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As within the risk management framework, risk assessment is central to an Operational Risk Management System. The ultimate goal of an Operational Risk Management System is to effectively manage risks and associated costs of occupational incidents through a “management‐lead” continual improvement process that involves its employees. This is evidenced in the ANSI/ASSP Z10.0‐2019 Occupational Health and Safety Management Systems standard and other management system standards and guidelines. For instance, the process of hazard analysis and risk assessment is a “required” core element in the following standards and guidelines:

 Occupational Safety and Health Administration’s (OSHA) Voluntary Protection Program (VPP)

 ANSI/ASSP/ISO 45001‐2018, Occupational Health and Safety Management Systems – Requirements and Guidance for Use

 ANSI/ASSP Z10.0‐2019, Occupational Health and Safety Management Systems

 BS OHSAS 18001‐2007, Occupational Health and Safety Management

 International Labor Office ILO‐OSH 2001 “Guidelines on Occupational Safety and Health Management Systems”

 ISO 14001‐2015, Environmental Management Systems – Requirements with Guidance for Use

Operational Risk Management Systems are based on a continual improvement process using the Plan, Do, Check, Act (PDCA) model promoted by Dr. Edwards Deming, known for his efforts in continuous improvement and quality initiatives. The OHSMS continual improvement process is illustrated in Figure 3.2.

Figure 3.2 The OHSMS Plan‐Do‐Check Act process.

The effectiveness of an Operational Risk Management System requires the continual identification, analysis, and evaluation of risks to understand their magnitude of loss, and potential of occurring, as well as adequacy of existing control measures and needed improvements within the organization. Therefore, the risk assessment process is crucial to understanding and managing risks to an acceptable level within an Operational Risk Management System.