDepends on severity of the incident and capability of the organisation• Level 1 If within the capabilities of the organisation• Level 2 If external assistance is required: mutual aid, district or other agencies. MKN Arahan 20 may apply.• Level 3 State or National Disaster. MKN Arahan 20 takes over.
  21. 21. Effective ERP Preparedness High Response Response Effort High SuccessS ConsequencesEVE OBJECTIVERIT Low ResponseY Success Low Time Lapse Incident Begins
  22. 22. Lifeline service:Maximum timeframe for loss of service• Electricity 8-10 hours• Gas 24 hours• Water 2-4 hours• Sewage 2-4 hours• Rail 24 hours• Road 2 hours• Communications 8-12 hours
  23. 23. Basic conceptsHazard (MS 1722:2003) A source or a situation with a potential for harm in terms of human injury or ill health, damage to property, damage to the environment or a combination of these.Danger Danger is the relative exposure to a hazard. A hazard may be present but there may be little danger because of control measures taken.
  24. 24. • Risk means a combination of the likelihood of an occurrence of a hazardous event with specified period or in specified circumstances and the severity of injury or damage to the health of people, property, environment or any combination of these caused by the event.
  25. 25. • Risk assessment means the process of evaluating the risks to safety and health arising from hazards at work.• Risk management means the total procedure associated with identifying a hazard, assessing the risk, putting in place control measures, and reviewing the outcomes.
  26. 26. Risk life cycleRisk is present in every aspect of the life cycleof a facility. Therefore it requires us to identifythe risks in every phase of the life cycle anddevelop methods to manage them..
  27. 27. Types of Risk AssessmentQuantitative QualitativeScientific studies & measurements Semi-quantitative or non scientificComparison of results with limit values Judgment decisions with technical knowledgeOccupational hygiene, noise, structural Professional and personaldesign, ergonomics etc. experiences/biases Extremely subjective Personal and individual variations May not be bought in to by any medium to large scale organization Probability and consequence model
  28. 28. Choose the correct R.A.M
  29. 29. Slightly harmful Harmful Extremely harmfulHighly unlikely Trivial Risk Tolerable Risk Moderate RiskUnlikely Tolerable Risk Moderate Risk Substantial RiskLikely Moderate Risk Substantial Risk Intolerable Risk British Standard BS 8800
  30. 30. Three categories of harm• Slight Harm: Harm that is of a temporary nature, e.g. headache or muscle strain that dissipates.• Harm : Harm that results in permanent minor disability, e.g. slight deafness, small reductions in lung function, minor back problems.• Extreme harm : Premature death or permanent major disability.
  31. 31. Risk Level DescriptionTrivial No action nor documentary records needed - but good practice to record the assessmentTolerable Improvement not mandatory, but record and monitoringRisk required to ensure controls are maintained. Go for cheap improvements where possible.Moderate Aim to reduce risk but costs of prevention may be limited.Risk Measures should be tied to a timetableSubstantial Where the risk involves work in progress urgent actionRisk should be taken otherwise work should not start until the risk has been reduced. Considerable resources may have to be allocated.Intolerable Work should not be started or continued until the risk hasRisk been reduced. If it is not possible to reduce risk even with unlimited resources work has to remain prohibited.
  32. 32. Severity Index Description 4 Fatality & Permanent Disability 3 > 4 days MC 2 < 4 days MC 1 First aid casesSeverity Index Description 4 Fatality 3 Permanent Disability 2 Temporary Disability 1 First aid cases
  33. 33. Likelihood
  34. 34. Severity
  35. 35. Hazard(s) Effect Likelihood Severity Risk Fire 1 5 2 4 3 3 4 2 5 1
  36. 36. Some criteria for assessing risk treatment optionsCriteria QuestionsCost Is this option affordable? Is it the most cost-effective?Timing Will the beneficial effects of this option be quickly realised?Leverage Will the application of this option lead to further risk- reducing actions by others?Administrative Can this option be easily administered or will itsefficiency application be neglected because of difficulty of administration or lack of expertise?Continuity of effects Will the effects of the application of this option be continuous or merely short-term?
  37. 37. Criteria QuestionsCompatibility How compatible is this option with others that may be adopted?Jurisdictional authority Does this level of government have the legislated authority to apply this option? If not, can higher levels be encouraged to do so?Effects on the economy What will be the economic impacts of this option?Effects on the environment What will be the environmental impacts of this option?Risk creation Will this option itself introduce new risks?Equity Do those responsible for creating the risk pay for it’s reduction? When the risk is not man-made, is the cost fairly distributed?
  38. 38. Criteria QuestionsRisk reduction potential What proportion of the losses due to this risk willreaction this option prevent?Political acceptability Is this option likely to be endorsed by the relevant governments?Public and pressure group Are there likely to be adverse reactions to implementation of this option?Individual freedom Does this option deny basic rights?
  39. 39. Don t have a spoon? I can fix that!
  40. 40. Seatbelt broken? I can fix that!
  41. 41. New TV too big for the old cabinet? I can fix that!
  42. 42. Room too dark using compact fluorescents? I can fix that!
  43. 43. Electrical problem? I can fix that!
  44. 44. Car stereo stolen? I can fix that!
  45. 45. Cant afford a real GPS? I can fix that!
  46. 46. Cant read the ATM screen? I can fix that!
  47. 47. Car imported from the wrong country? I can fix that!
  48. 48. Satellite go out in the rain? I can fix that! (TAKE THAT ASTRO!)
  49. 49. Electric stove broken & cant heat coffee? I fixed that
  50. 50. Wiper motor burned out? I can fix that!
  51. 51. Display rack falling over? I can fix that!
  52. 52. Tires worn out? I fixed that. Might be a little hard to steer.
  53. 53. Desk overloaded? I can fix that!
  54. 54. Car cant be ordered with the "Woody" option? I can fix that!
  55. 55. Exhaust pipe dragging? I can fix that!
  56. 56. Gotta feed the baby AND do the laundry at the same time? I can fix that!
  57. 57. Cables falling behind the desk? I can fix that!
  58. 58. No skate park in town? I can fix that!
  59. 59. BEST of ALL!Out of diapers? I can fix that too!
  60. 60. Training Cost Course Fee1 SHO 4,000.002 CHRA 4,700.003 OFA 850.004 Confined Space 850.005 Scaffolding 5,000.006 ERP 800.007 OSHA 800.008 FMA 1,200.00 18,200.00
  61. 61. Estimating Accident Cost• Annual number of temporary disablement injuries ____ x RM1,431.62 =________• Annual number of permanent disablement injuries ____ x RM21,473.75 = ________• Annual number of fatality injuries ____ x RM446,440.01 = ________
  62. 62. Cost of fatality injuries Daily Age Prod. Amount Rate Died Age (RM) Mean (SD) 53.23 32.54 22.46 1112.06 (24.39) (10.42) (10.42) (878.16) Median (IQR) 43.00 29.00 26.00 505.02 (46.75) (17.50) (17.50) (1539.52) 23.50 18.00 6.00 288.10 Minimum 88.50 49.00 37.00 2708.05 Maximum 65.00 31.00 31.00 2419.95 Range
  63. 63. Response• Response encompasses the decisions and actions taken to deal with the immediate effects of an emergency.• Response encompasses the effort to deal not only with the direct effects of the emergency itself (e.g. fighting fires, rescuing individuals) but also the indirect effects (e.g. disruption, media interest).
  64. 64. Fastest Response Time• Effective use of resources• Integrating transportation system and emergency management system• Decide the type and number of response units to send to the scene• Minimize delays in response time• Maximize emergency response resources
  65. 65. Ambulance response time (ART)• ART and emergency medical dispatcher program: a study in Kelantan, Malaysia – 913.2 +/- 276.5 seconds (J Trop Med Public Health. 2008 Nov;39(6):1150-4)
  66. 66. National Fire Protection Associations (NFPA) 1710• On all EMS calls, the NFPA 1710 standard establishes a turnout time of one minute, and four minutes or less for the arrival of a unit with first responder or higher level capability at an emergency medical incident. This objective should be met 90% of the time.
  67. 67. Basic Elements of Emergency Preparedness and Response Management1: Organise emergency management team2: Identify the accident scenarios and emergency consequences3: Identify resources, equipment and facilities4: Develop plans and procedures5: Train, drill and exercise6: Review system 128
  68. 68. Drill• An exercise involving a credible simulated emergency that requires personnel to perform emergency response operations for the purpose of evaluating the effectiveness of the training and education programs and the competence of personnel in performing required response duties and functions.
  69. 69. ICS
  70. 70. Guiding PrinciplesAn emergency will be determined by a range offactors which will include:• the nature and demands of the emergency, specifically context,• geographical extent, duration, complexity and potential impacts;• local experience and the designated lead agency;• local circumstances, priorities and experience; and whether or not there is regional, national or international involvement in the response and recovery effort.
  71. 71. Framework for Understanding the Impact of Emergencies
  72. 72. RecoveryStructures and Organisations
  73. 73. The Management of the Emergency Response• Concepts of Command, Control and Co- ordination• Command is the exercise of vested authority that is associated with a role or rank within an organisation, to give direction in order to achieve defined objectives.
  74. 74. • Control is the application of authority, combined with the capability to manage resources, in order to achieve defined objectives. Some organisations define command and control together, but the key element of control is the combination of authority with the means to ensure command intent is communicated and results monitored
  75. 75. • Co-ordination is the integration of multi- agency efforts and available capabilities, which may be interdependent, in order to achieve defined objectives. The co-ordination function will be exercised through control arrangements, and requires that command of individual organisations’ personnel and assets is appropriately exercised in pursuit of the defined objectives.
  77. 77. Thank You