Risk Registry that Goes Beyond Plan Do Check Act. Vince Gagner, MSc, CRSP President Safety Health Risk & Environmental Consulting Services Inc.
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1 Risk Registry that Goes Beyond Plan Do Check Act Vince Gagner, MSc, CRSP President Safety Health Risk & Environmental Consulting Services Inc.
2 Agenda Start with the end in mind Mining for risk information Common tool for risk assessment Standardizing process through data entry Automating reporting and data analysis Operationalizing EHS Processes
3 Start With The End in Mind (From 7 Habits Covey)
4 What Do Your Clients Want? Annual report Trailing indicator summary and trends Lost Time Incident Frequency Trends Recordable Injury Frequency Trends Reportable Spills Reportable Vehicle Incidents Audit findings Opened? Closed? Significant EHS events over the past year Who / what is to blame Safety culture survey results Poor performers and what are we doing to improve?
5 Item Process Description Risk Rank Corrective Action Status CA Effectiveness What Do Your Clients Need? 1 ILP Explosion from a due to zz I Re-engineering Closed 40 2 ILP Fall from heights at x during activity y 3 Risk Loss of containment from z due to m 4 Action Mgt Noise induced hearing loss from b during f 5 Risk Contaminated soil at c with potential to leach to ditch u 6 Audit Regulatory non-compliance at n with possible fine of p 7 MOC Lost opportunity for v gain in production with change at t I Eliminate work activity Open 22 I II II II II Improve preventive maintenance Enforce hearing protection Periodically sample ditch water Install new equipment to update process Install flare gas knock out to recover product Open 6 Open Open N/A N/A Closed 59 Open 18 etc etc etc etc etc etc etc
6 Mining For Risk Information
7 Risk & EHS Management Systems Plan Stage Legal requirements Risk assessment Asset based Activity based Translate audit, incident, and other info. into an assessment of risk
8 Risk & EHS Management Systems Multiple Feeds Safety culture surveys RBI program EHS Risk assessments EHS ILP EHS Audit MOC EHS Training needs analysis Emergency response scenarios EHS Legal / policy trending EHS Corrective action
9 Common Tool For Risk Assessment
10 Likelihood Risk Matrix Example ALMOST CERTAIN L5 III II II I I LIKELY L4 III III II II I OCCASIONAL L3 IV III III II II RARE REMOTE L2 IV III III III II L1 IV IV IV III III Consequence C1 C2 C3 C4 C5 INJURY First Aid Medical Aid Recordable Lost time Fatality REGULATORY / LOSS OF CONTAINMENT Non-compliance but no regulatory action Regulatory noncompliance resulting in action (order) Reportable regulatory exceedance with agency action and significant corrective action requirements Significant agency action that limits operations for period of time Significant agency action that permanently limits operations; FINANCIAL / RELIABILITY <$10k $10k $100k $100k $1M $1M 10M >$10M REPUTATION Isolated individual concern; no media attention Community concern with short term local media attention State / provincial concern; major interest group concern; regional media attention Significant public response causing limited, short term impact on share price Significant public response causing major impact on share price
11 Standardizing Process Through Data Entry
12 PHA example in KMS where Risk Ranking is logged for each deviation in a HAZOPS
13 Entry of risk ranking into database creates entry into base tables which can be mined for analysis, triggering notifications, reports and dashboards
14 ILP example in IHS Essential Suites where Risk Ranking is logged for each incident file
15 Entry of risk ranking into database creates entry into base tables which can be mined for analysis, triggering notification, reports and dashboards
16 Automating Reporting and Data Analysis
17 Reporting and Analysis Dashboards can be created that pull data out for general or selected audiences Filters are used to give people the info they need to make defensible decisions So what do our Leaders need? Risk Assessment RRI, RRII from all parts of the EHS MS What is being done to improve How effective are the corrective actions Etc
18 Reporting and Analysis Total: 442 Date Busines s Unit Entity Classificati on Risk Rank Work Being Done EHS Corp. Cause Factor Nature of Injury Event or Exposure Source of Injury Body Part 1/2/2008 Aaaaa Recordable II Pump Maintenance Failure to inspect work environment Cuts, abrasions, lacerations Contact Objects and Equipment/Struc k-caught Ladders Head 1/2/2008 Aaaaa First Aid III Walking/Travelin g Inattention to foot placement Burns Fall To Floor, Walkway, or Other Surface Environmental - Ice, sleet, snow Arm & Shoulder 1/3/2008 bbbbbb First Aid IV Wrenching Overexertion (Tool) Sprains, strains, tears Bodily Reaction and Exertion/Overex ertion Wrenches Shoulder, left Data can be extracted and analyzed in Excel using pivot tables to cross tabulate and identify associations between one field and another. How about analysis of Root cause? CSA Z795? Corrective actions? Safety culture? Other
19 Statistical Analysis Values within a field can be plotted against others to see if there are linear relationships that can help us predict outcomes based on activities/conditions. Probabilistic forecasting can also be used to predict and evaluate interventions. We need to think like risk managers. Did this strategy result in a decrease of loss (i.e. manage risk). Was it a good investment? Should we continue with this approach or try something else?
20 Aggregated Reports Evolution of the Management System Plan Mining Stats Reports Reports Do Check Act The cycle remains the engine for linear continuous improvement. By embedding risk throughout the EHS MS, we use feeds from all parts of the cycle to automatically feed reports. By using technology, we standardize how and what information is collected (e.g. standardizing on a risk tool) and automate reporting to generate real time risk-based information to Leadership.
21 Operationalizing these EHS Risk Processes
22 Risk & EHS Management Systems Multiple Feeds Safety Culture surveys RBI program EHS Risk assessments EHS ILP EHS Audit MOC EHS Training needs analysis Emergency response scenarios EHS Legal / policy trending EHS Corrective action
23 Item Process Description Risk Rank Corrective Action Status CA Effectiveness EHS Risk Reports Become Operational Risk Reports 1 RBI Identified Corrosion Under Insulation - area a and process b 2 ILP Training program does not verify competency resulting in lack of due diligence 3 Risk Loss of containment from z due to m 4 Action Mgt Noise induced hearing loss from b during f 5 Risk New project to update exchanger bundles will result in x savings vs. other options 6 Audit Regulatory non-compliance at n with possible fine of p I I I II Shut down unit and repair Invest in new LMS and review all courses and tests Improve preventive maintenance Enforce hearing protection Open 18 Open 22 Open 6 Open N/A II Update bundles Open N/A II Install new equipment to update process Closed 59 etc etc etc etc etc etc etc
24 Let s Review
25 Review EHS risk assessment information can be found throughout the EHS management system There is value in normalizing language around EHS risks by using a common risk tool Use database tools to standardize process and simplify presentation of information for decision making Once you get this set up for EHS then expand these processes to include Operations Anchor your thinking to the needs of your client Give them more than standard EHS frequency trends Make EHS part of the overall risk management portfolio of the organization Go beyond static monthly/annual evaluations to generation of real time riskbased learning and improvement Go beyond PDCA and set the bar for the rest of the organization to follow
26 6 Braemar Blvd Chatham, Ontario N7M 6G
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