ByByH. SH. SRINIVASAIAHRINIVASAIAH

Director of Factories, Boilers, Occupational Safety & Health.Director of Factories, Boilers, Occupational Safety & Health.Government of KarnatakaGovernment of Karnataka

ByByH. SH. SRINIVASAIAHRINIVASAIAH

Director of Factories, Boilers, Occupational Safety & Health.Director of Factories, Boilers, Occupational Safety & Health.Government of KarnatakaGovernment of Karnataka

IINDUSTRIALNDUSTRIAL

RRISK ISK AASSESSMENTSSESSMENT

IINDUSTRIALNDUSTRIAL

RRISK ISK AASSESSMENTSSESSMENT

Presentation onPresentation on

-- A-- A RREALITY, EALITY, RROAD OAD MMAP AP AAHEADHEAD

-- A-- A RREALITY, EALITY, RROAD OAD MMAP AP AAHEADHEAD

MythWhat Risk Is Not

RealityWhat Risk Is

A Tangible Recipe for Success

A Management Project or Program

A Set of Tools for Implementation

A System for Production Floor Only

Can implement in a Short or Mid-term Period

Improvement Continuously

It’s much

bigger !!

A Way of Thinking

A Total Management Philosophy

Focus on Total Employee Protection

An Environment of Teamworkand Improvement

A Never Ending Search for a Better Way

Quality Built in every Process

Organized, Disciplined Workplace

Evolutionary

MYTH V/S REALITY

Risk

BOD

Communities

Share Holders

Assests

Nation Employees

Benefits to the Nation ,faster project approval &

Successful completion / operation of the project

Benefits

ADVERSE

Disast

er

Share holders

Inventory Management

Liasoning with

different authorities – Time and

cost manageme

nt

Financial Pressure

Project Delays

Government Action

( Permits&Enforcements

Enforcement

Risks People Manage

ment

Risks

Reducing risks PROACTIVELY is better than dealing

with the impact and losses REACTIVELY

PeopleEnvironmentProduction

Assets / Finance

Non adaptation of standard practices conditions quality design

Shifting of focus from crisis

management to risk management

Formulation of National Policy

Training / education

Attitude to implementation

LOSS

CAUSES

CONTROL

WHAT ARE THE NEEDS ?

Important issues to remember : Realities of the project Understand the requirements Prepare to take Risk Conceive the project

TEAMWORK

Proceed further Approach knowledgeable consultants Project Managers Head of the Business Intermangement systems Board of Directors Stake holders

If yes,

Proponent’s Tasks

Look for qualified professionals.

Consider previous industrial experience.

Strength and ability to understand the process ,

product or equipment.

Ability to manage risks.

Show leadership commitment.

To be proactive to practical approach.

Have openness to the reality.

FACTORS IGNORED

Business leader ignores factual data.Believes consultant data as ultimate.Undermine residual risks and does not concede the

inherent weakness of the project. Team works in line with the business leader suppress

the vital facts for execution of the decision.

Evaluating risks and hazards which may affectthe nearby community in emergency situation.

Identifying required response tasks not coveredin existing plans.

To match these tasks to the resources available.

Making changes necessary to improve existing plans.

Establishing procedures for periodic testing, review and updating of the plans.

Educate the general community about the integrated plan.

THE MOST FORGOTTEN THINGS

A CASE STUDY

Chemical plant

1. Site selection

2. Improper layout a. location of the plant in the downwind direction. b. fire station near the process area c. process area very close to the public living. d. wrong material selection.

3. Risk assessment a storage b. fire protection c. toxicity d. hazard index rating e. fire and explosion hazard f. compatibility.

4. Process safety management

a. reliability assessment of process equipment

b. safety trips and interlocks

c. no or inadequate scrubbing system

d. no dedicated removal of fugitive emissions.

5. Electrical safety a. no hazard classification and proper electrical fittings

b. protection against static electricity

c. lightening arrestor

d. poor maintenance.

A CASE STUDY contd….

6. Safety Audits a. conceptual stage b. extension stage c. commissioning and trial run

d. operation stage e. periodic.

7. Emergency Planning a. on site b. off site c. integral multidisciplinary disaster approach

8. Training

9. Risk management and idle management.

A CASE STUDY contd….

REMEMBER

The quantity of input data is an important factor in

determining the uncertainty of results

Determinations of thresholds and limits regarding the

acceptability of variations and variability is considered

as valuable inputs

Socially relevant factors and personal responsibility

needs to be considered.

There is no important work than providing

Safe workplace to employees and society.

THE RISK CHALLENGE

Think Differently….

Be creative…spend no money

Think 100%,

Think simple – mind of a 10 year old.

No Sacred Cows…Ask Why at Least 5 Times

Do and Re-do before execution,.…..…start now

The challenge is to prioritize effort and close the gap

between paperwork and practice.

INDUSTRY

CONSULTANTS CONSULTANTS

PROCESS EXPERTS

PROCESS EXPERTS

PROJECT ENGINEER

PROJECT ENGINEER

TECHNICAL TEAM EXPERTS

TECHNICAL TEAM EXPERTS

SAFETY / ENVIRONMENTAL

PROFESSIONAL

SAFETY / ENVIRONMENTAL

PROFESSIONAL

CONSULT GOVERNMENT AUTHORITIES

CONSULT GOVERNMENT AUTHORITIES

CONSULT SIMILAR INDUSTRIES –GAIN

EXPERIENCES

CONSULT SIMILAR INDUSTRIES –GAIN

EXPERIENCES

Seek unbiase

d informat

ion

PROJECT SUCCESS

Provide unbiase

d informa

tion

success

Risk Levels - If Ignored or not understood

Top Management Top Management accept the data accept the data

Top Management Top Management accept the data accept the data

Safety Managers – Work on Safety Managers – Work on the data that is provided the data that is provided

Safety Managers – Work on Safety Managers – Work on the data that is provided the data that is provided

Financial investors – Believe / Financial investors – Believe / depend on the management depend on the management

systemssystems

Financial investors – Believe / Financial investors – Believe / depend on the management depend on the management

systemssystems

Project Managers works in Project Managers works in line with goals line with goals

Project Managers works in Project Managers works in line with goals line with goals

Maintenance and Production Maintenance and Production Employees - Just follow Employees - Just follow

Maintenance and Production Maintenance and Production Employees - Just follow Employees - Just follow

REMEMBER – DISASTER AFFECTS EVERYBODY TOP LEADER TO EMPLOYEE LEVEL

Consultants may provide biased risk data , Assessments

are not based on Strengths/ Weakness, ground reality

Consultants may provide biased risk data , Assessments

are not based on Strengths/ Weakness, ground reality

DISASTERDISASTER

MEXICO CITY, 19.11.1984, MEXICO

- leak in LPG Storage facility

- BLEVE occurred 500 deaths

Loss US$ 100 millions

Snaps of Bombay High

Devastation (ONGC)

http://story.news.yahoo.com/news?g=events/ts/091101nydccrash&a=&tmpl=sl&ns=&l=1&e=1032&a=0

What happens then :Project delay

Bankruptcy

People Management

Assets Management

Environment

Management

Morale Management

Business interruptions

Investors

Share holders

Employee morale

Community image

Legal issues

Environmental damages

Media image

?

Proceed

If Manageable

If the risk is high

Choose the project

Set priorities based on the requirements

Subject them to critical review

Assess risks integrated with business planning and evaluate.

The best / successful project would be:

Get suggestions - as many as possible

BEST PRACTICES

Establish guidelines through consultative and

collaborative approach.

Promote such guidelines through quality educative and

training programmes.

Use credible data bank with a provision to update at the

time of critical review and retrofitting.

Upgrade the best practices on a continual basis.

Adopt inter-disciplinary approach to involve all the

departments of an industry.

Provide powers of access to receipt / share

information.

Delegate authorities to take appropriate decision to

eliminate or reduce risk at every stage of

conceptualization, design, execution, commissioning,

operation and modification.

BEST PRACTICES contd…..

Always look for

a. minimum risk

b. safer chemicals

c. proven technologies

d. proven / credible SOP’s.

e. internationally available standards and practices

f. transfer of complete technology whenever imported / exported.

g. qualified / skilled human resources

h. investments made in risk reduction process as not a burden but a value addition.

BEST PRACTICES contd…..

To be conducted at project conceptualization,

design, construction and startup phases

Safety and Risk Management should be integrated

with the standards, procedures and practices.

The results should me monitored and stewarded

with the aim for continuous improvement.

Timely and accurate implementation of the systems.

RISK ASSESSMENTS : WHEN AND HOW ?

Risk Assessments : When and How ? contd.... Review the process and validate.

Invite suggestions / opinions from the team members and

subject to critical review.

Energize teams through inclusiveness, build loyalty and

commitment.

Obtain feedback and assign projects to improve.

Consider the external impact on business activities,

customers, market / industry, investors, media,

government and communities.

PLAN ALL THE WAY

TO THE END

Tips for Recognizing Impending Crisis

Pay attention when your instincts tell you that there is something wrong.

Confront disturbing facts as and when you find them.

Do not ignore, rationalize them, or minimize there importance and investigate.

Consider the consequences if disturbing facts are found to be true (financial losses, physical injury, company reputation, etc).

Seek the counsel of others, particularly those close to the situation.

Let your values guide you. what is important ? the right thing to do.

ROAD MAP

Shift the present focus from crisis management to risk management.

Introduce a national policy on risk management or risk reduction at par with Green House Gas Emission.

Develop a credible tool for assessing the risk and to foresee.

Integrate the measurement of risk with country / town planning processes.

Constitute core / focus groups who can work on risk reduction.

Prepare a vision statement with prescribed timeframe and implementation strategy.

Identify and adopt predictable, preventive, protective technologies.

Introduce latest monitoring techniques and methods for quick assessment of risk.

Evolve a new training strategy to all the stake holders which can instill the confidence and provide motivation.

Introduce easy / understandable learning techniques to the industrial captains / managers / employees and Governmental agencies.

Introduce community based interactive mechanism where the local community can participate without fear or favour.

Develop a mechanism either through an act or authority to make the governmental agencies, the corporates, the voluntary organizations, the local community for compulsory participation on the need base.

ROAD MAP contd……

CHALLENGES

To motivate the industrial captains / industry to change their mind set in adopting safer technologies at a little higher cost.

To establish an interactive mechanism between different groups or agencies.

To establish a full pledged autonomous research programme centre with international accreditation for dissemination of credible information to receive quick response and adaptation.

To reduce the intervention of bureaucratic approach in execution of the policies / programmes.

To prevent the intervention of government in the functioning of research programmes.

An institution to turn out knowledge based / skill human resource to understand and reduce risk elimination and minimization.

To develop capacity building measures in risk reduction and managing.

To identify the strategic locations to establish the capacity building measures.

To develop proper / acceptable modules and tools of training.

To strengthen the existing enforcement machinery and motivation mechanism to change their attitude and perception.

To motivate various stake holders / policy makers to respond at quicker phase in implementing the policies / programmes.

CHALLENGES contd….

Make an estimate of the negative impact of each risk, express it in terms of

cost.

PRAGMATIC APPROACH

– taste it.

Accidents, natural events, environmental disasters,

technical breakdowns, economic and market forces, rogue

employees are among the potential perils faced by the

organization

Potential risk audits should seek broad based input, many

minds are better than a few

– watch them.

– consider them.

Conduct your organizations risk audit through its

individual units. The people closest to its operations are

best equipped to detect risk reducing methods.

PRAGMATIC APPROACH contd….

Some risk are more worthy of managerial attention than

others – look for them

– involve them.

Use expected value as a quantitative tool and then apply

qualitative evaluation to sort out your priorities – apply them

Some risks are much easier and cheaper to neutralize

than others

PRAGMATIC APPROACH contd….

Quantify the risk in terms of potential risks than

probability of occurrence – give a thought

– adopt

One method for identifying potential crisis is to put

yourself in the role of INTERNAL SABOTEUR and ask, -

“What could I do to damage this company ?”.– identify him

PRAGMATIC ROLES

Two ways

Visionary role Implementation role

Doing the right thing Doing things right

POSE AS A FRIEND, WORK AS A SPY.

H.SRINIVASAIAH

Director of Factories, Boilers, Occupational Safety and Health.

Government Of Karnataka

Thank “ U ”