A well-written report would contain the following elements: required to develop
ID: 335218 • Letter: A
Question
A well-written report would contain the following elements:
required to develop a Risk management plan or contingency plan to manage risk effectively in an organization. You may choose to work on any one of the following areas:
a. Hospitals
b. Real Estate
c. Chemical Industry
d. Manufacturing Unit
e. Energy plant
f. Enterprise
The Risk management plan should cover in detail
Risk Identification, Risk Analysis, Risk Response Planning, Risk monitoring and control.
Explanation / Answer
Company example into Energy/ Oil and Gas- Gas Authority of India Ltd.:
Consequence analysis takes the following aspects into account:
Risk Assessment:
The risk matrix is a widely accepted and standardized method of quantitative risk assessment and is preferred over purely quantitative methods, given its inherent limitations to define a risk event with certainty using order of magnitude data (risk ranking = severity/consequence factor X likelihood/probability factor).
Risk Response Chart:
Consequence
Ranking
Criterion Definition
Response
Catastrophic
5
A) Multiple fatalities/Permanent total disability to more than 50
Marking of hazardous zone (500 meters) around the well site and monitoring of human movements in the zone.
B) Severe violations of national limits for environmental emission. More than 5 years for natural recovery
Installation of hydrocarbon detectors
C) Net negative financial impact of >10 crores
Close monitoring of drilling activity be done to check for signs of increasing pressure, like shallow gas formations.
D) Long term impact on ecologically sensitive areas
Periodic monitoring and preventive maintenance be undertaken for primary and secondary barriers installed for blow out prevention, including third party inspection and testing
E) National stakeholder concern and media coverage
An appropriate Emergency Response Plan be formulated and implemented by GAIL.
Major
4
A) Single fatality/permanent total disability to one or more persons
Marking of hazardous zone (500 meters) around the well site and monitoring of human movements in the zone.
B) Major violations of national limits for environmental emissions. 2-5 years for natural recovery
Installation of hydrocarbon detectors
C) Net negative financial impact of 5 -10 crores
Close monitoring of drilling activity be done to check for signs of increasing pressure, like shallow gas formations.
D) Significant impact on endangered and threatened floral and
faunal species
Periodic monitoring and preventive maintenance be undertaken for primary and secondary barriers installed for blow out prevention, including third party inspection and testing
E) Loss of corporate image and reputation
An appropriate Emergency Response Plan be formulated and implemented by GAIL.
Moderate
3
A) Short term hospitalization and rehabilitation leading to recovery
Marking of hazardous zone (500 meters) around the well site and monitoring of human movements in the zone.
B) Short term violations of national limits for environmental
Installation of hydrocarbon detectors
C) Net negative financial impact of 1-5 crores
Close monitoring of drilling activity be done to check for signs of increasing pressure, like shallow gas formations.
D)Short term impact on protected natural habitats
Periodic monitoring and preventive maintenance be undertaken for primary and secondary barriers installed for blow out prevention, including third party inspection and testing
E)State wide media coverage
An appropriate Emergency Response Plan be formulated and implemented by GAIL.
Minor
2
A) Medical treatment injuries
Marking of hazardous zone (500 meters) around the well site and monitoring of human movements in the zone.
B) 1 year for natural recovery
Installation of hydrocarbon detectors
C) Net negative financial impact of 0.5 – 1 crore
Close monitoring of drilling activity be done to check for signs of increasing pressure, like shallow gas formations.
D) Temporary and mitigatable environmental impacts
Periodic monitoring and preventive maintenance be undertaken for primary and secondary barriers installed for blow out prevention, including third party inspection and testing
E)Local stakeholder concern and public attention
An appropriate Emergency Response Plan be formulated and implemented by GAIL.
Insignificant
1
A) First Aid treatment with no Lost Time Incidents (LTIs)
Marking of hazardous zone (500 meters) around the well site and monitoring of human movements in the zone.
B) Natural recovery < 1year
Installation of hydrocarbon detectors
C) Net negative financial impact of <0.5 crores.
Close monitoring of drilling activity be done to check for signs of increasing pressure, like shallow gas formations.
D) No significant impact on environmental components
Periodic monitoring and preventive maintenance be undertaken for primary and secondary barriers installed for blow out prevention, including third party inspection and testing
E) No media coverage
An appropriate Emergency Response Plan be formulated and implemented by GAIL.
Risk Scoring Matrix:
Likelihood ?
Frequent
Probable
Remote
Not Likely
Improbable
?
5
4
3
2
1
Consequence
Catastrophic
5
25
20
15
10
5
Major
4
20
16
12
8
4
Moderate
3
15
12
9
6
3
Minor
2
10
8
6
4
2
Insignificant
1
5
4
3
2
1
Risk Criteria and Action Requirements:
Risk Significance
Criteria Definition and Action Requirements
High (16 - 25)
“Risk requires attention” – Project HSE Management need to ensure that
necessary mitigation are adopted to ensure that possible risk remains within
acceptable limits
Medium (10 – 15)
“Risk is tolerable” – Project HSE Management needs to adopt necessary
measures to prevent any change/modification of existing risk controls and
ensure implementation of all practicable controls.
Low (5 – 9)
“Risk is acceptable” – Project related risks are managed by well-established
controls and routine processes/procedures. Implementation of additional
controls can be considered.
Very Low (1 – 4)
“Risk is acceptable” – All risks are managed by well-established controls and
routine processes/procedures. Additional risk controls need not to be
considered
Consequence
Ranking
Criterion Definition
Response
Catastrophic
5
A) Multiple fatalities/Permanent total disability to more than 50
Marking of hazardous zone (500 meters) around the well site and monitoring of human movements in the zone.
B) Severe violations of national limits for environmental emission. More than 5 years for natural recovery
Installation of hydrocarbon detectors
C) Net negative financial impact of >10 crores
Close monitoring of drilling activity be done to check for signs of increasing pressure, like shallow gas formations.
D) Long term impact on ecologically sensitive areas
Periodic monitoring and preventive maintenance be undertaken for primary and secondary barriers installed for blow out prevention, including third party inspection and testing
E) National stakeholder concern and media coverage
An appropriate Emergency Response Plan be formulated and implemented by GAIL.
Major
4
A) Single fatality/permanent total disability to one or more persons
Marking of hazardous zone (500 meters) around the well site and monitoring of human movements in the zone.
B) Major violations of national limits for environmental emissions. 2-5 years for natural recovery
Installation of hydrocarbon detectors
C) Net negative financial impact of 5 -10 crores
Close monitoring of drilling activity be done to check for signs of increasing pressure, like shallow gas formations.
D) Significant impact on endangered and threatened floral and
faunal species
Periodic monitoring and preventive maintenance be undertaken for primary and secondary barriers installed for blow out prevention, including third party inspection and testing
E) Loss of corporate image and reputation
An appropriate Emergency Response Plan be formulated and implemented by GAIL.
Moderate
3
A) Short term hospitalization and rehabilitation leading to recovery
Marking of hazardous zone (500 meters) around the well site and monitoring of human movements in the zone.
B) Short term violations of national limits for environmental
Installation of hydrocarbon detectors
C) Net negative financial impact of 1-5 crores
Close monitoring of drilling activity be done to check for signs of increasing pressure, like shallow gas formations.
D)Short term impact on protected natural habitats
Periodic monitoring and preventive maintenance be undertaken for primary and secondary barriers installed for blow out prevention, including third party inspection and testing
E)State wide media coverage
An appropriate Emergency Response Plan be formulated and implemented by GAIL.
Minor
2
A) Medical treatment injuries
Marking of hazardous zone (500 meters) around the well site and monitoring of human movements in the zone.
B) 1 year for natural recovery
Installation of hydrocarbon detectors
C) Net negative financial impact of 0.5 – 1 crore
Close monitoring of drilling activity be done to check for signs of increasing pressure, like shallow gas formations.
D) Temporary and mitigatable environmental impacts
Periodic monitoring and preventive maintenance be undertaken for primary and secondary barriers installed for blow out prevention, including third party inspection and testing
E)Local stakeholder concern and public attention
An appropriate Emergency Response Plan be formulated and implemented by GAIL.
Insignificant
1
A) First Aid treatment with no Lost Time Incidents (LTIs)
Marking of hazardous zone (500 meters) around the well site and monitoring of human movements in the zone.
B) Natural recovery < 1year
Installation of hydrocarbon detectors
C) Net negative financial impact of <0.5 crores.
Close monitoring of drilling activity be done to check for signs of increasing pressure, like shallow gas formations.
D) No significant impact on environmental components
Periodic monitoring and preventive maintenance be undertaken for primary and secondary barriers installed for blow out prevention, including third party inspection and testing
E) No media coverage
An appropriate Emergency Response Plan be formulated and implemented by GAIL.
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