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What are your Hazards and How
are you Controlling them!
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Emerging Trends
Health, Safety, and Environment are more ofconcern to the public than ever before
Newspaper coverage can be an indicator of issues
More coverage than ever and increasing
This is shaping public opinion and is setting higherstandards of care
It is an indicator of the new awareness of safety
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Emerging Trends
The public and workers are less tolerant of risk
Past practices may be unacceptable today.
The public expects minimal risk or even demands zero risk.
You must be an even more responsible owner/operator.
You have to both be actuallymore responsible and appear
to be more responsible to survive.
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Emerging Trends
Liabilities are increasing:
Higher potential for legal action.
Higher jury awards for punitive damages.
Measured against higher standard of care.
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Needed:
Better management of risk
Better awareness of hazards
Reduce risk to acceptable levels considering allstakeholders
Who are the stakeholders?
What is acceptable? How is it measured?
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Hazard Analysis and Risk Assessment
Foundation of Risk Management
How can you manage risks that are either not
known or not well understood?
Provides an assessment of acceptability
Provides an assessment of alternatives
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Traditional Measures of Acceptability
Regulations
Industry practice
Company practice
Engineering judgement
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Modern Measures of Acceptability
Regulations
Industry practice
Company practice
Engineering judgement
Risk-based decision making based on
systematic methods and risk criteria
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Risks need to be managed
Risks Safeguards
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Definitions
Hazard:
physical or chemical characteristic of a
material, system, process, or plant that has thepotential for causing harm
consequences could include impact to workers,
the public, property, or the environment
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Hazard Analysis DefinitionA Hazard Analysis (HA) is a comprehensive study
that
identifies, and,
analyzes
the hazards of a process.
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Risk Assessment Process Flow
Diagram
System
Description
AccidentSeverity
Estimation
Modify
System
Accident
Likelihood
Estimation
Risk
Determination
Operate
System
Risk
Acceptance
Hazard
Identification
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Benefits of Hazard Analysis
More complete awareness of hazards
Provides a structured and systematic
examination of the hazards of a process
Attempts to recognize all hazards
Employee participation
Gathers real input from the employees Concerns are discussed and documented
Team is more informed about hazards
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Benefits of Hazard Analysis
Assists management in risk decisions
Basis to assess if risks are acceptable
Can be used to develop the most effective
strategy to reduce or eliminate risks
Provides a means to compare risks of different
designs or operations Worst First
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Benefits of HA (contd)
Ultimate outcomes
Improved safety performance resulting in less risk
to the public, employees, property and the
environment
Assists with regulatory compliance
Minimizes business interruption
Improves relations with the public and employees
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Solution -
Risk Management Program
A systematic approach to managing risk
Comprehensive program (Environment,Health, and Safety)
A risk-based culture in the organization
Training for managers and employees
Protocols to follow
Criteria to follow
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Alignment of EHS and Other Business
Processes
Senior management needs to come to
understand the strategic significance ofEHS
processes as a critical business element
There has to be a closer alignment ofEHS
with other business processes
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Definitions (contd)
Hazard Scenario
specific unplanned sequence of events that has an
undesirable consequence
Initiating event - first event of the sequence
Intermediate events - responses of the system and
operators or other conditions leading to the accident
Final event - consider reasonable scenarios cascading to
the worst credible outcome
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Sequence of a Hazard ScenarioSequence of a Hazard ScenarioInitiating
Event
Intermediate
Events
Final
Event
Dependent Events
Operator
Overfills
Tank
Level
IncreasesInjury from
Release
Release
From
Tank
High LevelAlarm
Fails
Operator
Fails to
Control
Personnelin the
Area
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Definitions (contd)
Severity
the impact of the accident in terms of the effects
on people, property, or the environment
Likelihood
how often an accident happens
either probability or frequency
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Definitions (contd)
Risk
a measure of potential human injury, economic
loss or environmental impact in terms of its
severity and likelihood
Risk (R) = Severity (S) x Likelihood (L)
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Techniques Commonly Used in Hazard
Evaluation
Commonly Used Techs.:
Hazard & OperabilityStudy (HAZOP)
Checklist Analysis What-If
What-If /Checklist
Failure Modes & Effects
Analysis (FMEA)
Other Techniques:
Event Tree Analysis
Fault Tree Analysis
Human Reliability
Analysis
Cause-Consequence Preliminary Hazard
Analysis
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Causes of Accidents Mechanical failures of
equipment
External events
Human error in design,
operation, maintenance,
construction management
Wear, fatigue,
corrosion,
Weather, utility loss
Slips, aberrations,
intentional acts
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Slide 28
Human Error
Majority of incidents
Least analyzed and understood
Greatest impact can be made by focusing onthis area
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Causes of Human Error
10% caused by
individual faults
(90%) caused by
external influences
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Value out of Risk Assessment?
Conducting an effective Hazard Analysis and
Risk Assessment can seem to a be a daunting
task.
But a planned and systematic approach to
Hazard Analysis can turn this chore into an
effective, proactive accident reduction tool.
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To Err is Human...
The operator opened
the wrong valvecausing an overfill of ahydrocarbon tank anda resulting fire(unintentional error inoperation)
Ineffective training
Insufficient staffing
Poor human-machine
interfaces (location of
tank to location of
control valve poor)
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Risk Management Program Overview(contd)
Goal -
to require plans and procedures toprevent and respond to accidental
releases
to require a worst case assessment of thehazard
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Risk Management Program
Requirements (contd)
Hazard Assessment
worst-case release scenario analysis
alternate release scenario analysis
five-year accident history
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Risk Management Program
Requirements (contd)
Prevention Programs
process safety
information (PSI)
process hazard analysis(PHA)
operating procedures
training
mechanical integrity management of change
pre-startup safety
review
compliance audits incident investigation
employee participation
hot work permit
contractors
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Risk Management Program
Requirements (contd)
Emergency Response Program
written emergency response plan
procedures for use and maintenance of
emergency response equipment
training for employees in relevant procedures
procedure to review and update the plan
plan must be coordinated with the communityemergency response plan
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Risk Management Program
Requirements (contd)
Management System
system to oversee the implementation of the
risk management program elements a qualified person or position with overall
responsibility for the program elements
define lines of authority assigned to implement
specific program elements
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Why a New Effort For Chemical
Safety? Industrial accidents continue to happen
Numerous impacts and costs
The public is less tolerant of risk
The US Government has intervened
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Examples of Regulated Entities
Chemical Manufacturers
Basic chemical manufacturing,
Petrochemicals,
Resins,
Agricultural chemicals,
Pharmaceuticals,
Paints, Cleaning compounds
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Examples of Regulated Entities
Petroleum
Refineries
Gas Plants
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Examples of Regulated Entities
Other Manufacturing
Paper
Electronics
Semiconductors
Fabricated metals
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Examples of Regulated Entities
Industrial machinery
Food processing
Agricultural retailers
Public Sources
Drinking water
Wastewater treatment systems
Utilities Electric and gas utilities
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Examples of Regulated Entities
Other
Propane retailers and users,
Cold storage,
Warehousing Wholesalers
Federal Sources
Military Energy installations
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Accidental Release Prevention
Requirements
Risk Management
Program
registration
hazard assessment
prevention program
emergency response
program
management system
Risk Management Plan(RMP)
describes Risk ManagementProgram
includes Executive Summary
condensed into DataElements for submittal
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Conclusions
Risk Management is required in todaysbusiness environment
Failure to do this is hazardous to yourcompanys health.
Hazard analysis and risk assessment are thefoundation of a risk management program.
It is highly effective in reducing actualincidents.
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Slide 41
Contact Us...
astern Consulting Group16 Village Blvd, Suite 200
inceton, NJ 08540-5799l: (609) 951-2211x: (609) 951-2281
Corporate Headquarters &Western Consulting Group
AcuTech Consulting, Inc.100 Pine Street, Suite 2240San Francisco, CA 94111Tel: 415-772-5972Fax: 415-772-5975
Canadian Consulting GroupAcuTech Consulting, Inc.300-1055 West Hastings St.Vancouver, BC V6E 2E9Tel: 604-609-6168Fax: 604-608-9880
http://www.acutech-consulting.com
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