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By Henry Uche , [email protected]
Risk management is increasingly becoming a global culture, transcending traditional sectors to influence nearly every area of human endeavor. In today’s volatile, uncertain, complex, and ambiguous (VUCA) environment, the world faces significant instability and uncertainty. Rising geopolitical tensions, inflation, ongoing conflicts, threats of global wars, climate change, partial deglobalisation, advances in AI, and strained supply chains are among the myriad concerns impacting organisational well-being, productivity, and safety.
In this interview, a risk management expert Dr. Ola Agboola, emphasises a proactive approach to navigating these challenges.
Understanding Dynamic of Risk Assessment
Organisations traditionally plan for known risks such as fires, cyber threats, floods, and potential break-ins. However, in an era of unpredictable and evolving threats, a more nuanced approach is needed. Dynamic Risk Management extends beyond the conventional two-dimensional threat assessment that evaluates risks based on likelihood and severity. It acknowledges that risks are interconnected and continuously changing.
Dynamic Risk Assessment (DRA) provides a practical framework for individuals, organizations, and nations to proactively identify, prepare for, and manage unforeseen challenges. This approach involves ongoing observation and analysis of high-risk or dynamic environments, enabling swift and informed decision-making. DRA incorporates both static and dynamic risk factors, ensuring a comprehensive and adaptable strategy for managing emerging threats.
Dynamic Risk Factors
They included but not limited to: Human factor, Environmental factor, Operational factor, Geopolitical upsets, Economic shifts (BRICS, ECOWAS fracture), Equipment or system malfunction E.g. CrowdStrike that affected Microsoft some weeks ago, Terrorism, Supply Chain Disruptions. e.g Houthis targeting the Suez Canal Route.
Implications
First, instead of occurring before an event, a DRA takes place in real time as a situation unfolds. Dynamic risk assessments identify the variables that could potentially change for a business or a nation. These variables could take a situation from good to worse. It is a proactive approach which aids in mitigating the likelihood of workplace accidents, injuries, losses and incidents resulting from unpredictable hazards.
Dynamic risk factors are constantly reviewed, not just when known changes happen, but routinely to capture unknown changes. Within a risk assessment it is essential to get a full understanding of the operations of an organization and developments in order to spot any changes and understand if these changes increase risks for the organization. A Dynamic Risk Assessment considers the impact of a potential risk on an organization alongside the likelihood of it happening both now and in the future.
A good illustration of DRA in action is a Driver’s Education. He is taught to continually scan the road for hazards, obstacles, and potentially situations – like – dangerous a tree branch blocking the road, potholes, or someone running a red light. This ongoing process of observing, analyzing, reacting, and reevaluating your surroundings is a form of dynamic risk assessment.
DRA identifies and quantitatively measures: Most probable risk scenarios; Severe but less likely scenarios; Cumulative organization effects on the; Most effective risk mitigation strategies based on the threats identified; Expected risk velocity or time to impact.
Who should carry out dynamic risk assessment?
Any job that puts workers in rapidly changing or unpredictable settings may present new dangers or threats. In these situations, a DRA can be extremely useful.
Dynamic Risk Assessment is indispensable in occupations, especially those whose environments are outside the employer’s control, the worker may be met with unpredictable hazards. Examples include social workers, delivery drivers, lone workers, and health care aides, etc.
Others are emergency services, healthcare, factories, construction, financial institutions, security, government, oil and gas, retail, education, and many more.
When should one use dynamic risks assessment?
Dynamic risk assessment takes into consideration risks within real-world contexts, accounting for variables that may not have been feasible to address in traditional risk assessments. It empowers individuals to delve deeper and remain prepared to evaluate novel scenarios as they unfold.
While regular risk assessments remain a crucial and legally mandated aspect of employment regulations, Dynamic Risk Assessments offer the advantage of swiftly analyzing situations, and taking necessary measures to ensure the safety of oneself and others.
Workers are encouraged to conduct dynamic risk assessments whenever circumstances, job roles, or environments undergo changes.
You need a DRA whenever you have to assess the level of risk for a situation quickly.These situations include using new equipment, working in a new environment, starting a new business line, working alone, or anywhere that could threaten safety or security.Most benefits of a dynamic risk assessment are realized when it becomes a continuous process of identifying and safeguarding changing circumstances.
A standard risk assessment is not always enough to manage today’s risks. Dynamic strategies focus on constantly finding new risks, figuring out how severe they are, taking action to stop them, and monitoring them. This makes it possible for an organization to quickly adjust to changing situations, seize opportunities, and avoid problems. Like driving, dynamic risk management is vigilance and decision-making.
More so, risk assessments should be reviewed regularly at an agreed frequency.Risk Assessments should identify potential risks. Risk assessments should not be undertaken in isolation. It must be conducted enterprise-wide. Risk Assessments should also be flexible, and updated whenever there is a change in circumstance for the business, organization or nation. Risk Assessments should consider the likelihood of any potential risks not just look at the current risks. Risk Assessments need to ‘think the unthinkable’ and plan for any potential change in the organization’s operation. As risks change over time practitioners need to avoid assumptions and seek supervision and support as part of the on-going risk assessment process.
Dynamic risk assessment flowchart
For employees to evaluate and mitigate risks effectively, they must analyze the environment, situation, tasks, and individuals at risk.Identifying the type, severity, and likelihood of potential risks.Choosing a system of work: a strategy, tactic, or task. Also, evaluating the safety of the selected system of work is key. Assessing whether the risks align with the benefits is important. Proceeding with the task or postponing it until additional safety measures are established and a safe system of work is achievable.
Communicating Dynamic Risk Assessment
Yes, Communication is vital for every organization, especially when employees are dispersed or often in the field. In dynamic situations where things change by the second, you need a technology that enables a quick response – such as with alerts, real-time data, and automated responses. Building a More Proactive, Risk-Informed Organization. In some situations, static risk management plans simply are not enough. A more proactive and adaptable approach for unforeseen events that erupt at a moment’s notice is needed.
Benefits of implementing dynamic risk assessment
By embracing dynamic risk management, you equip your workforce with the skills to assess situations in real time, identify potential dangers, and take decisive action.This approach fosters a safer work environment, promotes a culture of preparedness, and is indispensable for business continuity and resilience.Dynamic Risk Assessment makes it possible to adapt to unexpected disruptions and navigate uncertainty with confidence. It is the key to protecting your people, managing risk levels, minimizing downtime, and getting your business back on track faster.
By continuously evaluating changing conditions and hazards, dynamic risk assessments help maintain a safer working environment for employees.
Consistently conducting dynamic risk assessments permits companies to proactively manage risks and prevent accidents before they occur.
Adapting operational methods enables individuals to protect themselves and others from various risks effectively.
Dynamic risk assessment identifies situations deemed too hazardous to proceed, empowering personnel to make informed decisions.
Implementing dynamic risk assessments helps organizations meet regulatory requirements and demonstrate a commitment to workplace safety. Involving employees in dynamic risk assessment processes fosters a culture of safety and encourages active participation in risk management efforts.
Identification helps and mitigation of risks in real-time prevent workplace injuries and illnesses, ensuring the well-being of employees. Preventing accidents and injuries can help reduce costs associated with lost productivity, medical expenses, and insurance claims.
Through regular practice, employees conducting dynamic risk assessments gain proficiency in promptly monitoring, analyzing, and responding to risks and hazards in novel scenarios. Enhanced confidence and comfort in the workplace result from a reduced fear of potential dangers and risks.
Example of failed risk assessment case
A classical scenario of the failed assassination of President Donald J. Trump some weeks ago (excluding all conspiracies) points to the lack of Dynamic Risk Assessment by the United States Secret Service.
Advise
Dynamic Risk Assessment is a crucial practice for ensuring workplace safety and mitigating potential hazards in real-time. By continuously monitoring and analyzing changing environments, businesses can proactively identify risks and take immediate action to protect their employees and assets. With benefits including enhanced safety, improved decision-making, and regulatory compliance, dynamic risk assessment is essential for not only businesses, but everyone including nations.
