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By H. S RINIVASAIAH Director of Factories, Boilers, Occupational Safety & Health.

Presentation on. I NDUSTRIAL R ISK A SSESSMENT. -- A R EALITY, R OAD M AP A HEAD. By H. S RINIVASAIAH Director of Factories, Boilers, Occupational Safety & Health. Government of Karnataka. A Tangible Recipe for Success A Management Project or Program

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By H. S RINIVASAIAH Director of Factories, Boilers, Occupational Safety & Health.

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  1. Presentation on INDUSTRIAL RISK ASSESSMENT -- AREALITY, ROAD MAP AHEAD By H. SRINIVASAIAH Director of Factories, Boilers, Occupational Safety & Health. Government of Karnataka

  2. A Tangible Recipe for Success A Management Project or Program A Set of Tools for Implementation A System for Production Floor Only Can implement in a Short or Mid-term Period MYTHV/S REALITY Reality What Risk Is Myth What Risk Is Not A Way of Thinking A Total Management Philosophy Focus on Total Employee Protection An Environment of Teamworkand Improvement A Never Ending Search for a Better Way Quality Built in every Process Organized, Disciplined Workplace Evolutionary It’s much bigger !! Improvement Continuously

  3. Share Holders BOD Risk Nation Employees A D V E R S E Disaster Communities Assests Benefits Benefits to the Nation ,faster project approval & Successful completion / operation of the project

  4. Liasoning with different authorities – Time and cost management Share holders Government Action ( Permits&Enforcements Inventory Management Risks Enforcement Risks People Management Project Delays Financial Pressure • People • Environment • Production • Assets / Finance L O S S C A U S E S Non adaptation of standard practices conditions quality design C O N T R O L Shifting of focus from crisis management to risk management Formulation of National Policy Training / education Attitude to implementation Reducing risks PROACTIVELY is better than dealing with the impact and losses REACTIVELY

  5. WHAT ARE THE NEEDS ? Important issues to remember : • Realities of the project • Understand the requirements • Prepare to take Risk • Conceive the project If yes, T E A M W O R K • Proceed further • Approach knowledgeable consultants • Project Managers • Head of the Business • Intermangement systems • Board of Directors • Stake holders

  6. Proponent’s Tasks • Look for qualified professionals. • Consider previous industrial experience. • Strength and ability to understand the process , product or equipment. • Ability to manage risks. • Show leadership commitment. • To be proactive to practical approach. • Have openness to the reality.

  7. FACTORS IGNORED • Business leader ignores factual data. • Believes consultant data as ultimate. • Undermine residual risks and does not concede the inherent weakness of the project. • Team works in line with the business leader suppress the vital facts for execution of the decision.

  8. THE MOST FORGOTTEN THINGS • Evaluating risks and hazards which may affectthe nearby community in emergency situation. • Identifying required response tasks not coveredin existing plans. • To match these tasks to the resources available. • Making changes necessary to improve existing plans. • Establishing procedures for periodic testing, review and updating of the plans. • Educate the general community about the integrated plan.

  9. ACASE STUDY • Chemical plant • 1. Site selection • 2. Improper layout • a. location of the plant in the downwind direction. • b. fire station near the process area • c. process area very close to the public living. • d. wrong material selection. • 3. Risk assessment • a storage • b. fire protection • c. toxicity • d. hazard index rating • e. fire and explosion hazard • f. compatibility.

  10. ACASE STUDY contd…. • 4. Process safety management • a. reliability assessment of process equipment • b. safety trips and interlocks • c. no or inadequate scrubbing system • d. no dedicated removal of fugitive emissions. • 5. Electrical safety • a. no hazard classification and proper • electrical fittings • b. protection against static electricity • c. lightening arrestor • d. poor maintenance.

  11. ACASE STUDY contd…. • 6. Safety Audits • a. conceptual stage • b. extension stage • c. commissioning and trial run • d. operation stage • e. periodic. • 7. Emergency Planning • a. on site • b. off site • c. integral multidisciplinary disaster approach • 8. Training • 9. Risk management and idle management.

  12. REMEMBER • The quantity of input data is an important factor indetermining the uncertainty of results • Determinations of thresholds and limits regarding the acceptability of variations and variability is considered as valuable inputs • Socially relevant factors and personal responsibility needs to be considered. There is no important work than providing Safe workplace to employees and society.

  13. THE RISK CHALLENGE • Think Differently…. • Be creative…spend no money • Think 100%, • Think simple – mind of a 10 year old. • No Sacred Cows…Ask Why at Least 5 Times • Do and Re-do before execution,.…..…start now The challenge is to prioritize effort and close the gap between paperwork and practice.


  15. Risk Levels - If Ignored or not understood Consultants may provide biased risk data , Assessments are not based on Strengths/ Weakness, ground reality Top Management accept the data Financial investors – Believe / depend on the management systems Safety Managers – Work on the data that is provided DISASTER Maintenance and Production Employees - Just follow Project Managers works in line with goals REMEMBER – DISASTER AFFECTS EVERYBODY TOP LEADER TO EMPLOYEE LEVEL

  16. MEXICO CITY, 19.11.1984, MEXICO • - leak in LPG Storage facility • - BLEVE occurred 500 deaths • Loss US$ 100 millions

  17. Snaps of Bombay High Devastation (ONGC)

  18. What happens then : ? Project delay Business interruptions Investors People Management Assets Management Environment Management Morale Management Share holders Employee morale Community image Legal issues Environmental damages Media image Bankruptcy

  19. The best / successful project would be: Get suggestions - as many as possible Assess risks integrated with business planning and evaluate. Subject them to critical review Set priorities based on the requirements Choose the project If the risk is high If Manageable Proceed

  20. BEST PRACTICES • Establish guidelines through consultative and collaborative approach. • Promote such guidelines through quality educative and training programmes. • Use credible data bank with a provision to update at the time of critical review and retrofitting. • Upgrade the best practices on a continual basis.

  21. BEST PRACTICES contd….. • Adopt inter-disciplinary approach to involve all the departments of an industry. • Provide powers of access to receipt / share information. • Delegate authorities to take appropriate decision to eliminate or reduce risk at every stage of conceptualization, design, execution, commissioning, operation and modification.

  22. BEST PRACTICES contd….. • Always look for a. minimum risk b. safer chemicals c. proven technologies d. proven / credible SOP’s. e. internationally available standards and practices f. transfer of complete technology whenever imported / exported. g. qualified / skilled human resources h. investments made in risk reduction process as not a burden but a value addition.

  23. RISK ASSESSMENTS : WHEN AND HOW ? • To be conducted at project conceptualization, design, construction and startup phases • Safety and Risk Management should be integrated with the standards, procedures and practices. • The results should me monitored and stewarded with the aim for continuous improvement. • Timely and accurate implementation of the systems.

  24. Risk Assessments : When and How ? contd.... • Review the process and validate. • Invite suggestions / opinions from the team members and subject to critical review. • Energize teams through inclusiveness, build loyalty and commitment. • Obtain feedback and assign projects to improve. • Consider the external impact on business activities, customers, market / industry, investors, media, government and communities.


  26. Tips for Recognizing Impending Crisis • Pay attention when your instincts tell you that there is something wrong. • Confront disturbing facts as and when you find them. • Do not ignore, rationalize them, or minimize there importance and investigate. • Consider the consequences if disturbing facts are found to be true (financial losses, physical injury, company reputation, etc). • Seek the counsel of others, particularly those close to the situation. • Let your values guide you. what is important ? the right thing to do.

  27. ROAD MAP • Shift the present focus from crisis management to risk management. • Introduce a national policy on risk management or risk reduction at par with Green House Gas Emission. • Develop a credible tool for assessing the risk and to foresee. • Integrate the measurement of risk with country / town planning processes. • Constitute core / focus groups who can work on risk reduction. • Prepare a vision statement with prescribed timeframe and implementation strategy. • Identify and adopt predictable, preventive, protective technologies.

  28. ROAD MAP contd…… • Introduce latest monitoring techniques and methods for quick assessment of risk. • Evolve a new training strategy to all the stake holders which can instill the confidence and provide motivation. • Introduce easy / understandable learning techniques to the industrial captains / managers / employees and Governmental agencies. • Introduce community based interactive mechanism where the local community can participate without fear or favour. • Develop a mechanism either through an act or authority to make the governmental agencies, the corporates, the voluntary organizations, the local community for compulsory participation on the need base.

  29. CHALLENGES • To motivate the industrial captains / industry to change their mind set in adopting safer technologies at a little higher cost. • To establish an interactive mechanism between different groups or agencies. • To establish a full pledged autonomous research programme centre with international accreditation for dissemination of credible information to receive quick response and adaptation. • To reduce the intervention of bureaucratic approach in execution of the policies / programmes. • To prevent the intervention of government in the functioning of research programmes.

  30. CHALLENGES contd…. • An institution to turn out knowledge based / skill human resource to understand and reduce risk elimination and minimization. • To develop capacity building measures in risk reduction and managing. • To identify the strategic locations to establish the capacity building measures. • To develop proper / acceptable modules and tools of training. • To strengthen the existing enforcement machinery and motivation mechanism to change their attitude and perception. • To motivate various stake holders / policy makers to respond at quicker phase in implementing the policies / programmes.

  31. PRAGMATIC APPROACH • Make an estimate of the negative impact of each risk, express it in terms of cost. – taste it. Accidents, natural events, environmental disasters, technical breakdowns, economic and market forces, rogue employees are among the potential perils faced by the organization – watch them. Potential risk audits should seek broad based input, many minds are better than a few – consider them.

  32. PRAGMATIC APPROACHcontd…. • Conduct your organizations risk audit through its individual units. The people closest to its operations are best equipped to detect risk reducing methods. – involve them. Use expected value as a quantitative tool and then apply qualitative evaluation to sort out your priorities – apply them Some risk are more worthy of managerial attention than others – look for them

  33. PRAGMATIC APPROACHcontd…. • Some risks are much easier and cheaper to neutralize than others – adopt Quantify the risk in terms of potential risks than probability of occurrence – give a thought One method for identifying potential crisis is to put yourself in the role of INTERNAL SABOTEUR and ask, - “What could I do to damage this company ?”. – identify him

  34. PRAGMATIC ROLES • Two ways Implementation role Visionary role Doing things right Doing the right thing

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