Risk Management

What is Risk Management?

Most employees focus on risk reduction and will be familiar with assessing the risk of a work task. With RMS, we make it easier to take a step back to get an overview of the overall risk for any operation.

This is achieved by defining all known risks, events, threats, consequences, and barriers that exist. You then define which impact categories you want to examine in the risk event. Finally, you define the risk event in a standard risk matrix that addresses the total score.

By combining the Bow-tie method and the risk matrix model, we are able to achieve more, understand better, and reap the rewards.

The Bow-tie method can be used in multiple areas

• Problem solving - Assess a specific event
• Debriefing - Conduct a safety incident review to evaluate severity/risk
• Incident investigation - Facilitates system approach
• Hazard identification and risk assessment - Identify threats and events as well as assessment of controls/barriers

The risk matrix is a company-defined overarching definition of probability and consequences

This definition must be documented and communicated in such a way that all employees understand how risks are recorded and monitored by project management and business management.

There are three strategies for subjectively placing a risk in your company matrix. This should be consistent in daily use to avoid misunderstandings that can lead to unwanted or unnecessary consequences.

• Worst case scenario
• Current situation
• Future situation

How to configure risk management?

Before we begin going through each step in the configuration, it will be to your advantage if you have thought through the following

1. You need to know which matrix size you want to use (5x5, 6x6 or 8x8).
2. You should have an idea of which impact categories will be relevant for your company.
3. A row and column definition for each category

You can find RMS administration in the QHSE hub. This is where you configure the company's standard matrix and all impact categories.

RMS administration consists of four configuration levels:

1. Standard matrix, where you configure standard matrix size and color scheme
2. Impact category, where you configure all relevant impact categories in your company
3. Probability definitions, where you configure all column definitions for each impact category
4. Consequence definitions, where you configure all row definitions for each impact category

The risk analysis table is where you will see the final result for each impact category. If necessary, you can adjust the color scheme for unique impact categories that do not follow the company's standard matrix.