BMOS5103 Module

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2.1.2 Machinery Safety Era (1914 to 1952)

The growth in the mining activity has encouraged the growth of its ancillary and
supporting industries which in turn has introduced new hazards in the
workplace. This has led to new legislation and on 1 January 1914, all steam boiler
enactments were replaced with Machinery Ordinance 1913. This Ordinance was
to ensure the safety of boilers and machinery in order to prevent the occurrence
of industrial accidents where the inspectors not only inspected steam boilers but
also had to inspect machines, including self-combustion engines, water turbines
and other related auxiliary machineries (Department of Safety and Health, 2016).

At the same time, the job title of „inspector of boiler‰ was replaced with
„inspector of machinery‰ and „assistant inspector of machinery‰. In 1932, this
ordinance has been replaced to the Machinery Enactment 1932 with an updated
and additional provision regarding the registration and inspection of machinery
installation under the supervision of the Machinery Branch of the Mineral
Department (Soehod & Laxman, 2007).

2.1.3 Industrial Safety Era (1953 to 1967)

The Machinery Branch was under the Mineral Department until 1952, when the
branch was split from the department and renamed as the Machinery
Department because most inspections had progressed to other industries besides
mining since machinery was also being used in other industries (Department of
Safety and Health, 2016).

In 1953, the Malaysian government promulgated a new law known as the
Machinery Ordinance 1953 to replace all previous legislation relating to
industrial safety under the jurisdiction of the Machinery Department. Under this
Ordinance, four regulations were enacted to fostering its implementation,
namely (see Figure 2.3):

 

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Figure 2.3: Four regulations enacted to foster the Machinery Ordinance 1953

Source: Soehod & Laxman (2007)
With the enforcement of this ordinance, the roles of inspectors were not only
limited to steam boiler or machinery safety but also covered all aspects of factory
workerÊs safety where such machinery was being used. The main provisions of
the ordinance were (Department of Safety and Health, 2016) as follows:
(a) A requirement for a board of inspectorsÊ establishment to conduct

inspections and award certificates of fitness;
(b) Rules and regulations must be set;
(c) Machinery is not to be operated without certificates of approval;
(d) Machines must be inspected from time to time and the approval from

inspections must be given before a machine can be licensed or modified;
(e) All accidents to persons or properties relating to machinery must be

reported and investigated;
(f) No person has the right to physically hurt another person by operating a

machine;
(g) Machinery that cannot fulfil regulations are not to be sold, borrowed or

rented; and

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(h) An inspector has the authority to enter a site and stop any unsafe
machinery.

2.1.4 Industry Safety and Hygiene Era
(1970 to 1994)

As a result of economic development, the government established a new policy
to switch from agriculture and mining to the industrial sector and as a result,
since 1960, more and more factories have been set up in the country. With the
opening up of more factories of various sectors, as well as job opportunities in
various fields and specialities, the government expected that the rate of accidents
in the workplace was also bound to increase if preventive measures were not
implemented. Thus, in order to address issues of occupational safety and health
at the workplace, the Factories and Machinery Act 1967 (FMA 1967) was
approved by the Parliament and enacted in 1967 to replace the Machinery
Ordinance 1953. This Act was led by the Factory and Machinery Department or
formerly known as the Machinery Department and the inspectors under this
department were called „factory and machine inspectors‰ (Department of Safety
and Health, 2016).

The presence of this Act was to prevent the occurrence of occupational accidents
and diseases in plants other than regulating the use of machinery that was
previously enforced through the Machinery Ordinance. This would fill the gap
that existed in the previous Ordinance, where all employees regardless of
whether they were involved directly or indirectly in the use of machinery would
be covered under this Act.

From 1970 to 2014, several regulations and orders have been introduced and
further added in the existing Act in line with the increase of industrial growth in
the country and addressing the safety and health problems. Table 2.1 lists the
regulations and order that were made under the FMA 1967.
 

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Table 2.1: List of Regulations and Orders Made under the FMA 1967

No Regulations and Order Under FMA 1967 Year

1 Certificate of Competency-Examination Regulations 1970

2 Electric Passenger and Good Lift Regulations 1970

3 Fencing of Machinery and Safety Regulations 1970
4 Notification, Certification of Fitness and Inspections Regulations 1970
5 Person-In-Charge Regulations 1970
6 Safety, Health and Welfare Regulations 1970
7 Steam Boiler and Unfired Pressure Vessel Regulations 1970
8 Administration Regulations 1970
9 Compounding of Offences Regulations 1978
10 Compoundable Offences Regulations 1978
11 Lead Regulations 1984

12 Asbestos Process Regulations 1986
13 Building Operations and Works of Engineering Construction (Safety) 1986

Regulations 1989
14 Noise Exposure Regulations 1989
15 Mineral Dust Regulations 2013
16 Exemption to Petroliam Nasional Berhad Order 2014
17 Special Scheme of Inspection (Risk Based Inspection) Regulations 2014
16 Person-In-Charge (Amendment) Regulations 2015
17 Exemption of Certificate of Fitness for Hoisting Machine Order

Source: Department of Safety and Health (2016)

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Other important events that occurred during this era are as shown in Table 2.2.

 
Table 2.2: Other Important Events that occurred from 1970 to 1994

Year Events

1971 The establishment of the Anti-Pollution Section

1975 The development of the Industry Hygiene Unit (upgraded to the Industry
Hygiene Section in 1985)

1985 Activities for petroleum safety with the establishment of the Petroleum Safety
Section

1987 Activities for special inspection to prevent major accidents in industry, and
industrial safety and health training was introduced with help from the ILO

1988 The establishment of the Centre of Information System (CIS) for occupational
safety and health and the Major Hazards Section in 1991

1985 The Petroleum Act (Safety Measures) was enforced by the Department of
Factory and to transportation of petroleum using pipelines, petroleum
distribution, storage and also related equipment and instruments. The
Regulations 1985 (Safety Measures and Transportation of Petroleum by
Pipelines) were fully enforced by the department. With these new
responsibilities, the factory and machinery inspectors were also gazetted as
petroleum inspectors.

1991 The National Institute of Occupational Safety and Health (NIOSH) was
approved and its opening was officiated by the Minister of Human Resources
on December 1992. The institute is a government-backed company with the
purpose to carry out training activities, information pooling and
dissemination, and to conduct research and development in occupational
safety and health.

Source: Department of Safety and Health (2016)

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ACTIVITY 2.1

1. Research and discuss the development of OSH legislation in other
countries.

2. From the OSH legislation, which era do you think contributes the
highest impact?

2.1.5 Occupational Safety and Health Era
(1994 to 2009)

In 1993, a new law on occupational safety and health was drafted and later
approved by the Parliament. Assisted by International Labour Organization
(ILO), Malaysia was among the first countries in Asia to implement OSH
legislation. On 1994, the Occupational Safety and Health Act 1994, Act 514,
(OSHA 1994) was enacted. This legislation was far more comprehensive
compared to the Factories and Machinery Act 1967 (FMA 1967). Data from the
Ministry of Human Resources shows that the total industrial accidents occurred
in 1991 and 1992 are 127,367 and 124,503 cases, where 603 and 778 of them were
fatality cases (Soehod & Laxman, 2007). Furthermore, FMA 1967 only covered 24
per cent of the total nationÊs workforce in the country, whereas OSHA 1994
covered 90 per cent of the total nationÊs workforce and exempt those working on
ships and in the armed forces (Department of Safety and Health, 2016).

The main purpose of this Act was to promote and encourage the safety and
health awareness among employees and also to create organisations with
effective safety and health measures. This would be done by self-regulation
schemes in accordance with the relevant industry or organisation. OSHA 1994
consisted of 15 sections which were supported by regulation codes of practices
and guidelines to further clarify the provisions. This Act also complemented any
existing legislative provision and would supersede any discrepancies in the
existing occupational safety and health law such as in the FMA 1967. In addition,
the Act also provided the allocation to appoint enforcement officers, the
foundation of National Council for Occupational Safety and Health (NCOSH),
the establishment of policies and the procedure to protect safety, health and
welfare of workers in the workplace.

In line with the enforcement of OSHA 1994, starting from April 1994, the
Department of Factory and Machinery was renamed as the Department of
Occupational Safety and Health (DOSH) and inspectors were called
„occupational safety and health officers‰.

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2.1.6 Occupational Safety and Health Master Plan Era
(2009 Onwards)

As one of the contributors to the world economy, Malaysia is not immune from
the challenges of the work environment and the country needs to look forward
and learn from more advanced countries on their occupational safety and health
management. Thus on May 2009, the Occupational Safety and Health Master
Plan 2015 (OSH-MP 15) was launched by the Prime Minister of Malaysia to take
into account all accidents and hazards which would likely occur in the
workplace. OSHMP 15 has been implemented with the objective of developing a
safe, healthy and productive human capital by maintaining and promoting
healthy work culture in line with the goal of achieving developed status and to
achieve Vision 2020 with „High Income, Advance Technology‰ nation
(Department of Safety and Health, 2016).

The Occupation Safety and Health Master Plan 2016 ă 2020 (OSH-MP 2020) is the
governmentÊs strategy and a programme specifically designed to adopt a safer
and healthier culture through Preventive Culture at the workplace. It is a
continuation of the previous OSH strategic plans. The government expects a high
level of excellence in OSH which later will improve the quality and standard of
living of the workers and thus contribute to increasing productivity and index
components under the Work Environment Index of Malaysia Social Welfare in
line with Vision 2020.

Since the implementation of the strategic plan in this country, the Index of Social
Welfare Malaysia report shows a decreasing number and rate of workplace
accidents as detailed in the following Table 2.3.

Table 2.3: Number of Workplace Accidents and Fatality Rate from 2005 to 2015 in
Malaysia

2005 2015 2020

Industrial Accidents Cases 51,829 38,753 n/a

Fatal accidents / 100,000 workers 6.93 4.84 4.36

Accidents / 1,000 workers 5.16 2.81 2.53

Source: Department of Safety and Health (2016)

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However, the number of workplace accidents and fatalities should continue to be
reduced if Malaysia wants to be at par with the developed countries and OSH-
MP 2020 has set five important strategies to increase stakeholder awareness,
responsibility and commitment towards OSH. These five strategies are (see
Figure 2.4):

Figure 2.4: Five important strategies to increase stakeholder awareness, responsibility and
commitment towards OSH

To ensure the success of this programme, OSH-MP 2020 has been set with the
task and responsibilities of the entire stakeholder namely the Government,
associations, competent persons and relevant parties with influence over
employers and workers. The involvement and cooperation of all parties involved
will lead to the success of this Master Plan thus contributing to the improvement
of MalaysiaÊs Welfare Index as a guide to the quality of life of the people.

2.2 FACTORIES AND MACHINERY ACT 1967
(ACT 139)

The Factories and Machinery Act 1967 (FMA 1967), Act 139, is applicable to the
safety, health and welfare of persons in factories and to the use of machinery. The
important provisions of this Act are in regard to notification, registration and
inspection as stipulated in FMA 1967.

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Section 2 (1) of this Act defines „factory‰ as a premise or part of a premise where
(Factories and Machinery Act, 1970):
(a) Within the close or curtilage or precincts of the premises or part thereof person

are employed in manual labour in any process for or connected with or
incidental to the making, altering, repairing, ornamenting, sorting, finishing,
cleaning, washing, breaking, demolishing, constructing, reconstructing, fitting,
refitting, adjusting or adapting of any article or part thereof.
(b) The said work is carried on by way of trade for the purposes of gain or
incidentally to any business so carried on.
Other premises which are deemed as factories are further stipulated in Section 2
(1), (2) and (3).
Machinery, as defined in Section 3, includes steam boilers, unfired pressure
vessels, fired pressure vessels, pipelines, prime movers, gas cylinders, gas
holders, hoisting machines and tackle, transmission machinery, driven
machinery, materials handling equipment, amusement device or any other
similar machinery and any equipment for the casting, cutting, welding or electro-
deposition of materials and for the spraying by means of compressed gas or air
off materials or other materials, but does not include (see Figure 2.5):

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Figure 2.5: Exception of "Machinery" as defined in Section 3
According to Part II Safety, Health and Welfare, Section 10 of the FMA 1967, the
provision relating to safety in respect of any factory should apply the following:
(a) Foundations and floors shall be of sufficient strength to sustain the loads

for which they are designed and no foundation or floor shall be overloaded;
(b) Roofs shall be of sufficient strength to carry where necessary suspended loads;
(c) All floors, working levels, platforms, decks, stairways, passages, gangways,

ladders and steps shall be of safe constructions so as to prevent a risk of
persons falling, and structurally sound so as to prevent a risk of collapse, all
shall be properly maintained and kept, as far as reasonably practicable, free
from any loose material and in a non-slippery condition;

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(d) Such means are reasonably practicable shall be provided, maintained, and
used so as to ensure safe access to any place at which any person has at any
time to work;

(e) Every opening, sump, pit or fixed vessel in a floor, or working level shall be
securely covered or securely fenced so as to prevent risk of persons falling;
and

(f) All goods, articles and substances which are stored or stacked shall be so
placed or stacked:

(i) In such manner as will best ensure stability and prevent any collapse
of the goods, articles or substances or their supports; and

(ii) In such manner, as not to interfere with the adequate distribution of
light, adequate ventilation, proper operation of machinery, the
unobstructed use of passageways or gangways and the efficient
functioning or use of fire-fighting equipment.

Every factory shall be kept in a clean state and free from unwanted smell such
from any drain, sanitary convenience or other sources. According to the
provision relating to health, Section 22 (1) (b), the maximum number of persons
employed at one time in a workroom shall be not more than the amount of cubic
metre of space and the superficial metre of floor area.

This Act also included more specific provisions to ensure a healthy work
environment such as proper ventilation, air cleanliness, sufficient lighting and
measures for controlling heat exposure. The provisions for adequate ventilation
were included where the number of air changes every hour should be not less
than ten in the case of processes which generate little or no heat, smoke or fume.
In the event of the number of air changes every hour is not less than twenty,
more frequent number of air changes is required (Rampal & Mohd Nizam, 2006).
As stipulated in Section 25 (1) with regards to the workersÊ welfare, if necessary,
the employer shall provide:

(a) Suitable place for clothing not worn during working hours and drying that
clothing;

(b) Supply of drinking water and washing facilities; and

(c) A first-aid box and a first-aid room if there are more than 150 workers
employed at any one time.

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2.3 PETROLEUM (SAFETY MEASURES)
ACT 1984 (ACT 302)

Petroleum (Safety Measures) Act 1984, Act 302, is an act to consolidate laws
relating to safety in the transportation, storage and utilisation of petroleum with
regard to safety matters. The four means of transportation of petroleum as
stipulated in this Act are (see Figure 2.6):

Figure 2.6: Four means of transportation of petroleum as stipulated in Act 1984, Act 302
For the purpose of this Act, Section 2 defines „transportation‰ as the action of
taking petroleum from any place or vessel by any means or mode of
transportation such as land, air and water and include conveyance by pipelines,
both onshore or offshore, on land or underground, in water or underwater.
While the definition of „storage‰ according to this Act is the processing,
dispensing or transfer of petroleum which is the action of putting into store, or
stacking at a place or in an aircraft, motor vehicle, motor trailer or vessel and
„utilisation‰ as an action of utilising or the fact of being utilised and includes
facilitating or performing any such act where petroleum or petroleum product is
involved (Petroleum [Safety Measures] Act, 1984).

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Section 2 further defines the word „petroleum‰ as any mineral oil or relative
hydrocarbon and natural gas existing in its natural condition and including
bituminous shales and other stratified deposit from which oil can be extracted
(same like section 10 of Petroleum Development Act), including petroleum
products. This Act has classified petroleum into three classes namely Class I,
Class II and Class III as detailed in Table 2.4:

Table 2.4: Petroleum by Classes

PETROLEUM CLASSES

CLASS I CLASS II CLASS III

Petroleum having flash Petroleum having flash Petroleum having flash
points below 37.8■C points at or above 37.8■C points at or above 60■C
and below 60■C

Class IA Class IIIA

Petroleum having flash Petroleum having flash
points below 22.8■C and points at or above 60■C
having a boiling point and below 93.4■C
below 37.8■C

Class IB Class IIIB

Petroleum having flash Petroleum having flash
points below 22.8■C and points at or above 93.4■C
having a boiling point
above 37.8■C

Class IC

Petroleum having flash
points at or above 22.8■C
and below 37.8■C

Source: Petroleum (Safety Measures) Act, 1984

The regulations under this Act is the Petroleum (Safety Measures)
(Transportation of Petroleum by Pipelines) Regulations 1985.

Several government agencies have been tasked to carry out the enforcement of
this Act. In accordance with Section 16 and 17, the transportation of the
petroleum using pipelines are enforced by DOSH, under the Ministry of Human
Resources while under Section 19, the license for petroleum storage and
petroleum handling such as the construction of the petroleum pipelines are
issued by Ministry of Domestic Trade, Co-operatives and Consumerism.

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Petroleum (Safety Measures) Act 1984 regulates safety matters in respect to
petroleum only, whereas, the safety in the use of gas is according to the Gas
Supply Act 1993.

2.4 OCCUPATIONAL SAFETY AND HEALTH
1994 (ACT 514)

In Malaysia, the main Act that administers the employeeÊs safety, health and
welfare in the workplace is the Occupational Safety and Health Act 1994 (OSHA
1994). According to Section 2 (1), „The provisions of this Act are additional to,
and not in derogation of, the provisions of any other written law relating to
occupational safety and health.‰ which means that the FMA 1967 is still
enforceable. There are four objectives of this Act as stated in Section 4 and the
objectives are (Occupational Safety and Health Act, 1994):
(a) To secure the safety, health and welfare of persons at work against risk to

safety or health arising out of the activities of persons at work;
(b) To protect persons at a place of work other than persons at work against

risks to safety or health arising out of the activities of persons at work;
(c) To promote an occupational environment for persons at work which is

adapted to their physiological and psychological needs; and
(d) To provide the means whereby the associated occupational safety and

health legislations may be progressively replaced by a system of
regulations and approved industry codes of practice operating in
combination with the provisions of this Act designed to maintain or
improve the standards of safety and health.
The term Safety, Health and Welfare as stated in Section 4 (a) are (see Figure 2.7):

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Figure 2.7: The term Safety, Health and Welfare as stated in Section 4 (A)
Source: (Department of Occupational Safety and Health, 2006)

The second objective is intended to protect persons other than persons at work
against risks to their safety and health. „Other persons‰ at the place of work
would include clients, visitors and members of the public.
The third objective intends to promote a suitable work environment that fulfils
the needs of persons at work. It is intended to fit the process and workstation to
the physiological and psychological needs of the employees. The work
environment should be conducive to human physiology. Sexual harassment can
be considered as a psychosocial hazard in the workplace.
The final objective provides the means whereby associated OSH laws may be
replaced by regulations and industry codes of practice in combination with the
provisions of the Act. It intends to eventually phase out traditional prescriptive
approaches which are rigid and less flexible with a legislation that is flexible and
able to cater for rapid changes in technology.
As OSHA 1994 is based on a self-regulation model, the responsibility to ensure
safety and health at work lies with those who create the risks (which is the
employer) and those who work with the risks (which is the employees) (Aziz &
Yusof, 2015).

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According to Section 15, Part IV General Duties of Employees and Self-
employed Persons, the responsibility of the employer includes the duty of care
to provide and ensure the safety and health at the workplace such as
(Occupational Safety and Health Act, 1994):

(a) To provide a safe workplace;

(b) To ensure that there is no risk during operation, handling, storage and
transporting to the health of employees at workplace;

(c) To provide information, training and supervision on OSH towards the
employees;

(d) To maintain the place of work such that it is free from risk to health along
with the provision of access and egress from such a place of work; and

(e) To provide a working environment that is safe without risk to health and
facilities for their welfare at work.

Another duty imposed by the Act is as per Section 17 General Duties of
Employers and Self-Employed Persons to Persons Other Than Their Employees
requires an employer to adopt suitable methods, tools, such a ways or manner
that in the course of his activities to ensure no risk, which may affect or expose to
his own employees or other persons in the workplace.

As stipulated in Part VI General Duties of Employees, Section 24, the duties of
an employee in general terms are (Occupational Safety and Health Act, 1994):

(a) To take reasonable care for the safety and health himself or other person
who may be affected by his acts or omissions at work;

(b) To co-operate with employer or any other person having the authority to
give such instruction;

(c) To use any protective equipment or clothing provided at all times where
such use is deemed necessary; and

(d) To comply with any instruction on safety and health given or issued by the
employer or any other person having the authority to give such instruction.

It is a requirement to formulate a Safety and Health Policy if the employer has
five or more workers at the workplace and for forty workers and above, an
establishment of a safety and health committee are required. The committee
comprises of a chairperson (the employer), a secretary (the safety and health
officer) and the representative of both employer and employees (Buranatrevedh,
2015).

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According to the Safety and Health Committee Regulation 1996, once every three
months, the committee is expected to have a meeting to identify new
occupational hazards, investigate accidents and conduct an internal audit
(Soehod & Laxman, 2007). A workplace that is less than 100 workers will need to
have at least two representatives and a minimum of four representatives for the
workers and management are needed for the workplace with more than 100
workers. A Safety and Health Officer (SHO) is a person who has passed
examinations conducted by NIOSH and registered with DOSH to make sure that
the workplace meets all the OSH regulations.

2.5 APPLICATION OF OSHA IN MALAYSIA

OSHA 1994 defines „industry‰ in Section 3 as the public services, statutory
authorities or any of the economic activities listed throughout Malaysia. There
are ten main industries specified in the First Schedule of OSHA 1994 and the
details are as follows:

 

Table 2.5: The Industries Governed by OSHA 1994 as Stated in the First Schedule

No Industries Definition Example

1 Manufacturing To make something into a (a) Manufacture of
finished product using raw
materials  Food, beverage and
tobacco

 Wood products or
furniture

 Paper and paper
products, printing
and publishing

 Chemical

(b) Textile, wearing apparel
and leather industries

(c) Non-metallic industry

(d) Basic metal industries

(e) Metal, machinery and
equipment industry

(f) Other manufacturing
industries

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2 Mining and Mining: the process or (a) Coal mining
Quarrying business of obtaining or
extracting any mineral from (b) Crude petroleum and
above or below the ground or natural gas production
in or below the sea
(c) Metal mining

Quarrying: to extract stone or (a) Stone quarrying, clay

other mineral from a quarry and sand pits

3 Construction The process of construction, (a) General contracting
extension, installation, including civil
4 Agriculture, maintenance, renewal, engineering
Forestry and removal, renovation,
Fishing dismantling or demolition of (b) Special trade contracting
any building, any road, any
5 Utilities drainage, any electrical
works, any bridge and work
which include site clearance,
soil investigation and etc.

Agriculture: The occupation (a) Paddy farming
or business of cultivating the (b) Palm oil plantation
land, producing crops, (c) Poultry farming
harvesting timber and raising
livestock

Forestry: The planting of (a) Forestry and logging
trees or managing forests

Fishing: the sport, industry (a) Ocean and coastal

or occupation of catching fish fishing

Electricity: supply of electric current especially when used as
a source of power

Gas: supply of combustible gaseous substance such as
natural gas or coal gas, used as a fuel

Water: Supply of water to a house, town or region.

Sanitary: Relating to public health, especially general
hygiene and the removal of human waste through the
sewage system

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6 Transportation, Transport: to carry people or (a) Lorry

Storage and goods from one place to (b) Bus

Communications another, usually in a vehicle

(c) Taxi

(d) Container transportation

Storage: the activity of (a) Warehouse
storing something, or the
condition of being stored

Communication: A system or (a) Radio
method for sending and (b) Television
receiving message, as by (c) Internet
post, telephone or telegram
including publishing,
broadcasting and
telecommunications

7 Wholesale and Wholesale: the business of (a) Food, drink and tobacco
Retail Trades buying and selling goods in
quantity at discounted prices, (b) Household and personal
usually direct from goods
manufacturers or
distributors, in order to sell (c) Motor vehicles,
them on to the customers motorcycles, petrol and
etc.

Retail Trades: the buying and (a) Food, drink and tobacco
selling of goods in small
amounts directly to (b) Household and personal
customers from shop goods

(c) Motor vehicles,
motorcycles, petrol and
etc.

8 Hotel and Hotel: a building or commercial establishment where people
Restaurants pay for lodging, meals and sometimes other facilities or
services

Restaurant: a place where meals and drinks are sold and
served to customers

9 Finance, Finance: the business of (a) Financial institution

Insurance, Real managing the monetary

Estate and resources of an organisation,

Business Services country, industrial or

individual

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Insurance: an arrangement by which a company gives
customers financial protection against loss and harm

Real Estate: land, buildings (a) Real estate management
and things permanently
attached to land and
buildings

Business Services: An (a) Accounting
occupation, work or trade in (b) Legal services
which a person is engaged in (c) Recreational services
commercial, industrial or (d) Laundry services
professional dealings in
buying goods or services

10 Public Services Public Services: Services (a) Public administration
and Statutory provided to the public by the
Authorities government (b) Social and related
community services

(c) Education services

(d) Medical, dental and
other health services

(e) Welfare institution

(f) Cultural, art and
tourism services

Statutory Authorities: (a) Local authorities

Organisation created, defined (b) Universities
or required by a statute

Source: Adapted from the Guidelines on OSHA 1994, (Department of Occupational
Safety and Health, 2006)

ACTIVITY 2.2

1. Explain in your own words the relationship between FMA 1967,
Petroleum Act 1984 and OSHA 1994.

2. Besides safety and health, welfare is also an important component
of OSH. Discuss.

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2.6 REGULATIONS, CODES OF PRACTICE AND
GUIDELINES

A series of Regulations and Order have been introduced under OSHA 1994. The
emphasis of these Regulations and Order has been on establishing mechanisms
to implement OSH in workplaces. The list of Regulations and Order as stipulated
in OSHA 1994 is as shown in Table 2.6.

Table 2.6: List of Regulations and Order Made under OSHA 1994

No Regulations and Order Under OSHA 1994 Year

1 EmployersÊ Safety and Health General Policy Statement (Exception) 1995
Regulations

2 Control of Industrial Major Accidents Hazards Regulations 1996

3 Safety and Health Committee Regulations 1997

4 Classification, Packaging and Labelling of HazardousÊ Chemicals 1997
Regulations

5 Safety and Health Officer Regulations 1997

6 Safety and Health Officer Order 1997

7 Prohibition of Use of Substances Order 1999

8 Use and Standards of Exposure of Chemicals Hazardous to Health 2000
Regulations

9 Notification of Accident, Dangerous Occurrence, Occupational 2004
Poisoning and Occupational Disease Regulations

10 Classification, Labelling and Safety Data Sheet of Hazardous 2013
Chemicals Regulations

Source: Department of Safety and Health (2016)

 
  

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Any  offences  committed  by  a  person,  corporate  body,  trade  union  or  an 
agent  towards  this  Act  shall  be  liable  and  convicted  for  any  penalty  as 
listed in Table 2.7: 
 

Table 2.7: Liability for Offences of OSHA 1994

Section Penalty for Offence

Section 15, 16, 17 or 18  A fine not exceeding RM50,000.00 or to imprisonment for a
term not exceeding 2 years or both

Section 20 or 21  A fine not exceeding RM20,000.00 or to imprisonment for a
term not exceeding 2 years or both

Section 48  A fine not exceeding RM50,000.00 or to imprisonment for a
term not exceeding 5 years or both

 Further fine of RM500.00 each day during which the
offence continues.

Source: Occupational Safety and Health Act (1994)

2.7 THE DEPARTMENT OF OCCUPATIONAL
SAFETY AND HEALTH, MINISTRY OF
HUMAN RESOURCES

The Department of Occupational Safety and Health (DOSH) is a department
under the Ministry of Human Resources, Malaysia. This department is
responsible for administering, managing and enforcing legislation related to OSH
in Malaysia with the vision of protecting and ensuring the safety, health and
welfare of people at work from accidents and hazards arising from activities
from manufacturing to retail trade sectors. DOSH has established work
procedures according to International Standards Organization (ISO) standard for
formulating standards such as Acts, regulations, industry of practice, order and
guidelines.

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The main functions of DOSH are (Department of Safety and Health, 2016):

(a) To study and review the policies and legislations of occupational safety and
health;

(b) To enforce the following legislations:
(i) Occupational Safety and Health Act 1994 and its regulations;
(ii) Factories and Machinery Act 1967 and its regulations; and
(iii) Part of Petroleum Act 1984 (Safety Measures) and its regulations.

(c) To conduct research and technical analysis on issues related to OSH at the
workplace;

(d) To carry out promotional and publicity programmes to employers, workers
and the general public to foster and increase the awareness of occupational
safety and health; and

(e) To become a secretariat for the National Council regarding occupational
safety and health.

ACTIVITY 2.3

1. What are the employerÊs duties according to OSHA 1994?
2. Name other government agencies that are involved directly or

indirectly towards occupational safety and health.

2.8 NATIONAL INSTITUTION OF
OCCUPATIONAL SAFETY AND HEALTH
(NIOSH)

The On 1 December 1992, the National Institute of Occupational Safety and
Health (NIOSH) was established as a Company Limited by Guarantee under the
Malaysian Companies Act 1965. The vision of NIOSH is to be the centre of
excellence in OSH in Malaysia by providing training, consultation, and to
disseminate information to the industries. NIOSH also conducts research and
development in the field of occupational safety and health.

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As stipulated in the Memorandum and Articles of Association, the objectives of
NIOSH are(National Insitute of Occupational Safety and Health, 2016):
(a) To contribute towards efforts in upgrading occupational safety and health

through developing curriculum and training programmes for the workers
and employers and those who are responsible, either directly or indirectly
for OSH;
(b) To assist industry, commerce and others in solving problems related to
occupational safety and health;
(c) To assist those who are responsible for occupational safety and health with
the latest information in the field of OSH in the country and overseas;
(d) To conduct short-term and long-term research in occupational safety and
health related areas that will benefit and bring advantages to the country;
and
(e) To disseminate information on research findings and to become the centre
of reference in the field of occupational safety and health.

According to the Malaysian Department of Safety and Health (DOSH), the
history of OSH in Malaysia started since 124 years ago.

The history, role and development of DOSH can be explained in six eras from
Steam Boiler Safety Era (before 1914) to the Occupational Safety and Health
Master Plan Era (2009 onwards).

The Factories and Machinery Act 1967 (FMA 1967), Act 139, is applicable to
the safety, health and welfare of persons in factories and to the use of
machinery. The important provisions of this Act are with regard to
notification, registration and inspection as stipulated in FMA 1967.

Petroleum (Safety Measures) Act 1984, Act 302, is an act to consolidate laws
relating to safety in the transportation, storage and utilisation of petroleum
with regard to safety matters.

The Occupational Safety and Health Act 1994 administer the employeeÊs
safety, health and welfare in workplaces. Its purpose is to promote and
encourage the safety and health awareness among employees and also to
create organisations with effective safety and health measures.

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The Department of Occupational Safety and Health is responsible for
administering, managing and enforcing legislation related to OSH in
Malaysia.

National Institute of Occupational Safety and Health is to be the centre of
excellence in OSH in Malaysia by providing training, consultation, and to
disseminate information to the industries.

Department of Occupational Safety and Occupational Safety and Health Era
Health (DOSH)
Occupational Safety and Health
Economic growth Master Plan Era

Factories and Machinery Act 1967 (FMA Order
1967) OSH legislation
Petroleum (Safety Measures) Act 1984
Guidelines Registration
Regulation
Industrial Safety and Hygiene Era Safety, health and welfare
Steam Boiler Safety Era
Industrial Safety Era Storage
Transportation
Inspection Utilisation

Machinery Safety Era

Ministry of Human Resources

National Institute of Occupational Safety
And Health (NIOSH)

Occupational Safety and Health Act
1994 (OSHA 1994)

Aziz, N. H. A., & Yusof, A. A. (2015). The EmployerÊs Duties and Liabilities in
Commuting Accidents in Malaysia: Law and Management. Procedia Social
and Behavioral Sciences, 211(September), 796 802. http://doi.org/
10.1016/j.sbspro.2015.11.170

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TOPIC 2 LEGAL FRAMEWORK  57

Buranatrevedh, S. (2015). Occupational safety and health management among
five ASEAN Countries: Thailand, Indonesia, Malaysia, Philippines, and
Singapore. Journal of the Medical Association of Thailand, 98, S64 S69.

Department of Occupational Safety and Health. (2016, August 31). DOSH.
Retrieved from DOSH Profile: http://www.dosh.gov.my/index.php
/en/about-us/dosh-profile

Department of Occupational Safety and Health. (2006). Guidelines on
Occupational Safety and Health Act 1994 (ACT 514).

Factories and Machinery Act. Factories and Machinery Act 1967 (Act 139) (1970).
National Insitute of Occuptional Safety and Health. (2016, August 31). NIOSH.

Retrieved from Corporate Info: www.niosh.com.my
Occupational Safety and Health Act. Occupational Safety and Health Act 1994

(1994). http://doi.org/10.1017/CBO9781107415324.004
Petroleum (Safety Measures) Act. Petroleum (Safety Measures) Act 1984 (1984).

Malaysia.
Rampal, K. G., & Mohd Nizam, J. (2006). Developing regulations for occupational

exposures to health hazards in Malaysia. Regulatory Toxicology and
Pharmacology, 46(2), 131 135. http://doi.org/10.1016/j.yrtph.2006.01.013
Soehod, K. B., & Laxman, L. K. P. (2007). Law on Safety and Health in Malaysia.

Copyright © Open University Malaysia (OUM)

Topic  Risk

3 Management

LEARNING OUTCOMES

By the end of this topic, you should be able to:
1. Distinguish the differences between risk and hazard;
2. Discuss risk assessment;
3. Describe the types of risk assessment;
4. Examine hazard categories; and
5. Explain risk management monitoring and evaluation.

 INTRODUCTION

Risk management is the identification, assessment, and prioritisation of risks.
This is then followed by the coordination of economical application of resources
in order to minimise, monitor, and control the probability on the impact of
unfortunate events or to maximise the realisation of opportunities. Risks can
come from various sources including uncertainty in financial markets, threats
from project failures at any phase in project life-cycles, legal liabilities, credit risk,
accidents, natural causes, disasters or unpredictable events. Risk managementÊs
objective is to ensure that uncertainty does not prevent the endeavour from
reaching the business goals.

Based on The International Organization for Standardization (ISO), Principles of
Risk Management must:
(a) Create value;
(b) Be an integral part of organisational processes;
(c) Be part of the decision-making process;

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(d) Explicitly address uncertainty and assumptions;
(e) Be a systematic and structured process;
(f) Be based on the best available information;
(g) Be tailorable;
(h) Consider human factors;
(i) Be transparent and inclusive;
(j) Be dynamic, iterative and responsive to change;
(k) Be continuous improvement and enrichment; and
(l) Be periodically re-assessed.

We will discuss all these issues and much more. So let us get started!

ACTIVITY 3.1

Visit https://hbr.org/2012/06/managing-risks-a-new-framework for
additional information on managing risk framework.

3.1 RISK VERSUS HAZARD

The workplace is where people work and it is where many economic, and other,
benefits are generated. It is also considered the next most important social place
other than home. Occupational safety and health is a category of management
responsibility to ensure the safety and health of the people that work in the
workplace. When there are many people, equipment, furniture in the workplace,
there are a wide array of workplace hazards present. All these hazards will
present risks to the safety and health of the people who work at that place.

3.1.1 What is Risk?

Risk is defined as the chance or probability that a person will experience an
adverse health effect if exposed to any source of potential damage, harm or
adverse health effects (hazard). It is expressed as a probability or likelihood of
developing a disease or getting injured. The degree of risk is influenced by
various factors such as (see Figure 3.1):

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ACTIVITY 3.2

Watch https://www.youtube.com/watch?v=Cp_XEhexcDw for a brief
Introduction to Risk Management.

A hazard is any source that could result in potential destruction, harm, damage
or adverse health effects on something or someone under certain conditions. A
hazard that causes harm or adverse effects to individuals is known as health
effects. The hazard can cause damage to organisations as property or equipment
losses.

Workplace hazards can come from a wide range of sources that include, for
example, any substance, material, process or practice that has the ability to cause
harm or adverse health effect to a person under certain conditions (refer to Table
3.1).

Table 3.1: Examples of Hazards and Their Effects

Workplace Hazard Example of Hazard Example of Harm Caused

Equipment Knife Cut

Substance Benzene Leukaemia

Material Asbestos Mesothelioma

Source of Energy Electricity Shock, electrocution

Condition Wet floor Slips, falls

Process Welding Metal fume fever

Practice Hard rock mining Silicosis

Source: Adapted from Canadian Centre for Occupational Health and Safety

As shown in Table 3.1, workplace hazards also include situations that release
uncontrolled energy such as an object that could fall from a height (gravitational
energy), chemical reaction (chemical energy), the release of compressed gas or
steam (pressure; high temperature), entanglement of hair or clothing in rotating
equipment (kinetic energy), or contact with electrodes of a battery or capacitor
(electrical energy).

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A common way to classify hazards is by its category. Canadian Centre for
Occupational Health and Safety described those categories as (see Figure 3.2):

Figure 3.2: Categories of hazards
Source: Canadian Centre for Occupational Health and Safety
There is certain basic information that we need to know in order for us to
ascertain whether exposure to hazards in the workplace always causes injury,
illness or other adverse health effects. The information that we need to know are
(see Figure 3.3):

Figure 3.3: Certain basic information that we need to know in order for us to ascertain
whether exposure to hazards in the workplace always causes injury, illness or other

adverse health effects

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The effects of the hazard vary. The effect can be acute (the injury or harm can
occur as soon as a person comes in contact with the hazardous agent). Some
responses may be chronic (delayed). Sometimes, longer delays are possible such
as cancer can develop over 20 years or more after exposure to certain hazardous
agents.

ACTIVITY 3.3

Discuss your experiences in dealing with risks and hazards that you
have encountered in your work environment.

SELF-CHECK 3.1

1. What is the main difference between risk and hazard?
2. Can you think of other examples that distinguish risk and hazard?

3.2 RISK ASSESSMENT

One of the most important parts of a risk management plan involves selecting
appropriate controls or countermeasures to measure each risk. The risk
management plan should recommend appropriate and effective security controls
for managing the risks. A respectable risk management plan should contain a list
of actions and the person responsible for those actions.

3.2.1 What is Risk Assessment?

Risk assessment is the process to identify hazards, to analyse or evaluate the risk
associated with that hazard and to determine appropriate ways to eliminate or
control the hazard. In practical terms, a risk assessment is a thorough look at the
workplace to identify those things, situations, processes or any other elements
that may cause harm, particularly to people. After identification of the hazard
type is made, then the risk is assessed to measure how probable and severe the
risk is. With this information, the type of measures must be decided and should
be in place to effectively prevent or control the harm from happening.

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Risk assessments are very important as they form an integral part of a good
occupational health and safety management plan. They help to (see Figure 3.4):

Figure 3.4: Function of risk assessment
The aim of the risk assessment is to remove a hazard or reduce the level of its risk
by adding precautions or control measures, as necessary to provide a safer and
healthier workplace. A team of competent individuals with experience and good
knowledge of the working environment should be the one who does the risk
assessment. Anybody who has any involvement with the working place should
participate in the assessment. Staff should always be involved and that includes
supervisors and workers who work with the process under review as they are the
most familiar with the operation.
In general, to do a risk assessment, the following steps need to be observed:
(a) Identify the hazard types;
(b) Evaluate the probability of an injury or illness occurring;

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(c) Assess the hazardÊs severity;
(d) Consider normal operational situations as well as non-standard events

(shutdowns, power outages, emergencies and etc.);
(e) Review all available health and safety information about the hazard in the

manufacturerÊs literature and all publicly available information;
(f) Identify actions necessary to eliminate or control the risk;
(g) Monitor and evaluate to confirm the risk is controlled; and
(h) Keep any documentation or records that may be necessary detailing the

process used to assess the risk, outlining any evaluations, or detailing how
conclusions were made.

When doing the risk assessment, the following must be taken into consideration:
(a) The methods and procedures used in the processing, use, handling or

storage of the substance;
(b) The actual and the potential exposure of workers; and
(c) The measures and procedures necessary to control such exposure by means

of engineering controls, work practices, and hygiene practices and facilities.

The employer and the joint health and safety committee then can decide whether
a control programme is required after determining the level of risk associated
with the hazard. It is important to remember that the assessment must take into
account not only the current state of the workplace but any potential situations as
well.

ACTIVITY 3.4

1. Construct a detailed risk assessment plan based on your working
environment.

2. Evaluate your classmateÊs risk assessment plan.

3.2.2 Risk Options

ISO 31000 guideline for risk management (principles and guidelines on
implementation) specifies that the process of risk management must consists of
several steps (see Figure 3.5):

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Figure 3.5: The process of risk management
Source: ISO 31000

Now, let us look into the details of each process.
(a) Establishing the context

This involves:
(i) Identification of risk in a selected domain of interest;
(ii) Planning the remainder of the process;
(iii) Mapping out the following:

 The social scope of risk management;
 The identity and objectives of stakeholders;
 The basis upon which risks will be evaluated; and
 The underlying constraints.
(iv) Defining a framework for the activity and an agenda for
identification;
(v) Developing an analysis of risks involved in the process;
(vi) Mitigation or solution of risks using available technology; and
(vii) Human and organisational resources.

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(b) Identification
The next step in the process of managing risk is to detect potential risks.
Risks are about events that, when triggered, cause problems or benefits.
Risk identification can start with the source of the problems or with the
problem itself. Risk sources may be internal or external to the system that is
the target of risk management. Problem analysis states that risks are related
to the identified threats. The threats may exist with various entities, most
important with shareholders, customers and legislative bodies such as the
government.

The method of identifying risks may depend on culture, industry practice
and compliance. The identification methods are formed by the
development of templates for identifying source, problem or event.
Common risk identification methods are:

(i) Objectives-based risk identification ă Organisations and project teams
have their own objectives to be achieved. Therefore, any event that
may endanger achieving an objective partly or completely is
identified as risk;

(ii) Scenario-based risk identification ă Different scenarios are created in
scenario analysis. The scenarios may be the alternative ways to
achieve an objective. Any event that triggers an undesired scenario
alternative is identified as risk;

(iii) Taxonomy-based risk identification ă Taxonomy-based risk
identification is a breakdown of possible risk sources. Based on the
taxonomy and knowledge of best practices, a questionnaire is
compiled and the answers to the questions will reveal potential risks;

(iv) Common-risk checking ă In several matured industries, lists with
known risks are available. Each risk in the list can be checked for
application to a particular situation; and

(v) Risk charting ă This method combines the above approaches by
listing resources at risk, threats to those resources, modifying factors
which may increase or decrease the risk and consequences it is wished
to avoid.

(c) Assessment
Once risks have been identified, the risk must then be assessed to ascertain
their potential impact, severity and to the probability of occurrence. These
quantities can be either simple to measure or impossible to know for sure.
Therefore, in the assessment process, it is critical to make the best-educated

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decisions in order to properly prioritise the implementation of the risk
management plan.

The main difficulty in risk assessment is determining the rate of occurrence
because statistical information is not available on all kinds of past incidents.
Hence, evaluating the severity of the impact is often quite difficult for
intangible assets. Thus, best-educated opinions and available statistics are
the primary sources of information. Risk assessment should produce such
information for senior management of the organisation that the primary
risks are easy to understand and that the risk management decisions may
be prioritised within overall company goals.

(d) Implementation
The step after completion of the risk assessment phase is the
implementation phase, which consists of preparing a Risk Treatment Plan.
The plan should document the decisions about how each of the identified
risks should be handled. Mitigation of risks often means selection of
security controls, which should be documented to identify which particular
control objectives and controls from the standard have been selected and
why. Implementation phase follows all of the planned methods for
mitigating the effect of the risks.

(e) Review and evaluation of the plan
Risk management plans will never be perfect. It is important to
continuously practice and experience the actual loss. The results will
necessitate changes in the plan and the information provided allows for
possible different decisions to be made in dealing with the risks being
faced. Risk analysis results and management plans should be updated
periodically. There are two primary reasons for this:

(i) To evaluate whether the previously selected security controls are still
applicable and effective; and

(ii) To evaluate the possible risk level changes in the business
environment. For example, information risks are a good example of
the ever rapidly changing business environment.

ACTIVITY 3.5

View the video on Developing a Risk Management Plan at
https://www.youtube.com/watch?v=bP9oGXlMX8M

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SELF-CHECK 3.2

1. Compare the five risk management processes against risk
management process in your organisation setting.

2. Discuss which risk management process is the most difficult to
implement.

3.2.3 Potential Risk Treatment

In this subtopic, we will look into the potential risk treatment. Strategies to
manage threats usually include (see Figure 3.6):

Figure 3.6: Strategies to manage threats

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Now, let us look into the description of each strategy.

(a) Risk avoidanceî– avoiding the threat by eliminating, withdrawing from, or
not becoming involved.

Risk avoidance is not to perform an activity that could carry risk. Risk
avoidance may seem to be the answer to all risks, but by not taking the risks
may also mean losing out on the potential gain the risk may have allowed if
the risk is accepted. Risk avoidance measures are usually expressed
according to one or more of the following major risk options, which are:

(i) Design a new process with adequate built-in risk control and
containment measures from the start;

(ii) Periodically re-assess risks that are accepted in ongoing processes as a
normal feature of the operations and modify mitigation measures;

(iii) Transfer risks to an external agency; and

(iv) Avoid risks altogether.

(b) Risk reductionî– reducing or mitigating the negative effect of the threat.

Risk reduction involves reducing the severity of the loss or the likelihood of
the loss from occurring. Acknowledging that risks can be positive or
negative, optimising risks means finding a balance between negative risk
and the benefit of the operation or activity; and between risk reduction and
effort applied. Modern software development methodologies reduce risk by
developing and delivering software incrementally. Early methodologies
suffered from the fact that they only delivered software in the final phase of
development; any problems encountered in earlier phases meant costly
rework and often jeopardised the whole project. Outsourcing could be an
example of risk reduction if the outsourcer can demonstrate higher
capability at managing or reducing risks. This way, the company can
concentrate more on business development without having to worry as
much about the manufacturing process, managing the development team,
or finding a physical location for a call centre.

(c) Risk sharingî– transferring all or part of the threat to another party.

Risk sharing is to share with another party the burden of loss or the benefit
of gain, from a risk, and the measures to reduce a risk. The term risk
transfer is often used in place of risk sharing in the mistaken belief that you
can transfer a risk to a third party through insurance or outsourcing. In
practice, if the insurance company or contractor go bankrupt or end up in

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court, the original risk is likely to still revert to the first party. Technically,
the buyer of the contract generally retains legal responsibility for the losses
that was transferred, meaning that insurance may be described more
accurately as a post-event compensatory mechanism.

(d) Risk retentionî– retaining and accepting some or all of the potential
consequences of a particular threat.

Risk retention involves accepting the loss, or benefit of gain, from a risk
when it occurs. Risk retention is a viable strategy for small risks. All risks
that cannot be avoided or transferred are retained by default. This includes
risks that are so large or catastrophic that they either cannot be transferred.
Any amount of potential loss from the risk over the amount of risk
transferred is retained risk. This may also be acceptable if the chance of a
very large loss is small or if the cost to transfer the risk is so great it would
hinder the goals of the organisation too much.

ACTIVITY 3.6

Elaborate the main strategy that your organisation uses the most in
managing threats.

SELF-CHECK 3.3

1. What are the strategies to manage threats?

2. Give examples for each of the strategies.

3.3 TYPES OF RISK ASSESSMENT:
QUANTITATIVE AND QUALITATIVE

Risk assessment types could be divided into either quantitative or qualitative
estimates. Quantitative risk assessment involves calculations of two components
of risk which are the magnitude of the potential loss and the probability that the
loss will occur. An acceptable risk is a risk that is understood and tolerated
usually because the cost or difficulty of implementing an effective
countermeasure for the associated vulnerability exceeds the expectation of loss.
Qualitative risk assessment is, on the other hand, a very straightforward process
based on judgement requiring no specialist skills or complicated techniques.

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It is important to know if the risk assessment is complete and accurate. It is also
essential to be sure those changes in the workplace have not introduced new
hazards or changed hazards that were once ranked as lower priority to a higher
priority.
The risk assessment review should be done on a regular basis. This is to ensure
that the assessment procedure is maintained and nothing has changed. It is also
necessary to confirm that your control methods are effective. However, triggers
for a review of the risk assessment can also include (see Figure 3.7):

Figure 3.7: Triggers for a review of the risk assessment
It is very important to keep records of the assessment done and any control actions
taken. The assessment documentation is required to be stored for a specific number
of years. The level of documentation or record keeping will depend on:

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Figure 3.8: Factors in Determining the Level of Documentation or Record Keeping
Assessment records should show that an organisation has:
(a) Conducted a good hazard review;
(b) Determined the risks of those hazards;
(c) Implemented control measures suitable for the risk; and
(d) Reviewed and monitored all hazards in the workplace.

ACTIVITY 3.7

Search for a sample of assessment records on the Internet and discuss
the contents of the record.

SELF-CHECK 3.3

1. Why is assessment record important?
2. Identify what are the triggers to review the assessment plan.

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3.4 CATEGORIES OF HAZARD

Hazards could be classified by category as shown in Figure 3.9:

Figure 3.9: Categories of hazards

Hazards can also be categorised based on their nature as shown in Table 3.2:

Table 3.2: Examples of Hazards Based on their Nature

Hazard Example
Physical hazards
• Slippery floors
Ergonomic hazards • Loose cables
 Objects protruding
Psychological hazards
• Lifting heavy objects
Environmental hazards • Stretching the body
 Poor desk seating
Hazardous substances
Biological hazards • Inadequate heights
• Expose to loud sounds
 Bright lights

• Extreme room temperature
• Ventilation of contaminated air
 Some office plants acids

 Alkalis Solvents

• Hepatitis B
 New strain influenza

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Table 3.3 shows the common hazards that exist in the workplace.

Table 3.3: Hazards that Exist in Workplace

Workplace Hazard Effect on Human Health

Chemical Effects on central nervous system, lungs, digestive system,
circulatory system, skin, reproductive system. Short-term
(acute) effects such as burns, rashes, irritation, feeling unwell,
coma and or even death. The effects could be a long-term
(chronic) effects such as carcinogenic (cancer), dermatitis of the
skin, and occupational asthma and lung damage.

Noise Extreme levels of industrial noise will cause irritation in the
short term and industrial deafness in the long term.

Temperature Personal comfort is best between 21ĈC and 26ĈC. Working
outside these temperature ranges may lead to becoming chilled,
even hypothermia (deep body cooling) in the colder
temperatures, and may lead to dehydration, cramps, heat
exhaustion, and hyperthermia (heat stroke) in the warmer
temperatures.

High energy sources Explosions, high-pressure gases, liquids and dust, fires,
electricity and sources such as lasers can all have serious effects
on the body, even death.

Vibration Vibration can affect the human body in the hand and arm and
the whole body with motion sickness, giddiness, damage to
bones and audits, blood pressure and nervous system problems.

Radiation Radiation can have serious health effects such as skin cancer,
various types of cancers, sterility, birth deformities, blood
changes, skin burns and eye damage.

Physical Excessive effort, poor posture and repetition can all lead to
muscular pain, tendon damage and deterioration to bones and
related structures

Psychological Stress, anxiety, tiredness, poor concentration, headaches, back
pain and heart disease can be the health effects

Biological More common in the health, food and agricultural industries.
Effects such as infectious disease, rashes and allergic response.

Source: Adapted from Fortress Learning (2016)

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Table 3.4 shows the steps to manage hazards.

Table 3.4: Steps to Managing Hazards

Steps Roles And Responsibilities

Step 1  The responsibility of the organisations.

Codes of practice, policies  Must be compliant with the various Acts and
and procedures Regulations.

 Should involve employees on a cooperative basis.

Step 2  The responsibility of the organisations.
 Written in cooperation with employees.
Workplace method  Must be compliant with various Acts and Regulations.
statements

Step 3  Initiated by the organisation with the cooperation of
Work-safe instructions employees.

 Must be compliant with the various Acts and
Regulations.

 Must be followed by employees.

Step 4  Provided by the organisation.

Wearing of protective  Must be compliant with the various Acts and
clothing or equipment Regulations.

 Must be worn by employees as directed by management

Step 5 Senior management must:

Hazard and risk  Ensure that legislative requirements are complied with.
management
 Provide adequate funding for implementing safe
workplace strategies.

 Work in cooperation with others to provide a safe
workplace.

 Liaise with relevant personnel such as union's
supervisors and regulators.

Employees must:

 Observe established safe work practices and procedures.

 Be involved in the identification of various substances or
chemicals.

 Be proactive in meetings and other communication
opportunities.

 Report any situation that involves risk or hazard to the
appropriate person.

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76  TOPIC 3 RISK MANAGEMENT

Step 6  Accident or incident report must be prepared based on
workplace checklist
Incident or accident
report  Management to inspect the accident or incident area

 Management must evaluate the outcome of the
investigation and makes recommendations.

 The report tabulates inspection findings which include
employee input and enables management to determine
appropriate action.

Hazards are ranked to describe their probability of occurrence and their
impact on population, property and the economy. The factors that influence the
ranking are:

(a) Probability of Occurrence
The probability of occurrence is an estimate of how often a hazard
event occurs. A review of historic events assists with this determination.
Each hazard of concern is rated in accordance with the numerical ratings
and definitions.

(b) Impact
The impact of each hazard is considered in three categories: impact
on population, property and economy. An impact rating of high, medium,
or low is assigned with a corresponding numeric value for each
hazard of concern. A weighting factor is also assigned to each impact
category in order to put the emphasis on certain impact category compared
to other impact category.

(c) Risk Ranking Value
The risk ranking for each hazard is then calculated by multiplying the
numerical value for the probability of occurrence by the sum of the
numerical values for impact. Based on the total for each hazard, a priority
ranking is assigned to each hazard of concern (high, medium, or low).

ACTIVITY 3.8

1. Determine the types of hazards that will disrupt your
organisationÊs operations.

2. Estimate the extent of the disruption caused by the hazard that
you have identified in Question 1.

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TOPIC 3 RISK MANAGEMENT  77

SELF-CHECK 3.5

1. Determine how the ranking of each hazard is calculated.
2. Discuss the steps in managing hazards as suggested in this topic.

3.5 MONITORING AND EVALUATION

Monitoring takes place at all levels of management actions and is a continuous
assessment. Monitoring uses both formal reporting and informal
communications. It involves accumulating information that will help answer
questions about project effectiveness. It is important that this information is
collected and reported in a planned, organised and routine way. Monitoring and
evaluation are integral parts of the risk management decision-making process.
However, in most developing countries, it is often the weakest link in the whole
risk management process.

Monitoring information is collected periodically such as daily, monthly or
quarterly. The information collected may answer questions such as:
(a) How well are we doing?
(b) Are we doing the right things? and
(c) Are we making any difference?

The information collected during the monitoring process could be used to
review:
(a) Whether resources are being mobilised and utilised;
(b) Whether activities are being undertaken; and
(c) Whether the intended outputs and outcomes are being achieved.

Evaluation is a systematic and objective assessment of the design,
implementation and outcome of an on-going or completed intervention. There
are two main purposes of evaluation: (a) To improve future risk management
policy and interventions through feedback of lessons learned; and (b) To provide
a basis for accountability. There are various types of evaluations (see Table 3.5):

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78  TOPIC 3 RISK MANAGEMENT

Table 3.5: Various Types of Evaluations

Types of Evaluation Description
Project evaluations
 The most common evaluation type. The evaluation is
Programme evaluations based on fixed, clearly defined objectives with relevant
Sectoral evaluations and measurable indicators.
Thematic evaluations
Management  To have an effective evaluation, the monitoring data and
evaluations records of the changing circumstances are crucial.
Audits
Reviews  Become more common with the planned shift away from
individual project towards programme approach.

 Look at issues relating to policy and management of
various steps in project life cycle.

 Focus on issues such as participation, gender or cost
effectiveness

 Assesses organisational structure, policy and behaviour
in order to propose improvements in the performance of
organisations.

 Checks the conformity of the procedures, norms and
criteria which were established for the project.

 Usually done mid-way between monitoring and
evaluation since reviews involve a fresh look at the
objectives, design and performance of a project.

3.5.1 Benefits of Monitoring and Evaluation

Among the benefits of monitoring and evaluation are to help quantify the
programme goals and sub-goals:

(a) Whether the actions were implemented as planned;

(b) Whether assumptions made during identification of the problem and its
context were correct;

(c) Whether the actions have resulted in risk reductions; and

(d) Whether new information has emerged that requires modification to the
risk management plan.

Monitoring and evaluation also inspire fresh thinking within organisations and
their contacts with external stakeholders. The demand for rigorous and evidence-
based evaluations is rising since more and more emphasis is directed at results
orientation. Stakeholders want to know if a project has spent its money

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TOPIC 3 RISK MANAGEMENT  79

appropriately and desired outcomes have been achieved. Monitoring and an
evaluation help to address questions such as:
(a) Has the project been successful?
(b) How have resources been spent? and
(c) Should the project continue?

3.5.2 Key Issues to Address in an Evaluation

Defining the key issues to be addressed is central in all evaluation work. The
following are usually the basic questions to be asked:
(a) Relevance ă are the results, purpose and overall objectives of the project are

in line with the needs, priorities and aspirations of the beneficiaries as well
with the policy?
(b) Impact ă is there any change towards the achievement of the overall goals
as a consequence of the achievement of the action either intended and
unintended impacts?
(c) Efficiency ăî how efficient have the various inputs been converted into
outputs and results?
(d) Effectiveness ă how big the programmeÊs impacts contributed to achieving
its specific and general objectives?
(e) Utility ă how do the programmeÊs impacts fulfil the needs of the target
population?
(f) Sustainability ă how long and to what extent the positive changes can be
expected to last after the programme has been completed?

ACTIVITY 3.9

Please view Linking Monitoring and Evaluation to Impact Evaluation
at https://www.youtube.com/watch?v=EDEwVmZiGpM

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80  TOPIC 3 RISK MANAGEMENT

SELF-CHECK 3.6

1. Explain why monitoring and evaluation is a crucial element in
managementÊs actions.

2. Discuss the different types of evaluations.

 Risk Management is the identification, assessment and prioritisation of risks.

 Risks can come from various sources and at any phase of life-cycle.

 Risk is the probability of an adverse effect whereas hazard is any source of
potential adverse effects.

 Hazards could be identified based on categories such as biological, chemical,
ergonomic, psychological, environmental and physical or safety.

 The process of risk management consists of establishing the context,
identification, assessment, implementation and review and evaluation.

 Strategies to manage threats are avoidance, reduction, sharing and retention.

Ć Even though monitoring and evaluation are the integral parts of the risk
management decision-making process, it is often the weakest link in the
whole risk management process.

Chemical Energy Kinetic Energy
Monitoring and Evaluation
Electrical Energy Risk Management
Risk Mitigation
Gravitational Energy The International Organisation for
Standardisation (ISO)
ISO 31000 ă Risk Management ă
Principles and Guidelines on
Implementation

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TOPIC 3 RISK MANAGEMENT  81

Alwi Saad. (2011). Occupational safety and health management. Penerbit USM.
Anton, T. J. (1989). Occupational safety and health management (2nd ed.). New

York, NY: McGraw-Hill, Inc.
Canadian Centre for Occupational Health and Safety (CCOHS). Retrieved

on 7 July 2016 from: https://www.ccohs.ca
Fortress Learning. Retrieved on 7 July 2016 from https://fortresslearning.

com.au/cert-iv-content/design/types-of- hazards/
ISO 31000 ă Risk Management. Retrieved on 7 July 2016 from http://www.

iso.org/iso/home/standards/iso31000.htm

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