Bowtie Bowtiexp Risk Management Made Easy

Risk Management Made Easy

Introduction Purpose and objectives of this presentation: • To introduce the BowTieXP methodology and software

Introduction History The exact origin of the bow tie methodology is unknown. The first scientific reference (that we are aware of) was in a publication of the University of Queensland, Australia in 1979. The Bow tie methodology matured in the early nineties when the Royal Dutch/Shell Group developed the technique as a result of the Piper Alpha disaster. Because of its background Bow ties have been traditionally associated with ‘major hazard’ risk analysis, often a bow tie file is referred to as a ‘safety case’

Introduction Risk Evaluation and Management There are many descriptions of risk management processes, but they all can be simplified into the following four underlying steps:

Introduction IDENTIFY

Are people, environment or assets exposed to potential harm? What could go wrong?

ASSESS

What are the causes and consequences? How likely is it? How bad will it be? What is the risk?

Can the causes be eliminated? Is there a better way? CONTROL How can it be prevented? How effective are the controls? Can the potential consequences be limited? RECOVER What recovery measures are needed? Are recovery capabilities suitable and sufficient?

Hazards are part of normal business

Unwanted Consequences

Loss of Control Consequences are the result of losing control EXPLOSION

FIRE HAZARD Potential to cause harm

LOSS OF CONTROL Release of the hazard

CONSEQUENCE: Extent of the harm

TOXIC GAS CLOUD

Bow tie characteristics

BowTie Methodology Increasingly popular • Both commercial and governmental organisations accept the BowtieXP methodology as their standard for risk management • The number of risk managers using BowTieXP increases day by day • Consultancies worldwide offer BowTieXP related training and services • Regulators are enabled to audit effectively

Selection of Australian Users of BowTieXP Recommended by Victoria’s Worksafe - Major Hazard Facility Guidelines Dept Primary Industries, Vic Queensland University - National Minerals Industry Safety And Health Risk Assessment Guideline

Used by • • • • •

BHP Billiton SANTOS (Corporate Risk dept) Murdoch University (OSHE Dept) FBT Operations (Hazardous freight) Jetstar (Airline Operations)

• • • •

TransOcean (Oil/Gas Drilling) Inpex Petroleum (Oil/Gas Drilling) Spryer (Human Factor in Safety) SARP (Safety & Risk Consultancy)

Selection of International Users of BowTieXP BowTie methodology is recognised by • International Regulatory organisations • International Association of Drilling Contractors (IADC) • US Fed Aviation Administration for Aviation Safety & Risk Management

Used by • • • • • • • •

ADCO Agip An Mea BHP Billiton Dockwise (Heerema) Engen Falck Global Safety Gulf Drilling

• • • • • • • •

KCA DEUTAG Parker Drilling Precision Energy ProSafe Raben Group SADAF (SABIC) SARP Shell

• • • • • • •

TNO SSC TransOcean TU Delft/TopTech UK Ministry of Defence University of Leiden University of Stavanger Weatherford

BowTieXP Characteristics

BowTie Characteristics Risk Assessment Made Easy • Simple and elegant way of assessing risks • Relatively inexperienced risk professionals quickly develop useful risk assessments • More experienced professionals gain insights into risk control that are not found by more traditional methods

BowTie Characteristics A Picture Paints a Thousand Words • • • • •

Clearest graphical illustration of risk management Easy to understand at all levels of an organisation Best tool for communicating risk issues A bow tie diagram summarises large documents Work floor gets involved and feedback is guaranteed

BowTie Characteristics Bow tie is commonly used for major risks • • • • •

Operational Safety (HSE) Financial Security Asset Management

BowTie Characteristics Simple and elegant methodology Qualitative approach to risk assessment

Assess Risks

Integral risk management Focus on how risks are managed

Manage Risks

Communicate Risks

Audit Risks

Easy to understand at all levels of the organisation No need for thick reports A bow tie model summarises complex risk issues

Easy auditing tool Welcomed by regulators

Why is it called bowtie?

BowTie Method Explained

BowTieXP Explained Hazard The potential to cause harm, including ill health and injury, damage to property, products or the environment, production losses or increased liabilities.

Top Event The ‘release’ of the hazard. The initial consequence. What happens when control is lost.

BowTieXP Explained Some examples of Hazards: • • • • •

Driving vehicle Stored materials Working at height Money transfers Electrical systems

• • • • •

Crowding Working at night Moving machinery Construction work System maintenance

Some examples of Top Events: • • • • •

Loss of Containment Structural Failure Dropped Object Loss of Control Electrical Shock

• • • • •

Falls to Same Level Falls to Lower Level Oxygen Deficiency Loss of Separation Contact

BowTieXP Explained Threat A possible cause that will potentially release a hazard and produce a Top Event.

Some threats / potential causes • Thermal - high temperature • Chemical – corrosion • Biological • Bacteria • Marine growth • Electrical - high voltage • Environmental Condition • poor visibility • Flooding • Human Factor - incompetence

BowTieXP Explained Consequence An event or chain of events that potentially results from the release of a hazard.

Some examples of Consequences: • • • • • • • •

Reputational damage Financial damage Property damage Production loss Injuries / fatalities Distressed personnel Unemployment Complaints

BowTieXP Explained Threats and consequences need to be controlled

BowTieXP Explained Control of Threats – Threat Barriers A protective measure put in place to prevent threats from releasing a hazard. Can be engineered / hardware or actions carried out by people.

Threat Barriers

BowTieXP Explained Recovery Preparedness for Each Consequence All technical, operational and organisational measures that limit the chain of consequences arising from a top event.

Some examples of Recovery Preparedness Measures: • Systems to Detect and Abate Incidents • gas, fire & smoke alarms, ESD, deluge • Systems Intended to Protect the Safeguards • fire & blast walls, protective coatings, drain systems • Operational Systems Intended for Emergency Management • contingency plans, training, drills, clean up, restoration, medical treatment • Compensative measures • re-stock fish, financial compensation

BowTieXP Explained Threat barriers and recovery measures control the release of the hazard or reduce/prevent the consequences

BowTieXP Explained Escalation Factors Conditions that lead to increased risk by defeating or overriding barriers or recovery preparedness measures.

Escalation Factors, some examples: • Environmental Variations • Extreme weather & tidal conditions • Loss of Services • Hydraulics, electric power

BowTieXP Explained Escalation Factor Controls Controls put in place to manage conditions that lead to increased risk due to loss of barriers or loss of recovery preparedness measures.

Escalation Factors

Escalation Factor Controls

BowTieXP Explained When we look at the bow tie method, we see the four underlying steps of risk evaluation and management implemented:

BowTieXP Software Tool BowTieXP software tool is a Modeling Tool – but extends beyond the simple bowtie methodology

BowTieXP Software Tool BowTieXP makes it possible to highlight what is risk critical within your organisation:

BowTieXP Software Tool

BowTieXP Software Tool Quality checks (help to improve quality and consistency)

BowTieXP Software Tool Reporting

BowTieXP Software Tool Why use BowTieXP? • Clean & readable diagrams • Link bow ties to the management system • Tasks & activities • Procedures • Responsible parties & competencies • Linked documents (checklists, technical drawings, websites, etc.) • Generate reports • Manage operations

BowTieXP Software Tool

Screenshot 2

Summary

BowTieXP Analysis in 8 Steps

BowTieXP Analysis in 8 Steps 1

“What can directly causes a loss of control of the hazard?”

3

“What are the Hazards we are dealing with?”

“What occurs when the control over the hazard is lost – the hazard is released?” 2 Top Event (Business upset)

4

“What outcomes can arise from the top event?“

BowTieXP Analysis in 8 Steps “How can we stop the hazard from being release?”

“How can we reduce the likelihood or severity of the potential outcome?”

5

6

Hazard

Top Event

7 “In what way could the controls fail?”

“How do we maintain the controls so they do not fail?”

8

ALARP: As Low As Reasonably Practicable Hazard

Top Event

Demonstration of ALARP “What other controls can we add? Can we improve the effectiveness of the controls? Is it practical to add to and strengthen our barriers?”

Get Started Today Trial version available • Please send a request to: [email protected] to receive a free 30-day evaluation version.

Licensed International Distributors BowTieXP Software, Training & Consultancy Services

Authorised Publishers and Joint copyright holders (Official) BowTieXP Training Solutions Head Office Contact details: Phone: Fax: Web: E-mail:

+61 (0)8 9211 1111 +61 (0)8 9211 1133 www.sarp.com.au [email protected] Head Office Address: Level 1, 610 Murray Street West Perth WA 6005

Developer and Copyright Holder, Sales & Support BowTieXP, TOPSET BlackBox, etc Software Products

Joint copyright holder, (Official) BowTieXP Training Solutions

Contact details: Phone: Fax: Web: E-mail:

+31 (0)71 512 87 53 (CET, or GMT+1 hours) +31 (0)71 519 05 79 www.governors.nl [email protected]

Address Zoeterwoudsesingel 63 2313 EL LEIDEN, The Netherlands