UNIVERSITY OF SOUTHERN MINDANAO

RISK MANAGEMENT AS APPLIED TO

SAFETY, SECURITY, AND SANITATION
LESSON 1. RISK MANAGEMENT: CONCEPTS &
PRINCIPLES
Topic Outline
 Risk Defined
 Risk vs Hazard
 Risk Management Principles
 Steps on risk management process as per ISO 31000
Context establishment
Identification of potential risk
Risk assessment

Risk Management as Applied to Safety, Security and Sanitation 2

Topic Outline

Risk option
Potential risk management treatment
Risk management plan
Execute plan

Risk Management as Applied to Safety, Security and Sanitation 3

 Intended Learning Outcomes
The students will be able to:
1. Differentiate Hazard from Risk
2. Enumerate and understand the risk management
principles
3. Familiarize the steps on risk management process
according as per ISO 31000

4
Risk Management as Applied to Safety, Security and Sanitation
 Risk versus Hazard
• Hazard is anything that poses a threat to
health, life, property, or the environment,
or any substance or action that can cause
injury, disease, death, economic loss, or
environmental damage.
• Risk is the chance that someone or
something will be harmed by that hazard,
or it is the measurement on how risky is
the hazardous material to someone or
something.
• Watch this on YouTube: http://
youtu.be/y3dQj1mYlOw

Risk Management as Applied to Safety, Security, and Sanitation 5

 Risk Management
As defined in ISO 31000:
 Is the identification, evaluation and prioritization of risks
 It is followed by coordinated and economical application
of resources to minimize, monitor and control the
probability of unfortunate events to achieve the desired
output. (Hubbard, 2009)

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 Principles of Risk Management
1.The process should create value
2.It should be integral part of the organizational process
3.It should factor into the overall decision making process
4.It must be explicitly address uncertainty
5.It should be systematic and structured
6.It should be based on the best available information

7. ed to the project
8. It must take into account human factors
9. It should be transparent and all-inclusive

10. It should be dynamic and adaptable to change

11. It should be continuously monitored and improved upon as the project moves forward.

Risk Management as Applied to Safety, Security and Sanitation 7

 Principles of Risk Management
7. It should be tailored to the project
8. It must take into account human factors
9. It should be transparent and all-inclusive
10. It should be dynamic and adaptable to change
11. It should be continuously monitored and improved upon
as the project moves forward.

Risk Management as Applied to Safety, Security and Sanitation 8

 Steps on Risk Management Process as per
ISO 31000

1. Context establishment
2. Identification of the potential risk
3. Risk assessment
4. Creation of risk options
5. Identification of potential risk management treatments
6. Make a risk management plan
7. Execute plan

Risk Management as Applied to Safety, Security and Sanitation 9

Context Establishment

Establishing the content of risk management involves

the following:

a. Risk identification in a selected domain of interest

b. Planning the rest of the whole risk management
process
c. Plotting out the:
 Scope of risk management

Risk Management as Applied to Safety, Security and Sanitation 10

Context Establishment

 Identify the objective of stakeholders

 Basis of risk evaluation and constraints
d. The framing of risk management activity and agenda for
identification
e. Analysis of risks involved in the process.
f. Giving of a solution of risks using available technological, human
and organizational resources
Risk Management as Applied to Safety, Security and Sanitation 11
 Identification of Potential Risk
Good managers must possess the ability to forecast the problems that may arise out of
the current endeavor that they have been attending. It may start with source
identification, whether from the competitors or with the problem itself.
The food manager is responsible for providing safe foods to “at-risk” populations
(elderly, children and people with compromised immune system). He has an important
responsibility in the prevention of foodborne diseases. He must take a proactive role to
design a food safety plan from educating food service employees about foodborne
diseases up to the implementation of operating standard procedures in a food
industry.

TWO CLASSIFICATIONS OF SOURCES OF RISK

1. Internal
2. External

Risk Management as Applied to Safety, security and Sanitation 12

 Identification of Potential Risk
The risk management process did not stop when the risk
and sources of risk were identified. The manager must be
able to answer the whys of risk so that proper treatment
could be given. It is not merely stating the fact that there is a
possibility of terrorism, the reason for having such possibility
must be addressed as well.
This is the stage wherein the severity of the impact of the
said risk being weighed to make the most intelligent
decisions for the full implementation of the risk
management plan
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Risk Assessment Matrix Combining Likelihood of Hazard
Occurrence with Severity of Consequences of Hazard Occuring

The flow chart is an illustration of a work

process including all activities and decisions
in a hospital dietary foodservice section. It
is ideal for identifying action steps and
decisions within a process. It allows team
members to create an agreement on how a
process can be improved as well as how it
should work.

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Risk Assessment Matrix Combining Likelihood of Hazard
Occurrence with Severity of Consequences of Hazard Occuring

Fishbone Diagram. A fishbone

diagram is essentially a pictorial
display of a list. Each diagram has a
large arrow identifying a problem.
Lines off the large arrow represent
main categories of potential causes or
solution to the problem. The most
typical categories used for this
diagram are equipment, people,
machines, environment, and
materials. You can create the
categories that work best for the
problem you are working through.

Risk Management as Applied to Safety, Security and Sanitation 15

 Risk Option
The following are some of the options to mitigate risks:
1. Project a novel business procedure with sufficient built-in risk
control and containment measures from the start.
2. Conduct a periodic reassessment of risks that are acceptable
in ongoing processes as a regular feature of business
operations and modify mitigation measures.
3. Handover risks to external agency like an insurance company
4. Avoid risks altogether
5. Potential risk treatments
Risk Management as Applied to Safety, Security and Sanitation 16
 Potential Risk Management
This is the process of selecting and implementing of measures
to modify risk. It includes the following:
1. Avoidance
2. Reduction
3. Sharing
4. Retention

Risk Management as Applied to Safety, Security and Sanitation 17

 Risk Management Plan
Risk management plan evaluates identified risks and outlines
mitigation actions. (Dcosta, 2015)
1. Risk and consequence - associated with the project and the
probability that it could affect the schedule, the resourcing,
or the budget
2. Probability – the percentage of chances the risk would arise
3. Impact – effect of the risk
4. Priority – prioritizing the most risky among the listed risk
5. Mitigation response – risk reduction

Risk Management as Applied to Safety, Security and Sanitation 18

 Execute Plan
Consider the practice, experience, and the actual loss results
when you do your modification.
An update periodic management plan is needed because of
the following reasons:

1. Determination of the applicability and effectiveness of the

previous security controls.
2. Understand the possible changes in risk level in the business
environment.

Risk Management as Applied to Safety, Security and Sanitation 19

 Hazard in Relation to Food Industry
Hazard is a biological, chemical, or physical property that may cause an unacceptable consumer health risk. It is also be any food that can

be a vehicle for foodborne diseases. These foods are termed “potentially hazardous foods”.

Potentially Harzardous Food

•A food that is natural or synthetic and that requires temperature control because it is in form capable of supporting progressive growth of

infectious microorganisms, growth and toxin productions of Clostridium botulinum, and growth of Salmonella Enteriditis in egg shells.
•It includes animal food or a food that is animal origin that is raw or heat-treated, a food of plant origin that is heat-treated or consists of

raw seed sprouts, cut melons, garlic-oil mixtures that are not modified in a way that results in mixtures that do not support growth as

specified.
•Foods that favor rapid growth of microorganisms. The conditions that favor rapid growth can be remembered by the acronym FAT-TOM:

food, acid, time, temperature, oxygen and moisture.

Risk Management as Applied to Safety, Security and Sanitation 20

 Risk in Relation to Food Industry

Risk is an estimate of the likelihood or probability of occurrence of a hazard. One of the challenges the food industry

has is keeping their products clean and safe to eat. The consumers are highly susceptible to foodborne diseases if

there is no measure of food safety. The number of social, economic and political issues present new challenges to

ensuring that the food supply is indeed safe. By this, food safety measures are developed. Below are some of the

issues:

1. People are eating a great variety of food including raw sea foods and fresh produce

2. More meals are prepared and eaten outside of the home

3. Food preparation and handling practices

4. Centralized food processing

Please watch this on YouTube: https://www.youtu.be/kjYsJ_dkOnY

Risk Management as Applied to Safety, Security and Sanitation 21

 Summary
Risk management is all about identifying the risk, analyzing the
risk, taking action on the risk and monitoring. One of the roles
of a project manager is being a risk assessment officer. The
project manager is the head of the whole risk management
team. It is in his hands whether the project turns out to be a
success or a failure. A project manager should be equipped with
a lot of knowledge regarding various concepts and
methodologies behind risk management and will be able to
come up with a project plan to solve any problem. The project
manager is responsible for the safety of the consumers.
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 References
 Maranan, J.M., Maranan, M., Nazareno-Caluza, C (2018). Risk
management for tourism and hospitality management. Manila:
Mindshapers Co. Inc.
• Sari, Edelstein, C (2008) Managing Food and Nutrition Services.
(Philippine Edition). Jones and Bartlett Publishers, Inc.
• Palacio, J.P., Theis, M., C (2005) Foodservice Management. (10th
edition) Pearson Education, Inc.
• https://www.youtu.be/kjYsJ_dkOnY
• http://youtu.be/y3dQj1mYlOw
Risk Management as Applied to Safety, Security and Sanitation 23
Thank you!

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