W e W i l l B e g i n S h o r t l y! Fred Leafloor, CHSC, CRSP, CRM

Transcription

1 W e W i l l B e g i n S h o r t l y! Fred Leafloor, CHSC, CRSP, CRM

2 Part 1: Risk and Tools Overview Fred Leafloor, CHSC, CRSP, CRM

3 Introduction This session introduces Risk Management tools in current use by organizations from around the globe The approach we follow is not tactical workplace documentation, but is a more strategic evaluation of the processes used in each model and their effectiveness Your Participant Manual is your primary reference The proprietary and/or commercial owners of the models presented herein reserve their copyright on this material, but you can adapt the information to create risk assessment or management tools that will suit your needs

4 Background Risk Management is a broader field than just health and safety, but those two aspects are fundamentals of a successful business. Others can include: Business (Enterprise) Risk Management: Financial Contract (Liabilities) Property / Assets Operating Risk Warrantees / Guarantees Insurance arrangements

5 Risk Management. has been defined as the process of making and carrying out decisions that will minimize the adverse effects of accidental loss upon an organization.. Risk Management is not just for large organizations Risk Management is often a more critical approach for small organizations that have less scope to absorb loss in: Health and Safety Finance and Contract Enterprise Risk Management (operating, growth, development)

6 Risk Management Hazard Identification Hazard Analysis Risk Assessment Risk Evaluation Risk Mitigation Risk Communication Risk Control

7 Risk Management

8 Risk Management Hazard versus Risk.... the inside story (for this set of models) Managing the Risk Terminate Treat Tolerate Transfer

9 Risk Management Hazard Identification Requirement established in most health and safety Acts Workplace specific application Various approaches to assist Supervisor and Worker in recognizing and properly identifying hazard Relies heavily upon knowledge and competence of the workplace parties

10 Risk Management Hazard Analysis Generally conducted in the workplace Many models in current use (JSA, SJA, JHA, TA,.) Baseline assessment of hazard potential in terms of a what can go wrong? approach Tasks are broken down into steps and each step is analyzed for potential harm that could arise Most Hazard Analysis tools include initial risk control actions ( what can I do about what can go wrong? )

11 Risk Management Risk Assessment Risk Assessments expand hazard identification with the concepts of probability and magnitude of potential consequence(s) Qualitative versus Quantitative assessments Allows prioritization of risks based upon either the probability of harm or the magnitude of harm

12 Risk Management Risk Evaluation Organizationally-specific weighting of relative importance Organization establishes which factors are of greatest interest or impact to the company: Potential for injury Equipment reliability / equipment damage Environmental sensitivities Public perception and response Regulatory action Other issues

13 Risk Management Risk Evaluation Acceptable Risk standards ALARA (US) ALARP (UK / CAN) BATNEEC (UK) SFAIRP (UK) UK - HSE Most regulatory jurisdictions (in Canada) establish basic performance goals for injury prevention that do not consider ALARP

14 Risk Management ALARP is the baseline for the models we will discuss For a risk to be ALARP it must be possible to demonstrate that the cost involved in reducing the risk further would be grossly disproportionate to the benefit gained The ALARP principle should not be understood as simply a quantitative measure of benefit against detriment. It is more a best common practice of judgment of the balance of risk and societal benefit. (Wikipedia) ALARP is frequently decided by those who do not actually encounter the immediate risk

15 Risk Management Risk Mitigation Mitigation in the broader sense includes elimination of the hazard, which will (usually) eliminate the risk ALARP mitigation choices impacted by: Level of anticipated potential consequence(s) Management vision of company viability Likelihood of intervention success External factors (social, regulatory, public interest) William Haddon Risk Mitigation Model

16 Risk Management Risk Communication Regulatory requirement in many jurisdictions Communication must include: Existence and identification of hazard Risk potential Recommended Control Measures Residual risk Acceptable personal behaviours surrounding this risk Successful Communication/Messaging techniques

17 Risk Management Risk Control.. any conscious act, or decision not to act, that may reduce the frequency or severity of undesired loss Control actions deal not only with the issues arising from the original risk, but any issues that are created with the implementation of the initial risk controls which may create residual risks

18 Personal Risk Assessment Not the focus of this workshop, but included for completeness: Personal Mental Model Personal Documented Model

19 Canadian Regulation Regulatory Requirements Overview for Hazard and Risk Information

20 Risk Mitigation Commonalities Despite the number of different approaches to the risk assessment problem, there are really relatively few factors that are in general use on a global basis..

21 Risk Mitigation Commonalities Areas of Control within the workplace: People Equipment Materials Environment Systems

22 Risk Mitigation Commonalities Areas of Control outside of the direct workplace: Regulatory Reaction Finances Reputation Assets (other than equipment, such as property / product) Community / Public Reactions Media Attention Election of the company to retain risk or transfer risk

23 Risk Mitigation Commonalities Pre-loss mitigation steps During/Post loss event mitigation steps

24 Risk Screening Model

25 Risk Screening Model Pre-project high level review Tables show sample screening factors to promote lateral thinking (focus, but no boundaries) Process Flow: Definition of activities Hazard identification using the tables Establishment and ranking of risks for further definition Use worksheet to record findings

26 Risk Screening Model

27 Risk Screening Model

28 Field-Based Model

29 Field-Based Model

30 Field-Based Model Field-usable 4 x 4 matrix Point of loss factors: Personnel Public Environmental Equipment Loss Probability versus Severity of Consequence Consequences levels specifically defined Risk origins defined within output descriptions

31 Field-Based Model

32 Commodity Production Model

33 Commodity Production Model Supervisory dual 4 x 4 matrices Point of loss factors: People (personnel) Environment Financial Public Loss factors versus Consequence, then Impact Rating versus Probability Credit for existing risk controls Due Diligence definitions to promote action

34 Commodity Production Model

35 Offshore Americas Model

36 Offshore Americas Model 2 x 2 Risk Determination Matrix No Point of loss factors, but categories of hazards Outcomes do not focus upon potential loss, but upon probability of a successful intervention (low risk indicates that desired risk control is available and will be successfully implemented) Additional Risk Mitigation steps defined Identification of person responsible for control implementation and a due date

37 Offshore Americas Model

38 European Model

39 European Model Line Supervisor + Crew 5 x 5 matrix Point of loss factors: Personnel Asset Production Environment Loss Probability versus Severity of Consequence Qualitative definitions for Probability/Consequence Risk output levels defined, including no work Resultant Risk re-assessment procedure required

40 Middle East Model

41 Middle East Model Project Manager / Engineer 4 x 5 matrix Point of loss factors: Safety / Health Public Disruption Environmental Impact Financial Impact Probability (5 levels) versus Consequences (4 levels) Scenario-based Risk Assessment tool Risk calculated before and after assumed safeguards Risk control action items identified on worksheet

42 Australian Model Project Manager / Engineer dual matrices Point of loss factors: People Environmental Property Commercial Reputation Consequences (7 levels) versus Point of Loss, then Consequences versus Likelihood (6 levels of historical probability, with qualitative limits for each level)

43 Australian Model

44 Australian Model Combined tables provide a visual aid in establishing risk levels assigned by subjective assessment of quantified values Risks are reported to management in terms of Point of Loss category, associated with a combined consequence/likelihood tag

45 Commercial Model (BowTie ) BowTie is a proprietary commercial model designed to simplify risk assessment/management interventions BowTie Risk Assessment Terms: Hazard Top Event Threat Consequence Control (Barrier) Escalation (Defeating) Factor

46 Commercial Model (BowTie ) BowTie Application Methods (1): Visual model promotes lateral thinking in considering (multiple) Hazards and potential Top Events Assessment team works through potential Threats, Consequences, Controls and Escalation Factors BowTie includes some elements seen within a typical loss control energy model, that establish barriers to block harmful energies Allows application of pre-loss controls for Threats and post-event controls to minimize Consequences.

47 Commercial Model (BowTie ) BowTie Application Methods (2): Presentation software, graphically displaying risk associations Risk control data originates from external risk assessment Graphic presentation promotes users to establish interventions at best risk elimination/reduction points

48 Commercial Model (BowTie )

49 Part 2: Concept Application

50 Exercises Introduction Your exercise resources: Double-sided Risk Worksheet Risk Assessment Preparation Risk Management Double-sided Matrix Sheet 4 x 4 5 x 5 Your personal knowledge of your industry sector or company risk approach Work as individuals or within a table group

51 Worksheet (1) Risk Analysis Preparation Select a common hazard with which you are familiar Identify one or two factors that make this hazard a risk What points of loss are important to your industry sector (or company) that you need to know about? What selection of factors will provide you the answer to your critical need? Establish the analysis levels for each factor Select your Matrix size and transfer your selected values to the Exercise Matrix sheets (or draw your own Matrix)

52 Matrix Matrix Completion Enter your selected assessment factors based upon what you wish to find out about the risk Enter the risk levels you have established for each factor Review the risk output and apply your findings to the Risk Management Sheet

53 Worksheet (2) Risk Management Assign your maximum acceptable and ALARP values At what level: Can you tolerate risk? Cannot accept risk? In what direction and how far do you need to move the risk box to lower your risk by a level of magnitude Does the data suggest any elimination or mitigation steps? What are any residual risks requiring attention? Can you think of alternative factors that will be more useful in a further risk assessment?

54 Workshop Exercises Exercise Discussions

55 Fred s Favourite Dual matrices, typically 5 x 5 Number of exposures versus how often it goes wrong (results in an overall probability) Apply that probability versus consequences (from nil to catastrophe/unacceptable) I may do this separately for each point-of-loss element Four levels of Risk Control: Unacceptable. Job cannot proceed without change (12%) Mandatory Physical Risk Controls (20%) Procedural/Physical Risk Controls 4-10 (48%) Risk Control Activity not required. Monitor for change 1-3 (20%)

56 Summary Risk Assessment and Risk Management are value-adding activities recognized on a Global basis Many of the international tools are similar in design, and can be tweaked to reflect local needs Canadian workplaces can leverage this Global resource to enhance local safety performance in a meaningful way We have reviewed a number of international risk control models and have practiced with some of the variables Don t be afraid to change the parameters when using risk models play with them a little and develop what works for Your needs and Your workplace!

57 Questions? Preguntas? Vragen? Вопросы? des Questions? Pertanyaan? Fragen? هل لديك ا سي لة

58 Thank You for your Participation!! Fred Leafloor, CHSC, CRSP, CRM