Risk Management

Risk is defined by the probability of injury, harm, loss or danger. We all take risks every day, and don’t even think about implications.

The definition of Hazard means something that could cause harm, and Risk means the likelihood of a hazard causing harm.

Risk – A risk in a health and social care setting is when there is a strong possibility of harm occurring through a hazard.

When working in a health and social environment, it is important that the surrounding nature is safe and free of any potential harm. A hazard is something that can possibly cause you this danger. Hazards range from something being misplaced to a broken object. When identifying a hazard, risk assessments would take place to find out the best and quickest solution to prevent any danger. The definition of a risk is the probability or threat of damage, injury, liability, loss, or any other negative occurrence that is caused by external or internal vulnerabilities, and that may be avoided through preemptive action.

Weigh up the risk: a risk is the likelihood that a hazard will cause harm

Negligence: A person acts negligently if they should have been aware of a substantial and unjustifiable risk that a certain consequence would result from their actions. Although the level of risk is the same for both recklessness and negligence, the difference between the two is that with recklessness, the actor must be aware of the risk involved with her actions, whereas, for negligence, the actor is not aware of the risks but should have known what those risks were”(National Paralegal College, 2017).

When a loss contingency exists, the likelihood that the future event or events will confirm the incurrence of a liability can range from probable to remote. FASB uses the terms probable, reasonably possible, and remote to identify three areas within that range and assigns the following meanings.

31. If the likelihood of a loss is reasonably possible rather than probable, we record no entry, but make full

Risk is defined as the unwanted consequences of a particular activity in relation to the likelihood that this may occur. Hazard is a state or condition having the potential to cause a deviation from uniform or intended behaviour which, in turn, may result in damage to property, people or environment. The word “hazard” does not express a view on the magnitude of the consequences or how likely it is that the harm will actually occur. A “major hazard” is associated with Loss of Containment and has the potential to cause significant damage or multiple fatalities.

Moral hazard, is when one party take the risk knowing another party must bear the cost.

Defined by Coopers textbook, risk is the exposure to the consequences of uncertainty and has two elements: the likelihood of something happening that has an impact on the project objectives, and the positive or negative consequences of something impacting the project objectives (Cooper, Grey, Raymond, & Walker, 2005)

The objective risk is the relative variation of actual loss from expected loss. As the number of exposure units under observation increases, objective risk declines.

1. Assume that the chance of loss is 3 percent for two different fleets of trucks. Explain how it is possible that objective risk for both fleets can be different even though the chance of loss is identical.

One well accepted description of risk management is the following: risk management is a systematic approach to setting the best course of action under uncertainty by identifying, assessing, understanding, acting on and communicating risk issues. In order to apply risk management effectively, it is vital that a risk management culture be developed. The risk management culture supports the overall vision, mission and objectives of an organization. Limits and boundaries are established and communicated concerning what are acceptable risk practices and outcomes. Since risk management is directed at uncertainty related to future events and outcomes, it is

Concept of risk, risk assessment, risk management and how uncertainty affects the process will be discussed.