Integrated Risk Management and Risk Communications

David DeGagne, Executive Director

Centre for Risk ManagementTel: 403-803-2367 Fax: 403-203-0706Web: www.centre4riskman.comEmail: centre4riskman@shaw.ca

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Defining and Calculating Risk

Risk is defined as a measure of frequency and severity of harm due to a hazard

(Safety is relative; it is a judgment of the acceptability of risk: an activity is considered safe if it’s risks are considered acceptable. Risk by its nature can be considered a rare event)

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Defining and Calculating Risk (continued)

The common and convenient measure of risk due to a specific hazardous event is calculated by:

Event Risk = Event Frequency x Event Consequence

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Types of Risk

Individual versus societal risk, Acute (safety) vs. chronic (health) risk, Risk to human receptors, Risk to environmental receptors, Equipment, or propertyFinancial Risk

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Integrated Risk Management Framework

Integrated Risk Management is the process by which the risks associated with hazardous activities are estimated, evaluated for acceptability, and, if required, reduced using risk control measures.

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IRMP Flow Chart

RISK ASSESSMENT

SystemDescription

START

Industry / TechnicalRisk Analysis

1. Hazard identification 2a. Consequence Analysis

2b. Frequency analysis3Risk estimation

(Qualitative/Quantitative)

Option Acceptability

Public Policy & Regulation

Risk Controls

Public AnalysisCommunity

Interest Groupslocal government

employees/management

Risk Communication(Qualitative)

Distribution ofBenefits & Risks

Yes

No

Performance Measurement

Operations & Maintenance

No

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Quantitative Risk Analysis

Is the process by which using risk estimation and evaluation the frequencies and consequences of events are combined to quantify risk. (Is the risk judged to be technically acceptable?, and, Do we need to do anything about it?)

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Quantitative Risk Analysis

QRA is required because it is the responsible thing to do. Also, the public often demand it and if you don’t have it they will think you are hiding something.

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Limitations to Quantitative Risk Analysis

There are no boundaries to probabilistic risk analysis as the worst conceivable accident case is only limited by the imagination of the person doing the assessment.

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Conventional Uses of Risk Assessments

Land Use and Route Planning Hazardous facility siting or expansion, Hazardous material pipeline or transportation route

planning, Approval of land developments near existing

hazardous installations

Facility Safety Management (worker and property) Technology changes, Facilities improvement

Incident Management Emergency response, planning, and preparedness

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Evaluation of Risk Acceptability

Acceptability of risk depends on the nature of the risk and on those who may bear it. An acceptable level of risk always exists until someone tells you what it is. (there are levels of risk that people will accept, and other levels that they will not, risk acceptability carries all our social values)

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Public’s Evaluation of Risk Acceptability

Society is much less willing to kill people in a single incident than from some factor over time, e.g., car crashes Voluntary risks are those we assume due to some perceived benefit, e.g., smoking, white water rafting. Involuntary risks are imposed on people by decisions made by others or by natural occurrence, e.g., second-hand smoke, and violent storms.

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Risk Assessor’s Evaluation of Risk Acceptability

One life is not always the same as another (individual risk vs. societal risk).Risk Comparisons should help to explain the numbers and make the proposed risk more acceptable.Believe more in their computers than they do in people.

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Evaluation of Risk Acceptability (continued)

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Fundamental Reasons for Using Risk Communications

Issues are never clear cut (black or white).Important to know what you don’t know.Potential to contaminate your message with every word.Once stated your communications cannot be put into reverse.People can sense when you are not certain or honest.People don’t want you to tell them that it could happen rather that it can’t happen.

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Government Expectations For Risk Communications

Regulatory processes are under increasing scrutiny by the publicIndustry must accept responsibility for public involvement programs (need for expertise and tools)There be clear enforceable consequences to industry for failure to conduct effective public consultation programs.

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Government Expectations Of Industry

Early in project planning processTwo way communication, transparentAppropriate level of disclosure Issues documented & dealt with seriously and expeditiouslyCommitments are followed throughCommunication efforts are ongoing

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Government Initiatives

Clarifying requirements for public consultation and establishing measures to monitor and enforce the requirements.assess training programs and develop new ones to be delivered by existing institutionsproduce user-friendly documents to assist the public in asking industry about proposed facility developments that may impact them. Improving public and industry access to information.

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Government Initiatives (Cont.)

Determine the nature of local benefits from industrial development.Promote collaborative models (Synergy Groups, ADR, etc.) Audit industry’s public involvement programs and performance on their implementationStringent action for failure of a company to conduct effective public consultation programs.