VOM-8-Risk Management-_3.pdf

Document: VOM-8 Risk Management Page: 8-i Issue: #3 Date: 1 January 2013

Authorised:

General Manager

8 RISK MANAGEMENT ................................................................................................ 8.1-1 8.1 MANAGEMENT OF RISK ............................................................................................... 8.1-1

8-1.1 Risk Terminology ......................................................................................................... 8.1-1 8-1.2 Risk Identification ......................................................................................................... 8.1-2 8-1.3 Risk Evaluation ............................................................................................................ 8.1-3 8-1.4 Methodology for using a Risk Assessment ................................................................... 8.1-4 8-1.5 Consequence Rating (CR) ........................................................................................... 8.1-5 8-1.6 Risk Likelihood Score Table (LHD) ............................................................................... 8.1-6 8-1.7 Risk Rating (RR) .......................................................................................................... 8.1-6 8-1.8 Control Measures......................................................................................................... 8.1-7 8-1.9 Definition ..................................................................................................................... 8.1-7 8-1.10 Monitoring and Reviewing Control Measures ................................................................ 8.1-8 8-1.11 Record Keeping ........................................................................................................... 8.1-8 8-1.12 Risk Flow Chart ........................................................................................................... 8.1-9

8.2 JOB SAFETY ANALYSIS (JSA) ..................................................................................... 8.2-1

Document: VOM-8 Issue: #0 Date: 26 November 2010

Document: VOM-8 Risk Management Page: 8.1-1 Revision: R2

888 RRRiiissskkk MMMaaannnaaagggeeemmmeeennnttt 8.1 Management of Risk

Risk management provides decision makers with a systematic approach for coping with uncertainty and guidance in relation to hazard identification, risk assessment and risk control in the workplace. This approach uses ASPSMs process to identify the hazard, assessing the risk and deciding on how the risk is to be controlled by producing an assessment of the risk exposure. It will assist those with responsibilities for Health, Safety, Security and the Environment to demonstrate due diligence and regulatory compliance in the planning, implementation of potentially hazardous tasks or activities.

Risk Management involves having a systematic process for addressing hazards in the workplace. The fundamental aim of Risk Management is to safeguard the current practices/procedures and to create an additional assessment, to ensure that all significant risks are identified, prioritised, managed effectively and presents a methodology for identifying additional hazards, assessing potential risk and developing mitigating controls and reviewing current practices/procedures.

It is the process of:

Identifying any foreseeable hazard anything in the workplace that has the potential to harm anyone e.g. moving parts in machinery, toxic chemicals, manual handling tasks

Assessing the risk from the hazard - finding out how significant the risk is e.g. will it cause a serious injury, illness or death and how likely is this to occur?

Eliminating the hazard or if this is not possible, controlling the risk from the hazard by implementing strategies to eliminate or control the hazard e.g. design equipment differently, add machine guards, use safer chemicals, providing lifting devices to minimise manual handling or use personal protective equipment

Reviewing risk assessment to monitor and improve control measures and find safer ways of doing things.

8-1.1 Risk Terminology

As a component of establishing Risk Management, it is important to define the risk terminology. The following definitions are a guideline:

Term Definition

Accident An event which results in unintended harm or damage

Additional Controls What is required to implement above the existing controls to reduce the risk

Consequence Is the most probable outcome of an individual being exposed to a hazard and an accident occurring

Control Measures These are circumstances which mitigate the identified risk by elimination, substitution, engineering controls, administrative controls and the use of personal protective equipment

Existing controls Controls that are currently in place and effective for controlling the identified risk

Hazard Identification Describes sources or circumstances with a potential for injury or harm to health. A condition or practice with the potential for accidental loss or environmental damage

Incident An event which could or does result in unintended harm or damage


Term Definition

Inherent Risk Where the risk is assessed without any controls present

Likelihood This is the probability that the complete sequence of events leading up to consequences will occur upon exposure to the hazard

Loss Avoidable waste of any resource

Residual Risk This is the situation after applying the control measures

Risk The combination of the likelihood of an event and its consequence

Risk Assessment Assessment of risks derived from identified hazards

Risk Control Is the process used to identify all practical measures for eliminating or reducing the likelihood or severity of an injury or illness in the workplace, to implement measures and to continually review the measures in order to ensure their effectiveness

Risk Identification Is the process used to identify all the possible situations in the workplace where people may be exposed to injury, illness, equipment damage or process failure

Risk Management A process to ensure that all significant risks are identified, prioritized, managed effectively, monitored and communicated

Severity A measure of the level of harm or damage that the accident/incident could cause

SWIFT Technique Structured What if Technique for hazard identification in assessing the risks using a prepared list of topics and systematic methodology through a brainstorming activity.

Task This is work to be carried out and may be also described as an activity

Threat A possible cause that will potentially release a hazard or produce

8-1.2 Risk Identification

The Risk Identification process is designed to identify all possible situations where people may be exposed to an injury or illness arising from:

Poor workplace design

Hazardous tasks being performed in the workplace

Incorrect installation, commission, use, inspection, maintenance, service, repair or alteration of plant in the workplace

People being exposed to hazardous substances, dangerous goods, processes or environmental

A risk identification process has been carried out on plant, substances, processes and work practices that have the potential to cause risk to the health and safety of our crew. This identification process has been undertaken and recorded in our Risk Registers:

V-SAF-016 - HSE Risk Register

V-SAF-017 - Confined Space Register

V-SAF-018 - Critical Lift Register

V-SAF-019 - Hazmat Register

V-SAF-022 - Critical Equipment Register


However, there may be other relevant risks that may have not been previously identified, which needs to be recognised prior to evaluation, using the following means:

Re-examine risks already identified in previous procedures or checklists

Review of similar business operations

Review of companies/third parties lessons learnt (including safety opportunities)

Brain storming involving relevant operational personnel (using the SWIFT technique)

Onboard there are six processes used for the identification/recording of hazards and risks:

Hazard Log / Safety Opportunity Reporting

Event Reporting

Safety Surveys / Safety Rounds

Job Safety Analysis

Risk Registers

HSSE Meetings

8-1.3 Risk Evaluation

When determining the risk evaluation, through the SWIFT technique, to identify a potential hazard during the risk assessment process (V-SAF-020 - Risk Management Format), the following key evaluation statements should be addressed:

1. What can go wrong?

2. What if it does?

3. How serious would it be?

4. How often?

5. What should we do about it?

If the likelihood that anyone can be exposed to a situation under all possible scenarios is nil, then there is no risk and no additional risk control measures are required. The adequacy of existing controls measures should be considered if there is the potential that someone may be exposed to a particular situation.


A step by step, the process is as follows:

8-1.4 Methodology for using a Risk Assessment

A risk assessment (V-SAF-020 - Risk Management Format) should be undertaken on all risks associated with non-routine repairs or other potentially hazardous operations not previously identified. The risk assessment should include the identification of risks to health and safety as well as the potential damage to the environment.

Analysing the risk involves determining the consequences, likelihood, existing controls, inherent risk and residual risks. When undertaking a risk assessment, the following should be used as a guide:

Identify the risk, hazards and threats associated with each activity.

Identify the consequence categories to evaluate the risk, hazards or threats, for example:

Safety issues / concerns Health impact Environment impact

Quality Requirements i.e. update of existing forms

Legal / regulatory Requirements

Risk Evaluation

Determine Project/Shipboard

Operation/ Work Activity

Hazard Identification

Risk Scenario

Existing Controls

Risk Rating after

Existing controls

Consequence Rating

Likelihood

Additional Controls

Residual Risk

After Additional

controls

Consequence Rating

Likelihood

Re-assessment based on proposed control measures

Implement Controls

Review and Update

Measure/ Monitor

Controls Fully Implemented

AIM:

Reduced Risk


Previous accident / incidents

Security Concerns

Process the analysis criteria for each consequence category

Further process what the risk residual ranking criteria.

ASPSM has utilized the 5 x 5 risk matrix

8-1.5 Consequence Rating (CR)

The Risk Rating after Controls (Residual Risk) in the Risk Management Format is brought down by reduction in the Likely-hood of the event occurring and not by reduction in the Consequences with the Proposed mitigation measures. In most cases the Consequence after proposed mitigation measures would still remain the same.

Level Descriptor Economic

Impact

Business Disruption

and Continuity*

Death or injury

Social Impact

Environmental Impact

Damage to Business Reputation/Public

Image

5

Cat

astr

ophi

c

Non recoverable losses in excess of than $10M

Severe disruption to business activities for an extended period greater than 1 month

Numerous deaths i.e. more than 5 crew

Severe ongoing community impact(s) Potentially weeks

Complete destruction of an ecosystem over a large area

Extensive damage to business reputation (possibly irreparable and crippling to business)with potential to destroy business Serious impact on organisations public image Significant and sustained media, community and political scrutiny with possible international coverage Potential for intrusive police or other inquiry into security incident

4

Maj

or

$5M-$10M Major disruption to business activities more than 1 week to 1 Month

Some loss of life i.e. less than 2 crew member

Major Community impact (s) Potentially days

Long term damage to part of an ecosystem over a wide area

Major impact on business reputation Major set back to organisations public image Adverse media, community and political comment, national coverage Possible intrusive questions in Parliament, but no inquiry

3

Mod

erat

e

$1-$5M Some significant disruption to business activities 1 day up to 1 week

Serious Injury or stress requiring hospitalisation Permanent injury Compensation of injury

Moderate community impact(s) and source of annoyance Potentially hours

Medium term damage to a part of an ecosystem over a wide area

Some impact on business reputation Public embarrassment for senior management and/or security personnel Some adverse local media publicity

2

Min

or

$100,000 to $1M

Minimal disruption to business activities 3 hours to 1 day

Injury requiring medical treatment Lost time due to injury

Minimal /short term community impact(s) or annoyance

Short term damage to an environment with localised impact on the ecosystem

Limited damage to business reputation Stakeholder and/or shareholder concerns Limited adverse local media publicity.

1

Insi

gnifi

cant

Less than $100 000

No or very limited disruption less than 3 hours

First aid treatment required.

Minor community impacts or inconvenience

Very limited or small scale damage to part of an ecosystem e.g. A loss of containment on deck

No significant damage to business reputation Resolved by day to day management No adverse media publicity.


8-1.6 Risk Likelihood Score Table (LHD)

8-1.7 Risk Rating (RR)

Risk Assessment Criteria Extreme Risk (E), High Risk (H), Moderate Risk (M), Low Risk (L)

Extreme Risk (E): Senior Management/ Fleet Manager approval required. A JSA and RA to be submitted for review and approval to the company.

Actions required after Residual Risk identified as below

High Risk (H): Fleet/ Ship Manager, Superintendent approval required. A JSA and RA to be submitted for review and approval to the company.

Moderate Risk (M): Fleet/ Ship Manager, Superintendent approval required. A JSA and RA to be submitted for review and approval to the company.

Low Risk (L): Managed by the task stakeholders through routine procedures, Work Instruction, JSA to be prepared for the task to be undertaken.

Qualitative Measures of Likelihood

Level Descriptor Description

A Almost certain Is expected to occur in most circumstances

B Likely Will probably occur in most circumstances

C Possible Might occur at some time

D Unlikely Could occur at some time

E Rare May occur only in exceptional circumstances

Qualitative Risk Analysis Matrix

Consequences

Likelihood 1 2 3 4 5

A H (A1) H (A2) E (A3) E (A4) E (A5)

B M (B1) H (B2) H (B3) E (B4) E (B5)

C L (C1) M (C2) H (C3) E (C4) E (C5)

D L (D1) L (D2) M (D3) H (D4) E (D5)

E L (E1) L (E2) M (E3) H (E4) H (E5)


8-1.8 Control Measures

Where a risk assessment requires additional control measures and the risks have been identified, evaluated and the control measures have been implemented, this means putting the appropriate control measures in place, to manage and mitigate those risks identified.

Risks must be eliminated or controlled and the best control practice is the elimination at the source, followed by the hierarchy of control.

Existing control measures should not be regarded as adequate simply because an incident hasnt occurred. This applies where the existing control measures are only administrative controls e.g. training, safety procedures, safety signs, supervision or personal protective equipment e.g. safety gloves, safety glasses.

The Hierarchy of Control are designed to eliminate the risk, or if that is not reasonably practicable, to reduce the risk so far as is reasonable practicable. If the current measures are found to be inadequate and there is a likelihood that an injury or illness will result from a particular situation then hierarchy of controls process must be implemented.

8-1.9 Definition

Elimination elimination of toxic substances, hazardous plant or processes that are not absolutely necessary to the system of work.

Substitution substituting a toxic substance, hazardous plant or process with one known to be less harmful to health. Substitution is only a preferred control method; it may also be the least expensive. For example, using a less hazardous material to overcome a vapour hazard is cheaper than installing an expensive ventilation system.

Engineering Controls changing processes, equipment or tools for example:

a) machine guards and machine operation controls,

b) ventilation to remove chemical fumes and dusts, and using wetting down techniques to minimize dust level,

c) Changing layout of work areas to minimize bending and twisting during manual handling.

Administrative Controls changing work procedures to reduce exposure to existing hazards. For example:


a) Reducing time of exposure to hazards by job rotation,

b) Limiting the number of employees exposed to the risk / hazard by restricting access to hazardous or risk area.

Personal Protective Equipment (PPE) devices and clothing that provide individual employees with some protection from hazards. An effective personal protective clothing and equipment system requires considerable effort by the employer to ensure that:

a) proper protective devices are selected,

b) where necessary, employees are individually fitted,

c) proper instruction on the need for, and use of, PPE is provided,

d) standards are enforced;

e) an effective system of cleaning and maintenance is devised;

f) All PPE is to be checked that it is fit for purpose prior to the use. The user of the PPE under the guidance of manufacturers instructions and/or a supervising officer is to ensure that all PPE is returned in a state that is fit for use (including disinfection if required) after completion of the required task.

For control measures implemented due to the failure of key vessel equipment, plans and systems, the Risk Assessment shall be forwarded to the Ship Manager for review.

Once implemented, a further assessment needs to be made to ensure that the risk has in fact been dealt with effectively. It is important to re-evaluate hazards regularly, because circumstances may change. Hazards that were discounted in the past as being of acceptable risk may no longer be so.

8-1.10 Monitoring and Reviewing Control Measures

Controls themselves can be subject to failure, so monitoring is recommended whenever the risk rating is more severe than LOW and MODERATE.

Monitoring and reviewing are viewed as the final stage of the risk management process. This is the means by which risk management is kept current and effective, as new hazards and those overlooked in the original process are identified and controlled. In every activity monitoring in the form of vigilance for unexpected occurrences should be ongoing and integrated into the routine operation of the activity.

8-1.11 Record Keeping

Adequate record keeping of the risk management process is important because the absence of such records may be treated as not having fulfilled the required duty of care.

Records must demonstrate that the process has been conducted properly including information about the identified hazards, associated risks and that control measures have been implemented to mitigate the risk and must be retained onboard through Risk Registers, Risk Management Folder, JSAs etc.,


8-1.12 Risk Flow Chart

A summary of this procedure is shown as a flowchart below.

Yes

Yes

No

Risk Identified

Safety Rounds JSA Safety Opportunity Lesson Learnt 3rd Party

Inspection Non-routine jobs

Can the Hazard be eliminated immediately?

Evaluate the risk using the Risk Management Format - V-SAF-020

Send to Ship/Fleet Manager for review

Proposed Risk Control

measures implemented?

Are control

measures effective?

End

Is proposed Risk Assessment Approved?

Yes

No

Is the Residual Risk Low?

Yes

No

No

Yes

Page: 8.1-1 Revision: R0


8.2 Job Safety Analysis (JSA)

The Works Committee shall evaluate the jobs listed on the V-SAF-011 - Daily Work Plan and ascertain if any job requires and Job Safety Analysis. During the Works Committee the following shall be taken into consideration:

All jobs to be undertaken must be assessed for risk; particular attention must be given to any new or non-routine tasks, and to work involving personnel new to the operation.

A V-SAF-005 Job Safety Analysis (in hard copy) shall be produced and /or reviewed by the work group for every job identified on the V-SAF-011 - Daily Work Plan s requiring a JSA. Where the Works Committee or the Work Group are undecided as to whether the job requires a JSA the relevant Risk Register shall be consulted and regarded as the higher authority. In any case personnel shall err on the side of caution with regard to safety.

All members of the Work Group shall initial and date the JSA (on the reverse side if necessary), demonstrating that the JSA was reviewed and accepted immediately prior to the job commencing.

Completed JSA forms shall be retained for ready reference. One JSA file containing all used JSA in hard copy (except JSA associated with Permits to Work see below) shall be maintained in a central location by the Works Committee.

For all jobs requiring a permit to work, the relevant JSA must be reviewed each time the task is undertaken. The JSA must accompany the Permit to Work to the job site, and be returned to the Works Committee upon completion of the job. The JSA must be filed (in hard copy) with the PTW in a central location.

Each crew members/contactor is to initial and date (must with a ball point pen) ON

For all other jobs the JSA must be reviewed at least annually and with reference to the relevant Risk Register.

the applicable JSA indicating that they have understood and reviewed the requirements of the JSA.

The Completed JSA forms shall be retained by the Works Committee as per the requirements of V-ISM-012 - Retention of Records, and the generic JSA shall also be updated as required.

Personnel undertaking the scheduled or un-scheduled work shall review the completed JSA form as a part of their job preparation.

The process of completing the Job Safety Analysis is as follows:

Determine the sequence of basic job steps

Identify the hazards in each step. Where chemicals (including chemical cargo) are involved, it is particularly important to consult the MSDS for the chemical(s) involved to ensure all associated hazards are covered in the risk assessment phase.

Develop risk controls/safe job procedures for the hazards in each step: Elimination, Substitution, Isolation, Engineering Controls, Administrative Controls, use of PPE.

Record the JSA

JSA taken to the work site to be reviewed and amended as necessary

JSA returned to the Works Committee for filing and updating of Generic JSA as required.

The HSSE Committee shall review the implementation/effectiveness of the JSA procedure and newly developed JSA forms at each monthly meeting. In addition, the HSSE Committee shall confirm that a minimum of 10 JSA have been reviewed since the previous HSSE Committee meeting.

The company has supplied a set of generic Job Safety Analysis to each vessel. The purpose of these generic JSA's is to provide an initial starting point for the vessel to modify and amend and to establish their own vessel specific JSA based on the vessel type.


The Works Committee may keep generic JSA on file in soft or hard copy to assist in the preparation of JSA. Generic JSA are not controlled documents.

8 Risk Management8.1 Management of Risk8-1.1 Risk Terminology8-1.2 Risk Identification8-1.3 Risk Evaluation8-1.4 Methodology for using a Risk Assessment8-1.5 Consequence Rating (CR)8-1.6 Risk Likelihood Score Table (LHD)8-1.7 Risk Rating (RR)8-1.8 Control Measures8-1.9 Definition8-1.10 Monitoring and Reviewing Control Measures8-1.11 Record Keeping8-1.12 Risk Flow Chart

8.2 Job Safety Analysis (JSA)

Documents

VOM-8-Risk Management-_3.pdf