Engineering Safety and Risk

Management - ENGG 600

Risk Management Primer

Bridge BuildingDoes it ever go wrong ?

All of this could have and should

have been prevented
Edmonton Journal - September 2003

Catastrophic Process Safety Incidents

Texas City, 2005

(1)

3 Mile Island, 1979

(5)

Thunderhorse, 2005

(9)

What can we learn?

Piper Alpha, 1988

(2)

Chernobyl, 1986

(6)

Buncefield, 2005

(10)

Bhopal, 1984

(3)

Longford, 1998

(7)

Petrobras P36, 2001

(11)

Flixborough, 1974

(4)

Chuandongbei, 2003

(8)

Macondo, 2010

(12)

Engineering Safety and Risk Management ensures

our facili>es are well designed, safely operated,
properly inspected and con>nuously maintained.

We want to prevent major incidents like these.

Within 6 months of beginning your career, you

will be making decisions that involve risk.
The question for you is.

Are you prepared ?

Engineering Safety and Risk

Management - ENGG 600

What is Engineering Safety and Risk

Management?
Understanding the consequences of what we do
Understanding the probability that something will
cause harm

Which is the understanding of

Risk
Engineering Safety and Risk
Management - ENGG 600

What is Engineering Safety and Risk

Management?
It is the continuous reduction of risk to:
People
The environment
Company assets
The ability to produce products or deliver services
Security and vulnerability of our business
Sustainability into the distant future

Engineering Safety and Risk

Management - ENGG 600

The Incident Pyramid

1

10
30

600
10,000

Serious incident, disabling incident or fatality

Major incident or medical aid required

Property loss

Near miss incidents

Unsafe or unacceptable behaviors or conditions

Company Culture

Check out the

company you go to
work for.

Engineering Safety and Risk

Management - ENGG 600

Learning Log Engineers Survival Guide

Top Event
Immediate Cause

Understand
company
values
1 Level Event
1 Level Event
Understand your program and your
responsibilities
to it 2 Level Event
2 Level Event
Competing objectives managed
3 Level Event
3 Level Event
3 Level Event
Attention to failed equipment/sensors/controls
Level Event
and procedure Nnoncompliance
st

st

Doing Planned
Reviews

nd

nd

Identification of
Hazards

rd

rd

Reduce the
Risk

rd

Risk
Assessment/
Analysis

Yes

th

Basic
Cause

Basic Cause

Basic
Cause

Can
The Risk
Be Reduced?

Basic Cause

No

Discontinue the
Activity

ENGG 406 - January to April, 2012

No

Is
The Risk
Acceptable?

Basic

Risk Analysis Activities

To track look for and
analyze hazards or
concerns that arise
that challenge policy.

Yes

Manage the
Residual Risk

Cause

Management Activities
To track company
actions against policy.

Management Activities
To ensure company
activities keep risks
under control.

10

Incidents Causes
5%
10 %
Design Problem
Other Causes
Human Factor

85 %

Engineering Safety and Risk

Management - ENGG 600

11

Incidents Causes
Where Technology Stops

People Take Over

Engineering Safety and Risk

Management - ENGG 600

13

Serious Industrial
Accident

Engineering Safety and Risk

Management - ENGG 600

15

Engineering Roles
Research and development
Design and construction
Project management
Operations
Specialization (expertise)
Management

What will you be doing ?

Are you equipped ?
Engineering Safety and Risk
Management - ENGG 600

16

The Risk Management Process

Decision to
do a review.
Iden9ca9on
of hazards.
Reduce the
risk.

Risk review/
assessment.

Yes
Can the risk
be reduced?
No
Discon9nue the
ac9vity.

No

Is the risk
acceptable?

Management
Management
Activitiesac>vi>es
To
company
to track
track
company ac>ons
actions against policy.
against policy.

Risk analysis ac>vi>es

Risk
Activities
to tAnalysis
rack look
for and
To track look for and
analyze
hazards
or
analyze
hazards
or
concerns that arise
concerns
that arise
that
challenge policy.
that challenge policy.

Yes
Manage the
residual risk.

Management
Activitiesac>vi>es
Management
To ensure company
to ensure
company
activities
keep risks
under
control. keep risks
ac>vi>es

under control.

The work is progressed.

How have we
managed risk?

Risk?

Decision to
do a review.

The Risk Management Process

Decision to
do a review.
Iden9ca9on
of hazards.
Reduce the
risk.

Risk review/
assessment.

Yes
Can the risk
be reduced?
No
Discon9nue the
ac9vity.

No

Is the risk
acceptable?

Management
Management
Activitiesac>vi>es
To
company
to track
track
company ac>ons
actions against policy.
against policy.

Risk analysis ac>vi>es

Risk
Activities
to tAnalysis
rack look
for and
To track look for and
analyze
hazards
or
analyze
hazards
or
concerns that arise
concerns
that arise
that
challenge policy.
that challenge policy.

Yes
Manage the
residual risk.

Management
Activitiesac>vi>es
Management
To ensure company
to ensure
company
activities
keep risks
under
control. keep risks
ac>vi>es

under control.

The Risk Management Process

Decision to
do a review.
Iden9ca9on
of hazards.
Reduce the
risk.

Risk review/
assessment.

Yes
Can the risk
be reduced?
No
Discon9nue the
ac9vity.

No

Is the risk
acceptable?

Management
Management
Activitiesac>vi>es
To
company
to track
track
company ac>ons
actions against policy.
against policy.

Risk analysis ac>vi>es

Risk
Activities
to tAnalysis
rack look
for and
To track look for and
analyze
hazards
or
analyze
hazards
or
concerns that arise
concerns
that arise
that
challenge policy.
that challenge policy.

Yes
Manage the
residual risk.

Management
Activitiesac>vi>es
Management
To ensure company
to ensure
company
activities
keep risks
under
control. keep risks
ac>vi>es

under control.

Hazard Identification

It all begins
here.

Hazard Identification
If you think there are no hazards/concerns,
you will assume there is no risk.
Hazard (defn.): a potential source of serious
harm to people, environment, assets or ability to
conduct business.
There is a need for effective follow-up should a
hazard be discovered.
By the way if you find one, you have a legal
responsibility to deal with it and/or communicate
about it.

Hazard DIden>ca>on
Another
ay in the Plant

Erosion
Corrosion

Dust Suspension
Roll Over

Connement
LiRing

Organism

Electrical Source
Boil Over
Explosion
Detona>on

Piling
Pressure
Flaring

Process
Hazards

Flame Speed

Reac>vity
Back-Flow

Dispersion
Vibra>on
Solu>ons

Radia>on

Flow

Falling

Deagra>on

Fire

Crushing
Flammability

Low Oxygen
Low Temperature
High Temperature
Toxicity

The Risk Management Process

Decision to
do a review.
Iden9ca9on
of hazards.
Reduce the
risk.

Risk review/
assessment.

Yes
Can the risk
be reduced?
No
Discon9nue the
ac9vity.

No

Is the risk
acceptable?

Management
Management
Activitiesac>vi>es
To
company
to track
track
company ac>ons
actions against policy.
against policy.

Risk analysis ac>vi>es

Risk
Activities
to tAnalysis
rack look
for and
To track look for and
analyze
hazards
or
analyze
hazards
or
concerns that arise
concerns
that arise
that
challenge policy.
that challenge policy.

Yes
Manage the
residual risk.

Management
Activitiesac>vi>es
Management
To ensure company
to ensure
company
activities
keep risks
under
control. keep risks
ac>vi>es

under control.

Risk Criteria

Risk is a func>on of:

Consequence
Probability

Consequence

Simple Risk Matrix.

Consequence versus Probability

Probability

Risk
Level

The Risk Management Process

Decision to
do a review.

Management
Management
Activitiesac>vi>es
To
company
to track
track
company ac>ons
actions against policy.

Iden9ca9on
of hazards.
Reduce the
risk.

Risk review/
assessment.

Yes
Can the risk
be reduced?
No
Discon9nue the
ac9vity.

against policy.

Consequence

Simple Risk Matrix

No

Is the risk
acceptable?

Probability

Risk analysis ac>vi>es

Risk
Activities
to tAnalysis
rack look
for and
To track look for and
analyze
hazards
or
analyze
hazards
or
concerns that arise
concerns
that arise
that
challenge policy.
that challenge policy.

Yes
Manage the
residual risk.

Management
Activitiesac>vi>es
Management
To ensure company
to ensure
company
activities
keep risks
under
control. keep risks
ac>vi>es

under control.

Discontinue
The Activity

Managing the Residual Risk

1. Management Leadership, Commitment and
Accountability.
2. Risk Assessment and Management of Risks.
3. Community Awareness and Emergency
Preparedness.
4. Management of Change.
5. Incident Reporting, Investigation, Analysis and
Actions.
6. Program Evaluation and Continuous Improvement.
7. Design, Construction and Start-up.
8. Operations and Maintenance.
9. Employee Competency and Training.
10. Contractor Competency and Integration.
11. Operations and Facilities Information and
Documentation.

Typical Integrated Safety and Loss

Management Program Elements (contd)
So when you start
your career you may
want to check out the
company for how they
manage their
risks.

*Each element
Is defined
Has specific standards & objectives

Forms the basis for designing, constructing and

operating the companys facilities
Forms the basis for stewardship of performance

Engineering Safety and Risk

Management - ENGG 600

30

Professionalism and Ethics

The public expects this of us(reflected in law)
Recognize your responsibilities in the law
Know where your limitations are and ask for assistance
Know what information you require
Know to speak out when professional or ethical conduct is
compromised
Know how to handle conflict of interest concerns

Engineering Safety and Risk

Management - ENGG 600

31

Negative Results in Alberta

Workplace fatalities are not going down (~130 /year now)
The number of serious injuries are not dropping significantly
WCB costs are high (just under $1 Billion per year)
Losses as a percentage of GDP are very high (about 4%)
Engineering work involves high hazard activities
Young workers like you are hurt more often

Engineering Safety and Risk

Management - ENGG 600

32

Occupation Health & Safety Act

(the Law)
Employers responsibility
Workers responsibility
No worker shall carry out work that is unsafe
No one will be dismissed or disciplined for acting in
accordance with the act

Engineering Safety and Risk

Management - ENGG 600

33

Causes of Young Worker Injuries

Thats You !!!
Lack of experience
Poor orientation
Lack of supervision
Failure to ask
Following other workers examples
Negative peer pressure
It cant happen to me attitude

Engineering Safety and Risk

Management - ENGG 600

34

Managing Safety and Risk in the

University Engineering Faculty

Risk Level

Laboratory Safety

Leadership Commitment to Safety

Planned Inspections MSDS, Storage, Exits,
Emergency Response(Splash/Spill/Fire),
Housekeeping and Hazards

Risk Level

The Laboratory Safety Journey

Personal Protective Equipment

Standard Operating Procedures
Risk Assessment Method
Flowchart for Experimental Procedures
Training
WHMIS
Chemical Handling
Swagelock
Cylinder Handling
Orientations
Working Alone Procedures
Field Level Risk Assessment

Incident Reporting and Learning

With Risk Management

Fault Tree Analysis

Failed Autom atic Start-up of Em ergency Generator

We Can Do IT!!!

Mis s ing s tart-up s ignal for dies el

generator

Fault in s ending the

s ignal

Fault in
trans m is s ion of
s ignal

Fault in dies el generator

Faulty reception of
s ignal

Mis s ing fuel

Mechanical fault in
dies el generator

Simple Risk Matrix

Consequence

Can
Can
The Risk
The Risk
Be Reduced?
Be Reduced?

No
No
Discontinue the
Discontinue the
Activity
Activity

No
No

No fuel

Fault in circuit
#2

RiskAssessment/
Assessment/
Risk
Analysis
Analysis

Yes
Yes

Blocked intake

ManagementActivities
Activities
Management
Totrack
trackcompany
company
To
actionsagainst
againstpolicy.
policy.
actions

Identificationofof
Identification
Hazards
Hazards

Reducethe
theRisk
Risk
Reduce

Fault in control
module

Fault in circuit
#1

DoingPlanned
Planned
Doing
Reviews
Reviews

Thisisiswhat
whatwe
we
This
wanttotobebeable
abletoto
want
doeffectively
effectively
do

Broken
conductor

Probability

Is
Is
The Risk
The Risk
Acceptable?
Acceptable?

Yes
Yes
Manage the
Manage the
Residual Risk
Residual Risk

ISLMP - ENGG 406 - Lec.0 January to April, 2004

RiskAnalysis
AnalysisActivities
Activities
Risk
To track, look for and
To track, look for and
analyze hazards or
analyze hazards or
concerns that arise that
concerns that arise that
challenge policy.
challenge policy.

Thisisis
This
ENGG- -406
406
ENGG

ManagementActivities
Activities
Management
To ensure company
To ensure company
activities keep risks
activities keep risks
under control.
under control.

10
IPL1

IPL2

IPL3
Impact Event
Occurs
PFD3 = y 3

PFD2 = y 2
PFD1 = y 1

f2=x * y1 * y 2
success

f1 = x * y 1
Initiating Event
Estimated
Frequency
fi = x

Impact Event
Frequency,
f3 = x * y 1 * y2 * y3

Safe Outcome

success
Safe Outcome
success

Key:
Arrow represents
severity and frequency of
the Impact Event if later
IPLs are not successful

Safe Outcome

Im pac t
Event

Frequency

Severity

IPL
- Independent Protection Layer
PFD - Probability of Failure on Demand
f
- frequency, /yr

Basic Process
Control
System,

Engineering Safety and Risk

Management - ENGG 600

37

Organizations
Designed to Get the Results They Get

Preven>on Requires Risk Management

We want You to be Successful.

Risk Management is a Key Competency

39

Thank You and All the Best!

40