The PSA activity Management of major accident risk and governance :

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Godwin Bryant
6 years ago
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1 The PSA activity Management of major accident risk and governance : Why this activity? What are we looking for? What do we reflect upon? Anne Vatten - Director for Supervisory Activities - PSA

2 The PSA activity Management of major accident risk and governance : 17 companies involved Started in 2007 The importance of learning from the Texas City refinery disaster. A disaster which was said to be 1. Preventable 2. The result of a systemic failure The same words are being used about the Deepwater Horizon disaster. 2

3 The PSA activity Management of major accident risk and governance : Conclusions after the Texas City refinery disaster that caught our attention in particular: Corporate oversight and Board oversight A substantial gulf appears to have existed between the actual performance of BP s process safety management systems and the company s perception of that performance. 3

4 Parts of the safety net that is meant to prevent a major accident: The authorities contribution. The companies duty to comply Cooperation among authorities, companies and unions: The companies and the companies partners own interests: create value, create new oportunities to create more value, attract investors, protect/build a reputation/position etc. 4

5 The PSA s activity Management of major accident risk and governance We asked for a presentation of the company s own assessment We asked clarifying questions Focus is set on the company s own interest to prevent major accidents - not on their duty to comply 5

6 What you look for Perspectives We don't see things as they are. We see them as we are. (Anais Nin) Major accident risks company level across assets Information basis is what you find Actions is what you fix 6

7 Where accidents occur. Where the causes of accidents are. Where HSE-relevant information is generated. Where measures are implemented. What risk analyses focus on. What accident investigations focus on. Communication regarding major accident risk: Strong focus on operational matters on the installation/facilities. Does it mean that the companies have easier access to information on risks generated on installations/facilities than on risks generated in management processes at the company level? 7

8 Communication regarding major accident risk: Strong focus on operational matters on the installation/facilities. Does it mean that the executive management, their actions/ decisions, are not considered as a potential source of accidental risks? 8

9 Communication regarding major accident risk: Strong focus on operational matters on the installation/facilities. Does it mean that the executive management underestimate important conclusions about corporate and Board oversight after Texas City? 9

10 Communication regarding major accident risk: Strong focus on operational matters on the installation/facilities. Are we, the authorities, as part of the system, contributing to limited perspectives with regard to the executive management as a source of accidental risk? 10

What the companies themselves see as important improvements: The information basis that provides an adequate understanding of the company s major accident risk

11 What the companies themselves see as important improvements: The information basis that provides an adequate understanding of the company s major accident risk exposure What is considered as relevant information What is considered as an adequate level of detail How the executive management verifies this information 11

12 This activity challenges the traditional approach to management of major accident risk: It emphasises the company s own need for major accident risk management consistency between the company s goals and strategies and their exposure to major accident risk. It emphasises the company management s role and its influence on the company s risk exposure company management s self-assessments and own improvement processes licensees need to act as a competent board, to support and control the operator s management of major accident risks 12

Major accidens that have occurred the last years are considered to have been: 1. preventable 2. the result of a systemic failure What we look for is what we find. What we find is what we fix.

13 Major accidens that have occurred the last years are considered to have been: 1. preventable 2. the result of a systemic failure What we look for is what we find. What we find is what we fix. Have we all been looking at the same, fixing the same again and again? not fixing something else, again and again? We are all part of the same system. The repetition of major accidents in such a global industry as the O&G industry call for a serious reflection as to whether we have a good enough understanding of the system and how we all influence the system, given the function that we each have in that system. 13

Risk Management: Panacea or Snake Oil. If Risk Mgt is so effective why do Major Accident Events still happen?

Risk Management: Panacea or Snake Oil If Risk Mgt is so effective why do Major Accident Events still happen? AGENDA Risk Mgt Introduction Why Manage Risk What is Risk How is Risk Managed Major Accident