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Risk Management Practices in the Fire Service January 2018

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Risk Management Practices in the Fire Service January 2018 Risk Management Practices in the Fire Service January 2018 Risk Management Practices in the Fire Service January 2018 Mission Statement We rovide nationa eadershi t foster a oli foundation for our fi re and emergency services stakeholders in prevention, preparedness and response. Table of Contents Preface ................................................................................................................................ vii Chapter 1: Overview .......................................................................................................... 1 Defining risk ...................................................................................................................... 1 Determining factors .................................................................................................. 1 Describing risk ........................................................................................................... 1 What is risk? ...................................................................................................................... 2 The probability of risk .............................................................................................. 2 Assessing risk ............................................................................................................ 2 Types of risk ...................................................................................................................... 2 Relative risk ................................................................................................................ 2 Insurance risk ............................................................................................................ 3 Probability, premiums and profits .......................................................................... 3 Three levels of risk management .................................................................................. 4 Risk management in the community ............................................................................ 5 Delivering fire control services to the community ............................................... 5 Risk management related missions ....................................................................... 5 Risk management related activities ....................................................................... 6 Organizational risk management .................................................................................. 7 Public and private risks — A comparison .............................................................. 7 Emergency response as an essential public service ............................................ 7 Operational risks ............................................................................................................. 8 Identification, evaluation and control .................................................................... 8 Operational risk management involves a higher level of risk ............................ 9 Planning to manage risk ................................................................................................. 9 Summary ........................................................................................................................... 9 Chapter 2: Organizational Risk Management................................................................ 11 Definitions and concepts ................................................................................................ 11 Risk .............................................................................................................................. 11 Management .............................................................................................................. 12 Exposure .................................................................................................................... 12 Risk management ..................................................................................................... 12 Fire department risk management — Its mission ...................................................... 13 Supporting the mission statement ......................................................................... 13 High risks require special attention ....................................................................... 14 Losses and loss control ................................................................................................... 14 Table of Contents i Delivering emergency services involves high-risk activities ............................... 14 Direct and indirect losses ........................................................................................ 15 Organizational risk management system .................................................................... 16 The role of a risk manager ....................................................................................... 16 Goals and objectives: The foundation of the system .......................................... 16 The steps in the process ................................................................................................. 17 The five principal risk management steps ................................................................... 17 Step 1: Identifying the risk ....................................................................................... 17 Step 2: Evaluating risk potential .............................................................................. 18 Step 3: Ranking and prioritizing risks ..................................................................... 19 Step 4: Determining and implementing control actions ..................................... 19 Predicted effect .................................................................................................. 20 Time required ..................................................................................................... 20 Time to results .................................................................................................... 20 Effort required .................................................................................................... 20 Associated costs ................................................................................................. 20 Insurance costs ................................................................................................... 20 Funding ................................................................................................................ 20 Cost/Benefit analysis ......................................................................................... 21 Options and categories of control measures ................................................. 23 Risk control categories ...................................................................................... 23 Step 5: Evaluating and revising actions and techniques ..................................... 24 Risk management is a system, not a solution ................................................ 24 Legal responsibility .......................................................................................................... 25 Statutory immunity .................................................................................................. 25 Responsibility to provide a safe and healthy workplace ..................................... 25 Acceptance of risk ..................................................................................................... 26 An Incident Commander must have responsibility with authority ................... 26 Protection from liability ........................................................................................... 27 Occupational safety and health regulations ......................................................... 27 Occupational Safety and Health Administration Plan states ....................... 27 Non-Occupational Safety and Health Administration Plan states .............. 27 A regulatory framework ........................................................................................... 28 Consensus standards ............................................................................................... 28 Documentation is essential ..................................................................................... 29 Specific areas of concern for the emergency service risk manager ......................... 29 Balancing risks at the scene of an incident ........................................................... 29 Why risk has to be managed even during nonemergency times ....................... 29 Summary ........................................................................................................................... 30 ii Risk Management Practices in the Fire Service Chapter 3: Operational Risk Management .................................................................... 31 Risk management and emergency response .............................................................. 31 Acceptance of risk ..................................................................................................... 32 Bravery in the face of risk ........................................................................................ 33 Today’s risk versus protection ................................................................................. 33 What is expected? ..................................................................................................... 33 The fundamental principle of occupational safety and health
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