Risk Management and the Concept of ALARP
Today, risk management is mandated in OHS matters (eg. NSW OHS Regulation 2001) and required in other areas of business (eg. Australian Stock Exchange's requirements for listing; Institute of Internal Auditors 2000 Guidelines). In the OHS arena the law places very strict obligations on employers to 'ensure safe systems', with defences being centred on foreseeability, preventability and whether it was reasonably practicable to comply. The concept of ALARP - As Low As Reasonably Practicable ' is frequently used in the risk industry as a yardstick for action, and to an extent is embodied in OHS legislation via similar wording. Clearly there is no level at which 'reasonably practicable' can be defined. A helpful starting point is to consider two extremes...
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