What are your Hazards and How

are you Controlling them!

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 Emerging Trends
• Health, Safety, and Environment are more of
concern to the public than ever before
– Newspaper coverage can be an indicator of issues
– More coverage than ever and increasing
– This is shaping public opinion and is setting higher
standards of care
– It is an indicator of the new awareness of safety

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 Emerging Trends
• The public and workers are less tolerant of risk
– Past practices may be unacceptable today.
– The public expects minimal risk or even demands zero risk.
– You must be an even more responsible owner/operator.
– You have to both be actually more responsible and appear
to be more responsible to survive.

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 Emerging Trends
• Liabilities are increasing:
– Higher potential for legal action.
– Higher jury awards for punitive damages.
– Measured against higher standard of care.

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 Needed:
• Better management of risk
• Better awareness of hazards
• Reduce risk to acceptable levels considering
all stakeholders
– Who are the stakeholders?
– What is acceptable?
– How is it measured?

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 Hazard Analysis and Risk Assessment
• Foundation of Risk Management
– How can you manage risks that are either not
known or not well understood?
• Provides an assessment of acceptability
• Provides an assessment of alternatives

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 Traditional Measures of Acceptability
• Regulations
• Industry practice
• Company practice
• Engineering judgement

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Modern Measures of Acceptability
• Regulations
• Industry practice
• Company practice
• Engineering judgement
• Risk-based decision making based on
systematic methods and risk criteria

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Risks need to be managed

Risks Safeguards

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 Definitions
• Hazard:
– physical or chemical characteristic of a
material, system, process, or plant that has the
potential for causing harm
– consequences could include impact to workers,
the public, property, or the environment

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 Hazard Analysis Definition
A Hazard Analysis (HA) is a comprehensive study
that

– identifies, and,

– analyzes

the hazards of a process.

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Risk Assessment Process Flow
Diagram

Accident
Severity Modify
Estimation System

System Hazard Risk Risk Operate

Description Identification Determination Acceptance System

Accident
Likelihood
Estimation

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 Benefits of Hazard Analysis
• More complete awareness of hazards
– Provides a structured and systematic
examination of the hazards of a process
– Attempts to recognize all hazards
• Employee participation
– Gathers real input from the employees
– Concerns are discussed and documented
– Team is more informed about hazards
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 Benefits of Hazard Analysis

• Assists management in risk decisions

– Basis to assess if risks are acceptable
– Can be used to develop the most effective
strategy to reduce or eliminate risks
– Provides a means to compare risks of different
designs or operations
– “Worst First”

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 Benefits of HA (cont’d)
• Ultimate outcomes
– Improved safety performance resulting in less risk
to the public, employees, property and the
environment
– Assists with regulatory compliance
– Minimizes business interruption
– Improves relations with the public and employees

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 Solution -
Risk Management Program

• A systematic approach to managing risk

• Comprehensive program (Environment,
Health, and Safety)
• A risk-based culture in the organization
• Training for managers and employees
• Protocols to follow
• Criteria to follow

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Alignment of EHS and Other Business
Processes

• Senior management needs to come to

understand the strategic significance of EHS
processes as a critical business element
• There has to be a closer alignment of EHS
with other business processes

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 Definitions (cont’d)
• Hazard Scenario
– specific unplanned sequence of events that has an
undesirable consequence
• Initiating event - first event of the sequence
• Intermediate events - responses of the system and
operators or other conditions leading to the accident
• Final event - consider reasonable scenarios cascading
to the worst credible outcome

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Sequence of a Hazard Scenario
Initiating Intermediate Final
Event Events Event

Operator Release
Level Injury from
Overfills From
Tank
Increases Release
Tank

High Level Operator Personnel

Alarm Fails to in the
Fails Control Area

Dependent Events

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 Definitions (cont’d)
• Severity
– the impact of the accident in terms of the effects
on people, property, or the environment
• Likelihood
– how often an accident happens
– either probability or frequency

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 Definitions (cont’d)
• Risk
– a measure of potential human injury, economic
loss or environmental impact in terms of its
severity and likelihood
• Risk (R) = Severity (S) x Likelihood (L)

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Techniques Commonly Used in Hazard
Evaluation
Commonly Used Techs.:
• Hazard & Operability Other Techniques:
Study (HAZOP) • Event Tree Analysis
• Checklist Analysis • Fault Tree Analysis
• What-If • Human Reliability
• What-If /Checklist Analysis
• Failure Modes & Effects • Cause-Consequence
Analysis (FMEA)
• Preliminary Hazard
Analysis

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 Causes of Accidents
• Mechanical failures of • Wear, fatigue,
equipment corrosion,
• External events
• Weather, utility loss
• Human error in design,
operation, maintenance, • Slips, aberrations,
construction management intentional acts

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 Human Error
• Majority of incidents
• Least analyzed and understood
• Greatest impact can be made by focusing on
this area

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 Causes of Human Error

• 10% caused by • (90%) caused by

individual faults external influences

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 Value out of Risk Assessment?
• Conducting an effective Hazard Analysis and
Risk Assessment can seem to a be a daunting
task.
• But a planned and systematic approach to
Hazard Analysis can turn this chore into an
effective, proactive accident reduction tool.

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 To Err is Human...
• The operator opened • Ineffective training
the wrong valve • Insufficient staffing
causing an overfill of a
hydrocarbon tank and • Poor human-machine
a resulting fire interfaces (location of
(unintentional error in tank to location of
operation) control valve poor)

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Risk Management Program Overview
(cont’d)

• Goal -
– to require plans and procedures to
prevent and respond to accidental
releases
– to require a worst case assessment of
the hazard

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Slide 28
 Risk Management Program
Requirements (cont’d)
• Hazard Assessment
– worst-case release scenario analysis
– alternate release scenario analysis
– five-year accident history

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Slide 29
 Risk Management Program
Requirements (cont’d)
• Prevention Programs
– process safety – pre-startup safety
information (PSI) review
– process hazard analysis – compliance audits
(PHA) – incident investigation
– operating procedures – employee participation
– training – hot work permit
– mechanical integrity – contractors
– management of change

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Slide 30
 Risk Management Program
Requirements (cont’d)
• Emergency Response Program
– written emergency response plan
– procedures for use and maintenance of
emergency response equipment
– training for employees in relevant procedures
– procedure to review and update the plan
– plan must be coordinated with the community
emergency response plan

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Slide 31
 Risk Management Program
Requirements (cont’d)
• Management System
– system to oversee the implementation of the
risk management program elements
– a qualified person or position with overall
responsibility for the program elements
– define lines of authority assigned to implement
specific program elements

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Slide 32
 Why a New Effort For Chemical
Safety?
• Industrial accidents continue to happen
• Numerous impacts and costs
• The public is less tolerant of risk
• The US Government has intervened

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Slide 33
 Examples of Regulated Entities

• Chemical Manufacturers
– Basic chemical manufacturing,
– Petrochemicals,
– Resins,
– Agricultural chemicals,
– Pharmaceuticals,
– Paints,
– Cleaning compounds

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Slide 34
 Examples of Regulated Entities

• Petroleum
– Refineries
– Gas Plants

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Slide 35
 Examples of Regulated Entities

• Other Manufacturing
– Paper
– Electronics
– Semiconductors
– Fabricated metals

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Slide 36
 Examples of Regulated Entities

• Industrial machinery
• Food processing
• Agricultural retailers
• Public Sources
– Drinking water
– Wastewater treatment systems
• Utilities
– Electric and gas utilities

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Slide 37
Examples of Regulated Entities

• Other
– Propane retailers and users,
– Cold storage,
– Warehousing
– Wholesalers
• Federal Sources
– Military
– Energy installations

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Slide 38
 Accidental Release Prevention
Requirements

• Risk Management • Risk Management Plan

(RMP)
Program – describes Risk Management
– registration Program
– includes Executive Summary
– hazard assessment – condensed into Data
– prevention program Elements for submittal
– emergency response
program
– management system

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Slide 39
 Conclusions
• Risk Management is required in today’s
business environment
• Failure to do this is hazardous to your
company’s health.
• Hazard analysis and risk assessment are the
foundation of a risk management program.
• It is highly effective in reducing actual
incidents.

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 Contact Us...

astern Consulting Group Corporate Headquarters & Canadian Consulting Group

16 Village Blvd, Suite 200 Western Consulting Group AcuTech Consulting, Inc.
rinceton, NJ 08540-5799 AcuTech Consulting, Inc. 300-1055 West Hastings St.
el: (609) 951-2211 100 Pine Street, Suite 2240 Vancouver, BC V6E 2E9
ax: (609) 951-2281 San Francisco, CA 94111 Tel: 604-609-6168
Tel: 415-772-5972 Fax: 604-608-9880
Fax: 415-772-5975

http://www.acutech-consulting.com
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