Risk Analysis Examples: Specific Scenarios for Every Industry

What is Risk Analysis and Why is it Important?

Risk analysis is the systematic way of determining, investigating, and evaluating potential risks and their impacts on organizations and their operations. By carefully conducting this, companies can develop strategies to mitigate threats, effectively manage issues that arise, and make informed decisions for changes or improvements.

Companies are confronted with different kinds of risks, such as financial, legal, cybersecurity, and environmental. The scenarios described in this article are focused on safety hazards that may endanger employees and their work.  

Significance of Reviewing Examples of Risk Analysis

Some say that experience is the best teacher. But for individuals responsible for huge conglomerates, ambitious projects, or a large workforce, it would be imprudent and irresponsible for them to leave things to chance. Studying scenarios is a great way to plan for any possibility. Here are some specific benefits of risk analysis:

• Understand industry-specific risks and the best practices for handling them.

• Benchmark company protocols with industry standards.

• Learn from other businesses’ past experiences, particularly their mitigation strategies.

• Enhance risk awareness to better anticipate threats. 

• Build a more robust risk management framework and foster a culture of safety. 

• Ensure compliance with various regulations.

Analyzing Risk: A Quick Review of the Process

This multi-stage process can be tailored in any way that suits the business. However, the steps enumerated below are the most fundamental, especially when it comes to safety:

• Identify the hazard.

• Determine the individuals in potential harm and how they will be harmed.

• Evaluate these risks and set safety precautions for prevention, control, or eradication.

• Report the qualitative and quantitative findings, implement appropriate actions, and share with relevant team members.

• Examine the effectiveness of the protocols and update or improve, if necessary.  

Industry-Specific Scenarios

Detailed below are examples of risk analysis processes in every industry. The sectors in the list commonly utilize this measure to efficiently manage hazards in the workplace. 

Construction

• Hazard identified: Fall from heights

• Risk assessment: The likelihood of falls is extremely high, considering that work has commenced on the third floor of the building and 20% of the workforce has been assigned to that level.

• Control measures: Prefabricated work surfaces and railings are installed. Mobile elevated work platforms are provided instead of scaffolding and ladders. All workers are given appropriate PPEs specifically fall prevention harnesses and arrest systems. Nets are rigged around the work site.  

Other must-dos in this particular situation are:

• Monitoring: Regular site and equipment inspections are conducted, ensuring the integrity of guard rails, platforms, and workers’ personal protective equipment (PPE). 

• Emergency Preparedness: Procedures for reporting incidents, emergency response procedures, and first aid facilities are prepared. 

• Training and certification: All individuals working at height are well-equipped and certified for the job. Daily toolbox meetings are conducted before work starts. 

Transport and Logistics 

• Hazard identified: Hazardous materials transport

• Risk assessment: Six drivers are assigned to haul contaminated soil from a brownfield and dump it in a landfill about seven miles away.

• Control measure: Contamination is minimized by stockpiling the soil at the back of the truck covered by thick tarps. Topsoil, leaching layer, and subsoil are carefully segregated and properly labeled. Drivers are protected by sealing the cabs to prevent accidental leaks and provide them with adequate ventilation. Complete PPEs are also provided. 

Other must-dos in this scenario are:

• Route planning: The route has been identified before the drive to avoid highly populated areas and infrastructure constraints. This is also the quickest way to get to the identified landfill.

• Pre-work inspection: The truck has been inspected to ensure that no spills occur and that it is safe to drive.    

Manufacturing 

• Hazard identified: Electrocution from faulty equipment

• Risk assessment: An exposed wire from a mixer on the shop floor was observed early in the morning. Three employees assigned in that section and a dozen others in the surrounding area are at risk of electrocution.

• Control measure: Operations are temporarily halted for the potentially affected workers. Insulating barriers, guard rails, grounding systems, and warning signs are installed. PPEs are provided to electricians tasked to investigate and repair the damage. A lockout/tagout program is initiated. 

Retail 

• Hazard identified: Accidental burns

• Risk assessment: Half a dozen cooks in the kitchen are at risk for burns from ovens and other hot surfaces or equipment.

• Control measure: Hot surfaces are appropriately labeled to alert workers of potential hazards. All ovens, gas ranges, and heating equipment are routinely inspected, cleaned, and calibrated to prevent malfunctions. Thermometers are checked to ensure that they are working properly. PPEs like oven mitts, heat-resistant gloves, and non-slip footwear are provided.

Other must-dos in this specific situation are:

• Emergency response:First aid kits with burn ointments are prepared. 

• Pre-shift meeting: The manager is tasked to huddle with the kitchen and front-of-house staff for updates and safety reminders. 

Energy

• Hazard identified: Fire in a natural gas process facility 

• Risk assessment: There is an extreme likelihood of a fire starting resulting from igniting flammable vapor inside a confined space or spills and leaks from liquefied petroleum tanks. 

• Control measure: Flammable gas sensors are installed, constantly monitored, and regularly inspected in spaces. Sites are also outfitted with fire suppression systems (e.g., fire alarms, fire extinguishers, and sprinklers). In case of accidental leaks or spills, housekeeping staff are tasked to look after these, as well as minimize the accumulation of flammable materials and debris. 

Other critical measures to be taken are:

• Incident reporting: Observed hazards must be reported immediately by all personnel on-site for prompt mitigation. A reporting and investigation system has been established. 

• Training: Regular fire awareness talks are conducted so hazards, preventive measures, and fire safety plans are ingrained in all employees.   

Healthcare

• Hazard identified: Sharps injuries in the hospital

• Risk assessment: The 10-person waste management team of the hospital is at risk of getting injured from syringes, connection needles, and lancets. Contamination from biological hazards is also increased.   

• Control measure: Hospital management has shifted to needleless systems, particularly for IV cannula insertions when possible, decreasing the use of sharps to 15%. Doctors, nurses, and medical technicians are required to strictly follow the SOP for sharps disposals. Correctly labeled puncture-resistant containers are used. Full PPEs are provided to the waste handlers. 

Additional must-dos in this scenario are:

• Training: All waste handlers are required to attend safety meetings to remind them about safety procedures.

• Incident reporting: A system has been established for reporting and investigating hazard observations, near misses, and sharp injuries.