How do you decide if the level of risk is within acceptable limits?

• A. Have regard to the likelihood and severity of the injury or illness arising out of the risk
• B. Count the number of near misses only
• C. Only assess financial cost
• D. Based on operator mood

Answer: (A)

Determining whether risk is acceptable comes down to two things: how likely the hazard is to cause harm, and how bad the harm would be if it occurred. You compare that combined picture to the acceptable risk level set by regulations, standards, and your workplace policy (often using a risk matrix and the as low as reasonably practicable idea). So the decision rests on both probability and severity, not on just how often something seems to happen or on cost alone. Near misses are useful for learning, but counting them without considering the potential consequences doesn’t tell you if risk is acceptable. Focusing on financial cost ignores human harm, and mood has no bearing on actual risk. If the risk is above what’s acceptable, you implement controls to reduce either the likelihood or the severity and then reassess until it sits within acceptable limits.