Risk Assessment – It’s necessity 7 th August, 2014
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Risk Assessment – It’s necessity 7 th August, 2014 Parag Gupta Executive Vice President Head – Commercial Line IFFCO Tokio General Insurance
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Risk Assessment – It’s necessity 7 th August, 2014. Parag Gupta Executive Vice President Head – Commercial Line IFFCO Tokio General Insurance. Risk Management. - PowerPoint PPT Presentation
Transcript of Risk Assessment – It’s necessity 7 th August, 2014
Risk Assessment – It’s necessity7th August, 2014
Parag GuptaExecutive Vice PresidentHead – Commercial LineIFFCO Tokio General Insurance
Risk Management
The Identification , Evaluation and Economic control of those risks which can threaten the assets,
human being or earning capacity of an enterprise.
Risk Assessment !!!Identification and
Evaluation of Risks around us…
Risk Assessment
If Identified and Evaluated at the earliest can prevent or diminish quantum of a future damage /
loss.
We are surrounded with potentially damaging physical event, phenomenon or human activity
that may cause the loss of life or injury, property damage, social and economic disruption or
environmental degradation.
Fire & Explosion!!!!
Recent one??? Any
guesses
China Automobile part manufacturing unit
explosion/ fire
Fire
Milford HavenAugust 1983Loss: $30 Mn
Boil-over
UVCESarawakDecember 1997PD 282 M$ US
Vapour cloud explosion
UVCE
Norco, LouisianaMay. 1988FCC UnitPD 314 M$ US
Vapour cloud explosion
BLEVEFeyzin, FranceJan. 1966LPG Sphere TanksOperation
Explosion (BLEVE)
BLEVEMexico CityNov. 1984LPG Tanks500-600 died
Explosion (BLEVE)
force of detonation was equivalent to 40 tones of TNT. Loss amount is roughly Euro 1.8 bn. 30 people were killed and 500 injured.
Explosion
Fire
Office building fire
Fire
French bank buildingMay, 1996
Oil Rig sank in Brazil
15th March, 2001
Property loss - $496m
Marine
The tanker broke into two because of heavy seas and sank at a dept of 3600m about 137 sea miles from Spanish coast. loss was about US$36m.
Marine
Collision occurred between a car transporter Tricolor and a container ship kariba. The tricolor sank soon containing 2862 BMWs, Saabs and Volvos and 77 containers. Overall loss amount was euro 55 million.
Marine
Risk Assessment
Sources of Fire
5% 7%6%
17%
29%
11%
5%12%
8%
Smoking Material
Gas
Oil
Unspecified fuels
ElectricalAppliances &InstallationsSpontaneousCombustion
Mechanical Heat &Spark
Cutting andWelding
Misc. Causes
There is a lot we can do to control these
sources…
Oh. It’s a Snake
Let me
Kill it
Oh. It was
tail of a tiger
Risk Assessment
• Following are the basic elements we may consider for Risk Assessment:– Management– Construction– Occupancy– Protection– Exposure
MCOPE
Risk Assessment
•Management policies to ensure safety and loss prevention..
MANAGEMENT
•Issues in layout for factory facilities, Construction Aspect, fire-resistance of buildings, fire separations etc.
CONSTRUCTION
•Issues in fire load reduction (house keeping, stock control etc.), control of ignition sources, maintenance / Inspection of equipment, process hazards etc
OCCUPANCY
•Issues in fire protection and special protection e.g. Pressure safety valves, Equipment protection, fire alarms, interlocking system etc
PROTECTION
Toyota Motors• Associate supplier – Aisin’s auto parts plant
was razed to ground on 01.02.1997, Saturday• Used to supply all but 1% of brake-fluid
proportioning valves (P-valves)• 20 Toyota plants were shut down• Each day Toyota is down, Japan’s industrial
output is cut by 0.1% point• Within five days plants were started
Good Risk Management
How had Toyota managed to do that?• Mutual aid• Specific responsibilities• Top level commitment• Crises management plan
Good Risk Management
Bhopal disaster• Leak of Methyl Isocyanate (MIC) from Union
Carbide Bhopal plant• Storage in 3 steel tanks, 171 M3• Three safeguards
- refrigeration
- scrubber
- flare stack
Bad Risk Management
• Genesis of the disaster lies not in the failure of the safeguards but in the original design concept.
• Question is, was such a large inventory essential?
• Process of making Sevin (pesticide) without using MIC or
• Adopting a process which used up MIC as fast as it was made.
Bad Risk Management
“The real objective of Risk Management is to reduce fear of the unknown and
unexpected events and to create confidence in
future.”
- Felix Kloman
We Know not what tomorrow holds
Nor what the future will entail
Yet we know, those who fail to prepare
Must be prepared to fail !!
Thanks For Your Kind
Attention !!!
