Note:

ISO 2002 Risk Formula is a fundamental equation in risk management that quantifies potential losses by considering both the likelihood and impact of adverse events. This formula enables organizations to prioritize risks based on their severity and probability, helping allocate resources effectively. It is widely used across industries for decision-making in safety planning, hazard assessment, and establishing risk thresholds. The approach aligns with international best practices for proactive risk mitigation and continuous improvement in safety performance.

Key Parameters:

• Probability (p) - Likelihood of an accident occurring (expressed as a value between 0 and 1, where 0 means impossible and 1 means certain)
• Consequence (C) - The severity of impact if the accident occurs (typically measured in monetary terms, injuries, or other quantifiable units)

Real-Life Applications:

• Workplace Safety - Assessing risks of machinery accidents or chemical exposures
• Process Industries - Evaluating potential failures in chemical plants or refineries
• Construction Safety - Calculating fall risks or structural collapse probabilities
• Transportation - Assessing accident risks in aviation, rail, or road transport

Why Not in Other Calculators?

• Safety incidents have clear probabilities and measurable consequences
• The direct cause-effect relationship is more established in safety scenarios
• Safety regulations often require quantitative risk assessments

Why This Formula Matters in Safety:

This formula provides a quantitative approach to assess potential hazards, allowing safety professionals to prioritize risks based on their probability and potential consequences, leading to better resource allocation for risk mitigation.

Industry Standards & Guidelines:

This formula aligns with ISO 31000 (Risk Management), OSHA guidelines, and process safety management (PSM) standards used in high-risk industries.

Conclusion:

The ISO 2002 risk formula provides a simple yet powerful tool for safety professionals to make data-driven decisions about risk mitigation. By quantifying both probability and consequence, organizations can focus their safety efforts where they will have the greatest impact, potentially saving lives and reducing financial losses.