Engineering Risk Management

Description

The book presents risk management from an engineering perspective. Both a systemic and analytic viewpoint are important in this regard. The introduction to the concept of 'risk' is followed by risk management principles, risk diagnostic, analysis and treatment, event analysis, crisis management, economic issues, risk governance followed by examples of practical implementation in chemistry, physics and emerging technologies such as nanoparticles. Finally, also a number of well-known major industrial accidents are discussed, and how one can learn from accidents. The book is aimed at anyone faced with risk and safety issues. The target audience can be as diverse as students, engineers, scientists, sociologists, psychologists, or actually all practitioners and academics interested in the matter. The topic of this book, tough essential, is only seldom a part of university curricula and many professionals do not have the appropriate knowledge for managing risks from an engineering perspective. The ideas, concepts, approaches, methods, etc. presented in this book are written in a logical and easily understandable way, with a strong link to industrial practice. The theories presented in this book are based on both authors' industrial experience as well as on years of teaching to students and professionals in this area. 1 Risk management is not only a matter of financial risk References 2 Introduction to engineering and managing risks 2.1 Managing risks and uncertainties - an introduction 2.2 The complexity of risks and uncertainties 2.3 Hazards and risks 2.4 Simplified interpretation of (negative) risk 2.5 Hazard and risk mapping 2.6 Risk perception and risk attitude 2.7 ERM - main steps 2.8 Objectives and importance of ERM 2.9 Conclusions References 3 Risk management principles 3.1 Introduction to risk management 3.2 Integrated risk management 3.3 Risk management models 3.3.1 Model of the accident pyramid 3.3.2 The P2T model 3.3.3 The Swiss cheese model and the domino theory 3.4 The anatomy of an accident: SIFs and SILs 3.5 Individual risk, societal risk, physical description of risk 3.5.1 Individual risk 3.5.2 Societal risk 3.5.3 Physical description of risk 3.5.3.1 Static model of an accident 3.5.3.2 Dynamic model of an accident 3.6 Safety culture and safety climate 3.6.1 Organizational culture and climate 3.6.2 Safety culture models 3.6.3 The P2T model revisited and applied to safety and security culture and climate 3.7 Strategic management concerning risks and continuous improvement 3.8 The IDEAL S&S model 3.8.1 Performance indicators 3.9 Continuous improvement of organizational culture 3.10 High reliability organizations and systemic risks 3.10.1 Systems thinking 3.10.1.1 Reaction time or retardant effect 3.10.1.2 Law of communicating vessels 3.10.1.3 Non-linear causalities 3.10.1.4 Long-term vision 3.10.1.5 Systems thinking conclusions 3.10.2 Normal accident theory (NAT) and high reliability theory (HRT) 3.10.3 High reliability organization (HRO) principles 3.10.3.1 HRO principle 1: targeted at disturbances 3.10.3.2 HRO principle 2: reluctant for simplification 3.10.3.3 HRO principle 3: sensitive towards implementation 3.10.3.4 HRO principle 4: devoted to resiliency 3.10.3.5 HRO principle 5: respectful for expertise 3.10.4 Risk and reliability 3.11 Accident reporting 3.12 Conclusions References 4 Risk diagnostic and analysis 4.1 Introduction to risk assessment techniques 4.1.1 Inductive and deductive approaches 4.1.2 General methods for risk analysis 4.1.3 General procedure 4.1.4 General process for all analysis techniques 4.2 SWOT 4.3 Preliminary hazard analysis 4.4 Checklis 4.4.1 Methodology 4.4.2 Example 4.4.2.1 Step 1a: Critical difference, effect of energies failures 4.4.2.2 Step 1b: Critical difference, deviation from the operating procedure 4.4.2.3 Step 2: Establish the risk catalogue 4.4.2.4 Step 3: risk mitigation 4.4.3 Conclusion 4.5 HAZOP 4.5.1 HAZOP inputs and outputs 4.5.2 HAZOP process 4.5.3 Example 4.5.4 Conclusions 4.6 FMECA 4.6.1 FMECA inputs and outputs 4.6.2 FMECA process 4.6.2.1 Step 1: Elaboration of the hierarchical model, functional analysis 4.6.2.2 Step 2: Failure mode determination 4.6.2.3 Step 3: The criticality determination 4.6.3 Example 4.6.4 Conclusions 4.7 Fault tree analysis and event tree analysis 4.7.1 Fault tree analysis 4.7.2 Event tree analysis 4.7.3 Cause-consequence-analysis (CCA): a combination of FTA and ETA 4.8 The risk matrix 4.9 Quantitative risk assessment (QRA) 4.10 Layer of protection analysis 4.11 Bayesian networks 4.12 Conclusion References 5 Risk treatment/reduction 5.1 Introduction 5.2 Prevention 5.2.1 Seveso Directive as prevention mean for chemical plants 5.2.2 Seveso company tiers 5.3 Protection and mitigation 5.4 Risk treatment 5.5 Risk control 5.6 STOP principle 5.7 Conclusion References 6 Event analysis 6.1 Traditional analytical techniques 6.1.1 Sequence of events 6.1.2 Multilinear events sequencing 6.1.3 Root cause analysis 6.2 Causal tree analysis 6.2.1 Method description 6.2.2 Collecting facts 6.2.3 Building the tree 6.2.4 Example 6.2.5 Building an action plan 6.2.6 Implementing solutions and follow-up 6.3 Conclusions References 7 Crisis management 7.1 Introduction 7.2 The steps of crisis management 7.2.1 What to do when a disruption occurs 7.2.2 Business continuity plan 7.3 Crisis evolution 7.3.1 The pre-crisis stage or creeping crisis 7.3.2 The acute-crisis stage 7.3.3 The post-crisis stage 7.3.4 Illustrative example of a crisis evolution 7.4 Proactive or reactive crisis management 7.5 Crisis communication 7.6 Conclusions References 8 Economic issues of safety 8.1 Accident costs and hypothetical benefits 8.1.1 Quick calculation example of accident costs based on the number of serious accidents 8.2 Prevention costs 8.3 Prevention benefits 8.4 The degree of safety and the minimum total cost point 8.5 Safety economics and the three different types of risks 8.6 Cost-effectiveness analysis and cost-benefit analysis for occupational (type I) accidents 8.6.1 Cost-effectiveness analysis 8.6.2 Cost-benefit analysis 8.6.2.1 Cost-benefit analysis for safety measures 8.6.3 Advantages and disadvantages of analyses based on costs and benefits 8.7 Optimal allocation strategy for the safety budget 8.8 Loss aversion and safety investments - safety as economic value 8.9 Conclusions References 9 Risk governance 9.1 Introduction 9.2 Risk management system 9.3 A framework for risk and uncertainty governance 9.4 The risk governance model (RGM) 9.4.1 The "considering?" layer of the risk governance model 9.4.2 The "results?" layer of the risk governance model 9.4.3 The risk governance model 9.5 A risk governance PDCA 9.6 Risk governance deficits 9.7 Conclusions References 10 Examples of practical implementation of risk management 10.1 The MICE concept 10.1.1 The management step 10.1.2 The information and education step 10.1.3 The control step 10.1.4 The emergency step 10.2 Application to chemistry research and chemical hazards 10.3 Application to physics research and physics hazards 10.3.1 Hazards of liquid cryogens 10.3.2 Asphyxiation 10.4 Application to emerging technologies 10.4.1 Nanotechnologies as an illustrative example 10.5 Conclusions References 11 Major industrial accidents and learning from accidents 11.1 Link between major accidents and legislation 11.2 Major industrial accidents: Examples 11.2.1 Feyzin, France, January 1966 11.2.2 Flixborough, UK, June 1974 11.2.3 Seveso, Italy, July 1976 11.2.4 Los Alfaques, Spain, July 1978 11.2.5 Mexico City, Mexico, November 1984 11.2.6 Bhopal, India, December 1984 11.2.7 Chernobyl, Ukraine, April 1986 11.2.8 Piper Alpha, North Sea, July 1988 11.2.9 Pasadena, Texas, USA, October 1989 11.2.10 Enschede, The Netherlands, May 2000 11.2.11 Toulouse, France, September 2001 11.2.12 Ath, Belgium, July 2004 11.2.13 Houston, Texas, USA, March 2005 11.2.14 St Louis, Missouri, USA, June 2005 11.2.15 Buncefield, UK, December 2005 11.2.16 Port Wenworth, Georgia, USA, February 2008 11.2.17 Deepwater Horizon, Gulf of Mexico, April 2010 11.2.18 Fukushima, Japan, March 2011 11.3 Learning from accidents 11.4 Conclusions References 12 Concluding remarks Index