leadership role in risk management - cii-safety b k verma.pdf · leadership role in risk management...
TRANSCRIPT
Leadership Role in Risk Management
CII-ER Safety Symposium and Exposition 201411th -12th Sept 2014, ITC Sonar, Kolkata
Think about tomorrow, today!
Birendra Verma, Joint President & Group Head, Safety
A Basic System
+/-
Output ACTUAL performance
Input = TARGET performance
Input = A SYSTEM CHANGE BASED on +/-
Tolerance limitUpper control limit
Lower control limit
Tolerance limit
Target
Managing Deviations
How to avoid incidents ?
• Identify hazards
• Know risks – ( Probabilities * Consequences)
• Risks can and must be managed.
••• Losses can’t be impacted effectively without managing risks
List all the potential hazards
Process operations -
Employee health -
Employee safety -Employee safety -
Environment -
Reputation -
Security -
S
e
v
e
ri
t
y
ConsequencesIncreasing frequency of Occurrence (Probability)
A B C D E
People/ Values & Principles
Assets/ Economic Impact
Environment ReputationHas never
occurred in our Industry
Could / has occurred in our Industry and could reoccur
Could / has occurred in our Company and could reoccur
Could / has occurred
several times in one year in our Company and could reoccur
Could / has occurred
several times in one year in the same place and could reoccur
0 No impact No damage No effect No impact
1First aid case
<$25kSlight
damagePart of local population
Medical Local minor
Local
Risk Matrix
2Medical treatment case
$25k-100kLocal minor damage
Local population /
CEO
3
Lost time or mulitplemedical treatment cases
$100-500kLocal major damage
Local news / BOD / Offical Report
4Single fatality
$500-1 million
Major environmental damage
National news / Board of Directors /
Official Departments
5Multiple fatalities
>$1 millionMassive
environmental damage
International news /
Shareholder /MOL/MOE
F
How does matrix help ?
The risk can be easily assessed by selectinga category, e.g. People, and then selecting anitem from the risk matrix on the consequencescreen.
Manage for continual Manage for continual improvement
Demonstrate ALARP
Intolerable
H
A
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C
O
NS
E
Q
BARRIERS
Events and
Circumstances
Harm to people and
damage to assets
or environment
Risk Management Barriers ?
A
Z
A
R
D
Q
UE
N
CE
S
Undesirable event with
potential for harm or damage
Engineering activities
Operations activities
Maintenance activities
o Safe Technology –based on Process Hazard Analysis , Risk Mitigating Designo Verified and authorized at design level and installed as intended , verifiedo Doubled checked through Pre-startup Safety Review (PSSR)o Written Operational Manual with clear indication of process capability & limitationo Adequate Training, Job Cycle Check , Observation and Audit
o Facility capable to minimize consequences o System exists for energy isolation – LOTO, PTW, JSA, Supervision
o Use of correct PPEs as assessed in Risk Assessment
o Physical barriers , Access Controls o Learning – Correction and Prevention
H
A
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C
O
NS
E
Q
BARRIERS
Events and
Circumstances
Road
Failed Management Barriers ?
Harm to people and
damage to assets
or environment
A
Z
A
R
D
Q
UE
N
CE
S
Undesirable event with
potential for harm or damage
Engineering activities
Operations activities
Maintenance activities
Road TrafficAccident
• Well designed vehicle with ABS • Qualified, trained and experience driver• Well maintained, OEM certified, tyre conditions• Load as per capacity
• Driven within safe speed, Seat Belt, No intoxicated, • Safe Road• Precautions in line with Journey Risk Management • Fatigue Management – Rest / Sleep
• Designed in line with standards code
• All safety features
- Risk Assessment
- Job Safety Analysis
- Safe Work Procedure /
SOP / Method Statement
- Skilled / Training /
- Visible Felt Leadership
- Challenging Goal and Targets
- Clear Safety Policy and
Principles
- High Standard of Performance
- Supporting Safety
PROCESSTASKRoutine / Non-routine
BEHAVIOUR
Management Barriers ?
• All safety features including interlocks included
• Initial and cyclic Process Hazard Analysis (PHA) done and recommendations are taken care
• Maintenance-Preventive and Protective in place
- Skilled / Training /
Certification
- LOTOTO
- PTW
- Tool Box Talk
- Supervision
- Audit / Inspection
- Job Cycle Check
Organization
- Integrated Safety Organization
- Progressive Motivation
- 2 Way communications
- Safety Observation Visit –
Walkabout
- Continued Training / Skill
Development
- Contract Safety Management
- Transport Safety
How does Risk Assessment Helps ?
• To identify and quantify or rank risks
• To focus attention on the most important deficiencies
• To determine if systems, facilities or activities are • To determine if systems, facilities or activities are acceptable
• To “cover” the organization from liability
• To comply with legal requirements
• To include them in our safety objectives
To avoid corporate liability, there are three tests to pass:
• Corporate Negligence,
Risk Assessments:
To do them, or not?
• Corporate Complacency, and
• Corporate Inactivity
Corporate Negligence
Where no risk assessment was done, and
the risk therefore was not identified.
(i.e. We did not know that all
maintenance work is not done
in accordance with the
procedures!)
Corporate Complacency
Where the risk was identified and assessed
but then ignored.
(i.e. Its always been like that and never been a problem before).
Corporate Inactivity
Where the risk was identified and assessed
but inappropriate action was taken.
(i.e. We issued a memo).
1. Elimination
2. Reduce / Replace
3. Engineering – Sensors, LOTO
4. Administrative Control
Risk Management ?
4. Administrative Control
a. Procedures & Training
b. PTW / line break
c. Warning / Communications
d. Tool Box Talk
5. Personal Protective Equipment
Who is accountable ?
STEP 5
STEP 4 Analysis of
Organization
STEP 3 STEP
ANALYSIS
Management System Failure Model Resulting Incidences
Deficiencies related to Public Safety Framework
* Economy * Labour * Law and Regulation etc
Weakness & defects related to Top Mngt;
* Policy * Organization and Responsibility
* Influence on Attitude * Follow-up by Mngt
Weakness and defects with the mngt system
* Lack of or inadequate procedures
* Lack of implementation
* Insufficient training / education
* Insufficient Follow-up / JCC
STEP 2
STEP 1
Event Sequence
- Decisions
- Actions
- Omissions
Loss / Injuries on
- Personnel
- Properties / Assets
- Environment
* Insufficient Follow-up / JCC
Deviations & Failure influencing event sequences
* Procedure not followed
* Technical Failure
* Human Failure
Analysis of Causes Analysis of Consequences
With this concept in background …..
assess whether you as part of management
Are you helping organization to manage
Risks in RED Zone ………………
Prepare Company Risk Profile Chart
Medium
High
IMPACT
50
MM. Management
25
[1]
LPG Leak
[2] Spill
[6]
Nationalization
[7]
[8]
Failure to
Secure
Insurance
[9]
BBPL Collapse
[11]
No MLA Financing
Residual Risks Assessment
Low Medium High
Low
Medium
LIKELIHOOD
IMPACT
UnacceptableNeeds ImprovementAccepted
0
50
25
[3]
Vehicles
[4] Transierra
Surcharge
[5]
Change in
Law
[7]
Gross Negligence
Firm Service
[10]
Loss of
Domestic Market
Surcharge
[12] Change in
Regulations.
[13] Force
Majeure
Firm Service
[14]
Adverse
Sirese Decision
[15] Facility
Blockades
[16]
Computers
Virus
[17]
Employee Scandal
e.g. Andina