Robot safety standards defines Collaborative Operation as a state in which purposely designed robots work in direct cooperation with a human within a defined workspace. That is, an operator and an industrial robot complete assembly tasks at the collaborative workspace. A prerequisite to ensuring safety during all phases of operation is an understanding of the nature of hazards pertinent to collaborative systems. An automotive assembly station, where plastic panels are assembled on a continuously moving line, formed the basis for research operations meant to understand safety issues when a large industrial robot aids an operator in assembly tasks. This led to the development of a laboratory demonstrator whose design and functioning will be presented in this article. Additionally, the hazards identified during risk assessment along with measures to mitigate the associated risks will be presented in order to highlight the nature of hazards pertinent to collaborative systems.