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