Source: United States Environmental Protection Agency (EPA)
- The peaks-over-threshold method (Oesterreichische Nationalbank, 2006)
On the 14th of June, the deadliest English mainland fire since 1900 occurred at Grenfell Tower, a 24-storey, 220-foot high tower block of public housing flats in North Kensington, in west London. The cause of the fire has not yet been finalised, but several media outlets reported that it may have been caused by a faulty refrigerator. A fourth-floor resident told the media that it was her neighbour's refrigerator that caught fire around 01h00, and that they immediately began knocking on doors to alert people. She also stated she saw a small fire in his kitchen through his opened door. Within half an hour the building was entirely engulfed in flames. The speed at which the fire spread is believed to have been aided by the building's recently added exterior cladding.
Today’s blog offers an extensive understanding of risk analysis and evaluation. It’s a big one, but we assure you all the information is critical to grasping the full scope of this aspect of risk management.
Identifying the sources of risk is the most critical stage in your risk assessment process. You need to do this to manage the sources for pro-active risk management. The better you understand the sources, the better the outcomes of the risk assessment process, and the more meaningful and effective your management of these risks will be.
Under modern occupational risk management (ORM), the primary differences between risk assessment and risk measurement are:
With the increasing availability of big data and sophisticated software analytics, such as machine learning, modern risk assessments are automated and easy to use for people who have limited technical knowledge on risk management. The outcome of your risk assessment will become more accurate due to access to large-size samples. For example, a global corporate has developed a continuous risk assessment tool as an enhancement of its traditional risk assessment processes, through the inclusion of quantitative metrics, i.e. key risk indicators, to better assess the risk universe. ORM has moved away from traditional risk assessment towards risk-based strategic decision making.
Following on from our previous blog, we’ll be drilling down into current risk methodologies. But first, let’s snapshot the overall landscape of these approaches to managing and minimising risk in the workplace.