College of Business

Department of Finance

Mini Project
Principles of Risk Management & Insurance
FIN 315

Name: ID.No

Name: ID.No

Name: ________________ ID.No________________

Date: _______________

Submitted to:
Dr.Usha
Rekha
Contents
Introduction...........................................................................................................................................3
Importance of Health and Safety Policy................................................................................................3
What Is the Objective of Health and Safety Policy of ARAMCO?........................................................3
Hazard Identification.........................................................................................................................4
Risk Assessment................................................................................................................................4
Risk Controls.....................................................................................................................................6
Environmental Risk Assessment...........................................................................................................7
Conclusion.............................................................................................................................................7
Introduction
Saudi Aramco recognizes that by aiding their suppliers in improving their health and safety
performance, the local economy in the Kingdom will benefit considerably from the avoidance
of injury and illness, as well as the large human and financial costs associated with these
events. As a result, Saudi Aramco developed the Suppliers Safety Management System
(SSMS) Manual to help suppliers better manage safety and avoid losses that could have been
avoided. The SSMS is based on well-known health and safety management models, but it
incorporates new features that make the process easier.

Suppliers of Saudi Aramco can utilize an SSMS manual that meets or exceeds the
requirements of the OHSAS 18001 International Management System Standard for
Occupational Health and Safety.

Importance of Health and Safety Policy

Your company's workplace health and safety decisions are guided by defined principles,
objectives, expectations, and obligations. They help you manage legal risk while also
allowing you to highlight the rewards and opportunities your company offers its employees.

Health and safety policies and procedures are essential for your workplace because they:

 Demonstrate that your business is addressing its health and safety obligations.
 Show that your business is committed to working within a set of health and safety
principles.
 Clarify functions and responsibilities in your business.
 Ensure that safe systems of work are recorded, communicated to workers and
implemented in a consistent way throughout your business.
 Guide the future actions of workers in a formal way.

What Is the Objective of Health and Safety Policy of ARAMCO?

All employees under the organization's jurisdiction must be informed of this policy, as well
as their own personal safety standards. It also has to be made available to everyone who is
interested. This health and safety policy is communicated, implemented, and maintained at all
levels of the company. It is regularly assessed and updated to ensure its continuous
applicability and adequacy, and it is made available to other parties upon request. This is to
make certain that:

 Related to the prevention of injury and ill health.

 Continual improvement in safety management performance.
 Compliance with applicable legal and other requirements that relate to its safety
hazards.
 Framework for setting and reviewing safety objectives.

Hazard Identification
Ascertain those hazards are identified consistently and thoroughly.

A hazard is simply something that has the potential to do harm. There are a variety of hazards
in the workplace that can lead to injury, and it will be impossible to manage or control them
effectively unless a consistent and thorough methodology is used to identify them. Other
information must be collected as part of the hazard identification process, which is described
later.

Process of hazards identification:

 The Supplier must decide which health and safety legislation as well as best practice
standards apply to their business. General legislation (identify and handle all hazards
in the organization) and particular legislation (specific regulations to follow for fire
and explosion, manual handling, and so on) are both possible.
 Make a note of the location where the hazards are discovered.
 Give a summary of the key processes in the area.
 Review the various hazard categories for each area/activity and add any extra
information to the comments box as needed.
 Enter the information required.

Risk Assessment
Ascertain that the probability of a hazard producing harm, as well as the severity of that harm
if it did, are analyzed in order to determine an overall risk rating for that hazard.

After the dangers have been identified, the risk associated with each hazard must be assessed,
and the appropriate controls implemented.
  Area/Activity/Job/Task - Choose the location, department, or activity where the
hazard exists. A specific work could be an activity, in which case the hazards
connected with that employment must be properly recognized and assessed, a process
known as a Job Safety Analysis.
 Responsible Person - Fill in the name of the person in charge of the area or activity
where the risk assessments are taking place.

Note that while the risk assessor can assist in identifying dangers in a specific area, the
responsibility for managing hazards in that area/activity must remain solely with the area
manager. The manager must ensure that all dangers are identified, risk levels are assessed,
and appropriate controls are in place. The management must also guarantee that hazards are
avoided and that control procedures are followed, among other things.

 Assessment Completed By/Job Title - Determine the name(s) of the person(s) who
will be conducting the Risk Assessment, as well as their position within the company.
 Assessment Date - Fill in the date the assessment was finished.
 Notes - Any additional notes to aid in the hazard identification process should be
entered here.
 Hazard Number - Give the hazard a unique identification number.
 Hazard Description - Enter a description of the Hazard

Note: Using the Checklist for Hazard Identification, identify the existing hazard and describe
it in such a way that someone unfamiliar with the region or work would understand it easily.

 Consequence - Enter a description of the potential consequences of the hazard.

Note: Personal injury, disease, or death are only a few examples of potential harm. Additional
characteristics, such as major equipment damage, are included by certain organizations.

 Hazard Timing - determine the hazard's onset time. It's critical that you don't just
think about the dangers you observe on the day you're doing the assessments; you
should also think about the hazards that might be present during non-routine situations
like start-up, shut-down, or maintenance.

Note: Routine, Non-Routine, and Emergency are the most common hazard timings. Non-
routine means the hazard is only present during operations such as start-up, shut-down, or
maintenance, whereas routine means the hazard is present on a daily basis.
If the selected Hazard involves a potential emergency, such as a fire, spill, explosion, or gas
leak, the hazard's timing should be set to "Emergency." The advantage of this action is that it
will be possible to analyze all risk assessments according to emergency timing, to view all
potential emergency situations across the site, and to verify that each of these circumstances
can be linked to the necessary emergency response protocols.

 Personnel at Risk from the Hazard - Determine who is at danger of being harmed by
the hazard.

Note: Employees, Visitors, Contractors, Members of the Public, and other phrases such as
Employees, Visitors, Contractors, Members of the Public, and so on should be used to
identify personnel at risk rather than their names.

 Current Control Measures - Identify all of the current control measures in place to
handle the specific hazard under consideration.

Risk Controls
To remove or lower the amount of risk associated with each hazard, use the internationally
accepted hierarchy of risk control measures. Corrective actions will be utilized to put in place
any extra control measures that are required to manage the hazard but have yet to be
implemented.

Engineering/Facilities, HR (training), Quality (procedures, etc.), Industrial Hygiene and

Occupational Health (monitoring), and health and safety may all be required for a complete
risk analysis. Remember that if a control isn't documented in the risk assessment, the safety
regulator will presume it doesn't exist.

 Is it possible to completely remove the hazard from the equation? Lead has been
removed from most types of gasoline and paint, for example, minimizing the risk of
lead poisoning in humans.
  Is it conceivable to switch a less harmful hazard for the current one? Many solvent-
based paints, for example, have been replaced by less toxic water-based (emulsion)
paints.
 Engineering Controls - make a list of all engineering controls that are in place that can
help to decrease risk. Machine guards, hazard isolation or enclosure, local exhaust
ventilation, mechanical handling methods, protective barriers, and so on are examples
of these.

Note that any preventative maintenance performed on these engineering controls should be
noted in the section below on monitoring.

 Administrative Measures - List all administrative controls in place to mitigate the risk.
These procedures, records, and signage are all included.
 Identify all training that is provided in relation to the hazard, for example, if the
hazard is manual handling, say that manual handling training is available, and so on.
 Identify all related monitoring and measurement procedures, including as audits,
housekeeping inspections, calibration, and maintenance operations, that are performed
to control the danger.

Environmental Risk Assessment

Environmental management is an important part of every business's operations. While not
formally part of the safety manual, certain basic environmental management principles are
taught here because, in reality, the most effective way to managing both safety and
environmental risk is usually a single integrated management system.

The following section examines certain environmental characteristics (cause of emission) and
consequences (effect of emission) for the following categories:

 Air Emissions.
 Waste Emissions.
 Materials Management.
 Noise.
 Ground Water and Soil Pollution.
 Aqueous emissions.
 Resource Usage.
Conclusion
At the very top, the basis for good health and safety is laid. It's vital that you stay on top of
safety issues because if you don't, your staff will. Ensure that all of your personnel receive
regular training and that you are current on all legal developments. If you take a proactive
approach to health and safety, you'll earn a reputation as a caring and responsible employer,
and your staff will follow suit.

Health and safety is a three-step process that begins with hazard identification, is assessed
using a matrix, and is finally controlled by removing the risk or using protective measures.