Electrical Risk Management: The Basics

Electrical Risk Management: The Basics

Risk management is crucial in the workplace. We talk about risk here at Leaf every day and thought it would be valuable to go through some of the basics with you in this article. Hope it helps!

If you are looking for more information on risk associated with electrical safety programs specifically, please check out this article - Electrical Safety Programs - How to Create, Implement & Manage

 

Why Risk Management Matters?

Hazards are everywhere, whether we see it or not…

• A loose wire in the break room.
• A missing guardrail on a construction site.
• A mislabeled chemical bottle in a lab.
• Poor ergonomics at your desk.

These might seem like small oversights—until someone gets shocked, falls, is exposed to toxic chemicals, or develops chronic pain. 

Whether you work in an industrial plant, an office space, a construction site, a retail store, or a healthcare facility, one thing is certain: hazards lurk everywhere. Maybe you’ve seen the aftermath of workplace incidences or heard horror stories from colleagues.

Chances are, you’ve had safety training, earned certifications, or followed general safety procedures. But even with all that, it’s easy to overlook the basics of risk management. Often with experience, also comes complacency. 

So, what does solid risk management really involve? How do we move beyond checklists and compliance to create a truly safe work environment?

Let’s dive in.

 

The Process

In this article, we’ll walk you through the 6 core steps that make a solid risk management process:

1. Identify hazards through: hazard based assessment & task based assessment
2. Estimate the likelihood
3. Estimate the severity
4. Evaluate the risk
5. Determine and apply the proper control mechanisms
6. Monitor and review

But first a bit of background…

 

Background on Risk Assessment

Firstly, let’s define the difference between hazard and risk, as the terms are often confused. CSA Z462 F.1.2 and NFPA-70E Annex F.1.1 define risk and hazard as:

Analyzing and estimating the level of risk is a combination of the estimation of the likelihood of the occurrence of harm and the severity of that harm. Sources of risk are referred to as hazards.

In simple terms, risk is the combination of the severity and likelihood of a hazard occurring.

When it comes to workplace safety—especially in environments where electrical hazards are present—understanding how to assess risk is crucial. CSA Z462 and NFPA-70E Annex F both discuss two risk assessment approaches:

1. Hazard based risk assessment
2. Task based risk assessment

 

1. Hazard Based Risk Assessment

This approach begins with the hazard itself—such as exposed wiring, overloaded circuits, or ungrounded equipment. The focus is on identifying known hazards in the environment and evaluating the risks they pose, regardless of the specific task being performed.

This considers the larger scale picture, i.e. an industrial process or facility hazards. 

Example:

In an industrial setting, a hazard-based assessment might focus on the presence of electrical equipment, tripping and overhead hazards, or chemicals. This broad assessment would be useful to anyone within the facility. 

Best suited for:

• Known, persistent hazards
• Regulatory compliance checks
• Broader/Larger scale assessments

 

2. Task Based Risk Assessment

This approach begins with the task—like testing a live circuit or replacing a breaker. From there, it identifies potential hazards that could arise during the execution of that task, including electrical shock, arc flash, or equipment failure. These are referred to as task-hazard pairs.   

Example:

Before performing lockout/tagout on a motor control center, a worker may go through a pre-job booklet and identify all the possible hazards associated with each task. 
Best for:

• Constantly changing work environments
• Performing individual tasks
• Job safety analysis (JSA) and pre-task planning

Risk Assessment Methods

There are so many ways to assess risk. Some example methods include:    

• Brainstorming meetings
• Expert interviews
• Checklists
• Risk assessment matrices
• Risk registers
• Complex methods: Monte Carlo Simulation, Fault Tree Analysis, Sensitivity Analysis

The list goes on and on…

According to CSA Z462/NFPA-70E, the method(s) that you choose should be based on:

• The application (specific context)
• The desired outcome
• The skill level of the persons performing the assessment

Context and objective are key! Is the objective shock or arc flash protection? Are other employees permitted to enter the work area?

 

Step 1: Hazard Identification

Hazard identification is about spotting anything that could cause harm – to people, property, the environment, etc. It’s the first and most critical step in preventing incidents before they happen. 

Where Can I Find Information?

• Workplace inspections
• Job Safety Analysis (JSA)
• Incident and near-miss reports
• Employee feedback and observations
• Review of equipment manuals
• Review of Safety Datasheets (SDS)
• Review of Single Line Diagrams (SLD) -> Check out our SLD blog here. 
• Regulatory checklists and standards, i.e. CSA Z462

Helpful Tip: Encourage workers to think beyond the obvious. Ask:

• “What could go wrong?”
• “What has gone wrong before?”
• “Has anything changed since my last evaluation?”

Hazard identification isn’t just a box to check—it’s a mindset.

 

Step 2: Estimating likelihood

Once a hazard is identified, the next step is to determine how likely it is to cause harm. This information can be determined by analyzing historical data, consulting experts, using quantitative models, or applying qualitative scales such as “rare”, “likely” or “almost certain”. 

Factors That Influence Likelihood

• Frequency and duration of exposure
• Weather, lighting, noise, etc.
• Fatigue, training, distractions, complacency 
• Existing safety control mechanisms

Helpful Tip: Use historical data, incident reports, and worker experience to inform your estimates.

The more data and context you have, the more accurate your risk assessment will be.

 

Step 3: Estimating Severity

The next step is to assess how serious the consequences would be if the event did occur. This helps determine the overall level of risk which will be talked about in the next section. This guides the urgency of control measures. 

Helpful Tip: Always consider the worst-case scenario, not just the most likely one.

Factors That Influence Severity

• Type of hazard
• Exposure level and duration
• Vulnerability of the person, equipment or facility
• Potential for escalation

At this point in the brainstorm process, you may want to identify chain-reaction hazards, i.e. hazards that could cause other hazards. This may help you identify more hazards or increase the likelihood or severity.

Example: an arc flash from drilling into live conductors causing a fire. 

Even a rare event needs attention if the outcome could be fatal.

 

Step 4: Evaluate Risk

Now that you’ve estimated both the likelihood and severity of each hazard, it’s time to combine those two factors to determine the overall level of risk. This step helps you prioritize which hazards need immediate action and which can be managed over time.

This information can then be kept in a risk register for monitoring and reviewing. (below)

What Does It Mean to Evaluate Risk?

Risk evaluation is the process of comparing the estimated risk level against your organization’s risk criteria—usually defined in a risk matrix or policy. The goal is to decide whether the risk is:

• Acceptable (no further action needed)
• Tolerable with controls (monitor and manage)
• Unacceptable (requires immediate action)

How to Evaluate Risk?

Most organizations use a Risk Matrix to evaluate and prioritize risks. These matrices come in many forms, but the best ones are simple, practical and easy to understand. Keeping these matrices to a maximum of 5x5 is recommended to avoid unnecessary complexity while still conveying meaningful information.  

Because electrical hazards are more severe (shock and arc flash), you can simplify the assessment. Anything above a set threshold of shock or arc flash could potentially be life threatening; therefore, a simpler matrix can be used. A qualitative 2x2 risk matrix is more conservative, less cumbersome and very effective for evaluating electrical risk. It is also very effective for pre job planning.

Here's an example that is similar to the 2x2 risk assessment matrix recommended by CSA Z462 and NFPA-70E:

Additionally, here’s an example that is similar to the 5x5 risk assessment matrix from the NFPA-70E Handbook: 

 

NOTE: The risk matrix is a helpful tool but is subjective in nature. Different people may rate the same hazard differently depending on their experience and perspective. That’s why it’s important to involve multiple viewpoints and review regularly. 

Helpful Tip: Customize your matrix to reflect your organization’s risk tolerance and industry standards.

 

Step 5: Apply The Hierarchy of Controls

The hierarchy of controls is a method for determining the possible control measures given a hazard. The goal is to reduce or eliminate the hazard. Begin by starting with elimination, if that’s not possible move down the ladder. Once hazards are mitigated and controlled, update the “post-mitigation” section on the risk register to reflect the changes.

These numbers will be considered in decision making, and the “Pre-Mitigation” numbers as worst-case scenario. 

 

Helpful Tip: Always aim for the highest level of control possible. PPE only acts as the last line of defense. 

Consider:

• Are existing controls effective?
• Is the risk level acceptable under current conditions?
• What are the legal or regulatory implications?

 

Step 6: Monitor and Review

Now we’ve made it to the final step. Risk control isn’t a one-and-done task. Once controls are in place, they need to be monitored for effectiveness and reviewed regularly to ensure they’re still working as intended.

What to Monitor

1. Are the controls being followed?
2. Are they reducing the risk as expected?
3. Have any new hazards emerged?

When to Review

1. After an incident or near miss
2. When tasks, equipment, or environments change
3. On a regular schedule (weekly, monthly, quarterly…)

Helpful Tip: Involve workers in the review process—they often spot issues early.

Risk Register

A Risk Register is a database that maintains a list of hazards associated with a project, site or individual pieces of equipment. Its purpose is to keep a list for management to make decisions and keep workers safe. It also lists the mitigation actions for each identified hazard. It should be updated on a regular basis. 
 

 

The Importance of Continuous Education in Safety

Well, you’ve made it to the end. We hope this article has given you a basic understanding of risk management. Know anyone who could benefit from this blog? Use the share button to help make the workplace safer!

Safety isn’t a one-time effort – it’s an ongoing commitment.

That’s why continuous education is so important. The more informed your team is, the safer your workplace becomes. At Leaf, we understand that knowledge is the most powerful tool in building a strong safety culture. Our safety program is designed to keep your team up to date. Learn more here. 
 

 

 

 

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