How to Control Risk [5 Techniques]

With the record breaking and devastating wildfires in California, private fire protection services are becoming more visible. These services are offered by insurers, such as AIG and Chubb, to add an extra layer of protection to their high value insured properties. Much of the media seeks to vilify the “rich” for engaging in this practice. However, as any of us would, we merely use the tools at our disposal to reduce our exposure to loss.

BusinessDictionary.com defines risk as, “A probability or threat of damage, injury, liability, loss, or any other negative occurrence that is caused by external or internal vulnerabilities, and that may be avoided through preemptive action." This definition, as it applies to the insurance industry reads, “A situation where the probability of a variable (such as burning down of a building) is known but when a mode of occurrence or the actual value of the occurrence (whether the fire will occur at a particular property) is not.”

The most succinct definition of risk comes from NFPA 1250, “a measure of the probability and severity of adverse effects that result from an exposure to a hazard”.  NFPA 1250, Recommended Practice in Fire and Emergency Service Organization Risk Management, provides this definition of risk, and outlines risk managements plans and processes that should be implemented by fire departments.  Understanding that risk is an inherent part in our daily duties, there are five techniques that can be employed to manage or control this risk.

1. Exposure Avoidance
2. Loss Prevention
3. Loss Reduction
4. Segregation of Exposures
5. Contractual Transfer

Exposure Avoidance. This is risk control by simply opting out, and steering completely clear, of a particularly high hazard activity, event, or location.

Loss Prevention. This is the use of methods and measures to reduce the probability of a loss from occurring.  These can include inspections, audits, or training programs.

Loss Reduction. Theses are measures used to reduce severity of loss, even if engaging in a high risk activity. A good example would be the use of PPE when entering a structure fire. This would also include post-accident/loss activities, procedures, and processes.

Segregation of Exposures. This could also be a loss reduction tactic. This is accomplished by breaking large units into smaller ones, and distributing equipment and resources, throughout a large area. This reduces the likelihood of a total loss if all items, personnel, resources were to be located in a single area.

Contractual Transfer. This is the use of a formal insurance policy. This is affected by the transfer of responsibility from one entity to another.

These five methods of risk management are defined and outlined in NFPA 1250.  The insurance industry, however, would add one additional method to the list - retention.

Retention. This is when an organization acknowledges that there is a risk, and prepares for the loss (financially and physically) themselves. They are self-insured, which simply means that they control all the money, instead of an outside or third-party “insurance company”.

Making CRR Work for Your Department

"Firefighter" by Justin Hoffman

Since, 1830 when James Braidwood penned one of the earliest guides “on the causes of fires, and the means of preventing them”, fire departments have been practicing some form of community risk reduction. With the modern standards of NFPA 1730, NFPA 1452, and NFPA 1300, fire prevention organizations now have a reference tool and clear guidance on how to best conduct community risk reduction activities prevent fire, preserve life, and protect their communities.

Over the last few months, several posts have been published as a resource for CRR activities:

• Engaging Firefighters in Community Risk Reduction
• Conducting Home Visits
• Home Fire Extinguisher FAQ
• Preventing Fires in the Wildland/Urban Interface (WUI)

Presented below, as a sort-of  end cap to this series of posts, are some general tips and items to be considered before leaving the firehouse and engaging in CRR activities.

• Dress professionally in a uniform that clearly identifies you with your department
• Ensure a full supply of resources and handouts are available
• Work only in teams, of at least two people.
• Remember the primary goal of the CRR “mission” is to eliminate hazards to life and property. Be able to clearly articulate this to your community.

Risk Analysis for Emergency Communications

Emergency communication systems indicate the existence of an emergency and communicate the information necessary to protect life.  NFPA 72,  National Fire Alarm and Signaling Code , describes six different types of systems: one-way emergency communication system, distributed recipient mass notification system (DRMNS), in-building fire emergency voice/alarm communications system, in-building mass notification system, wide-area mass notification system, and two-way emergency communications system. Each of these types of systems are suitable for various structures, locations, and situations. Determining the right system for the right structure and application is a performance-based task that must rely on a risk analysis.

A thorough risk analysis will determine if a system is needed and what type should be installed. There are nine elements that a  risk analysis for mass notification systems must include.

Emergency response plan. Is there a written emergency response plan in place? If a current plan exists then the mass notification system can be designed to address the hazards presented in the plan.  If no plan exists, the a full risk analysis must be conducted.  Integrating and installing mass notification systems will require the development of an emergency response plan.  These plans are to be developed in accordance with NFPA 1600 and NFPA 1620.

Occupant load. The risk analysis should consider the amount of people that occupy a given structure or space.  This analysis must be based on the maximum occupant load of the entire structure, using the occupant load factor shown in Table 7.3.1.2 of NFPA 101, Life Safety Code.

Occupancy type. What is the occupancy classification of the structure?  What activities take place within the building?

Perceived peril. What factors would contribute to the harm of a building’s occupants?  What dangers or hazards exist? What are some obstacles to protection of life?

Building characteristics. What is the buildings function or purpose? What is the structures layout? What are normal operation conditions within the property? What systems and safety precautions are in place, or built into the structure?  Using a tool like the, S.C.O.P.E. worksheet can aid in this process.

Occupant behavior. How will certain design elements affect occupant behavior? Based on the building characteristics how will occupants behave in an emergency situation?  Are there systems and structures in place that would be detrimental to occupants based on their planned behavior?

Hazard development. At what rate will an event occur? Will storage, systems, or processes contribute to an increased rate of development? What could escalate an emergency incident?  Are there any systems in place to mitigate or decrease the rate of hazard development?

All-hazards approach.  All practical potential events should be considered in the risk analysis.  General categories of potential events include, natural hazards, human caused, and technological events.

Extent of notification. How many people and in what locations will need to be notified?  What will they need to be notified of? How extensive will the notification need to be? This will be different for each event and the risk analysis should outline the notification extent for each potential event identified.

Fire and emergency events require quick and decisive decision-making. Any emergency communication system should be designed to activate quickly and provide the most appropriate, clear, and concise information to the occupants.

How to Conduct a CRA

Chapter 5 of NFPA 1730 outlines the requirements for the conduct of a community risk assessment (CRA). The CRA is the tool that is used to determine the priorities and strategies of a the fire prevention organization.  The CRA can be conducted in 3 steps.

1. Gather Information
2. Analyze Data
3. Develop Strategy

Gather Information. NFPA 1730 describes seven content areas that should be assessed. These areas are:

1.)  Demographics - describes the composition of the communities population

2.)  Geographic overview - describes the physical features of the community

3.)  Building stock - describes occupancy types within the community

4.)  Fire experience -  describes the communities past fire experience(s)

5.)  Responses -  describes the types of calls for service

6.)  Hazards - describes the different types of hazards within a community

7.)  Economic profile - describes facilities and activities vital to the communities financial sustainability

See also: What's Your Facilities S.C.O.P.E? ; COAL WAS WEALTH

Analyze Data.  After the above information has been gathered, the data must be analyzed and evaluated. This analysis should be applied to identify specific risks the community is exposed to. NFPA 1730 recommends the use of a risk assessment matrix.  The matrix is a visual representation that classifies hazards based on probability and impact.  

Another type of risk assessment matrix prefer presents hazards and risk level in a numerical format. I have written extensively on, and utilized, this numerical assessment matrix format. Read more about this method at, Fire Risk FAQ and Conducting the 3 Step Risk Assessment. You can also take my free on-line course, Risk Assessment Workshop.

Develop Strategy.  After you have defined your community needs, and identified risks and hazards, a strategy for prevention and mitigation can be developed. This strategy is referred to as a community risk reduction (CRR) plan. The CRR outlines the programs and strategies that will be utilized to reduce, mitigate, or eliminate the risks posed to the community.  The CRR will be different for every community common elements include, existing building inspections, plan review, origin and cause investigations, and public education. 

See also: A Prevention Primer ; Establishing Fire Protection and Life Safety Objectives

It is essential that a CRA be conducted. It is only through this analysis that fire prevention organizations can be effective.  A valuable tool for assisting departments with the CRA is the on-line Community Risk Assessment Guide, created by Vision 20/20. This guide can be accessed at riskassessment.strategicfire.org.

TheCodeCoach.com has created an information page at nfpa1730.info.  This page provides links and resources related to NFPA 1730, Standard on Organization and Deployment of Fire Prevention Inspection and Code Enforcement, Plan Review, Investigation, and Public Education Operations.

What's your facilities S.C.O.P.E.?

Though I have conducted, and written about, extensive risk assessment processes, there are times and situations when a less extensive assessment may be more efficient. While our assessment process provides a detailed picture of a facility, sometimes an overhead, big picture, view is all that is needed.

Utilizing the S.C.O.P.E. acronym a facilities' features and risk can be quickly assessed.  The S.C.O.P.E. sheet is provides a one page overview of a particular building or structure.

Statement of activities

Provide a general narrative of the type of work and activities that are conducted within the structure or facility.

Construction type

Select the construction type as defined in NFPA 220.

Occupancy

Select the occupancy type and calculate the occupant load of the building.

Protection

This space identifies what fire protection and detection systems are in place.

Exposures

The section outlines what is located on the surrounding sides of the building being assessed that may be impacted by a fire. This should also take into account how a fire in an exposure would affect the building being assessed.

Download the S.C.O.P.E. assessment worksheet

Fire Risk FAQ

Q: What is risk?

A: Risk can be defined as the combination of the likelihood of an accident occurrence and severity of the potential consequences.

Q: What is a risk assessment?

A: What is the likelihood of a fire event occurring within this space? What degree of loss (life and property) would be expected?  What scale would this be measured on? How can we reduce the possibility of a fire occurrence, and eliminate the chance of any life or property loss?  This is the information that a fire risk assessment will present.

A fire risk assessment is a tool used to assess the fire risks pertaining to a building or other structure. The assessment identifies the risks and present and provides actions and recommendations to mitigate those risks.

Q: How can risk be mitigated?

A: The first step toward mitigation is awareness. Know what the risks are, specific to your facility.  Following that, there are 5 categories that can be examined or applied to reduce that risk.  These categories are:

1. Building construction type
2. Fire alarm systems
3. Fire suppression systems
4. Building upgrades
5. Water supply and reliability

Q: What areas of a facility pose the greatest risk?

A: When determining the areas of greatest risk we want to look at three factors:

1. Ignition sources - What systems or processes create situations in which they may cause a fire or fuel to be ignited? Some of these might include: hot work operation (welding, cutting, etc.), cooking, or open flame processes.
2. Fuel load - How much flammable and combustible materials are within the space? This can refer to the structure itself, stored items, or the buildings contents.
3. Occupant load - How many people can potentially fill this space?  How many people actually operate in the space?  Are exiting and egress components adequate?

Q: What are the impacts of fire?

A: The United States Fire Administration has identified five impacts of fire:

1. Economic impact - loss of production, loss of jobs, loss of organizational assets, increased insurance premiums
2. Organizational impact - low employee morale and high turn-over, life loss of organizational leaders
3. Legal impact - civil litigation and lawsuits, fines and fees
4. Psychological impact - traumatic experience to those involved and witness to the incident
5. Political impact - decreased property values, loss of respect within the community, increased regulation and regulatory oversight

Q: What are the critical components of a risk assessment?

A: The critical components of an assessment are the potential hazard factors and the risk reduction factors. The potential hazard factors are those items that pose the greatest risk of fire/life loss within a structure. The risk reduction factors are the items that can reduce the risk of fire/life loss.

Q: How is a risk assessment conducted?

A: We utilize a 3 step process to conduct risk assessments:

1. Site visit and completion of the risk assessment field checklist.
2. Input information into the digital pre-plan template.
3. Completion of the fire risk assessment score-sheet matrix.

My book, Risk Assessment Guide for Aviation Facilities, is a complete reference manual for understanding risk, conducting a risk assessment, and applying assessment results to mitigate fire loss.

For free risk assessment guides, resources, and information visit the website - www.AviationFireRisk.com.

Buy the Kindle edition.

Buy the Print edition.

Risk Assessment Guide - AVAILABLE NOW!

How do you know if your facility is at risk for fire loss? This guide will enable you to conduct a thorough fire risk assessment, and create a plan to mitigate those risks. This is your complete reference manual for understanding risk, conducting a risk assessment, and applying assessment findings to mitigate fire loss.

You will discover:

• The meaning of ‘risk’.
• The purpose, importance, and components of a risk assessment.
• How to conduct your own risk assessment.
• All the tools, resources, and references needed for the complete assessment process.

Mitigate fire risk at your facility.  This guide will show you how!

Available now from:

www.AviationFireRisk.com

Buy now - Kindle $9.99

Buy now - Print $14.99

Conducting the 3 Step Risk Assessment

Seeing the need for simple risk assessment process that could be conducted by individuals of any knowledge, skill, or ability level, we created our 3 step fire risk assessment process.  This system was developed after a thorough review of the types of assessments in place and recommended best practices.

Though the fire risk assessment is composed of many parts, the process can be broken down into 3 basic steps.

Step 1. Site visit and completion of the risk assessment field checklist. A site visit and walk-through will be conducted. You can utilize the risk assessment field checklist  tool that we have created. This checklist will guide you through the information needed to adequately assess your level of fire risk.

Step 2.  Input information into the digital pre-plan template.  The information gathered from the site visit, and risk assessment field checklist, can be input into our digital pre-plan template.  This template is designed so that the field checklist information can be organized into a neat, easy-to-read, format.  This allows the information to be quickly accessed and easily viewed when needed.

Step 3.  Completion of the fire risk assessment score-sheet matrix.  Utilizing the information gathered in Step 1 and its organization in Step 2, the structure can be given a numeric value that represents the level of fire risk present.

In conducting these 3 steps you can be provided with a clear picture of the structure, its fire protection and life safety systems and features, and any hazards present.

3 Step Risk Assessment from Aaron Johnson

All the tools and resources can be freely accessed from, www.AviationFireRisk.com.

Buy the Book:

Kindle edition

Print edition

Are you at risk?

How can you know if your facility is at risk of loss from fire? What features and processes are in place that decrease or enhance that risk?  What mitigations can be put into place to minimize the fire risk?

Risk can be defined as “the combination of the likelihood of an accident occurrence and the severity of the potential consequences”. A fire risk assessment is a direct assessment of the fire risks pertaining to a building or other structure.  By conducting a fire risk assessment the level of risk can be identified, specific hazards can be realized, and action can be taken to mitigate these risks.

When conducting a fire risk assessment you want to thoroughly examine your structure or facility.  Your examination should focus on identifying potential fire hazards (those items that contribute to increased fire/loss risk), and fire risk reduction factors (Items currently in place that reduce fire/loss risk).  

Potential fire hazards to be identified are:

1. Ignition sources present - Is there open flame in the area? Do hot work operations take place in the area? Is smoking allowed?  Do industrial process create their own ignition source?  Are their cooking facilities in the structure?
2. Fuel load present - Does the area contain a large amount of flammables or combustibles? Would the materials within the space contribute to excessive fire load? Are the interior finishes flammable? How are items stored and configured?
3. Occupant load - How many people can potentially occupy the space? How many people actually, regularly occupy the space? If a fire occurred, how many people would potentially be impacted?

There are five risk reduction factors that can reduce the risk of fire loss to a structure:

1. Building construction type - Construction types I, II, IV provide the greatest degree of fire and heat resistance. Construction types III, and V are the least resistive to fire. Related Post: Understanding Building Construction and Loads
2. Fire alarm systems - Fire alarm systems provide advanced notice of fire incident occurrence and can quickly contact emergency services.  To ensure the reliability of these systems, they must undergo regular inspection, testing, and maintenance. Related Post: Beginners Guide to Fire Alarm Systems
3. Fire suppression systems - Fire suppression systems are designed to control fires and keep them from growing to an unmanageable level.  These systems, to be effective when needed, must be regularly inspected, tested, and maintained. Additionally, these systems must be installed and appropriately engineered to appropriately protect the hazard that they are installed for.  Relate Post: Understanding Pre-Action Sprinkler Systems
4. Building upgrades - As structures age they can become more susceptible to fire risk.  As more is learned about building structure and systems, codes and standards are created and revised to make full use of the latest developments. Related Post: Aircraft Facility Fire Codes Index
5. Water supply and reliability - The successful extinguishment of a fire relies heavily on the water supply availability, and how quickly and easily that water can be accessed.  Related Post: How to Conduct Hydrant Flow Testing

Are your tenants, employees, and customers really safe, or are they truly at risk, with just a perception of safety?

My book, Risk Assessment Guide for Aviation Facilities, is a complete reference manual for understanding risk, conducting a risk assessment, and applying assessment results to mitigate fire loss.

For free risk assessment guides, resources, and information visit the website - www.AviationFireRisk.com.

Buy the Kindle edition.

Buy the Print edition.











Related posts:

• Conducting the 3 Step Risk Assessment
• The Risk Assessment Guide
• Fire Risk FAQ