RISK MANAGEMENT

AS APPLIED TO SECURITY, SAFETY AND SANITATION

Module 2. Risk Management

This module belongs to:

Compiled By:
_________________________
Gianina Nonieca P. Aquino _________________________
Instructor
 Course Objectives

At the end of this module, the students must be able to:

1. analyzing food safety risks and management;

2. assess risks in the food industry business;
3. describe the goal of food risk management in the society;
4. identify the elements of risk management;
5. list the general principles of food safety risk and management; and
6. manage operational risk.
Learning Outcomes
TOPIC 2

RISK MANAGEMENT

After the completion of the chapter, students will be able to:

1. Analyze food safety risk and management;
2. Assess risks in the food industry business;
3. Describe the goal of food risk management in the society;
4. Identify the elements of risk management; and
5. List the general principles of food safety and risk management.

Food safety risk analysis is an emerging discipline which serves as the

methodological basis for assessing and managing risks associated with food hazards is still in a
developing phase. Differentiating the definition of what a “hazard” and a “risk” is of utmost
significance. A hazard is a biological, chemical or physical agent in, or condition of, food with the
potential to cause harm. However, a risk is an estimate of the probability and severity of the
adverse health effects in exposed populations, consequential to hazards in food. Establishing
the correlation of food hazard reduction and consumers’ risk reduction of adverse health effects
should be taken into account in order to come up with appropriate food safety controls and
standards.

Risk analysis is widely recognized as the fundamental methodology underlying the

development of food safety standards. Risk analysis is composed of three separate but
integrated elements, namely: risk assessment, risk management and risk communication.

Risk Analysis starts by identifying and describing any hazards, problems or situations in
the facility and its food production process. Look for anything that could be a risk to human
health. To make this list of risks, use information from:

• Consumer feedback

• New scientific research/discovery

• Audit results

• Staff comments and inputs

 Potential risk factors might include the food processing operation, post-preparation
handling or even food safety practices in the consumers’ homes. The level of risk could also
relate to distributors and retailers’ handling, storage and processing practices in their respective
facilities. Consider the cause and effect relationship between the identified substance, agent or
event and how this might affect food integrity and safety.

RISK ASSESSMENT

The first step in risk analysis is risk assessment. This helps the facility to decide on the
level of risk for each hazard. It should provide complete information to allow the risk
management team to make the best possible decisions. Begin the risk assessment by
answering three basic questions:

1. What could go wrong?

2. How likely is the event going to happen?

3. What would be the outcome or impact if this event happened?

A risk assessment is never exact. The results of the risk assessment point toward
probable outcomes that describe the population risk (density, distribution, disease and/or death).

When to do a Risk Assessment

Ingredients, processes, consumers and other product factors are vital in deciding if a
formal risk assessment is needed. In general, does a risk assessment for products, processes
and activities result in an increase in a health risk? Do so for anything that could have a direct
effect on food safety. Examples might include:

• The use of new additives in the facility’s food products

• Facility changes that affect exposure and product safety

• Environmental changes at the facility that could affect product safety

• Changes to the process or facility that might affect the microbiological or chemical
safety of food supplies or the food supply chain

• Assess existing facilities, procedures and policies to improve existing risk prevention
Risk Assessment and HACCP

The Hazard Analysis Critical Control Point or commonly referred to as HACCP is

developed through an effective and efficient risk assessment. Hazard analysis, which is the first
principle of HACCP plan development, aims to focus on the hazards that might affect a food
product or raw ingredients in a processing operation. It includes collecting and evaluating
information on each hazard and looks at the conditions that may cause the hazard to be present
or to increase.

Once the facility decides that one or several hazards are present, do a food safety risk
assessment. This will help decide which hazards are great enough to affect food safety. These
must all be addressed by the HACCP plan.

The facility’s risk assessment should be based on the presence of the hazard, agent or
cause. It should also be based on how serious the hazard is, and how likely it is to reach
unacceptable levels. For example, the facility might come to the following conclusions:

• If an agent isn’t present in the raw materials, production lines, or environment, it may
be safe to assume that it is not a hazard

• If an agent is known to be in the facility’s environment, but it can’t contaminate the

product, it may be safe to assume that it’s not a hazard

• If the agent can contaminate the product, it may become a hazard

• If the agent can survive, stay or increase, it may become a hazard

This type of food safety risk assessment can often be done quickly. But sometimes the
issue may be large and complicated. It may involve major health concerns and in these
situations, the facility may need outside help.

RISK MANAGEMENT

Risk management was originally considered a separate part of risk analysis. However,
risk analysis experts now realize that risk assessment and risk management overlap. It is about
choosing the best way to reduce the risk.

The Goal of Food Risk Management

The primary goal of the management of risks associated with food is to protect public
health by controlling such risks as effectively as possible through the selection and
implementation of appropriate measures.
Elements of Risk Management

A. Risk Evaluation

• Identification of a food safety problem

• Establishment of a risk profile

• Ranking of the hazard for risk assessment and risk management priority

• Establishment of risk assessment policy for conduct of risk assessment

• Commissioning of risk assessment

• Consideration of risk assessment result

B. Risk Management Option Assessment

• Identification of available management options

• Selection of preferred management option, including consideration of an appropriate

safety standard

• Final management decision

C. Implementation of Management Decision

D. Monitoring and Review

• Assessment of effectiveness of measures taken

• Review risk management and/or assessment as necessary

The outcome of the risk evaluation process should be combined with the evaluation of
available risk management options in order to reach a decision on management of the risk. In
arriving at this decision, human health protection should be the primary consideration along with
other factors (e.g. economic costs, benefits, technical feasibility, risk perceptions etc.) being
deemed as appropriate. Implementation of the management decision should be followed by
monitoring both the effectiveness of the control measure and its impact and risk to the exposed
consumer population to ensure that the food safety objective is being met.
GENERAL PRINCIPLES OF FOOD SAFETY RISK MANAGEMENT

Principle 1. Risk management should follow a structured approach.

The elements of a structured approach to risk management are risk evaluation, risk
management option assessment, implementation of management decision and monitoring and
review. In certain circumstances, not all of these elements will be included in risk management
activities.

Principle 2. Protection of human health should be the primary consideration in risk management
decisions.

Decisions on acceptable levels of risk should be determined primarily by human health

considerations and arbitrary or unjustified differences in the risk levels should be avoided.
Consideration of other factors (e.g. economic costs, benefits, technical feasibility and societal
preferences) may be appropriate in some risk management contexts, particularly in the
determination of measures to be taken. These considerations should not be arbitrary and should
be made explicit.

Principle 3. Risk management decisions and practices should be transparent.

Risk management should include the identification and systematic documentation of all
elements of the risk management process including decision-making, so that the rationale is
transparent to all interested parties.

Principle 4. Determination of risk assessment policy should be included as a specific component

of risk management.

Risk assessment policy sets the guidelines for value judgements and policy choices
which may need to be applied at specific decision points in the risk assessment process and
preferably should be determined in advance of risk assessment, in collaboration with risk
assessors.

Principle 5. Risk management should ensure the scientific integrity of the risk assessment
process by maintaining the functional separation of risk management and risk assessment.

Functional separation of risk management and risk assessment serves to ensure the
scientific integrity of the risk assessment process and reduce any conflict of interest between
risk assessment and risk management. However, it is recognized that risk analysis is an
interactive process, and interactions between risk managers and risk assessors are essential for
practical application.
Principle 6. Risk management decisions should take into account the uncertainty in the output of
risk assessment.

The risk estimate should, wherever possible, include a numerical expression of

uncertainty, and this must be conveyed to risk managers in a readily understandable form, so
that the full implications of the range of uncertainty can be included in the decision-making. For
example, if the risk estimate is highly uncertain, the risk management decision might be more
conservative.

Principle 7. Risk management should include clear, interactive communication with consumers
and other interested parties in all aspects of the process.

Ongoing reciprocal communication among all interested parties is an integral part of the
risk management process. Risk communication is more than the dissemination of information,
and a major function is the process by which information and opinion essential to effective risk
management is incorporated into the decision.

Principle 8. Risk management should be a continuing process that takes into account all newly-
generated data in the evaluation and review of risk management decisions.

Subsequent to the application of a risk management decision, periodic evaluation of the

decision should be made to determine its effectiveness in meeting food safety objectives.
Monitoring and other activities will likely be necessary to carry out the review effectively.

RISK COMMUNICATION

Risk communication lets the facility identify and weigh options during the risk analysis
process. Open communication among all stakeholders will improve the overall risk
management. When the facility decides on a course of action, make sure that the decision and
the reasons for it are explained clearly to everyone involved. Risk communication is vital during
food safety emergencies. However, to help make sure the message stays constant and clear,
communication is also significant even when there is no crisis.
The main goals of risk communication are:
1. Promoting awareness and understanding of risks
2. Promoting consistency and clarity about the risk analysis process
3. Providing an understanding for risk management decisions
4. Strengthening good working relationships and promoting respect
5. Promoting appropriate involvement of all stakeholder groups
6. Exchanging information, knowledge, attitudes, practices and perceptions of those involved
INITIAL OPERATIONAL RISK PROCEDURE

*Please refer to the supplementary learning material provided from the WASEAN
Tourism Toolbox.
 References
Yeung, M. (2019). Edric Publishing House. Risk Management with HACCP
Hopkin, P. (2018). Fundamentals of Risk Management as Applied to Safety, Security and
Sanitation
Demidenko, E. and Sidorenko, A. (2017). Guide to Effective Risk Management 3.0
Field, M. (2017). Food Safety Management
3G E-Learning LLC (2017). Hospitality Insurance and Risk Management
Hickman A.. (2013). Maintain the Security of Premises and Property. Association of Southeast
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Hickman A.. (2012). Comply with Work Place Hygiene Procedures. Association of Southeast
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Hickman A.. (2012). Perform Basic First Aid Procedures. Association of Southeast Asian Nations
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