www.strategic-risk.eu [ November 2017 ] StrategicRISK 13

NEWS ANALYSIS

RISK MANAGEMENT

StrategicRISK [ November 2017 ] www.strategic-risk-global.com

Risk management lessons from the Grenfell Tower fire

DAYS BEFORE THE LETHAL fire that engulfed up to 80 victims in Grenfell Tower, West London, the Association of British Insurers (ABI) submitted evidence in response to a government white paper on fixing the UK’s broken housing market.

In it, the ABI predicted: “For high rise construction, building

regulations focus on the internal fire suppression and risk management. However, external cladding, made from combustible material can cause significant fire spread upwards and between buildings, which is a particular concern for areas of high building density.”

At Grenfell, aluminium composite material cladding and polyisocyanurate foam insulation retrofitted in the 24-storey residential building constructed in 1974 have been identified as the chief culprits that led to the blaze.

The tower block also lacked automated fire sprinklers. Retrofitting sprinklers to older buildings is a mandated fire safety requirement in Wales since 2016, but not in England.

Municipal wrongdoing, criminal culpability and blame-storming aside, the lessons for business from Grenfell are manifest – and manifold.

Fit-for-purpose building regulations – including more robust ‘real world’ testing regimes, an immediate ban on using combustible materials externally, plus a legal obligation to install fire sprinklers in care homes, new schools and large warehouses – are part of the ABI’s strident response to Dame Judith Hackitt’s independent review of building regulations and fire safety, set up in the wake of Grenfell.

John Ludlow, the new CEO at Airmic, the UK association for risk managers and insurance buyers, says businesses should seek to benefit from the Grenfell tragedy in positive ways.

“All good risk managers use incidents and crises and turn them quickly to their advantage,” says Ludlow. “You have to catch the tide as a risk manager. You can go to your board and decision makers and say ‘Obviously you’ll have seen this disaster at Grenfell. I think it’s a good time to look at what we do.’ And most people on boards with huge accountability would listen to that argument. I know for certain that many boards have.”

Grenfell disaster leads to broad interest in fire prevention strategies

Referring to his previous role as head of global risk management at InterContinental Hotel Group, Ludlow explains fire safety was a central responsibility. “Fire safety was where we started. The reason for putting fire safety first was not to reduce our losses per se but to look after our stakeholders. To write global standards is a really tough job. You can’t bump along on regulations,” he says.

Ludlow applauds the US National Fire Protection Association (NFPA), a trade body that creates and maintains fire safety standards and runs industry sub-groups in which risk managers share good practice and the latest problems and issues.

All good risk managers use incidents and crises and turn them quickly to their advantage. You have to catch the tide as a risk manager. John Ludlow, Airmic

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“Industry needs to be allowed to take the lead. The best codes in the world are produced by the NFPA because they democratise it and let industry chip in,” he adds.

Speaking on the sidelines of UK Construction Week, the annual industry conference, George Stevenson, managing director of Nottingham-based asset information management specialist ActivePlan, was adamant a Grenfell-type disaster could easily happen again. ActivePlan works with the NHS, leading property developers and land owners.

“If the building was renovated today using today’s materials, it could definitely happen again,” claims Stevenson. “People are

People are focusing on replacing the cladding. That’s the visible part. But it was a system-wide failure. George Stevenson ActivePlan

focusing on replacing the cladding. That’s the visible part. But it was a system-wide failure. The quality of data is still poor, because of the way information is created and gathered during the design and construction process.”

He adds: “It’s not just existing buildings that are at risk. This could happen on a new building delivered next week. There is a general perception in the industry that modern information management methods such as BIM [Building Information Modelling] solves all of this, but it doesn’t because it seldom includes the required asset information.”

Stevenson stressed that, irrespective of making legislation more stringent, some of the risks that led to the tragedy will still be there unless as-built information improves.

“Condition surveys on existing buildings need to be scoped more rigorously and not procured on price alone. The information they produce needs to be digital following data standards so it can be consumed, analysed and compared going forward,” he says.

Hospitals are particularly at risk, according to Stevenson. In many cases, no one knows where all the fire protection devices are that need to be checked and maintained. “As a result, some haven’t been checked for years. This is even true in recently completed PFI facilities where private sector partners have very tight commitments in terms of inspection and maintenance,” he adds.

The magnitude of the fire was preventable, according to a new white paper from FM Global, one of the world’s largest business property insurers. ‘Grenfell: The Perfect Formula for Tragedy’ argues if automatic fire sprinklers had been installed, it is likely the fire would have been contained in the room where it ignited.

Chris Johnson, executive vice president at FM Global, remarks that since the heights of new buildings are quickly rising worldwide, so too are the fire risks. “Automatic fire sprinkler protection combined with less combustible building materials must be enforced for new building designs,” he says. “Regardless of how efficient or resourceful the local fire service is, there’s a need for regulatory change.”

Ian Fletcher, director of real estate policy at the British Property Federation, says the independent review led by Hackitt seeks to understand what caused the failure of cladding at Grenfell and many other buildings.

The BPF’s 400 members operate across a number of different building types, such as commercial, student accommodation and build-to-rent. “The challenge now for those building owners”, urges Fletcher, “is to consider what measures will best provide a permanent fix to any failed cladding and how to go about that, whilst ensuring safety is maintained and that any replacement cladding is fail-safe.”

Reassuringly, Fletcher adds that most modern buildings have a variety of safety measures incorporated into their fabric, processes and procedures; and therefore are not exposing their residents to a Grenfell-type situation.

“The sooner, however, government gets to the bottom of what led to the tragedy at Grenfell, the better,” he says. “In the meantime, building owners will continue to audit their buildings, minimise risk and put in place plans to have any suspect materials replaced.” SR