Integrating QRA into an operational QHSE

framework

User Conference 2018

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Agenda

Why operational QHSE?

– The Synergi Life Solution for QHSE

Why QRA?
– The Safeti QRA solution

Integrating QRA into an operational QHSE framework

– Rationale/Business drivers
– Benefits

How would an integrated QHSE/QRA solution look?

Summary and Conclusions

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Why operational QHSE?

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Do you know the safety level of your business?

11 Feb 2015,
Brazil: 9
fatalities, 26
injured

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Poor safety performance
- is generating unbearable loss to families, business and society

In UK alone 144
people are killed at
work each year

creating unbearable
loss to the people
impacted

It does not have

to be like this..
http://www.hse.gov.uk/statistics

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Why operational QHSE?

Need to record, track and respond to incidents that Control of risks/QHSE performance
can threaten life, property and the environment – Collecting data
– Non-conformances – Processing
– Incidents – Communicating
– Risk audits – Analysing
– Corrective action
Also, need to provide a complete picture of the – Experience transfer
enterprise risk portfolio
– Trending and KPI monitoring

Need to address risk quickly

Share and communicate data
Standardised
Demonstrate risk performance in real time
Capture/distribute information

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Numbers don’t lie - major accidents reductions are limited

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Quality failures and deviations severely impact your company revenue…
Most companies believe that the cost of losses due to poor quality and risk practices is at an
acceptable and low level

HOWEVER…

Research shows that impact due to non-conformance and lack of demonstrating QHSE
performance can be as high as 10-20% of Company revenue, not-to-mention reputation.

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Huge “trapped value” in operations
- meaning significant upside to improvements …
• Operators suffer significant
losses due to waste in their
operations.

• In the majority of examples

when a loss occurs the root
cause is a deviation from the
approved procedure or
method.

• BP estimates that of its annual

operational expenditure of $27
billion approximately 60% is
lost due to waste!

*COS Annual Performance Report 2014 released September 21 2015

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Is your CFO aware of the loss generated from poor performance in Quality and
Safety?

As illustrated above, lets assume

You are performing better than
your peers… and only waste 5 %
of your revenue due to poor quality
and safety performance

With a revenue of 10 billion USD

There is a trapped value of 500

MUSD

Is this part of the value creation

equation?

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Information in our decision making process
- from Incident to risk based management and decision making

Based on Incidents Based on Risk

Creating a transparent
Accident
process is key
Accident
Loss
We see that effective
Near miss incident, near miss and non
Near miss
Non Conformance
conformance handling
creates a collective
Conditions responsibility for safety and
Etc. Conditions, Audits, Observations, often contribute to develop a
Risk analysis, Assessments,
Recommendations, Improvements, positive safety culture.
competence

Reactive focus Proactive focus

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Information scattered in manual, sub optimised and siloed systems

2 / 3 of business leaders
say they do not have
access to thorough
analysis explaining what
QHSE data means…

And they lack a robust,

transparent and reliable
way of identifying
improvement areas

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Making connections to see relationships and identify Synergies

Effective information systems

contribute to remove
information silos and identify
synergies and joined
improvement plans between
areas.

Helping companies to have a

proactive approach

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The 4th industrial revolution is in the mind of everyone, bringing more data
- does it automatically bring more knowledge?

Machine Learning

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The safety and technology journey
– from fire fighting to real time analysis and predictions

New technologies will

allow us to become
integrated and
predictive

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Understanding QHSE Data - Challenges for the industry

Lack of
understanding
Too much data
of what the
– paralysis by
data means
analysis
and how to
interpret it

Poor
communication
Lack of access – everyone has
to “Good” or part of the
“Current” data data or it is
Poor inconsistent
data
Decision
Making

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 Core Business
Unique combination of Risk & QHSE
best practise and state of the art
technology

25
Years of deployment experience to
O&G, Energy, Industry, Life Science
and Transportation

350
Solutions deployed on premises or in
the cloud in more than 100 countries
world wide

750 000
More than 750 000 users have access
through mobile, web and offline
interfaces

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Synergi Life - a transparent line of sight through and across processes
Environment & Sustainability
Permits and compliance Incidents and Loss

Activities, plans & actions

Risks and opportunities

Barriers & Controls

Third party status

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Synergi™ Life – Digitalizing and enhancing your business processes

The Modules – supporting your business processes

• The suite of modules are designed to support various business needs and
meet the demands from both reactive indicators and proactive initiatives EHS GRC Quality Risk …
covering the full Risk and QHSE Management process
• The modules will support various activities depending on customer needs to
address a point issue or provide a holistic solution
CAPA &
CSR Continuous
The Engine Safety Security Contractor
improvement
• The technology framework enabling ultimate browsing experience,
analytics, dashboards and report builder, workflow and experience
transfer, language independencies, authorization and data security,
design and configuration suite.
• The languages, modules, interface products and plug ins are activated
in the engine depending on customer scope.

API
Mobile Survey
Excel Add-in Access
Services Manager
The Interface Products – collaboration enabled

• Provide a range of useful additions, which will enhance the user experience,
Data Export enable data sharing and offline handling and facilitate for seamless
and Import integrations with other systems
Service … …

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Fit for purpose now and in the future
- customers growing into a holistic focus

Get only what’s necessary for now. …

Scale on your own schedule.

Take advantage of our leading technical and operational expertise,

risk methodology and in-depth industry knowledge, being the world
leading classification society, technical assurance, software and expert Third Party
…
advisory provider since 1954 Management

Not just a heart and soul,

we’ve put domain knowledge Risk Environment Quality API
into the software Management Management Management Access

Deviation &
EasyRisk Incident Inspection Audit Activity Barrier Mobile
Dispensation
Manager management Management Management Management Management Services
Management

Schedule modules as you grow

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Why QRA?

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Why QRA?

Risk

Low High

“You cannot manage what you

cannot measure”

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QRA…a quick look…

Risk assessment takes

account of contribution from
all hazardous events
Risks are consolidated
based on consequence
outcomes, ignition
probabilities, weather
probabilities and
population vulnerability
Simple and complex studies
can be performed flexibly 1E-6/yr

using Safeti 1E-7/yr

1E-8/yr

1E-9/yr

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QRA…Risk Reporting

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Why QRA? (2)

QRA used to quantify risk

– Looks at individual hazards
– Reports an aggregated risk picture

Most widely used in design and land use planning

Increasingly seen as a tool that can be used to manage/inform “Operational risk”

Barriers
– Expert solution – needs expert to run
– Quite an involved process

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Operational Application for QRA

Reproduced from OGP

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QRA: Design versus Operations

Design Operations
– Plant Layout – Operational changes
– Equipment Spacing – Shutdown
– Land use Planning – Upgrades
– Safety Case – New process units
– Effects of barriers e.g. shutdown valves – Revised operating conditions
– Maintenance activity e.g. pipe replacement/hot
work
Location of Temporary buildings
Barrier status (impact of risk due to barrier
degradation)
Understand changing risk profile i.e. “risk over time”

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Some operational questions QRA can help answer?

What is the impact of a failed barrier (e.g. isolation valve) on my risk? Can I use this information
to make inform a decision about continuing to operate/how the situation is managed?

My process conditions have changed? How does this impact the risk profile?

My POB/number of personnel has changed? How does this impact the risk profile?

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What can QRA be applied to?

Shutdown of process facilities

– Impact on risk profile ?

Increase in number of personnel on site e.g. for maintenance work

Increase in societal population around the facility

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Challenges to using QRA in Operational settings?

Modelling challenges
Inability to model/account for the impact of SCE’s e.g. shutdown valves, protected buildings,
fire/blast walls, gas detection

Practical challenges
– Highly expertised activity especially to the uninitiated
– Difficult to understand results/terminology
– Numbers based, hence difficult to communicate
– Complex excel spreadsheets whose structure is often only understood by the creator
– A static approach (results of a QRA) in a report on a shelf
– Difficulty in updating the model to reflect changes in baseline risk levels

!!!All of which pose significant challenges to the potential QRA user!!!

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These challenges are not new…

UK HSE, Offshore Information Sheet No. 3/2006

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Other operational process risk indicators

Lagging indicators
– Maintenance backlog
– Near miss reporting
– Number of demands on safety systems (e.g. rupture discs)
– Failed
– Successful
– Activations of SiS
– Inspection findings

Leading indicators

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Safeti

Safeti, the leading QRA tool first developed for the Dutch Government in 1981 and has been
continuously developed since
340 Safeti client companies with 900+ active licenses

In 1988, Rohm and Haas sponsored development to carve out Safeti’s consequence calculations.
This is now known as Phast, which is the leading software for consequence analysis

900 Phast client companies with 3000+ active licenses

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Applications

Operational
Life Cycle Asset Risk Land Use
Risk
Management Planning
Safety Case Management
Development
• Design
• Construction
• Operations
• Decommissioning
Cost Benefit
Decision Analysis
Compliance
Support
(Legal
Requirement)
Equipment
Design
Escalation
Assessment
Quantify the
Technology benefit of
Option mitigation Insurance
Facility Selection measures
Siting

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Integrating QRA into an operational QHSE
framework

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Integrating QRA into an operational QHSE framework: Benefits

Current/Typical QRA Update process

Write Initiate Sign Administer

scoping PO/RFQ contract project
document • 3 wks • 1wk • 4wks
Modelling need • 2wks
Receive Make
identified results Decision

Timescale in weeks/months…

New process
Log in to Update Run Model View Results
cloud Parameters/c •Varies •<1s
solution hanges (seconds to
Modelling need •<1s •5 min – 1 hours) Make
identified hr decision

Timescale in mins/hrs…

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Integrating QRA into an operational QHSE framework: Benefits

The QRA user profile sits on a spectrum

More a QRA “producer space”

i.e. QRA Analysts

Novice Reviewer Expert

More a QRA “consumer space”

for decision making
i.e. Engineering Manager,
Head of Safety, OIM etc.

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How would an integrated QHSE/QRA solution
look?

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Combining two solutions: Synergi Life and Safeti

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 The Barrier Management module enables visualization of hazards together with their threats, effects and
barriers in a simple “BowTie” format which concisely shows information about a hazard and how it is
being managed .

A single “BowTie” will exist for each hazard type even if multiple realisations of that hazard are possible.
e.g. A hydrocarbon leak can occur at multiple locations, but it is normal to have a single “BowTie”
representing a generic “hydrocarbon leak hazard”.

In SL, all hazards and their BowTies for a single site are consolidated into one location.

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 A QRA provides an
assessment of all hazards
identified on a site and their
impacts. This is more detailed
than a “BowTie”.

New case type in SL called

“Safeti Site Study” has been
created for a particular site.

Primary function is to act as a

repository for QRA
studies/results specific to a
site of interest.

In SL, it is possible to view

the high level “BowTie”
assessment and then drill
down to see the specific
realisation of a particular
hazard e.g. how big is the
pool fire related to a leak of
hydrocarbons.

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 This launches the
Safeti QRA module
integrated into SL.

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 Available features for each
study are shown.

The module allows users

to upload a base study
and run sensitivity
analysis.

A site can have multiple

studies reflecting various
site conditions e.g. normal
operations vs shutdown.
Full audit trail of who The study reflecting the
has done what and current state of the site
when is maintained can be selected and sent
to SL using the “Set valid
site risk” button.

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 Various results are
provided:

Site Level:
- Potential Loss of Life
(PLL)
- FN Chart
- Risk Contours

For each scenario:

- Hazard zones for the
Jet/Pool
fire/Explosions etc.

Site level results are

passed into SL.
Scenario level result

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 Sensitivity Analysis on
various input
parameters can be run
easily.

Simply update values

and click run.

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 Results are passed
into SL.

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 Results available
in SL.

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 Once results are in SL, other functionality
such as:
• Notifications
• Time limits on the validity of
the QRA result can be set and
the “owner” notified when an
update is needed or a change
is made
• Risk Matrix
• The PLL value can be mapped
to a risk matrix to visualise
the risk
• Risk History Plots/Trend
Analysis
• The changing value of PLL can
be plotted to see how the site
risk has changed over time

can be leveraged.

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Summary and Conclusions

Key benefits/USP
– SL now a single application for managing both enterprise and process risk (common dashboards etc.)
– View, engage, utilize QRA results within SL

– SL QRA module (cloud based)

– Enables cloud QRA calculations and synchronised with SL
– Ability to vary parameters and run sensitivity analysis
– Enables “evergreening” of QRA models
– Technology can be further leveraged in other applications e.g. operational risk, connected to other
systems e.g. Synergi Plant, external ERP etc.

– Opens up “consumption of” and “engagement with” of Safeti QRA models to non QRA/Safeti experts

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