STP GUIDE TO

RISK ASSESSMENT 1.0

RISK ASSESSMENT
Conducting risk assessments forms an important part of the STP
Suppliers will be evaluated on their risk assessment as part of the Key Criteria for each Pillar
The same team/personnel should be used to conduct a risk assessment of all of the Criteria within a
single Pillar, to ensure that risk prioritisation has been approached in the same way
Where a Criteria is considered as not applicable the risk assessment should be used to help
demonstrate why this may be the case

This guide details the 5 step process that should be used to carry out a risk assessment of Criteria
within the STP:

1) Identify all risks that may arise from each Criteria, assuming no controls/remedial
actions have been applied:
Risks associated with each Criteria in each Pillar need to be included
The Criteria and Guidance within each Criteria should be considered when identifying
potential risks
What are the hazards? Who or what might be affected and how?

2) Estimate the risks identified:

Score the probability of the risk occurring, assuming no controls/remedial actions were in
place, on a 1-5 scale
Score the severity if the risk occurs, assuming no controls/remedial actions were in place, on
a 1-5 scale

INCREASING SEVERITY

Probability:
5- Very Likely
4 Likely
3 Fairly Likely
2 Unlikely
1 Very unlikely

INCREASING PROBABILITY

Severity:
5 Catastrophic
4 Major
3 Moderate
2 Minor
1 Insignificant

RISK ASSESSMENT
3) Evaluate the risks identified:
Multiply together: Probability x Severity = Priority Score
The priority score will enable a risk category to be identified (i.e. Unacceptable, Tolerable,
Adequate, Acceptable), assuming that no controls/remedial actions were in place.
Please note: while Unacceptable and Tolerable risks are referred to in the indicators under
each Risk Assessment Criteria, the wording may be interchangeable, provided the same principle
and the 5x5 matrix have been applied

INCREASING SEVERITY

Describe the remedial actions for each risk (prioritised by probability and severity)

INCREASING PROBABILITY

4) Implement and record remedial actions:

Make an individual accountable and set a deadline (remedial actions may be an ongoing
process)

5) Review the assessment regularly and update if necessary.

The Company should commit to review Risk Assessments annually or when a change occurs
to ensure that they continue to effectively address all current and new issues evidence of
this commitment should be available
Make sure all revisions of risk assessments are dated

RISK ASSESSMENT
To ensure these 5 steps have been covered, a supplier may consider formatting their risk assessment in a
tabulated format. An example of headings that should be included are detailed in the example below:
Assuming no controls/remedial
actions were in place

The assessments below are examples only to explain the methodology:

Example: F2.2 Dust in the Workplace
Date of Risk Assessment: 07/06/16
Pillar

Facility

G.P

F2.
Emissions in
the Work
Place

Criteria

F2.2 Dust in
the
Workplace

Date of Review: 07/12/16

Risk

Affected
Parties

Probability

Severity

Risk Level

PPE is not used

Employees

20
UNACCEPTABLE

Not complying
with regulatory
requirements

Business &
Employees

20
UNACCEPTABLE

Poor
engineering
causing dust
exposure

Facility Engineers &

Employees

12
TOLERABLE

No dust
capturing or
suppression
techniques

Facility Engineers &

Employees

12
TOLERABLE

Remedial Action

Target
Completion

Responsible

Probability

Severity

Risk Level

Employee training on PPE use (monthly

sessions)

Ongoing,
every month

H&S Manager

5
ADEQUATE

Implement improvements to meet

regulatory requirements

1 week

Facility Manager

5
ADEQUATE

Ongoing Engineering maintenance. All

mechanical improvements selected to
reduce dust emissions

6 months

Facility Manager

8
ADEQUATE

Introduce water suppression practices &

install dust extractors

3 months

H&S Manager

8
ADEQUATE

Assuming controls/remedial
actions are in place

RISK ASSESSMENT
Assuming no controls/remedial
actions were in place

Example: P2.1 Employment of Children on Farm

Date of Risk Assessment: 07/06/16

Date of Review: 07/12/16

Pillar

G.P

Criteria

Risk

Affected
Parties

Probability

Severity

Risk Level

People

P2. Child
Labour
on
Farms

P2.1.
Employment of
Children on
Farm

Farmers do not
know the age
of employees

Farmer,
Children

20
UNACCEPTABLE

Farmers are
not aware of
the law

Farmer,
Children

20
UNACCEPTABLE

Farmers are
using child
labour

Farmer,
Children

20
UNACCEPTABLE

Remedial Action

Target
Completion

Responsible

Probability

Severity

Risk Level

Age Verification checking of employee

ID

1 month

Field Technician

10
TOLERABLE

Farmer Training

1 month

Field Technician

5
ADEQUATE

Farmer Training, followed by Sanctions

(if no improvement)

1 month
(Training)
3 months
(Sanctions)

Field Technician

5
ADEQUATE

Assuming controls/remedial
actions are in place

In both of these examples, a supplier can demonstrate firstly what the risk would be if they were not
applying any controls/ remedial actions, then how any remedial actions can be applied to reduce the risk
level.