RISK MANAGEMENT Class 1

1
RISK MANAGEMENT Class 1

• OBJECTIVES
• Define Risk and Risk Mgt.
• Risk Management Mission
• Operational Risk Management
• Considerations

2
What is Risk?

• Risk as noun or verb
• Noun The possibility of meeting danger, exposure
  to harm or loss
• Verb to expose to a chance of injury
• Noun A person insured

3
What is Risk?

• Determining Factors in Defining Risk
• Probability
• Harm
• Severity

4
What is Risk?

• Describing Risk
• Probability of occurrence
• Subjective like
• One in a million
• Rare, high, low
• One in three, thirty percent

5
What is Risk?

• Describing Risk
• Harmful consequences
• Descriptive like
• Death
• Injury
• Destruction
• Disaster

6
What is Risk?

• Describing Risk
• Probability and Consequence
• Combined and expressed in math
• 10 million value (consequence)
• 2 loss probability

7
What is Risk?

• Probability of Risk
• Relates to
• The chance that something might happen
• The outcome / negative consequence rated on a
  scale

8
What is Risk?

• Assessing Risk
• Probability and risk often guide our decisions
  personally and professionally
• Each situation comes with some form of risk.

9
Three Levels of Risk

• The community as a whole
• The emergency response agency
• Emergency response operations

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Risk Management

• Risk management
• activity that involves
• evaluation/comparison of risks
  
• Development of approaches to change probability
  or consequence

11
Risk Management

• Is the entire process of identification and
  evaluation of risks as well as the
  identification, selection, and implementation of
  control measures that might alter risk.
• Administrative
• Engineering
• PPE

12
What is Risk?

• Relative Risk
• MI minor to fatal
• Insurance risk
• Item, person, object
• Insurance premiums and probability
• Type, size, value of structure
• Contents, installed systems
• Use, and FD resources

13
Control measures

• Administrative
• SOPs
• Training (standards, requirements)
• Safe work practice
• Regulation, Standards, Enforcement
• Goal make the task safe

14
Control Measures

• Engineering
• Apparatus design
• Station layout
• Co system
• Tool design
• Goal make the task safe

15
Control Measures

• Personal Protection
• Bunker gear
• SCBA
• P2 kits EMS
• Ear protection
• Goal make FF safe from hazards

16
RM in the Community

• FD plays a critical role in RM and is part of the
  community RM plan
• FD Chief responsibilities
• Managing fire and associated risk
• Provide FD part of RM system
• Mission readiness

17
RM in the Community

• Key FD support activities in RM
• Fire prevention
• Code enforcement
• Pub ed (recognize, prevent, respond)
• All these activities help reduce risk

18
Organizational RM

• FD mission to manage outside Risk
• Cant fulfill mission without managing Risk
  within the FD
• Like private sector we must protect ourselves
  (assets)
• One BIG difference
• FD is mission critical

19
Organizational RM

• We hold the Public Trust
• Fiduciary responsibility in its most critical
  application
• Without police and FD society can easily
  disintegrate

20
Operational RM

• The nature of FD function is inherently risky
• Risk can be reduced by
• Identification of risks
• Evaluation of risks
• Control strategies
• Risk / Benefit everyone
• NFPA 1500 later

21
Chapter 2

• Define risk and loss control
• Introduce general RM principles
• Overview 5 step RM process
• RM and legal responsibility
• Specific FD Risk Mgt concerns

22
Definitions and Concepts

• Dictionary says risk is
• The possibility of meeting danger or suffering
  harm or loss
• A person or thing insured
• To expose to the chance of injury or loss, to
  accept the risk of .

23
Definitions and Concepts

• NFPA 1500 says Risk is
• A risk is a measure of the probability and
  severity of adverse effects, the adverse effects
  result from an exposure to some type of risk

24
Definitions and Concepts

• Two dimensions of Risk probability
• Occurrence and magnitude
• Risk is also used to refer to undesirable
  consequence
• Death /injury
• Property loss / damage
• Increased cost of operation / loss
• Being OOS and inconvenience

25
Definitions and Concepts

• Management suggests an organized and directed
  approach that implements evaluated techniques to
  control systems, events, and people.
• Risk management implements a proactive rather
  than a reactive approach to problems or
  limiting risks. The term risk management refers
  to a systematic effort to identify, evaluate, and
  control risk to reduce both the probability that
  something might go wrong and the adverse effects
  if something does go wrong.

26
Definitions and Concepts

• Exposure action or non action that leads to a
  loss
• RM incorporates a full range of measures to limit
  reduce or eliminate the consequence of an
  undesirable event

27
Definitions and Concepts

• FD is inherently involved in risky situations
  that can cause injury or death to FD members or
  civilians
• Other risks include
• Apparatus, equipment, facilities
• Risk management is highly important and very
  challenging for the FD

28
Definitions and Concepts

• The FDs mission is to manage its internal risk as
  it performs its mission of managing the external
  community risk

29
Losses and Loss Control

• Loss control Objective,
• Limit consequences of risk
• Personnel loses
• Property losses
• Down time OOS
• Liability (criminal / civil)
• Direct and indirect lost (cost)

30
Orgazitional RM System

• FD Risk Management system
• Functions
• Components
• Activities
• All members involved in the system

31
Orgazitional RM System

• No single method or solution to manage risk NFPA
  is a guide
• Each FD must find solutions that are
• Frequently reviewed / up graded
• Properly managed
• Continuously improved

32
Organizational RM System

• A dynamic process with goals objective that are
• Clearly stated
• Understood
• Attainable
• Measurable
• Everyone involvement

33
Organizational RM System

• Three fundamental steps
• Identification of risk
• Evaluation of probability and magnitude
• Establishing control measures
• Even with good control measures losses may occur
  and funding losses must be provided

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Steps in RM System

• Identify risk exposure
• Evaluate risk potential
• Ranking and prioritizing risks
• Determining implementing controls
• Evaluating and revising

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Steps in RM System 1

• Identifying risks in all activities
• People, death, injury, health
• Apparatus, accidents, errors
• Facilities, fire, natural incidents
• Equipment, theft, damage
• Malicious acts in all the above risks

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Steps in RM System 2

• Evaluating risk
• What is our local experience?
• What is the national experience?
• What are probabilities?
• What are probable consequences?
• Likelihood and loss addressed together

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Steps in RM System 3

• Generally risks with the most severe potential
  outcomes are considered to have priority over
  relatively minor risks And those most likely to
  occur have priority over the less likely

38
Steps in RM System 4

• Determine and implement controls
• Factors in implementing controls
• Predicted effect / results
• Time for implementation / for results
• Effort required
• Costs associated / insurance
• Expenses i.e. cost benefit
• Any mandates

39
Steps in RM System 4

• Funding
• Risk retention funding inside FD
• Risk transfer funding outside FD
• Cost / benefit analysis pg 42

40
Steps in RM System 4

• Three Control options
• Risk avoidance
• Not realistic in most cases
• Risk reduction
• Planning, training, maintenance
• Risk transfer
• Give risk to other organization

41
Steps in RM Systems 4

• Risk control categories
• Administrative
• Training, SOPs, enforcement
• Engineering
• Standards compliance
• Personal protective controls
• All PPE

42
Steps in RM System 5

• Evaluate and revise actions and techniques
• What works
• What doesn't work as intended
• Continuous improvement

43
Legal Issues

• A FD is legally responsible for acts or omissions
  causing unreasonable risks
• Physical injury or death
• Damage to property
• Damage to environment
• Negative economic impacts
• Damage to individuals reputation

44
Legal Issues

• Statutory immunity granted the FD because of its
  mission
• Gives authority to decide risk benefit
• But limited to scope of FD services

45
Legal Issues

• Legal responsibility to manage risk to the FD
  members keeping in mind
• FD has no control over emergency
• Location
• Work environment
• Has no opportunity to correct hazards

46
Legal Issues

• Property owners are protected against negligence
  because
• Based on the assumption that
• F/F are aware of risks
• F/F knowingly accept them
• Can be challenged if owner causes unreasonable
  risk

47
Legal Issues

• Legal responsibility extends to risk management
  in regard to safety and health of firefighters
• This responsibility is different (tactically)
  from the duty to protect the community

48
Legal Issues

• Law gives immunity therefore great discressionary
  power to make necessary decisions during an
  emergency
• It would be impossible to act during an emergency
  under constant legal threat
• Be careful of gross negligence

49
Legal Issues

• Risk mgt must consider
• OSHA (IDOL) standards
• Legal in nature
• Consensus standards NFPA
• Not technically legal but carry great weight

50
Legal Issues

• Its difficult to determine RM effectiveness
  without looking at its application to specific
  situations
• effectiveness is measured by documentation and
  Application
• Documentation is essential
• Written policy, procedures, SOPs, etc
• Training, equipment, etc

51
Special Concerns

• Risk vs. Safety
• Risk vs. benefit
• Many risks can be managed in non-emergency
  operations to regulate the level of risk during
  an emergency operation

52
RM in Emergency Response

• Operational RM refers to the risk of death or
  injury to responders
• In order to survive the FD must manage risk
  during emergency ops.
• The most dangerous job?

53
RM in Emergency Response

• Must extend throughout the FD
• Top
• Line and staff Chiefs,
• All Line officers
• Every FF
• Mutual aid members
• Others, PD, PW, OEM

54
RM in Emergency Response

• Risk vs. Benefit
• old perception
• Get fire out at all costs (we are heroes)
• New perception
• Reasonable risk (we are still heroes)

55
RM in Emergency Response

• Expectation of public
• Act rationally
• Act professionally
• Control situation without unnecessary exposure to
  danger
• Adequate resources people / equipment
• Adequate training

56
RM in Emergency Response

• Recognized danger should be avoided
• Acceptable operational risks
• Directed toward saving property
• Inherent risks
• Unknown hazards
• Risk Benefit

57
RM in Emergency Response

• Fundamental principle in safety and health laws
  is employer responsibility to provide reasonably
  safe working conditions
• Recognize, identify evaluate dangers
• Take reasonable steps to protect employees from
  those dangers

58
RM in Emergency Incidents

• Real time risk management
• RM is fundamental at every level during a
  incident
• RM is inherent in strategy and tactics
• Identify risk
• Evaluate risk
• Manage risk

59
RM in Emergency Incidents

• Standard approach to RM i.e. ICS
• Risk Assessment Guidelines
• Activities presenting a significant risk shall be
  limited to life safety
• Activities routinely employed to protect are
  inherently risky actions should be taken to
  reduce or avoid these risks
• No risk is acceptable if life and property are
  not reasonably savable.

60
RM in Emergency Incidents

• Strategic plan defines
• Where, when, and how
• RM must be considered and is essential to
  strategic plan
• is the responsibility of command personnel
• MUST be ongoing
• Defensive vs. Offensive provide
• basic tactics to be used

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RM in Emergency Incidents

• Good size up a must
• Starts with first in
• Continues throughout by command
• Is responsibility of all personnel
• Chiefs
• Company officers
• F/F
• others

62
RM in Emergency Incidents

• Incident safety officer(s)
• all 6 sides, 360, the whole banana
• Problems
• Hazards
• Inconsistent observations
• Any factor presenting a safety issue
• IC and Safety work together