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Modern Approaches to Hazard
Analysis & Risk Management
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A Risk-based Approach
to Process Risk Management
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Objectives
Discuss emerging trends in safety, health,
and environment.
Discuss why a more formal risk
management process is required to manage
these issues.
Discuss how hazard analysis and risk
assessment fits into this approach.
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Emerging Trends
1-Health, safety, and environment are moreof concern to the public than ever before
Newspaper coverage can be an indicator ofissues
More coverage than ever and increasing
This is shaping public opinion and is settinghigher standards of care
It is an indicator of the new awareness of safety
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Emerging Trends
2-The public and workers are less tolerant of risk.
Past practices may be unacceptable today.
The public expects minimal risk or even demands zerorisk.
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
3-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 onsystematic 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 DefinitionA hazard analysis (HA) is a comprehensive studythat.
Identifies, and,
Analyzes.
The hazards of a process.
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Risk Assessment Process Flow
Diagram
System
Description
Accident
Severity
Estimation
ModifySystem
Accident
Likelihood
Estimation
Risk
Determination
Operate
System
Risk
Acceptance
Hazard
Identification
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Benefits of Hazard Analysis
More complete awareness of hazards
Provides a structured and systematic
examination of the hazards of a processAttempts to recognize all hazards
Employee participation
Gathers real input from the employeesConcerns are discussed and documented
Team is more informed about hazards
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One Indicator of a Division
Between Employees and Management
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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 operationsWorst first
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Benefits of HA (Contd)
Ultimate outcomes
Improved safety performance resulting in less
risk to the public, employees, property and theenvironment
Assists with regulatory compliance
Minimizes business interruptionImproves 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 (Contd)
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
Event
Intermediate
Events
Final
Event
Dependent Events
Operator
Overfills
Tank
Level
IncreasesInjury from
Release
Release
From
Tank
High LevelAlarm
Fails
OperatorFails to
Control
Personnelin the
Area
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Definitions (Contd)
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 (Contd)
Risk
A measure of potential human injury, economic
loss or environmental impact in terms of itsseverity and likelihood
Risk (R) = severity (S) x likelihood (L)
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Techniques Commonly Used in
Hazard EvaluationCommonly used techs.:
Hazard & operability
study (HAZOP) Checklist analysis
What-if
What-if /checklist
Failure modes &effects analysis(FMEA)
Other techniques:
Event tree analysis
Fault tree analysis Human reliability
analysis
Cause-consequence
Preliminary hazard
analysis
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Causes of Accidents
Mechanical failures of
equipment
External events Human error in design,
operation, maintenance,
construction management
Wear, fatigue,
corrosion,
Weather, utility loss Slips, aberrations,
intentional acts
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Slide 28
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
individual faults
(90%) caused by
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 openedthe wrong valvecausing an overfill of ahydrocarbon tank anda resulting fire(unintentional error in
operation)
Ineffective training
Insufficient staffing Poor human-machine
interfaces (location of
tank to location of
control valve poor)
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New US EPA Risk Management
Program Regulatory Overview Mandated by the federal government in
1990 (clean air act amendments of 1990,
section 112r) Effective June 20, 1996 (40 CFR part 68)
Compliance date - June 21, 1999
Slide 31
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Risk Management Program Overview
(Contd)
Goal -
To require plans and procedures toprevent and respond to accidental
releases
To require a worst case assessment of thehazard
Slide 32
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Risk Management Program
Requirements (Contd) Hazard assessment
Worst-case release scenario analysis
Alternate release scenario analysis
Five-year accident history
Slide 33
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Risk Management Program
Requirements (Contd) Prevention programs
Process safety
information (PSI)
Process hazard analysis
(PHA)
Operating procedures
Training
Mechanical integrity
Management of change
Pre-startup safety
review
Compliance audits
Incident investigation
Employee
participation
Hot work permit
Contractors
Slide 34
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Risk Management Program
Requirements (Contd) Emergency response program
Written emergency response plan
Procedures for use and maintenance ofemergency response equipment
Training for employees in relevant procedures
Procedure to review and update the planPlan must be coordinated with the community
emergency response plan
Slide 35
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Risk Management Program
Requirements (Contd) 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
Slide 36
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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
Slide 37
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EPAs Premise
The public has a right and need for knowledge:
Chemical hazards they are exposed to
Programs in place to prevent releases
Emergency plans and procedures
The public needs to have:Open and honest information from industry
Reasonable levels of risk
Industry has a need to have:
The public informed of these hazards
A cooperative effort of emergency planning
Trust of the community
Slide 38
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Bhopal, India, Disaster
December 2, 1984, over 40 tons of METHYLE
ISO CYNATE HYDROGEN CYNIDE andother gases leaked from a pesticide factory inBhopal owned by union carbide corporation.
Over 500,000 public citizens were exposed. At least six thousand people died within the
first week of the disaster.
The current death toll is well over 16,000 and
is rising. Hundreds of thousands of survivors continue to
suffer from multi-systemic injuries.
Slide 39
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Examples of Regulated Entities
Chemical manufacturers
Basic chemical manufacturing,
Petrochemicals,Resins,
Agricultural chemicals,
Pharmaceuticals,
Paints,
Cleaning compounds
Slide 40
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Examples of Regulated Entities
Petroleum
Refineries
Gas plants
Slide 41
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Examples of Regulated Entities
Other manufacturing
Paper
Electronics
Semiconductors
Fabricated metals
Slide 42
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Examples of Regulated Entities
Industrial machinery
Food processing
Agricultural retailers Public sources
Drinking water
Wastewater treatment systems Utilities
Electric and gas utilities
Slide 43
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Examples of Regulated Entities
OtherPropane retailers and users,
Cold storage,
WarehousingWholesalers
Federal sources
Military
Energy installations
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Accidental Release Prevention
Requirements
Risk management
program
Registration
Hazard assessment
Prevention program
Emergency response
program
Management system
Risk management plan(RMP)
Describes riskmanagement program
Includes executivesummary
Condensed into data
elements for submittal
Slide 45
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Slide 46
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Slide 47
You are here
How The Community Sees Their Worst Case Scenario
H Th C i S All W C S i
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Slide 48
Its everywhere!!
How The Community Sees All Worst Case Scenarios
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Conclusions
Risk management is required in todaysbusiness environment.
Failure to do this is hazardous to your
companys health.
Hazard analysis and risk assessment are thefoundation of a risk management program.
It is highly effective in reducing actualincidents.