Hazard Identification

methodology

2 March 2009 Slide 1

 Organization’s methodology
 Be defined with respect to its scope, nature and timing to
ensure it is proactive rather than reactive
 Provide for the classification of risks and identification of
those that are to be eliminated or controlled
 Be consistent with operating experience and the capabilities
of risk control measures employed
 Provide input into the determination of facility requirements,
identification of training needs and/or development of
operation controls
 Provide for the monitoring of required actions to ensure both
the effectiveness and timeliness of their implementation
2 March 2009 Slide 2
 Concept of Risk Management

“The essence of risk management is to avoid high

risks, manage medium risks, and live with low risks.”

2 March 2009 Slide 3

Planning for Risk Analysis

PREPARE PROCEDURE

IDENTIFY HAZARD

ANALYSE RISK

Occurrences Legislation Severity Control

Extreme risk High risk Moderate risk Low risk

Establish significant risks - Prepare risk reduction program

2 March 2009 Slide 4
Planning for Risk Analysis

Establish Significant risks - Prepare risk reduction program

TERMINATE TREAT TOLERATE TRANSFER

Avoid or eliminate SHEQ Acceptable level Insurance
the risk Management of risk Subcontracting
System

IMPLEMENT SHE PROGRAMME

MONITOR [Measure, Evaluate, Commend or Correct]

2 March 2009 Slide 5
Risk Assessment

Sl. Activity Concern D/I/N/ OHSAS Present Additional Control Residual Risk
No. ABN Control Measures

Legislation*
Likelihood

Criticality
What? How? When?

Severity
Control
Who?

* Overriding factor

2 March 2009 Slide 6

Risk of Systems

 Likelihood:
1) Likelihood of undesired occurrence of the Environmental aspect -
EMS
2) Likelihood of undesired event occurring - OHSAS

5 Will happen daily to weekly

4 Will happen many times in a month

3 Will happen once in every week

2 Will happen once in every month

1 Unlikely

2 March 2009 Slide 7

Risk of Systems

Control:

Undesired occurrence of Environmental aspect (EMS) or

Undesired event (OHSAS).

1 Absence or not effective controls

3 Mechanism in place but not reliable

5 Available and effective

2 March 2009 Slide 8

Risk of Systems

Legislation:

Compliance with legislation or the activity/aspect/ risk not covered under

legislation

5 Not meeting legislation

1 In compliance with legislation or

aspect not covered under legislation

2 March 2009 Slide 9

Risk of Systems
Severity:

1) Impact against undesired occurrence of the Environmental aspect –

EMS
2) Impact against undesired event occurring - OHSAS

Impact Criteria
Financial Production Environment Injury
> Rs. 5 Stoppage more than 24 Permanent ecological Multiple Fatality 5
hrs damage
Permanent Customer Loss

> Rs. 3 M Stoppage < 24 hrs. Major ecological damage Single Fatality 4
Serious Customer Disability
Complaints

> Rs. 2 M Stoppage for half day Kills Flaura fauna or Serious Injury 3
Resource Conservation
Few Customer Complaint

< Rs. 1 M Stoppage for few hours Causes discomfort or acid Off Site Injury 2
or causes nuisance
Single Customer
Complaint

< Rs. 0.5 M Stoppage Less than a hour Slight Impact Minor Injury 1
First Aid
No Customer complaints

2 March 2009 Slide 10

DETERMINATION AND EVALUATION OF CRITICALITY

➨ Ranking Criteria = L x C x Lx R x I

➨ Select the ones with the highest score

OR
Define a Cut off value

2 March 2009 Slide 11

Example: Integration SHE Risk of Systems

Sl. Activity Concern D/I/ EMS/ Present Additional Residual

Legislation
No N/A OHS Control Control Risk

Criticality
Likelihood

Severity
Control
. BN Measures
What? How?
When? Who?

1. Operation of Emission of E D/N OCP related Change of fuel

DG Set Sulphur to operation 3 2 5 3 180 (ULHSD) 36
dioxide in place
Increase in Stack
Height

Noise S D/N PPE in place Acoustic Enclosure

Generation but not 2 2 5 3 120 of DG room. 24
complied Training on PPE
upon.

Legislation not complied under any

system requirement will have
Cut of Score - 120 impact other system

2 March 2009 Slide 12

 Procedure should include
 Hazard identification and risk assessment methodology to be
used
 Criteria for identification and evaluation of processes,
activities
 Assignment of competent persons to execute the procedure
 Frequency of risk identification and assessment activities
 Involvement of employees in the process, activities, etc
 Application of regulatory or other requirements, if applicable

2 March 2009 Slide 13

 Risk assessment and risk control
 Identify all activities; past, current and future planned, direct
and indirect, under normal, abnormal and emergency
situations
 Identify all hazards involved within the activity, including
those arising from the work place environment
 Assess the risks involved in the above and put in place
appropriate control measures
 Consider significant risks when setting objective/targets
 Provide feedback about control measures for significant risks
to monitoring and auditing programmes

2 March 2009 Slide 14