Module 4

FORMATIVE ASSESEMENT - TWO

 IAC0201 Given a range of different business environments be able to identify and
describe the applicable regulatory requirements and indicate what must be included in
the legal registers for the various scenarios.

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4.2.3. KM-04-KT03:
Occupational health and safety management systems and the key

components of an effective system. (Advanced)

KT0301 Identify all the requirements applicable to Health and Safety risk
management. a. Legal (National, provincial and local); b.
KT0302 Specified internal requirements; c. Specified external
KT0303 requirement. (NQF Level: 6)
KT0304 Interpret and explain the use of risk profiles when developing
KT0305 policies and procedures for Occupational Health and safety
KT0306 (NQF Level: 6)
Explain the generic processes for developing, approving and
KT0307 legitimizing policies, procedures and standards for OHS. (NQF
Level: 6)
Describe and give examples of the consequences of
inadequate communication of OHS policies, procedures and
standards. (NQF Level: 6)
Explain what is meant by a system and what the difference is
between systems and processes; (NQF Level: 6)
List the typical components of an effective OHS system: a.
Hazard and risk identification; b. Development of systems for
compliance; c. Communication and implementation of system
requirements; d. Evaluation and correction of deviations. (NQF
Level: 6)
Describe the South African national standard for OHS
management systems. (SANS OHSAS 18001) and indicate how
this aligns with the generic components of an effective OHS
safety management system. (NQF Level: 6)

IDENTIFY ALL THE REQUIREMENTS APPLICABLE TO HEALTH AND SAFETY RISK MANAGEMENT.
A.LEGAL (NATIONAL, PROVINCIAL AND LOCAL);
The Occupational Health and Safety Act no 85 of 1993 and its Regulations requires the
employer to maintain as far as possible practicable a work environment that is safe and
without risks to the health of employees. The employer must ensure that the workplace is free
from hazard and risks that may cause injuries, occupational diseases and damage to
property.

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After using the process of hazard identification, risk assessment and risk control, your
organization should have a total understanding of all its significant OH&S hazards.
The outputs from the process will be the basis of the whole management system. If your
organization does not have a current OH&S Management System, its current position with
regard to OH&S risks can be established by conducting an ‘initial review’. The aim of this
‘initial review’ is to consider all of the OH&S risks faced by the organization, as a basis for
establishing the management system. The following issues are often considered as part of this
initial review:
▶ Identification of the OH&S risks
▶ Legislative, regulatory requirements and other requirements (e.g. industry codes of
practice)
▶ A close examination of all existing occupational health and safety management practices,
processes and procedures
▶ Collation and evaluation of feedback from the investigation of previous accidents,
incidents and emergency situations

The initial review can be conducted using a number of methods, this often includes:
▶ Using checklists
▶ Conducting interviews
▶ Inspecting processes directly
▶ Measurement and monitoring of historical and current OH&S performance
▶ Results of any previous audits and reviews.
The formal process of hazard identification, risk assessment and risk control as required under
clause 4.3.1 of OHSAS can then be carried out

OHSAS 18001 requirement
The organization shall establish, implement and maintain a procedure(s) for the ongoing
hazard identification, risk assessment, and determination of necessary controls. The
procedure(s) for hazard identification and risk assessment shall take into account:
a) routine and non-routine activities
b) activities of all persons having access to the workplace (including contractors and visitors)
c) human behaviour, capabilities and other human factors
d) identified hazards originating outside the workplace capable of adversely affecting the
health and safety of persons under the control of the organization within the workplace
e) hazards created in the vicinity of the workplace by work-related activities under the
control of the organization

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f) Infrastructure, equipment and materials at the workplace, whether provided by the
organization or others
g) Changes or proposed changes in the organization, its activities, or materials
h) Modifications to the OH&S Management System, including temporary changes, and their
impacts on operations, processes, and activities
i) Any applicable legal obligations relating to risk assessment and implementation of
necessary controls.
j) The design of work areas, processes, installations, machinery/ equipment, operating
procedures and work organization, including their adaptation to human capabilities.

The organization’s methodology for hazard identification and risk assessment shall:
a) Be defined with respect to its scope, nature and timing to ensure it is proactive rather than
reactive and
b) Provide for the identification, prioritisation and documentation of risks, and the application
of controls, as appropriate.

For the management of change, the organization shall identify the OH&S hazards and OH&S
risks associated with changes in the organization, the OH&S Management System, or its
activities, prior to the introduction of such changes.

The organization shall ensure that the results of these assessments are considered when
determining controls.
When determining controls, or considering changes to existing controls, consideration shall
be given to reducing the risks according to the following hierarchy:
a) Elimination
b) Substitution
c) Engineering controls
d) signage/warnings and/or administrative controls
e) Personal protective equipment.

The organization shall document and keep the results of identification of hazards, risk
assessments and determined controls up-to-date.
The organization shall ensure that the OH&S risks and determined controls are taken into
account when establishing, implementing and maintaining its OH&S Management System.

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C.SPECIFIED INTERNAL REQUIREMENTS;
Internal sources of safety and health information required for legal compliance and to
monitor and evaluate the effectiveness of the management of health and safety include:
 hazard and incident reports together with details of corrective actions;
 first aid records;
 injury and illness reports;
 workers’ compensation claims records and other compensation details;
 investigation reports;
 trends in absenteeism or sick leave records;
 workplace inspections;
 records of environmental monitoring;
 health surveillance and exposure records;
 maintenance records;
 minutes of meetings including management meetings, staff and workgroup meetings

and health and safety committee meetings;
 Job Safety Analyses (JSA) and risk assessments;
 reports and audits;
 enforcement notices and actions;
 collated information such as trend analyses of incident and injury reports;
 Safety Data Sheets for Hazardous Chemicals and hazardous substances/chemical

registers;
 documentation related to registered plant;
 performance appraisal records
 training records; and
 Information related to performance measures for the health and safety management

process.

C. SPECIFIED EXTERNAL REQUIREMENT.

Sources of information required external to the workplace include:
 legislation;
 codes of practice, standards and guidance material;
 industry specific information;
 national and international information including conference papers, research papers,

journal articles and newspapers;
 search engines and subject directories for Internet web sites and on-line databases; and
 OHS specialist advisors.

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INTERPRET AND EXPLAIN THE USE OF RISK PROFILES WHEN DEVELOPING POLICIES AND
PROCEDURES FOR OCCUPATIONAL HEALTH AND SAFETY.

Management should develop and incorporate into the Safety Statement a safety and
health policy that recognises that safety and health is an integral part of the organisation’s
business performance. They should ensure that this safety and health policy is appropriate to
the hazards and risks of the organisation’s work activities and includes a commitment to
protect, so far as is reasonably practicable, its employees and others, such as contractors
and members of the public, from safety and health risks associated with its activities;

Risk assessment is therefore important and should be carried out to suit the desired
purpose. A suitable program or method of assessment associated with any hazard should
be used to identify the steps needed to be taken to remove, reduce or control such
hazard (Examples: HIRA; Task risk assessments, Process hazard analysis, HAZOP etc.)
Assessment should enable the development and implementation of action(s), where
appropriate, of systems to manage the risk.

The purpose of conducting a baseline HIRA is to establish a risk profile or a set of risk
profiles which is used to prioritise action programmes for issue-based risk assessments. HIRA
should be performed to obtain a benchmark of the types and size of potential hazards,
which could have a significant impact on the whole organisation. They need to identify
the major and significant risks, then prioritise these risks and evaluate the effectiveness of
current systems for risk control. The baseline is an initial risk assessment that focuses on a
broad overview in order to determine the risk profile to be used in subsequent risk
assessments. A baseline risk assessment focuses on the identification of risk that applies to
the whole organisation or project.

The output of a baseline risk assessment is a risk profile or set of risk profiles and it is a clear
description of the methodology, system, terminology etc. used in the scoping exercise,
and what may be required for the improvement of the baseline HIRA in the future. The risk
profile is essential in OHS policy planning because it informs the the organization of the risks
and hazards to be planned and acted against.

Examples of baseline risk assessments
 Hygiene and Health Surveys (Noise, Lighting, Ventilation, Temperature
Extremes)
 Environmental Impact and Aspect Registers
 Fire Risk Assessments

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Risk profiles from the baseline HIRA form the basis for establishing issue-based
HIRA programmes. The purpose of conducting an issue-based HIRA is to conduct a
detailed assessment study that will result in the development of action plans for the
treatment of significant risk. This type of assessment is normally focused on at operational
activities, processes and systems based business functions. It focuses the identification of
the risks within a certain task, process or activity and is usually associated with the
management of change.

EXPLAIN THE GENERIC PROCESSES FOR DEVELOPING, APPROVING AND LEGITIMIZING POLICIES,
PROCEDURES AND STANDARDS FOR OHS.

OHSAS 18001 policy requirements are based upon similar intentions as those enshrined within
the Occupational Health & Safety Act 1993). Top management shall define and authorize
the organizations OH&S policy and ensure that within the defined scope of its management
system it:
a) is appropriate to the nature and scale of the organization’s OH&S risks
b) Includes a commitment to prevention of injury and ill health and continual improvement in
OH&S management and OH&S performance
c) Include a commitment to at least comply with applicable legal requirements and with
other requirements to which the organization subscribes that relate to its OH&S hazards
d) Provides the framework for setting and reviewing OH&S objectives
e) is documented, implemented and maintained
f) Is communicated to all persons working under the control of the organization with the
intent that they are made aware of their individual OH&S obligations
g) is available to interested parties and h) is reviewed periodically to ensure that it remains
relevant and appropriate to the organization.

As stated in the Occupational Health & Safety (OH&S) Act 1993, it is the duty of every
employer to prepare and as often as may be appropriate revise a written statement of his
general policy with respect to the health and safety of his/ her employees and the
organization.

OHSAS 18001 places a number of mandatory requirements upon your organization with
regards to the effective development, issue, maintenance and communication of an OH&S
policy.

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(1)Top management authorizing the policy
Once developed, the OH&S policy needs to be authorized and endorsed by top
management to promote top-level commitment to the aspirations and general objectives
contained within it. It is not uncommon for the whole management team to endorse the
policy, by signature (as a collective group) to demonstrate their support to ensuring that the
policy aspirations are effectively implemented and delivered, rather than seaming to appear
that only one senior person has made such a commitment.
During the authorization and endorsement processes, consideration should be given to any
corporate health and safety policies and aspirations that may exist. Compatibility with your
statement should be checked and formal approval/endorsement of your policy sought from
the corporate body. As well as authorizing the policy, the management team should support
the system by allocating suitable and sufficient resources. Simple and regular
communications (for example via bulletins) from management on the progress of the system
will demonstrate ongoing support.

(2) The inclusion of overall health and safety objectives supported by a commitment to
improving health and safety performance
Your policy should include your overall health and safety objectives, i.e. what you are trying
to achieve through the introduction of a formal documented management system, e.g. ‘to
actively identify health & safety hazards with a view to actively eliminating, controlling or
minimising them where practicable’.

(3) Include a commitment to continual improvement
In addition to meeting legal responsibilities, the organization should aim to improve its OH&S
performance, and its OH&S Management System, effectively and efficiently, to meet
changing business and regulatory needs. A commitment to such is therefore imperative in
the policy statement.

(4) Include a commitment to at least comply with applicable legislation and with other
requirements to which the organization subscribes that relate to its OH&S hazards
Organizations are required to be in compliance with ‘current’ applicable OH&S legislation
and other OH&S requirements. The OH&S policy commitment is recognition by the
organization of its duty to comply with such legislation or other requirements, and states that
it intends doing so.
(5) Be documented, implemented and maintained
In order for the OH&S policy to be effective, it should be documented and be periodically
reviewed for continuing adequacy, and subsequently amended or revised as necessary.
Reviewing the statement keeps it alive and relevant to the health and safety issues it is trying

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to address. It may need to be revised in the light of experience, or because of new hazards
or organizational changes. The law requires you to revise the policy statement as often as
may be appropriate. Planning and adequate preparation are the key to successful
implementation. Before making any public declarations the organization should ensure that
any necessary finance, skills and resources are available, and that all OH&S objectives are
realistically achievable within such a framework.
(6) Be communicated to all persons working under the control of the organization with the
intent that they are made aware of their individual OH&S obligations
This requires the organization to clearly communicate its OH&S policy (and as such general
OH&S objectives) to any person
working under the control of the organization, which could (as well as employees) be
contractors, agency/temporary workers etc., to enable them to have a framework against
which they can measure their own individual OH&S performance. (See the table on the next
page for ideas on communication).
(7) Include a commitment to prevention of injury and ill health
Any individual or group (either internal or external) concerned with or affected by the OH&S
performance of the organization would be particularly interested in the OH&S policy
statement. Therefore, a process should exist to communicate the OH&S policy to them. The
process should ensure that interested parties receive the OH&S policy on request but does
not necessarily provide for unsolicited copies. You do not need to provide health and safety
inspectors with a copy of the statement unless asked to do so. However, if an inspector visits
your premises, he or she may want to check the statement to ensure that it complies with the
law.
(8) Be reviewed periodically to ensure that it remains relevant and appropriate to the
organization
The organization’s OH&S Policy and Management System will need to be reviewed regularly
to ensure its continuing suitability and effectiveness. Such a review is usually conducted as
part of the health and safety management review process.

DESCRIBE AND GIVE EXAMPLES OF THE CONSEQUENCES OF INADEQUATE COMMUNICATION
OF OHS POLICIES, PROCEDURES AND STANDARDS.

Effective communication about safety and health relies on information coming into the
organisation; flowing within the organisation; and going out from the organisation;

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Safety and health data and information may be sourced from inside or outside the
workplace.
Sources of information external to the workplace include:

 legislation;
 codes of practice, standards and guidance material;
 industry specific information;
 national and international information including conference papers, research papers,

journal articles and newspapers;
 search engines and subject directories for Internet web sites and on-line databases; and
 OHS specialist advisors.
 This information is particularly useful for OHS risk management

Internal sources of safety and health information required for legal compliance and to
monitor and evaluate the effectiveness of the management of health and safety include:
 hazard and incident reports together with details of corrective actions;
 first aid records;
 injury and illness reports;
 workers’ compensation claims records and other compensation details;
 investigation reports;
 trends in absenteeism or sick leave records;
 workplace inspections;
 records of environmental monitoring;
 health surveillance and exposure records;
 maintenance records;
 minutes of meetings including management meetings, staff and workgroup meetings

and health and safety committee meetings;
 risk assessments;
 reports and audits;

 enforcement notices and actions;

 collated information such as trend analyses of incident and injury reports;
 Safety Data Sheets for Hazardous Chemicals and hazardous substances/chemical

registers;
 documentation related to registered plant;
 performance appraisal records;
 training records; and
 Information related to performance measures for the health and safety management

process.

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Ineffective communication in the workplace may result in unfavorable incidents such as
accidents, emergencies in the form of fires, protests and riots, Good communication is
especially important when employees are carrying out hazardous tasks such as:
 working in confined spaces
 lifting
 working at height.
Without effective communication, it will be difficult for the organisation to achieve
compliance with the statutory and legal standards governing the OHS management both al
local, national and international Levels.

EXPLAIN WHAT IS MEANT BY A SYSTEM AND WHAT THE DIFFERENCE IS BETWEEN SYSTEMS AND
PROCESSES;
A system is a set of detailed methods, procedures and routines created to carry out a
specific activity, perform a duty, or solve a problem. It is an organized, purposeful structure
that consists of interrelated and interdependent elements (components, entities, factors,
members, parts etc.). These elements continually influence one another (directly or
indirectly) to maintain their activity and the existence of the system, in order to achieve the
goal of the system. All systems have
(a) inputs, outputs and feedback mechanisms,
(b) maintain an internal steady-state (called homeostasis) despite a changing external
environment,
(c) display properties that are different from the whole (called emergent properties) but are
not possessed by any of the individual elements, and
(d) have boundaries that are usually defined by the system observer.

Systems underlie every phenomenon and all are part of a larger system. Systems stop
functioning when an element is removed or changed significantly. Together, they allow
understanding and interpretation of the universe as a meta-system of interlinked wholes, and
organize our thoughts about the world. Although different types of systems (from a cell to the
human body, soap bubbles to galaxies, and colonies to nations) look very different on the
surface, they have remarkable similarities. At the most basic level, systems are divided into
two categories:
(1) Closed systems: theoretical systems that do not interact with the environment and are not
influenced by its surroundings. Only the components within the system are significant.
Example: a sealed jar--nothing enters or exits the jar, but whatever is inside can interact.

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(2) Open systems: real-world systems whose boundaries allow exchanges of energy, material
and information with the larger external environment or system in which they exist.
Below is an example of a system

Entrepreneur on Fire (EOFire) Business System
A process is basically a program in execution or a conceptual sequence of events that
enables a people in a business to do what they do. The execution of a process must progress
in a sequential fashion. A process is defined as an entity which represents the basic unit of
work to be implemented in the system. To put it in simple terms, we write our computer
programs in a text file and when we execute this program, it becomes a process which
performs all the tasks mentioned in the program.
When a program is loaded into the memory and it becomes a process, it can be divided into
four sections ─ stack, heap, text and data. The following image shows a simplified layout of a
process inside main memory

Computer memory process
S.N. Component & Description
1 Stack

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The process Stack contains the temporary data such as method/function
parameters, return address and local variables.
2 Heap
This is dynamically allocated memory to a process during its run time.
3 Text
This includes the current activity represented by the value of Program Counter and
the contents of the processor's registers.
4 Data
This section contains the global and static variables.

Systems and processes are what help our business run, and when implemented properly,
they will save you time, help you grow and scale your business, and create freedom. An
occupational health and safety (OHS) management system encompasses more than just
your health and safety program. It includes health and safety policies, systems, standards,
and records, and involves incorporating your health and safety activities and program into
your other business processes. Having an effective management system improves your ability
to continuously identify hazards and control risks in your workplace.

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LIST THE TYPICAL COMPONENTS OF AN EFFECTIVE OHS SYSTEM:

The numbering system from the OHSAS 18001 standard has been used in this section for ease
of reference.

A. HAZARD AND RISK IDENTIFICATION;

4.3.1 Hazard and risk identification requirement:
- Identification of hazards
- Determination of the risks associated with the identified hazards
- Indication of the level of the risks related to each hazard, and whether they are, or
are not, tolerable
- Description of, or reference to, the measures to monitor and control the risks,
particularly risks that are not tolerable
- Where appropriate, the OH&S objectives and actions to reduce identified risks and
any follow-up activities to monitor progress in their reduction
- Identification of the competency and training requirements to implement the control
measures
- Necessary control measures should be detailed as part of the operational control
element of the system
- Records generated by each of the above mentioned procedures

C. DEVELOPMENT OF SYSTEMS FOR COMPLIANCE;

Legal compliance
Requirement for OH&S Management System:
- Procedures for identifying and accessing information
- Identification of which requirements apply and where [this can take the form of
register(s)]
- Requirements (actual text, summary or analysis, where appropriate), available in
locations which are to be decided by the organization
- Procedures for monitoring the implementation of controls consequent to new OH&S
legislation.

D. COMMUNICATION AND IMPLEMENTATION OF SYSTEM REQUIREMENTS;
Communication
With regard to its OH&S hazards and OH&S management system, the organization shall
establish, implement and maintain a procedure(s) for:

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a) Internal communication among the various levels and functions of the organization;
b) Communication with contractors and other visitors to the workplace;
c) Receiving, documenting and responding to relevant communications from external
interested parties.

E. EVALUATION AND CORRECTION OF DEVIATIONS.
Evaluation of compliance
Consistent with its commitment to compliance the organization shall establish, implement
and maintain a procedure(s) for periodically evaluating compliance with applicable legal
requirements.

 The organization shall keep records of the results of the periodic evaluations.
 The organization shall evaluate compliance with other requirements to which it

subscribes. The organization may wish to combine this evaluation with the evaluation
of legal compliance.
 The organization shall keep records of the results of the periodic evaluations.
Evaluation of the organization’s compliance should be performed by competent
persons, either from within the organization and/or using external resources.
 A variety of inputs can be used to assess compliance, including:
- audits,
- the results of regulatory inspections,
- analysis of legal and other requirements,
- reviews of documents and/or records of incidents and risk assessments,
- interviews,
- facility, equipment and area inspections, project or work reviews,
- analysis of test results from monitoring and testing,
- facility tours and/or direct observations.
 A compliance evaluation programme can be integrated with other assessment
activities. These can include management system audits, environmental audits or
quality assurance checks.

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DESCRIBE THE SOUTH AFRICAN NATIONAL STANDARD FOR OHS MANAGEMENT SYSTEMS. (SANS
OHSAS 18001) AND INDICATE HOW THIS ALIGNS WITH THE GENERIC COMPONENTS OF AN
EFFECTIVE OHS SAFETY MANAGEMENT SYSTEM.

SANS/OHSAS 18001 - Occupational Health and Safety Management Systems Requirements
OHSAS 18001 is a risk based Management System Standard for occupational health and
safety management systems. The purposes of this standard are to help all kinds of
organizations put in place, and demonstrate sound occupational health and safety
performance. Organisations have a legal and social responsibility regarding the
occupational health and safety of all employees in their working environment. This requires a
sound occupational health and safety management system (OHSAS) due to hazards and
risks that can have a detrimental effect on employees.

SANS OHSAS 18001has been written to be applicable to all types and sizes of organisations.
The overall aim of the standard is to enable organisations to identify, eliminate or at least
minimize and control their occupational hazards and lower their risks through improvement
of OHSAS performance. An Occupational Health and Safety Management System can help
safeguard an organisation and your employees.

OHS Management Systems
Like any system, a management system is the means by which an issue or discipline can
effectively be managed to insure common goals are achieved for an entity such as an
Organisation. A system should be a cohesive collection of different components that are
drawn together and directed by the system. Control of OHS risks can never be effective if no
done within the context of a management system. A management system provides an
aorganisation with the following aspects for OHS management;

 Structure
 Focus
 Potential integration
 Formality
 Discipline
The success of a management system depends on everyone working together as a team, at
all levels. Some people will be more involved in the OHS system than others, although
everyone in the organization should be involved in some way or another. Input and
commitment from top management, H&S representatives, committee members,
departmental supervisors/ managers and others are essential to enable the smooth
implementation and running of the OHS system.

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Implementation of an OHS Management System
The implementation process includes the following:

 Develop, display and communicate H&S policy
 Identify hazards, assess and determine risks and impacts, thereby resulting in a risk

profile
 Develop standards to address the risks and impacts, including legal requirements,

corporate standards, and world’s best practice.
 Set health and safety objectives and targets relating to the standards.
 Develop and implement a detailed OHS plan to facilitate achievement of the above.
 Review the management system regularly in order to ensure continuous improvement

and effectiveness.
The benefits of an OHSAS approach to organizations
There are many reasons for organizations to decide to implement an occupational health
and safety management system, not least the reduced risk of failing to comply with
legislation. A systematic approach to the effective management of health and safety can
bring numerous benefits such as:
Compliance with legislation
BS OHSAS 18001 provides a framework by which an organization can identify the health and
safety legislation applicable to its activities, products, services and identified hazards. Such a
framework extends to provide the means to comply with the regulatory requirements
identified.
Ownership of health and safety issues
BS OHSAS 18001 provides the means by which an organization can communicate and
consult upon its health and safety issues.
Nominal effort is required
Companies with a formal documented management system compliant with ISO 9001
(Quality) and/or ISO 14001 (Environmental) can easily extend existing system controls to
encompass the management of health and safety.
Training needs are identified and realised
BS OHSAS 18001 enables health and safety training needs to be identified, and the
adequacy of subsequent training assessed through measures of competency.
Reduce costs
The cost of an accident extends beyond the compensation paid to an employee. By
implementing health and safety improvement strategies, through the effective
implementation of a documented OH&S Management System, significant financial savings
can be realised; not forgetting the effect that accident reduction can have upon the
morale of employees.

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Opportunity for integration
Compatibility with ISO 9001/14001 provides an opportunity to integrate your management
systems, thereby reducing bureaucracy and maximizing effectiveness.
Liabilities minimized
As hazards and their associated risks are eliminated or controlled liabilities are reduced,
offering greater stability to your business.
Implementing an occupational health and safety management system, which can be
carried out in-house or by specialized consultants, is a reliable way of improving
occupational health and safety performance in the workplace. These health and safety
systems promote, facilitate, and enable consistency throughout workplace activities and
processes. It is important to note that the system alone will not produce safe behavior or a
safe workplace. System effectiveness comes from complete commitment to the health and
safety system. This includes proper implementation, follow-up, and training.

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FORMATIVE ASSESEMENT - THREE
 IAC0301 Given a range of occupational circumstances relevant to different industries

identify the key components of a required Occupational Health and Safety
management system and develop a proposed system

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4.2.4. KM-04-KT04:
Fundamentals of Safety aspects related to industry and operations

KT0401 Describe the key technical aspects relevant to various industries
KT0402 and processes; (NQF Level:6)
KT0403 Describe the basic value chain relevant to a range of
operations and industries; (NQF Level: 6)
Describe the minimum technical standards relevant to various
industries; (NQF Level: 6)

DESCRIBE THE KEY TECHNICAL ASPECTS RELEVANT TO VARIOUS INDUSTRIES AND PROCESSES;
What is a Safety and Health Management System?

A safety and health management system means the part of the Organisation's management
system which covers:

 the health and safety work organisation and policy in a company
 the planning process for accident and ill health prevention
 the line management responsibilities and
 the practices, procedures and resources for developing and implementing, reviewing

and maintaining the occupational safety and health policy.
The system should cover the entire gambit of an employer's occupational health and safety
organisation. The key elements of a successful safety and health management system for
various industries and processes are:

1. Policy and commitment

The workplace should prepare an occupational safety and health policy programme as part
of the preparation of the Safety Statement required by Section 20 of the Safety, Health and
Welfare at Work Act 2005. Effective safety and health policies should set a clear direction for
the organisation to follow. They will contribute to all aspects of business performance as part
of a demonstrable commitment to continuous improvement. Responsibilities to people and
the working environment will be met in a way that fulfils the spirit and letter of the law. Cost-
effective approaches to preserving and developing human and physical resources will
reduce financial losses and liabilities. In a wider context, stakeholders' expectations, whether
they are shareholders, employees or their representatives, customers or society at large, can
be met.

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2. Planning

The workplace should formulate a plan to fulfil its safety and health policy as set out in the
Safety Statement. An effective management structure and arrangements should be put in
place for delivering the policy. Safety and health objectives and targets should be set for all
managers and employees.

3. Implementation and operation

For effective implementation, organisations should develop the capabilities and support
mechanisms necessary to achieve the safety and health policy, objectives and targets. All
staff should be motivated and empowered to work safely and to protect their long-term
health, not simply to avoid accidents. These arrangements should be:

 underpinned by effective staff involvement and participation through appropriate
consultation, the use of the safety committee where it exists and the safety
representation system and,

 sustained by effective communication and the promotion of competence, which
allows all employees and their representatives to make a responsible and informed
contribution to the safety and health effort.

There should be a planned and systematic approach to implementing the safety and health
policy through an effective safety and health management system. The aim is to minimise
risks. Risk Assessment methods should be used to determine priorities and set objectives for
eliminating hazards and reducing risks. Wherever possible, risks should be eliminated through
the selection and design of facilities, equipment and processes. If risks cannot be eliminated,
they should be minimised by the use of physical controls and safe systems of work or, as a last
resort, through the provision of PPE. Performance standards should be established and used
for measuring achievement. Specific actions to promote a positive safety and health culture
should be identified. There should be a shared common understanding of the organisation‘s
vision, values and beliefs on health and safety. The visible and active leadership of senior
managers fosters a positive safety and health culture.

4. Measuring performance

The organisation should measure, monitor and evaluate safety and health performance.
Performance can be measured against agreed standards to reveal when and where
improvement is needed. Active self-monitoring reveals how effectively the safety and health
management system is functioning. Self-monitoring looks at both hardware (premises, plant
and substances) and software (people, procedures and systems, including individual
behaviour and performance).

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If controls fail, reactive monitoring should find out why they failed, by investigating the
accidents, ill health or incidents, which could have caused harm or loss. The objectives of
active and reactive monitoring are:

 to determine the immediate causes of substandard performance
 to identify any underlying causes and implications for the design and operation of the

safety and health management system.

5. Auditing and reviewing performance
The organisation should review and improve its safety and health management system
continuously, so that its overall safety and health performance improves constantly. The
organisation can learn from relevant experience and apply the lessons. There should be a
systematic review of performance based on data from monitoring and from independent
audits of the whole safety and health management system. These form the basis of
complying with the organisation’s responsibilities under the 2005 Act and other statutory
provisions. There should be a strong commitment to continuous improvement involving the
development of policies, systems and techniques of risk control. Performance should be
assessed by:

 internal reference to key performance indicators
 external comparison with the performance of business competitors and best practice

in the organisation’s employment sector.

Many companies now report on how well they have performed on worker safety and health
in their annual reports and how they have fulfilled their responsibilities with regard to
preparing and implementing their Safety Statements. In addition, employers have greater
responsibilities under Section 80 of the 2005 Act on ‘Liability of Directors and Officers of
Undertakings’ that requires them to be in a position to prove they have pro-actively
managed the safety and health of their workers. Data from this ‘Auditing and reviewing
performance’ process should be used for these purposes.

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DESCRIBE THE BASIC VALUE CHAIN RELEVANT TO A RANGE OF OPERATIONS AND INDUSTRIES
The value chain describes the full range of activities that firms engage in to bring a product
from its conception to its end use and beyond. This includes design, production, marketing,
distribution and support to the final consumer. The activities that comprise a value chain can
be contained within a single firm or divided among different firms. Value chain activities can
produce goods or services, and can be contained within a single geographical location or
spread over wider areas. Global Value Chains are value chains that can be divided among
multiple firms and dispersed across wide swaths of geographic space, hence the term
‘global value chains. The goal of value chain management is to ensure that those in charge
of each stage of the value chain are communicating with one another, to help make sure
the product is getting in the hands of customers as seamlessly and as quickly as possible.

Porter's value chain
Harvard Business School's Michael E. Porter was the first to introduce the concept of a value
chain. Porter suggested that activities within an organization add value to the service and
products that the company produces, and that all of these activities should be run at
optimum level if the organization is to gain any real competitive advantage. If they are run
efficiently, the value obtained should exceed the costs of running them — for example,
customers should return to the company and transact freely and willingly.

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Porter said a business's activities could be split into two categories: primary activities and
support activities. Primary activities include the following:
Inbound logistics: This refers to everything involved in receiving, storing and distributing the
raw materials used in the production process.
Operations: This is the stage where raw products are turned into the final product.
Outbound logistics: This is the distribution of the final product to consumers.
Marketing and sales: This stage involves activities like advertising, promotions, sales-force
organization, selecting distribution channels, pricing, and managing customer relationships of
the final product to ensure it is targeted to the correct consumer groups.
Service: This refers to the activities that are needed to maintain the product's performance
after it has been produced. This stage includes things like installation, training, maintenance,
repair, warranty and after-sales services.

The support activities help the primary functions and comprise the following
Procurement: This is how the raw materials for the product are obtained.
Technology development: Technology can be used across the board in the development of
a product, including in the research and development stage, in how new products are
developed and designed, and process automation.
Human resource management: These are the activities involved in hiring and retaining the
proper employees to help design, build and market the product.
Firm infrastructure: This refers to an organization's structure and its management, planning,
accounting, finance and quality-control mechanisms.

Ideally, your value chain analysis will help your company identify areas that can be
optimized for maximum efficiency and profitability. The best result of a value chain analysis
should be the identification of the following components:

 Key short- and medium-term end-market opportunities in the target value chains.
 Factors constraining the maximization of these opportunities (for small-scale

producers, women, youth, etc.).
 Upgrading strategies to address these constraints and maximize opportunities.
 Private-sector, public-sector and civil society entities to partner with to achieve these

upgrading strategies.
 Recommendations of how to support these value chain upgrading strategies in a

way that is gender equitable, promotes improved nutrition (where relevant), and is
inclusive of the poor and other marginalized group.

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At the other end of the spectrum, it's critical to properly understand and implement
suggestions that arise as a result of a value chain analysis. Value chain analysis relies on the
basic economic principle of advantage — companies are best served by operating in
sectors where they have a relative productive advantage compared to their competitors.
Simultaneously, companies should ask themselves where they can deliver the best value to
their customers. To conduct a value chain analysis, the company begins by identifying each
part of its production process and identifying where steps can be eliminated or
improvements can be made. These improvements can result in either cost savings or
improved productive capacity. The end result is that customers derive the most benefit from
the product for the cheapest cost, which improves the company's bottom line in the long
run.

DESCRIBE THE MINIMUM TECHNICAL STANDARDS RELEVANT TO VARIOUS INDUSTRIES;

Industries should develop, document and regularly update policies and procedures in a
standardized written format incorporated into a Standard Operating Procedures (SOP)
Manual that is readily available to all laboratory personnel. The SOP Manual should
specifically include:
• Specimen handling policies and procedures including supplies, methods and equipment;
• Laboratory procedures for specimen processing e.g. aliquoting, tests; quality control;
• Policies and procedures for shipping and receiving specimens;
• Records management policies;
• Quality assurance (QA) and quality control (QC) policies and procedures for supplies,
equipment, instruments, reagents, labels, and processes employed in sample retrieval and
processing;
• Emergency and safety policies and procedures, including reporting of staff injuries and
exposure to potential pathogens;
• Policies and procedures for the investigation, documentation and reporting of accidents,
errors, complaints and adverse outcomes;
• Policies and procedures and schedules for equipment inspection, maintenance, repair and
calibration;
• Procedures for disposal of medical and other hazardous waste; and
• Policies and procedures describing requirements of training programs for staff.

Organisatoions should have appropriate quality assurance (QA) and quality control (QC)
programmes regarding equipment maintenance and repair, staff training, data
management and record keeping, and adherence to Good Laboratory Practice. All
operations must be subject to regular audits. The timing, scope and outcome of these audits

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should be documented. QA is an integrated system of management activities involving
planning, implementation, documentation, assessment and improvement to ensure that a
process or item is of the type and quality needed for the project. QC is the system of
technical activities that measures the attributes and performances of a process or item
against defined standards, to verify that the stated requirements are fully met.

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FORMATIVE ASSESEMENT - FOUR

 IAC0401 Given typical business situations identify and describe the required health and
safety measures and indicate how to go about determining the key technical health and
safety aspects required using applicable frameworks and related technical knowledge.

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4.2.5. KM-04-KT05:
Concepts and principles of interpreting and using occupational

hygiene survey results. (Intermediate

KT0501 Describe the various Occupational Hygiene Monitoring
KT0502 techniques. RANGE: a. Thermal stress; b. Airborne pollutants; c.
KT0503 Noise; d. Vibrations; e. Radiation. (NQF Level: 5)
Identify the relevant monitoring techniques to use depending
KT0504 on the different routes of entry. (NQF Level: 5)
Interpret the results, in terms of Exposure Limits, of various
Occupational Hygiene Measurements and indicate actions to
deal with unacceptable results. RANGE: a. Occupational
Exposure Limit, Time Weighted Average, Short Term Exposure
Limits, Ceiling Limit. (NQF Level: 5)
Describe the different Occupational Hygiene Exposure limits.
RANGE: Occupational Exposure Limit, Time Weighted Average,
Short Term Exposure Limits, Ceiling Limit (NQF Level: 5)

DESCRIBE THE VARIOUS OCCUPATIONAL HYGIENE MONITORING TECHNIQUES.

A.THERMAL STRESS;
Thermal conditions in Southern Africa is of such a nature that heatstroke and heat stress is the
biggest concern and can be classified as a substantial risk to the health and safety of
employees in their working environment. Cold stress conditions are limited to mechanical
environments (cold rooms, freezer rooms, etc.) and in areas where the winter temperatures
regularly fall below zero.

The monitoring of thermal stressors in the working environment is prescribed in the
Environmental Regulations for Workplaces as contained in the Occupational Health and
Safety Act, and prescribes that no employer shall require or permit an employee to work in
thermal conditions (heat and cold) that exceeds the allowable exposure limits without
implementing reasonable measures to protect such employee against thermal extremes and
takes all precautions necessary for the safety of such an employee. The employer establishes
and maintains a system of occupational hygiene measurements where the prescribed
exposure limits are exceeded for thermal stressors (heat and cold).

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B.AIRBORNE POLLUTANTS;
Airborne contaminants occur in the gaseous form (gases and vapours) or as aerosols. In
scientific terminology, an aerosol is defined as a system of particles suspended in a gaseous
medium, usually air in the context of occupational hygiene, is usually air. Aerosols may exist in
the form of airborne dusts, sprays, mists, smokes and fumes. In the occupational setting, all
these forms may be important because they relate to a wide range of occupational
diseases. Airborne dusts are of particular concern because they are well known to be
associated with classical widespread occupational lung diseases such as the
pneumoconiosis, as well as with systemic intoxications such as lead poisoning, especially at
higher levels of exposure.

Currently, there is also increasing interest in other dust-related diseases, such as cancer,
asthma, allergic alveolitis, and irritation, as well as a whole range of non-respiratory illnesses,
which may occur at much lower exposure levels. Management should aim to reduce the risk
of these diseases by aiding better control of dust in the work environment. The first and
fundamental step in the control of hazards is their recognition. But recognition requires a
clear understanding of the nature, origin, mechanisms of generation and release and
sources of the particles, as well as knowledge on the conditions of exposure and possible
associated ill effects. This is essential to establish priorities for action and to select appropriate
control strategies.

B.NOISE
1. Area Noise (Noise Zoning) and Personal Noise Monitoring
The Occupational Health and Safety Act requires that the exposure levels of employees to
noise in their working environment be determined and reported on should the exposure
levels exceed the prescribed noise rating limits and that mitigating measures be
implemented to reduce such high noise levels.

C.VIBRATIONS;
Human vibration is the assessment of vibration present in the working environment and how
the human body is affected by vibrating tools, equipment, working stations and vehicles.
Hand tools, machinery and heavy vehicles are all sources of vibration. The risk of exposure is
determined by the intensity, frequency and time of exposure and the impact that vibration
has on the human body causes various symptoms and disorders.

Human Vibration can be divided into two subcategories:

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a) Whole Body Vibration (WBV) risks are encountered in the construction, agriculture, forestry,
mining and transportation sectors and is a source of various symptoms like back problems,
discomfort, visual and nervous system disorders, motion sickness and disorders of the
reproductive and digestive systems.

b) Hand Arm Vibration (HAV) risks are encountered in the mining, iron and steel, construction,
fabrication and forestry sectors and is a source of various symptoms like muscular, vascular,
joint, neurological and bone disorders.

One of the most serious HAV disorders is called white finger syndrome (Reynaud’s Syndrome)
caused by working in cold environments with vibrating hand tools. The vibrating hand tools
causes vasoconstriction to the extremities and due to the loss in blood flow to these areas,
the affected parts suffers irreversible damage and in extreme cases, the sufferer may lose his
fingers. The effects are cumulative. When symptoms first appear, they may disappear after a
short time. If exposure to vibration continues over months or years, the symptoms can worsen
and become permanent.

E. RADIATION.

Non-Ionising Radiation (NIR)

Non-Ionising Radiation (NIR) describes two areas of the electromagnetic spectrum, the first is
optical radiation (ultraviolet, visible and infrared) followed by electromagnetic fields (EMF’s:
power frequencies, microwaves and radio frequencies). NIR is found in various working
environments and can have adverse health effects on employees being exposed to
welding, heating, cutting, lasers and wireless communication sources.

The health risks associated with exposure to NIR includes skin burns, cataracts, melanoma,
central nervous system, deep organ and tissue heating and damage. It is common
knowledge that exposure to EMF can result in an increase in adverse health effects, but it
must be noted that these cases are not wide spread and should not be a problem to the
general workforce.

facilitating non-ionising radiation assessments in the working environment and
recommending the best system of control to mitigate the risks identified should be part of the
every company’s safety policy.

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6. Ionising Radiation

Ionising Radiation means radiation that can pass through matter and cause it to become
electrically charged (ionised). Ions produced by radiation can negatively impact the living
cells in the human body. Ionisation is a sign of radiation produced when radioactive
elements decay. Due to its intensity it can remove the electrons from atoms in matter and
therein lies the risk to human health.

Ionizing Radiation is in general harmful to human health and potentially lethal to living
organisms but does have some health benefits through radiation therapy for the treatment
of cancer. The main benefit to human health, of ionising radiation, is in the treatment of
cancerous growths through radiation therapy that can stop the growth of tumours.
Controlled doses are used for medical imaging and radiotherapy but prolonged or repeated
exposure to ionising radiation can result in adverse health effects.

High amounts of ionising radiation exposure can result in genetic defects, cancers or tumours
and even death.

Assessing the risk of exposures to ionising radiation is covered under the general duties of an
employer to assess risk in the working environment as prescribed under the Occupational
Health and Safety Act and should be incorporated into an Occupational Hygiene

Monitoring Programme..

IDENTIFY THE RELEVANT MONITORING TECHNIQUES TO USE DEPENDING ON THE DIFFERENT
ROUTES OF ENTRY.

The Hazardous Chemical Substances (HCS) Regulations, 1995 aim to protect the health of
workers, and others, exposed to hazardous substances at work. To comply with HCS
employers have to:

 assess the risks to employees’ health arising from their work with chemicals
 decide what precautions they need to take;
 prevent or control risk;
 ensure the control measures are properly used and maintained;
 monitor the exposure of workers, where necessary
 Provide health surveillance, as appropriate; and inform, instruct and train employees

about the risks and any necessary precautions.

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Routes of Entry (Exposure)
There are four routes by which a substance can enter the body: inhalation, skin (or eye)
absorption, ingestion, and injection.

• Inhalation: For most chemicals in the form of vapors, gases, mists, or articulates, inhalation is
the major route of entry. Once inhaled, chemicals are either exhaled or deposited in the
respiratory tract. If deposited, damage can occur through direct contact with tissue or the
chemical may diffuse into the blood through the lung-blood interface. Upon contact with
tissue in the upper respiratory tract or lungs, chemicals may cause health effects ranging
from simple irritation to severe tissue destruction. Substances absorbed into the blood are
circulated and distributed to organs that have an affinity for that particular chemical. Health
effects can then occur in the organs, which are sensitive to the toxicant.

• Skin (or eye) absorption: Skin (dermal) contact can cause effects that are relatively
innocuous such as redness or mild dermatitis; more severe effects include destruction of skin
tissue or other debilitating conditions. Many chemicals can also cross the skin barrier and be
absorbed into the blood system. Once absorbed, they may produce systemic damage to
internal organs. The eyes are particularly sensitive to chemicals. Even a short exposure can
cause severe effects to the eyes or the substance can be absorbed through the eyes and
be transported to other parts of the body causing harmful effects.

• Ingestion: Chemicals that inadvertently get into the mouth and are swallowed do not
generally harm the gastrointestinal tract itself unless they are irritating or corrosive. Chemicals
that are insoluble in the fluids of the gastrointestinal tract (stomach, small, and large
intestines) are generally excreted. Others that are soluble are absorbed through the lining of
the gastrointestinal tract. They are then transported by the blood to internal organs where
they can cause damage.

• Injection: Substances may enter the body if the skin is penetrated or punctured by
contaminated objects. Effects can then occur as the substance is circulated in the blood
and deposited in the target organs.

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Monitoring Techniques

1. The control measures or techniques appropriate particular worksite depend on how
this material is used and on the extent of exposure. The best protection is to enclose
operations and/ or provide local exhaust ventilation at the site of chemical release.
Use a non – sparking, grounded ventilation systems separate from other exhaust
systems and exhaust directly to the outside.

2. With engineering controls and work practices are not effective are not effective in
controlling this material, then wear suitable personal protective equipment (PPE),
including chemical safety goggles and face shields, boots, gloves, overalls and
respiratory protection. Have appropriate equipment available.

3. Biological effect monitoring is the measurement and assessment of early biological
effects caused by absorption of chemicals. It involves measuring biochemical
responses (for example, measuring plasma and erythrocyte cholinesterase activity in
workers exposed to organo phosphorus pesticides; or measuring increases in urinary
protein following exposure to cadmium). These responses may have potential health
implications for the individual.. Biological effect monitoring should always be carried
out with the close involvement of an occupational health physician.

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INTERPRET THE RESULTS, IN TERMS OF EXPOSURE LIMITS, OF VARIOUS OCCUPATIONAL HYGIENE
MEASUREMENTS AND INDICATE ACTIONS TO DEAL WITH UNACCEPTABLE RESULTS:

a. OCCUPATIONAL EXPOSURE LIMIT,
A n occupational exposure limit (OEL) is defined as the level to which workers are
exposed during their working career that should not cause any adverse health effects to
them or their offspring. OELs are based on continuous exposure to a chemical (or other)
substance via inhalation.

b. TIME WEIGHTED AVERAGE,
TWA is the airborne concentration of contaminants over an 8- hour period. It is
determined by sampling the breathing zone of the worker for 8 hours.
Mathematically, it is expressed as follows when a series of successive samples has been
taken: TWA= ∑i(Ci * ti) / ∑ti

Where ti is the period of time during which one sample is taken, and
Ci is the average concentration over time period ti.

To determine the level of exposure, the TWA reading is compared with a standard such
as the threshold limit value (TLV) or permissible exposure limit (PEL). If the reading exceeds
the standard, overexposure occurred.

c. SHORT TERM EXPOSURE LIMITS,
STEL (Short-Term Exposure Limit) is a 15-minute TWA concentration that may not be
exceeded, even if the 8-hour TWA is within the standard. TWA-STEL is given for
contaminants for which short-term hazards are known. For the rest, an excursion factor of
3 often has been used: STEL should not exceed 3 times the TWA limit. STEL concentrations
also may not occur more than 4 times in an 8 hour workday with at least 60 minutes
between excursions.

d. CEILING LIMIT
It is that concentration that should not be exceeded at any time. Note that both TWA
and STEL permit limited excursion if, in the end, the average is below the exposure limit.
The ceiling value, however, may not be exceeded at any given time. The excursions
above the TWA line are compensated by periods of low exposure. The ceiling value is not
exceeded.

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DESCRIBE THE DIFFERENT OCCUPATIONAL HYGIENE EXPOSURE LIMITS RANGE: OCCUPATIONAL
EXPOSURE LIMIT, TIME WEIGHTED AVERAGE, SHORT TERM EXPOSURE LIMITS, CEILING LIMIT
Occupational exposure is a measure of the intensity and/or extent to which the human body
experiences a particular hazard. For a given hazard, the greater the exposure, the greater
the risk of causing an adverse effect on health. This is because of the exposure-response
relationship. Exposure is determined by various factors including the time-exposed (duration),
and factors such as the concentration of a substance inhaled, the intensity of a radiation
field etc. An estimate of exposure may be obtained in various ways ranging from a detailed
history taking plus a workplace visit to the use of sophisticated background or personal
monitoring devices. What matters most is the actual 'personal' exposure of the worker and
this in turn determines the uptake of the potentially harmful agent.

Occupational Exposure Limits (OELs).
What do OELs mean?
These are scientific and legal interpretations which vary from country to country using all sorts
of terms and acronyms such as Occupational Exposure Standards (OES), Maximum Exposure
Limits (MELs) Threshold Limit Values (TLV), etc. OELs are not levels above which harm will
definitely arise and they are certainly not levels which are definitely safe i.e. below which
harm will not arise.
A rough rule of thumb is that they are levels below which most of the working population
could be exposed on a regular basis with a low risk to health (but a likelihood which albeit
small might still be there and which could in some instances rarely result in severe effects).

Derivation of Exposure Standards/Limits - The Basic Steps;
An important part of the strategy of controlling risks to health is the derivation of exposure
limits. There is a sequence of steps in this process:

 Determine the Nature of the relevant Health Effects:
What exactly are they? (It is more important to have lower exposure limts to reduce the
frequency of severe health effects e.g. cancers, than it is for minor e.g. irritant health
effects.)
Are they acute or chronic?

 Identify the 'Critical' Health Effect
This is usually the one effect that can occur at the lowest exposure out of the various effects
in question. (for example, benzene can cause dizziness, nausea and even loss of
consciousness at high concentrations, but exposure limits are not set just with the intention of
protecting against these consequences but at much lower levels to protect against the risk
of leukaemia.)

 Determine the Exposure-Response relationships.

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Remember that one may need to consider carefully the population from which the data
were derived, the measurement methods, how the time-weighting was carried out, etc.
Derive the information necessary for a Health-Based Exposure Standard, but bear in mind
that the eventual standard adopted depends on: Consideration of the Acceptability of Risk,
and the extent of Uncertainty in the scientific data

 Monitor the implementation of the Exposure Standard.
 Improve the Standard by a process of Review and Revision (after an appropriate

interval)

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FORMATIVE ASSESEMENT - FIVE

 KT0501 Describe the various Occupational Hygiene Monitoring techniques. RANGE: a.
Thermal stress; b. Airborne pollutants; c. Noise; d. Vibrations; e. Radiation. (NQF Level: 5)

 KT0502 Identify the relevant monitoring techniques to use depending on the different
routes of entry. (NQF Level: 5)

 KT0503 Interpret the results, in terms of Exposure Limits, of various Occupational Hygiene
Measurements and indicate actions to deal with unacceptable results. RANGE: a.
Occupational Exposure Limit, Time Weighted Average, Short Term Exposure Limits, Ceiling
Limit. (NQF Level: 5)

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4.2.6. KM-04-KT06:
Concepts and principles of corporate and organizational governance

and the regulatory requirements associated with governance.
(Intermediate)

CONCEPTS AND PRINCIPLES OF CORPORATE AND ORGANISATIONAL GOVERNANCE AND THE
REGULATORY REQUIREMENTS ASSOCIATED WITH GOVERNANCE. (INTERMEDIATE)

The Key Concepts.
The design of a credible framework of governance involves the linkage of the key corporate
governance actors with a number of widely-accepted principles of good governance.

a. Delegation of authority
In any company, the origin of authority is ownership. However, the company may soon
reach a point in its development where the main shareholder is no longer able to
simultaneously fulfil the roles of shareholder, lead director, and manager. At that point, it
becomes necessary to reflect on the most effective way to delegate authority from the
owner to the board and the management. The articles of association (or equivalent
constitutional document) and shareholder resolutions exist to formalise the rights of
shareholders. The owner and/or the board should develop a systematic approach towards
the delegation of authority and formalise this in writing. A schedule of matters reserved for
the board and for executive management should be established, which sets out the
parameters of the delegated authority (with attention for any financial thresholds regarding
decision-making powers). Delegated authorities should be reviewed periodically to ensure
that they remain appropriate given the structure, size, scope, and complexity of the firm.

b. Checks and balances A basic principle of good governance is that no one individual
should have unfettered power over decision making. There should exist “checks and
balances” that subject the actions of individuals to scrutiny, while the most important
decisions should be taken on a collective basis. Fulfilling this principle is often a challenge for
owner-managed companies, which are normally established on the basis of the autocratic
control of a single individual (or small group of individuals). However, while such a
governance approach may be viable in the early stages of a company’s development, it is
not a sustainable model for the longer term. Building the right checks and balances is
therefore a delicate exercise for any developing company and will probably necessitate a
“phased” or step-wise approach to align governance needs with the founder/owner’s

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willingness to accept external control. Aside from the practical difficulties involved in a single
person making all the decisions, a lack of appropriate checks and balance exposes the
enterprise to human weakness. Even the most capable of individuals can sometimes make
mistakes or lose their ability to analyse issues in an objective manner.

To minimize these risks, it is important to establish governance procedures that subject all
decision-making to some kind of third-party scrutiny. There should also be clear lines of
accountability within the firm – each corporate actor (whether an employee, manager, or
director) should justify their actions to someone else. Corporate transparency is also an
effective means of encouraging appropriate behaviour.

Specific examples of checks and balances within the corporate structure include splitting the
role of leading executive management (chief executive) from that of chairman of the
board, the utilisation of a “four eyes” principle when signing contracts or making important
commitments on behalf of the firm, the obligation to have an external auditor, and the
involvement of independent directors on the board.

c. Professional decision-making
The focus of collective decision-making in most companies is the board of directors.
However, directing an organisation through a board is more difficult than is commonly
supposed. Simply placing competent people of goodwill around a boardroom table will not
necessarily result in an effectively functioning board. Building an effective board takes time
and patience on the part of board members, and benefits from a professional approach to
boardroom procedure. The chair has a particular responsibility in welding a group of
capable individuals into an effective board team. The chair has to find a way to reach a
consensus between diverging views on the company and its future. An atmosphere of open
discussion should be encouraged. Perspectives and viewpoints should be properly
documented in the minutes, allowing dissenting voices to be recorded. There should also be
a clear formulation of decisions, so that the decision-making process is followed by decisive
action. It is also important to ensure that due care is taken over the choice of board
members, and that board members have the necessary skills and competencies to fulfil their
responsibilities. Directors will need to undertake specialized professional training if they are to
effectively make the transition from operational manager (with a focus on one aspect of a
firm’s activities) to company director (where they must exercise oversight over the firm as a
whole).

d. Accountability

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Within a company, there should be a hierarchy of accountability. Each level in the hierarchy
is granted defined responsibilities and powers. However, these powers must be associated
with meaningful accountability regarding performance and the exercise of powers. The
accountability hierarchy begins at the bottom of the pyramid, with each superior level
monitoring and supervising the level below it. Employees are accountable to managers, who
themselves report into the board of directors. Finally, the board of directors is accountable to
shareholders and other external stakeholders (including government agencies and
regulators). For accountability to exert an effect over behavior, it is important that each
employee, manager, and board member understands expectations about the nature and
scope of his or her responsibilities. As the company expands in size and complexity, this will
require formalization in the form of explicit business conduct rules (including ethical
principles).

At the board level, directors should clarify their responsibilities by defining corporate
governance principles for the firm, which should be regularly reviewed and update. Once
responsibilities have been defined, the efficient functioning of the system depends on proper
oversight. However, this will only be possible if there exists relevant information with which to
evaluate behavior and performance. For this reason, an appropriate framework of reporting
and control is an important aspect of good governance. Senior managers, directors,
shareholders, and other stakeholders need reliable and understandable information with
which to evaluate performance. In most cases, such reporting will be undertaken by both
internal departments (e.g. management accounting reporting and internal audit) and
external intermediaries (e.g. the external auditors).

e. Transparency
Transparency regarding the firm’s activities can be highly effective in encouraging high
standards of behaviour. Directors, managers, and employees are likely to give greater
thought to their conduct if they perceive that they are being observed. A certain level of
transparency in the firm’s activities may be mandated by law and regulation (e.g.
publication of financial statements). The nature of such statutory transparency is likely to be
relatively tightly defined. However, unlisted companies may choose to voluntarily disclose
more information than required by law as a means of gaining the confidence and
commitment of external stakeholders. Given the fact that unlisted companies are often
labelled as “closed” companies, the case for greater external transparency will need to be
made to a possibly skeptical company owner/founder. Rather than making sudden
changes, an appropriate strategy may involve increasing company transparency via a
stepwise approach towards greater openness. A key stage in opening up the company to
external scrutiny is taken by the appointment of independent (non-executive) directors. This

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signals a firm’s willingness to become more open and accountable in respect of its decision-
making and performance assessment. The replacing of the owner-manager or founding
entrepreneur by external managers can also be perceived as an important step in this
direction. Greater transparency is beneficial in establishing the legitimacy of the company as
a responsible enterprise in society. Increasingly, civil society views organisations that lack
transparency with suspicion. The baseline assumption in the mind of the public is that
opaque organisations have something to hide.

f. Conflicts of interest
An important principle of company law in most jurisdictions is that directors have a duty to
promote the success of the company as a whole. They are specifically prohibited from
directing the activities of the company in favour of themselves or particular shareholders
and/or stakeholders. Even in owner-managed firms, the authority of an individual to manage
the firm derives from his or her status as a director. The company should not be regarded as
an extension of the personal property of the owner. Although shareholders have legally-
defined economic entitlements (e.g. to dividends) and powers vis-à-vis the board (e.g. to
appoint and remove directors), it is directors – not shareholders – that are charged with
directing the affairs of the company. And this must be undertaken in the interests of the
company as a whole. This principle may be difficult for owner-managers or large
shareholders of unlisted enterprises to accept or understand. They may view the firm’s
interests as synonymous with their own. This may lead to a self-interested bias in their decision-
making. At worst, it could lead them to seek ways of expropriating the assets of the firm at
the expense of minority shareholders or stakeholders. Some examples of where conflict of
interest situations may arise include the following:

 The firm undertakes business transactions with enterprises controlled or managed by
its shareholders, leading to a potential conflict of interest between the firm and its
shareholders.

 A manager or director has a personal interest in the adoption of a particular
corporate strategy or policy (e.g. his or her own remuneration or the sale of
company property to related family shareholders), which leads him or her to be less
than objective in decision-making.

 Directors or shareholders encourage the firm to undertake activities that benefit
specific shareholders (e.g. relating to dividend policy, or requiring a subsidiary
company to provide special guarantees or loans to a mother or another group
company) or stakeholders with which they have a strong personal association (the
promotion of a family employee or decisions on succession planning).

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Conflicts of interest have the potential to undermine the governance of the company.
Good governance demands that the company is being steered by the board in an
objective manner, and not as a means of promoting specific personal interests or enriching a
specific constituency. Consequently, a robust governance framework needs to define
credible mechanisms by which potential conflict of interest issues can be managed or
resolved. Directors should always declare potential conflicts of interest to the rest of the
board, abstain from influencing the decision and be prepared to leave the board entirely in
cases where such conflicts are structural and could eventually become detrimental to the
success of the company.

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FORMATIVE ASSESEMENT - SIX

 IAC0601 Given several scenarios depicting deficiencies with instrumentation,
measurement techniques, misinterpretation of results and poor reporting be able to: a.
Identify the actual deficiencies; b. Recommend preventative and corrective actions.

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4.2.7. KM-04-KT07:
Concepts and principles of developing an emergency preparedness plan

and process for different organisations and key approval, rehearsal and
implementation steps. (Advanced)

KT0701 Describe the critical steps in the cycle for establishing,
KT0702 implementing and maintaining emergency preparedness and
response. a. Identify potential for emergency situations; b.
Establish emergency response procedures; c. Identify required
equipment; d. Identify response training requirements; e. Define
periodic testing procedures; f. Establish review procedures. (NQF
Level: 6)
Describe the considerations when designing and developing
emergency preparedness and response: a. statutory
requirements; b. SANS specifications; c. Threat analysis (Potential
for emergency situations); d. Liaison with relevant parties. (NQF
Level: 6)

DESCRIBE THE CRITICAL STEPS IN THE CYCLE FOR ESTABLISHING, IMPLEMENTING AND
MAINTAINING EMERGENCY PREPAREDNESS AND RESPONSE.
A. IDENTIFY POTENTIAL FOR EMERGENCY SITUATIONS;

A workplace emergency is an unforeseen situation that threatens your employees,
customers, or the public; disrupts or shuts down your operations; or cause physical or
environmental damage. Begin building the ERP by identifying all potential disasters or
emergency situations the business may face. This can be done by reviewing hazard
assessment documents and the results of incident investigations, and considering the
potential for hazards around the facility. Assess the potential for harm to people,
property, equipment, and the environment for each potential emergency situation.
Examples of possible emergencies can include:
 Incidents leading to serious injuries or ill health.
 Fire and explosions
 Fall of ground
 Release of hazardous material or gases, chemical spills
 Explosives and explosions
 Workplace violence resulting in bodily harm or trauma.
 Natural disasters – bad weather e.g., tornadoes, hurricanes and floods
 Loss of utility supply ( e.g. ,loss of electric power)

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 Pandemics/ epidemics/ outbreaks of communicable diseases
 Civil disturbance, terrorist attack, sabotage, workplace violence,
 Failure of critical equipment,
 Theft of critical equipment
 Criminal activity
 Traffic interaction and accidents
 Fire risks – fire destroy life and can cause serious harm. There following sources of fire at

the workplace can trigger fire risks:
- Production heat – cooking, heating e.g., hot air and radiators, chemical reactions.
- Faults – friction e.g., worn bearings; unwanted chemical reactions.
- Electrical sparks – electrical contacts, electrical brushes, and static electricity.
- Creature discomfort – lighting, heaters, cigarettes, lighters and matches.

When identifying potential emergence situations, consideration should be given to
emergencies that can occur during both normal operations and abnormal conditions (e.g.
operation start – up or shut down, construction or demolition activities).

B. ESTABLISH EMERGENCY RESPONSE PROCEDURES;
1. Risk assessment – the first step when developing emergence response procedures is to
produce a risk assessment to identify potential emergence scenarios.
2. Planning – in an emergency, the effectiveness of response depends on advance planning.
Management and employee commitment are essential in planning. The plan should cover
all potential emergencies that could be expected at that workplace. The written
emergence action plan must be kept at the workplace and made available for employees
to review. It should be evaluated and updated periodically. The following elements must be
included in the emergency plan.

 Emergency escape procedures and mapped escape routes.
 Procedures to be followed by employees who remain to operate critical operations

before they evacuate.
 Procedures to account for all employees after evacuation.
 Rescue and medical duties for employees who perform them.
 Means for reporting fires and other emergencies.
 Person or departments to contact for further information or explanation of duties in

terms of the plan.
3. Allocation of responsibilities – clear responsibilities should be defined and established so
that employees know who is performing what and who has the authority to make decisions.
An emergence co – coordinator should be appointed.

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4. Communication – effective communication is essential. Employees must know how to
report emergencies. A method of communication should be established to alert employees
to evacuate or take other emergency action described in the plan.
An alarm system should be in place, distinctive and recognizable enough to signal the
emergence action. The emergence coordinator should have an updated list of key staff, all
employees and of employee relatives to be notified in case of an emergency. The person in
control of communications, for example, the emergency coordinator is responsible for
notifying police or emergency response team of persons believed missing.
5. Evacuation and emergency procedures – in case of a fire or other emergency, you may
need to evacuate your workplace at a moment’s notice;

 Ensure that you evacuate quickly
 When the alarm sounds (or if notified by emergence personnel), proceed quickly

to the nearest exit.
 Leave the building in an orderly manner, do not turn – stay calm.
 Exit the building quickly.
 Report to your assembly point.
 Make sure you know where the escape routes, assembly points or refuge bays

are.
 Never use the lifts – always use the stairs.
 Help others to evacuate and knock on doors and check bathrooms as you leave

the building.
 Help those with physical disabilities to evacuate the building if they are left

behind.
 Do not leave the designated assembly point unless told to do so.

C. IDENTIFY REQUIRED EQUIPMENT;
It is important the emergency equipment that must be available on site, and to maintain it in
good operating condition. Consult the OHS legislation to determine minimum requirements
for first aid kits, fire extinguishers, water hoses, emergency showers, emergency lighting,
breathing apparatuses, ladders, stretchers, emergency communication equipment, etc.
Position the emergency equipment in accessible locations, and establish a regular schedule
to service and inspect all emergency equipment, including first aid and rescue equipment.
Effective personal protection is essential for any person who may be exposed to potentially
hazardous situations. In emergency, workers may be exposed to a wide variety of hazardous
situations, such as chemical spillage, falling object, flying particles, unknown atmospheres
with inadequate oxygen or toxic gases, fires, and live electric wiring. Some of the required
safety equipment in situations like this are as follows:

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 Safety glasses, goggles, or face shields for eye protection, hard hats or helmets,
safety shoes and respirators.

 Protective clothing, for example, gloves, hoods and boots.
 Body protection for abnormal environmental conditions such as extreme

temperatures.
 Breathing equipment in case of gas release’
 Employers should also have first aid supplies for training staff to use.
 Fire extinguishers should be available and placed close to likely sources of fire.

NB: water or foam extinguishers should not be used on electric fires. Both water
and foam are conductors of electricity and may cause an electric shock.

D. IDENTIFY RESPONSE TRAINING REQUIREMENTS;
All employees should be trained in what to do in emergency situations, as it is critical that
everyone understands their responsibilities. Basic emergency response information (e.g.
alarms, muster points, emergency exits) must be part of the new worker safety
orientation. Staff assigned specific emergency response duties should also receive
specialized training to ensure they are competent to perform their assigned tasks.
Employees assigned to be first aiders, fire fighters, floor warden and so on, must know
how to respond appropriately, and how to use any emergency equipment required.
Those with less responsibility in the case of an emergency must at a minimum know how
to respond to an alarm, and whom to call for assistance. Team members should be
thoroughly trained for potential emergences. They should be physically capable of
carrying out their duties, know about toxic hazards in the workplace and be able to
judge when to evacuate or depend on outside help. Teams should also be trained in:
 The use of various types of fire extinguishers
 First aid, including cardiopulmonary resuscitation (CPR).
 Shutdown procedures/ evacuation procedures.
 Chemical spill control procedures.
 The use of self-contained breathing apparatus and other Personal Protective
Equipment (PPE).
 Search and emergence rescue procedures.
Every employee needs to know the details of the emergence action plan including types
of potential emergences, evacuation procedures, alarm systems, reporting procedures,
and shutdown procedures. Random emergency drills must be held at least annually, if
possible, they should include outside police and fire authorities. Emergency procedure
training should be conducted when new employees are hired and at least once a year
thereafter. Additional training is needed when new equipment, materials or processes
are introduced, when procedures are updated or revised.

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D. DEFINE PERIODIC TESTING PROCEDURES;
Periodic testing of emergence procedures should be performed to ensure that the
company and external emergency services can appropriately respond to emergency
situations. Emergence drills can be used to evaluate the company’s emergence
procedures, equipment and training as well as increase overall awareness of
emergence response protocols. Internal parties (e.g. workers) and external parties (e.g.
fire department personnel) can be included in the drills to increase awareness of
emergence response procedures.

F. ESTABLISH REVIEW PROCEDURES.
Standards require the company to review its emergence preparedness and response
procedures periodically. Examples of when this can be done:

 On a schedule defined by the company
 During management reviews
 Following changes in the company
 As a result of management of change, corrective action, or preventive action
 Following an event that activated the emergence response procedures
 Following drills and tests that identified deficiencies in the emergence response
 Following changes to legal and other requirements
 Following external changes impacting the emergence response
Testing and review of the emergency preparedness and response process may include
the test/review of elements of disaster recovery, training/performance of emergency
response personnel, building evacuation, internal and external communication,
availability of risk/hazard information and effectiveness of planned mitigation and
response actions. The majority of these processes are tested and verified each time an
emergency situation arises

In addition to the above, response to simulated emergency situations is also tested
through periodic (at least manual) exercises overseen by the management. Results of
these exercises are recorded and any improvement opportunity identified.

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DESCRIBE THE CONSIDERATIONS WHEN DESIGNING AND DEVELOPING EMERGENCY
PREPAREDNESS AND RESPONSE:

A.STATUTORY REQUIREMENTS;
The OHS Act 85 of 1993 regulations requires the employer or the organization establish an
Occupational Health and Safety (OHS) policy which includes Emergence Preparedness
Procedures. The organisation should establish and maintain procedures to respond to
accidents and emergency situations, and to prevent and minimise the safety and health
impacts associated with them. Emergency planning should cover:
• The development of emergency plans;
• The testing and rehearsing of these plans and related equipment, including firefighting
equipment and fire alarms;
• Training personnel on what to do in the event of an emergency, particularly those people
who have to carry out duties (e.g. fire-fighting teams, first- aiders);
• advising people working or living near the installation about what they should do in the
event of an emergency;
• familiarising the emergency services with the facilities at the organisation so that they know
what to expect in the event of an emergency.
Your incident history can provide insight into the frequency and severity of the type of
emergencies likely to occur at your site. Industry experience, if available, can also provide
valuable information.
General requirement
The company should assess the potential for emergency situations that impact on Safety
Health and the Environment (SHE) and develop a procedure(s) for an effective response(s).
This may be a stand-alone procedure(s) or be combined with other emergency response
procedure(s). The company should periodically test its emergency preparedness and seek to
improve the effectiveness of its response activities and procedure(s).

B.SANS SPECIFICATIONS;
According to OHSAS 18001 requirements, The organization should establish, implement and
maintain the following procedure(s):
a) To identify the potential for emergency situations;
b) To respond to such emergency situations.

The organization shall respond to actual emergency situations and prevent or mitigate
associated adverse OH&S consequences.

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In planning its emergency response the organization shall take account of the needs of
relevant interested parties, e.g. emergency services and neighbours.

The organization should also periodically test its procedure(s) to respond to emergency
situations, where practicable, involving relevant interested parties as appropriate.

The organization shall periodically review and, where necessary, revise its emergency
preparedness and response procedure(s), in particular, after periodical testing and after the
occurrence of emergency situations

C. THREAT ANALYSIS (POTENTIAL FOR EMERGENCY SITUATIONS);
Threat analysis or assessment comprises strategies or pathways used to determine the
credibility and seriousness of a potential threat, as well as the likelihood that it will be carried
in the future. Threat assessment is a threat/violence prevention act that involves

 Identifying the threat
 Determining seriousness of threat
 Developing intervention plans that protect potential victims and address underlying

problems that stimulate the threatening behavior.

Some threats to consider are;
 Typical assets: the product or service, money, customer and business information,
reputation, and the system components
 Crime motivated by money – Theft, fraud – Industrial espionage, competitive
advantage – Corruption: tax evasion, subsidy fraud, bribery
 Insider threats – Employees, IT administrators, trusted entities – Curiosity and pretty
theft – Misincentivized employees “doing their best”
 Threats to customer data and personal privacy
 Threats that arise from recovery device, authentication and other failures
 Threats to business continuity – Denial-of-service attacks – Crisis management issues
(no clear boundary between business threats and security)
 Public safety threats – Critical infrastructure, vehicles, food safety
 Threats against brands and reputation
 Social-engineering threats
 Political threats: – authoritarian measures, unwanted dependence on outsiders
Privilege escalation and stepping stones to further attacks – Threats to accounts,
devices, authentication credentials – Misuse of reputation system.

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