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Presentation on. I NDUSTRIAL R ISK A SSESSMENT. -- A R EALITY, R OAD M AP A HEAD. By H. S RINIVASAIAH Director of Factories, Boilers, Occupational Safety & Health. Government of Karnataka. A Tangible Recipe for Success A Management Project or Program - PowerPoint PPT Presentation
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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)
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 ”
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