2) Another method of risk determaining and assessment is Risk Assessment Code Matrix:

RAC levels are identified by a numerical scale 1 - 5, with RAC-1 being the most critical requiring immediate response, RAC-5 being the least critical. RACs are annotated by the RAC Number, followed by the Frequency and Severity. Examples of RAC annotations are 1(A)(I) for a RAC-1 that has catastrophic consequences and a immediate danger frequency. A 4(IV)(B) would be a low level risk, with a minor severity and a likely probability.

Risk Assessment Code (RAC):

Severity Code

Catastrophic (I) Imminent and immediate danger of death or permanent disability.

Critical (II) Permanent partial disability, temporary total disability.

Significant (III) Hospitalized minor injury, reversible illness.

Minor (IV) First aid or minor medical treatment.

Hazard Probability

Frequent (A) Immediate danger to health and safety of the public, staff or property and resources.

Likely (B) Probably will occur in time if not corrected, or probably will occur one or more times.

Occasional (C) Possible to occur in time if not corrected.

Rarely (D) Unlikely to occur; may assume exposure, will not occur.

Definitions

Probability The likelihood that a hazard will result in a mishap or loss (Exposure in terms of time, proximity, and repetition).

Severity The worst credible consequence that can occur as a result of a hazard.

Hazard Any real or potential condition that can cause injury, illness or death of personnel, or

loss and damage to equipment.

Risk An expression of possible loss in terms of severity and probability (associated with human interaction).

3) Adjust above mentioned methods we can Assess and prioritize Risks by using the Risk Score method:

Use the Risk Score calculator for analysing and evaluating risk. The objective of analysing risk is to determine whether the risk is acceptable. It provides a qualitative tool that assists in prioritising risk. The Risk Score Calculator determines the level of risk by defining consequences, exposure and probability. The risk matrix is used to assess and prioritise risks; then dealing with high priority risks first and then dealing with the least significant risks last.

How to use the Risk Score Calculator

1 - Estimate the Probability

Estimate the likelihood that the consequences will occur once the individual is exposed to the hazard and select the most appropriate probability category from the Exposure Bar Line.

2 - Estimate the Exposure

Estimate how often an individual interacts with a hazard and select the most appropriate exposure category from the Exposure Bar Line.

3 - Identify the Consequences

Identify the most likely outcome of a potential accident, including injuries, property damage and/or environmental damage and select the most appropriate consequence category from the Consequences Bar Line.

4 - Determine the Risk

Select or mark the values for consequence, exposure and probability on the appropriate bar lines of the Risk Score Calculator.

If you have the electronic version of the Risk Score Calculator then it will automatically draw the line and determine the risk level.

If using the manual version, draw a line from probability through exposure to the tie-line. Mark this point. Draw a line from the marked point on the tie-line through consequence to the Risk Score line to determine the risk level.

4) Some organizations might wish to develop more sophisticated approaches. For example, an organization with high risks might use a matrix with a larger or smaller number of “likelihood” or “harm” categories for example to discriminate between very harmful and extremely harmful consequences. For a low risk organization a smaller matrix might suffice.