Fatal Risk Controls: An Evolution to Effective Risk Managment Dr Andrew Lewin

BHP Billiton Petroleum

Senior Manager HSE Conventional Production

Agenda

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1. Introduction

2. BHP Billiton – what we do, who we are

3. History pre-2006 – the formulation of Fatal Risk Control Protocols

4. FRCP’s – structure and content

5. FRCP’s – Pro’s and Con’s, data since 2006

6. Organizational Change – the move to Group Level Documents

7. Future State – Management of material risks, personal safety versus “process safety”

BHP Billiton – a global resources company

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Pre-2006

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• Continuing trend of fatalities, significant incidents (high potential)

• Similar themes, root causes

• Increased pressure on license to operate

• Backdrop of expansion in many parts of the business as minerals industry boom ramped up

FRCP’s born

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• Review of past fatalities and significant

incidents

• Key fatal risks identified

• Workgroups established to develop control

strategies

• Minimum performance expectations for

managing these risks

NOTE:

“The existence of these protocols does not

presume coverage of all risks faced by

operations…”

FRCP’s – Structure

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A Plant and Equipment requirements

B Procedural requirements

C People requirements

FRCP’s Content

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1. Light Vehicles

2. Surface Mobile Equipment

3. Underground Mobile Equipment

4. Underground Ground Control

5. Hazardous Materials Management

6. Molten Materials Management

7. Equipment Safeguarding

8. Isolation

9. Working at heights

10.Lifting Operations

FRCP requirements

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Plant Paper People Total

1 Light vehicles 6 10 8 24

2 Surface mobile equipment 7 15 6 28

3 U/G Mobile equipment 4 7 5 16

4 U/G Ground Control 4 11 7 22

5 Hazardous Material management 10 18 4 32

6 Molten materials management 15 10 7 32

7 Equipment safeguarding 6 5 2 13

8 Isolation 6 11 3 20

9 Working at heights 7 12 3 22

10 Lifting operations 14 16 8 38

TOTALS 79 115 53 247

FRCP’s – Pro’s and Cons

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Pro’s

• Provided clear requirements for the first

time that set a company standard

• Helped communicate to contractors

what we expected and raised the bar

• Clear auditable requirements where we

could measure compliance and

potentially “risk reduction”

• FRCP specialist resources

Con’s

• No differentiation on importance of

controls, e.g. seat belts versus first aid kits

• Drove up costs without driving down risk

and created “cottage” industries

• Became a KPI exercise relating to

compliance scores

• Deflected people from managing specific

risks by prescribing generic controls

• Took precedence over managing low

probability, high consequence risk events

• Questionable that delivered…..

Data since FRCP’s implemented

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2006 3 2007 8 2008 111

2009 7 2010 5 2011 22

2012 3 Total 39

1. Includes 5 fatalities in a helicopter crash

2. Material risk management initiative commenced

Organizational Change

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• Corporate HSEC move away from support and

guidance to governance: policy setting and audit,

reporting

• Resources reduced (Group HSEC from approx 150 to

20 in 4-5 years)

• Reduced corporate documents (guidelines, protocols,

etc etc.) 127 to 7 in 4-5 years

• Introduction to Group Level Documents

FRC GLD requirements

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1 Vehicles and Mobile Equipment 14

2 Explosives and Blasting 4

3 Ground Control 6

4 Hazardous Materials 12

5 Isolation and Permit to Work 11

6 Work at heights 13

7 Lifting Operations 14

TOTAL 74

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Management of Material Risks

MATERIAL RISK REVIEW

Risk

Register Bow Ties Prevent Mitigate

Performance

Standards

SAFETY CASE

Maintenance

Activities

(eg: in SAP)

Annual Validation & Assurance of Safety Case

Key Messages

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• Prescribing requirements to manage fatal risks is not

the whole answer – don’t have rocks in your head…..

• Risks that result in fatalities, in particular material

risks, are more complex and must be managed

differently from personal safety risks

• Managing risks is about implementing, maintaining,

monitoring and improving critical controls