RISK MANAGEMENT
PRESENTED BY: B. N. JADHAV
There is always news about safety, and some of that news will be bad.
Historical Development of Safety & Risk Management
1. Safety as a
Value
Early 19th century
2. Codes and
Standards
Early 20th century
3. Worker’s
Compensation
Early 20th century
4. Occupational
Safety
Mid-20th century
5. Safety Analysis
Mid-20th century
6. Regulations
1960-70s
7. Management
Systems
1980s
8. Behaviour
based safety
1990s
9. Safety Culture
Current
↗ People working in the process industries now take it for granted
that safety is a value.
1. Safety as a Value
Early nineteenth century
↗ However, 200 years ago, such an attitude was not a norm.
↗ Child labour - a common practice in the new industry
↗ Chopping people in the machinery was quite justified.
↗ No control on the smoke generated.
↗ No inspectors appointed.
↗ Industrialists were quite opposed to such an idea.
↗ Didn’t acknowledge “Safety and Clean Air” were values in and of
themselves.
2. Codes and Standards
Early twentieth century
↗ By the beginning of the twentieth century, the number of industrial
accidents had risen to unacceptably high levels
o
Between the years 1870 and 1910, at least 10,000 boiler explosions
occurred in North America.
o
By the year 1910, the rate of such explosions had reached
approximately 1,400 per year.
↗ In response to this unacceptable situation, industrial societies
(particularly the ASME) started publishing a very wide range of
codes and standards
↗ The first boiler code was published in 1914
3. Worker’s Compensation
Early twentieth century
↗ Earlier workers were not eligible for compensation after an
accident
↗ Worker’s compensation programs
o
No-fault insurance systems introduced around the start of the
twentieth century in various nations.
o
An injured worker receives medical and compensation benefits
regardless of the causes of the job-related accident.
o
In return, lawsuits against the employer, except under very limited
circumstances, are not permitted.
↗ Clarity came to employer and worker that there is liability to do
with accidents-Some with employer and some with the worker.
↗ And both parties need protection
4. Occupational Safety
Mid-twentieth century
↗ To reduce the accidents, fatality and loss of property some efforts
were needed on the part of employers
↗ In the mid part of the twentieth century, increasing emphasis was
placed on Occupational Safety issues
o
Worker’s training
o
Improving working conditions
o
Use of personal protective equipment.
5. System’s Analysis
Mid-twentieth century
↗ Probabilistic Risk Assessment (PRA) o
Risk is characterized by two quantities –magnitude of possible
adverse consequences and probability of occurrence of each
consequence
o
Total Risk =Ʃ(Consequence x Probability)
↗ PRA answers three basic questions –
o
What can go wrong ? -undesirable starting events that lead to
adverse consequence(s)
o
What and how severe are the adverse consequences?
o
How likely to occur are these undesirable consequences?
o
To answer the 3rd question – Systems technique- FTA and ETA
5. System’s Analysis
Mid-twentieth century
↗ The Systems Analysis technique has limited use in process
industries due to –
o
Generally time-consuming and expensive
o
Not effective at predicting human behaviour
↗ Despite limitations, It brought a cultural change
↗ It is an objective and quantified approach in the management of
process safety and operational integrity
↗ LOPA (layers of protection analysis)
o
A modified method of quantifying risk through the use of systems
analysis.
o
It provides an order of magnitude estimation of risk
↗ Since 1960 Regulations for the process industries started rising.
6. Regulations
1960-70s
↗ In US, OSHA (Occupational Safety and Health Administration) came
into existence in the year 1970.
↗ Set the stage for modern environmental movement.
↗ New Environmental acts were enacted in the US and other parts of
the world. Initiative in India o
Environment (Protection Act)-1986,
o
Water (Prevention and Control of Pollution) Act-1974, Amend.1988.
o
Air (Prevention and Control of Pollution) Act-1981, Amend, 1987
o
Coastal Regulation Zone (CRZ) Notification 1991, 2011 and 2018
7. Management Systems
1980s
↗ During the 1980s, a series of bad accidents in the process industries
demonstrated that a new approach to safety management was
needed
↗ Develop, implement, and enforce process safety standards in order
to protect both workers and the public
o
Introduction of Process Safety Management (PSM) in the United
States, and the Safety Case Regime in Europe.
o
Regulations covering the offshore industry were introduced following
the Piper Alpha disaster of 1988
o
Industry Organizations like API developed their own process safety
standards to guide on implementation of process safety systems
o
American Chemistry Council - the Responsible Care® program
8. Behaviour-Based Safety
1990s
↗ In recent years, many companies have invested in behaviour-based
safety (BBS) programs
↗ BBS process helps employees identify and choose a safe behaviour
over an unsafe one.
o
Observe employees performing their routine tasks- safe and unsafe
behaviours are recorded (with personal information omitted).
o
Observer provides positive feedback on safe behaviours and
nonthreatening feedback on unsafe behaviours.
o
Employees are provided with suggestions on correcting the unsafe or
at-risk behaviours.
o
Results from the observation records are compiled in a database.
o
Reports indicate which types of at-risk behaviour are most prevalent
and in which locations they are taking place.
o
Based on the insights generated during the review and analysis
phase, recommendations for improvement can be made.
↗ Latest Focus on development of Process Safety Culture
9. Safety Culture
Current
↗ “Combination of group values and behaviours that determine the
manner in which process safety is managed”
o
How we behave when no one is watching
↗ Investigations of catastrophic events, have identified common
process safety culture weaknesses as an important factor.
o
Group Values  Shape attitude of Individuals  determines
individual behaviours
o
Sound culture  Better Operating Discipline
o
Long-term, Lifetime efforts with dedicated resources
↗ Leadership of an organization has primary responsibility for
identifying the need and fostering cultural change and sustaining a
sound culture once it is established.