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decision against the recommendation of his system safety manager. The system safety manager
must recognize such management prerogatives.
A prudent program manager must make a decision whether to fix the identified problem or
formally document acceptance of the added risk. In some cases, this requires contract or
system specification modification. When the program manager decides to accept the risk, the
decision must be coordinated with all affected organizations and then documented so that in
future years everyone will know and understand the elements of the decision and why it was
made. It also provides necessary data if the decision must be revisited.
Risk
Assessment
The process by which the results of risk analysis are used to make decisions.
Risk Control The Risk associated with the hazardous event under study is adequately controlled, by the
reduction of severity and / or likelihood, via the application of engineering and/ or
administrative hazard controls. Anything that mitigates or ameliorates the risk. See system
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DESCRIPTION
safety design order of precedence in Chapter 3.
Risk Hazard
Index.
By combining the probability of occurrence with hazard severity, a matrix is created where
intersecting rows and columns are defined by a Risk Hazard Index (RHI). The risk hazard
index forms the basis for judging both the acceptability of a risk and the management level at
which the decision of acceptability will be made. The index may also be used to prioritize
resources to resolve risks due to hazards or to standardize hazard notification or response
actions.
Prioritization may be accomplished either subjectively by qualitative analyses resulting in a
comparative hazard risk assessment or through quantification of the probability of occurrence
resulting in a numeric priority factor for that hazardous condition.
Risk
Management
The application of management methods for the identification, evaluation, elimination and
control of all forms of risk. This effort is not confined only to safety-related risks. Risk
Management comprised of two parts, Risk Control and Risk Finance. Risk Control considers
all aspects in System Safety, Safety Management, and Safety Engineering. Risk Finance
considers insurance, risk pooling, and self-insurance.
Risk
Perspectives.
There are three different perspectives in safety risk assessment:
1. Standpoint of an INDIVIDUAL exposed to a hazard. An individual exposed to a
hazard is primarily concerned with the questions: How large is the probability that I will be
killed or injured in an accident? How much does my individual risk due to this hazard increase
my normal fatality rate? INDIVIDUAL RISK is defined as the (usually annual) probability that
an identified person will be killed or injured as a consequence of an accident.
2. Standpoint of the SOCIETY. Besides being interested in guaranteeing minimum
individual risk for each of its members, society is concerned about the total risk to the general
public: How large are the total losses (e.g., per year) from a hazardous activity? The risk to
society is called COLLECTIVE RISK. If expressed in terms of annual risks, it corresponds to
the respective value shown in annual accident statistics.
3. Standpoint of the INSTITUTION RESPONSIBLE FOR THE ACTIVITY. The
institution responsible for an activity can be a private company or a government agency. From
their point of view, it is not only essential to keep individual risks of employees or other persons
and the collective risk at a minimum but also to avoid catastrophic and spectacular accidents.
As experience clearly demonstrates (Bhopal, Seveso, Challenger, etc.), such catastrophic
accidents damage the reputation, the image, and even the prosperity of the, institution
responsible for the activity. Such risks are defined as INSTITUTIONAL RISKS.
3.7 Residual Risk. To make important program decisions, the PM must know what residual
risk exists in the system being acquired. When such risks are marginally acceptable or
potentially unacceptable, the PM is required to raise the presence of residual risk to higher
levels of authority such as the Service Director or Associate/Assistant Administrator for action
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or acceptance. To present a cohesive description of the hazard to this higher level of decision
making, all analyses performed and either the contractor or the FAA must document actions
taken to control the hazard. In some contractual situations, the PM may apply additional
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