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A Study On Project Risk Management at Tata Projects Limited
A Study On Project Risk Management at Tata Projects Limited
A PROJECT REPORT
Under the guidance Of
Miss Lopamudra Pradhan
Submitted by
SUNIL KUMAR PRADHAN
Regd. No: - 1302008570
In partial fulfillment of the requirement
for the award of the degree
Of
MB
A IN
PROJECT MANAGEMENT
DECLARATION
SIGNATURE
Project Risk management embraces the efforts taken to minimize the impact of
uncertain events. Project Risk management can be defined as “Identification,
analysis & economic control of those risks which can threaten to the assets or
the earning capacity of an enterprise”.
The definition has focused three fold nature of risk management; firstly risk must
be identified before measured; only after their impact has been evaluated, one can
decide on the most effective method of control. Cost of control of risk must be
commensurate with the benefit expected to be derived.
It also mentions the assets and the earning capacity of the organization. These
assets can be human or physical; they are both important and risk management
must be seen to have a part to play in both. However, risks do not strike at assets
directly and for this reason the definition also mentions the earning capacity of an
enterprise.
The emphasis of the project risk management is on reducing the cost of handling
risk by whatever means that are considered most appropriate and insurance is
viewed as simply one of the several approaches for minimizing the pure risks the
firm faces.
OBJECTIVES OF THE STUDY
Objective of this report is to study concepts of project risk management and its
importance. It also includes different activities involved in project risk
management as well as project risk management process for Industrial
manufacturing plant.
Additionally, report will include Potential risk analysis, controlling aspects of risk
exposure key features of to be addressed in changing environment.
Risk management is relatively new and its precise boundaries are still debated.
Some basic concepts of risk to analyze the nature & the cost associated with it & to
see how the risk can be managed.
Insurance company can perform much better if there are no claims or few claims.
In order to minimize the claims company should accept the premium by proper
analysis of the risks associated with the proposal.
Chemicals have become a part of our life, they sustain many of our day-to-day
activities, preventing and controlling diseases, and increasing agricultural
productivity. At least one thousand new chemicals enter the market every year, and
about 100000 chemical substances are used on a global scale. These chemicals are
mostly found as mixtures in commercial products. Over one million such products
or trade names are available.
SCOPE OF THE PROJECT:
The study reveals all the major aspects of risk management and their implications.
Study entangles possible factor for identifying a risk and its type. Research
provides metrics to summarize specific activities in risk management which in-turn
helps an organization to identify mitigate and avoid risk. Study covers all the
major aspect of risk management in Construction Industries.
RESEARCH METHODOLOGY
The information upon which the report has been based has mainly been collected
from secondary sources. Most of the facts and figures originate from desk research
of publicly available data.
These sources were:
The project is based purely on the literature survey and does not include any
practical experiences of chemical company. I could not visit any construction
company and was unable to get in touch with plant specific risks to which
chemical plants are subjected to. Another major limitation of this project is that
the author has reviewed publically available material and author could only peep
through published materials.
TPL operates through seven Strategic Business Units (SBUs) – Power Generation,
Transmission and Distribution, Railways, Water and Waste Water, Metals and
Minerals, Quality Services and Oil, Gas and Hydrocarbon – and these SBUs have
the expertise in execution of EPC projects within timelines with high quality and
cost consciousness. The Company has set up its own state-of-the-art Tower
Manufacturing Unit near Nagpur. The SBU-QS is one of the leading third party
inspection agencies with a pan India presence and substantial global coverage. It
provides diversified inspection and certification services and has received several
accreditations / approvals like ISO 17020, ISO 17021 by NABCB, Inspecting
Authority by Central Boiler Board, Chief Controller of Explosives etc.
As a part of its corporate sustainability TPL serves the community in the areas of
employability skill development, primary education, safe drinking water and
health. In line with the Tata Group philosophy, it also takes up Affirmative Action
initiatives.
TATA Projects - JVs & Subsidiaries
Joint Venture Company in Saudi Arabia
Tata Projects Limited entered into a Joint Venture agreement in Saudi Arabia with
M/s Abdullah Ibrahim Al-Towaijiri & Partners Co. (Al- Mashrik Contracting Co.),
Riyadh, a reputed and established contracting agency for execution of power,
infrastructure and industrial projects in the Kingdom of Saudi Arabia.
The Joint Venture Company named Al-Tawleed Energy & Power Company was
registered in Saudi Arabia as a
Limited Liability Company (LLC) on 19th February, 2006 with paid-up capital of
2 mn. Saudi Riyals. The local partner holds 70% of the equity and the balance 30%
is held by Tata Projects Limited.
In April 2007, Al-Tawleed Engergy & Power Company signed its first contract
with Siemens Power Generation Group for the installation of the electrical,
mechanical and C&I work for the Power Plant for the 3 x 300 MW and a water
desalination plant (800,000 cubic metres per day) for an independent Water and
Power Plant (IWPP) being constructed at Shuaibah located 110 km south of
Jeddah, to be completed in 24 months.
Acquisition of Artson Engineering Limited, Mumbai
Tata Projects Limited (TPL) acquired a majority stake of 75% in Artson
Engineering Limited in Jan 2008.
AEL has successfully commissioned on turnkey basis, several fuel storage and
handling facility systems and emerged as one of the foremost companies in the
country which specialize in such systems. Its expertise has gradually expanded
beyond the country and AEL has been executing prestigious overseas contracts
also.
AEL has also developed its capabilities in multi disciplinary construction fields for
the Hydrocarbon Process Industry and successfully executed many prestigious
construction contracts such as FCCU, Double Walled Storage Tanks etc. in India
& abroad. AEL is now one of the leading Design, Engineering, Procurement and
Construction Companies in Petroleum Storage & Handling Systems.
The expertise of AEL would enhance the EPC business opportunities of TPL,
especially in the Oil, Gas & Hydrocarbon Sector. This synergy is currently being
demonstrated in the Project under execution, of a major Oil Terminal in the UAE.
Joint Venture between Engineers India Limited and Tata Projects Limited
Tata Projects Limited (TPL) and Engineers India Ltd (EIL) signed a Memorandum
of Understanding (MoU) in July 2007 to incorporate a Joint Venture Company
which would undertake Engineering, Procurement and Construction (EPC) projects
in India and abroad. EIL is a leading engineering company in India providing
consultancy and engineering procurement consultancy services to a broad range of
industries which includes refineries, petrochemical industries, pipelines and
metallurgical industries. The synergies of both companies would be leveraged for
execution of EPC projects in the area of captive power plant generation sector upto
60 MW (Metal, Cement, Paper Industries & Cogen Plants) and special category
high value EPC Projects in OGH viz. Grassroots Refineries, Petrochemical process
units, Bottom up gradation process, HS crude processing facilities, Alumina
Refinery projects, etc.
The Joint Venture Company named TEIL PROJECTS LIMITED was incorporated
on 15th July, 2008 in Delhi as a Public Limited Company.
Organization Structure:
Vision, Mission & Values
CORPORATE POLICIES
NO OF PROJECT SITES
PROJECTS EXECUTED-DOMESTIC
Turnkey construction of
ONGC, additional condensate
Feb-
1 Gandhar, recovery unit for LPG 15 3 2008 Gujrat
06
Ankleshwar augumentation at CPF,
ONGC, Gandhar, Gujarat
Tata Power Fuel Oil Tanks/Chimney for
Company 4 x10 MW DG Power Plant Jan-
2 10 2 2008 Maharashtra
Limited, for TPCL at Khopoli(TPCL 07
Mumbai Lodhivali I), Maharashtra
Tata Power
BOP for 4x10.56 DG set
Company Apr-
3 power plant(TPCL 10 2 2008 Maharashtra
Limited, 07
Lodhivali II) , Maharashtra
Mumbai
Supply and erection of
Seawater Intake & Brine
Chemplast & Aug-
4 Reject Outfall System 15 3 2008 Tamil Nadu
Sanmar Ltd 07
including all Civil work to
Chemplast & Sanmar Ltd
Cuddalore Tamil Nadu.
Supply of equipments &
fabrication and erection of
Sep- Andhra
5 ISRO, SHAR SS piping for Propellent 5 1 2009
07 Pradesh
Bulk storage tank for ISRO,
SHAR (ISRO2), AP
ISRO - Design, preparation of drgs.,
Government manufacture & erection,
Jan- Andhra
6 of India, testing & commissioning of 20 4 2009
06 Pradesh
Department of casting facility equipment at
Space SHAR, Sriharikota, AP
EPC of Gas Collecting
ONGC, Station Expansion Jul-
7 10 2 2010 Gujarat
Ankleshwar Project at Olpad near Surat, 08
Gujarat
Supply, Installation and
commissiong of Steam
ONGC Oct-
8 heater in CSU Train at CPF, 5 1 2009 Gujarat
Ankaleshwar 08
Gandhar (ONGC, Gandhar
2)
Electro mechanical works of
Malle Nallah Diversion near Apr-
9 TPCL 10 2 2010 Maharashtra
Bhira Hydro power station , 07
Maharashtra
Mechanical works for
NHT/CCR Units (Part B)
Bharat
for CEMP II of BPCL-
Petroleum Oct-
10 Kochi Refinery. The work 45 10 2010 Kerala
Corp Ltd 08
includes Turnkey erection
(BPCL)
packages for the main
refinery units.
Duct fabrication for FCCU-
Feb- Andhra
11 HPCL II at Visakh Refinery, 10 2 2010
10 Pradesh
Vizag
EPC of Radhanpur terminal
Cairn Eneregy Jan-
12 for Mangala Development 80 18 2010 Gujarat
India Pty Ltd 09
Pipeline project
Mechanical/Piping works
for NIU,FCC-NHT units of May- Andhra
13 HPCL 30 7 2011
Visakh Refinery clean fuel 06 Pradesh
projects(HPCL I), AP.
14 HPCL Erection of equipment and 20 4 Nov- 2011 Andhra
machinery, fabrication and 06 Pradesh
erection of piping etc for
utilities and offsites of
Visakh Refinery Clean Fuel
Project. (HPCL- II), AP.
Mechanical works for
VGO/HDS Units (Part A)
for CEMP II of BPCL-
Kochi Refinery. The work
Bharat
includes Turnkey erection
Petroleum Oct-
15 packages for the main 55 12 2011 Kerala
Corp Ltd 08
refinery units including
(BPCL)
erection services of two
Main Reactors of 800 MT
and 200 MT in the main
package of the refinery unit.
PROJECTS EXECUTED-OVERSEAS
Thommassen
Compression Fabrication, Testing and Nov-
1 10 2 2007 Netherlands
System, Supply of Volume Bottles 06
Netherlands
Mechanical , piping, Fire
fighting and Civil works Jun-
2 ENOC, UAE 70 17 2008 UAE
(Excluding Storage tanks) 07
on EPC basis
EPC of Utico Zamil Steel
RAKGAS Aug-
3 gas distribution network at 10 2 2009 UAE
LLC 08
UAE
M/s Revamping the controls of
Oct-
4 RAKGAS Bukha Gas Processing train, 20 4 2009 UAE
08
LLC, UAE UAE
Design, supply and
installation of Gas Metering
Skid and associated pipe
RAKGAS Apr-
5 works (4" underground gas 5 1 2010 UAE
LLC, UAE 10
pipeline) for supply of gas to
Asian Ispat LLC at Ras Al
Khaimah, UAE.
Deployment of DC Engineer
RAKGAS Oct-
6 and supply operating spares 1 0 2010 UAE
LLC, UAE 09
for Bukha plant
7 UTICO , Detailed Engg Services for 1 0 Oct- 2011 UAE
UAE 20 MW captive Power Plant 09
at UAE
RAK GAS L.L.C, UAE
Deployment of DCS Engr
UTICO , Oct-
8 and supply of Spares to 1 0 2011 UAE
UAE 09
Bukha, Atlantis, Utico &
Asian Ispat plants
Characteristics of risk
Uncertainty
Concerning Loss
Classification of Risk:
Pure risk : It is used to designate those situations that involve the chance of
loss
Or no loss e.g. - Fire, Robbery & disaster
Speculative risk : It is the situation where there is possibility of gain
e.g. - gambling, investment & decision
Fundamental risk : These involve losses that are impersonal in origin
.They are group risks, these risks leads to many consequences e.g.-
unemployment , Inflation, Earthquake
Particular risk : These include losses that are arise out of individual events
& are felt by rather than individuals rather than by entire group e.g. -
burning of house & robbery of a bank.
Dynamic risk: Dynamic risks are those resulting from the changes in the
economy. These dynamic risks normally benefit society over a long period
of time since they are result of adjustments to the misallocation of resources.
Static risks: It involves those losses that occur even if there is no change in
the economy. Static losses tend to occur with degree of regularity over time
& are predictable. Unlike dynamic risk, static risk is not a source of gain to
the society. Some individuals suffer financial loss due to perils of nature &
dishonesty of the individuals.
Transferable risk : These include all the risks which can be transferred to
another person or entity e.g. Pure risks
Non transferable risk : These include all the risks which cannot be
transferred to another person or entity e.g. Speculative Risks
Internal risk: It includes all the risks within organization e.g. - In 2006 July
Associated Press reported that a secretary working at Coke's head office in
Atlanta." is accused of helping two men steal trade secrets from her
employer and try to sell them to rival PepsiCo Inc."
External risk: These include all the risks that are produced by a non human
source and are beyond human control.
(Source - Giddens, Anthony (1999). “Risk and Responsibility”. Modern Law
Journal, Vol. 62 No. 1, p. 4)
Peril: A Peril is a cause of loss or a situation of serious and immediate danger. e.g.
- fire, windstorm, theft.
Every Organization across the world is working with a goal to maximize profits &
maximization of Shareholder's wealth. Due to the advanced technologies life is
very comfortable now a day but at the same time risk & uncertainties are increased
in same or greater proportion.
Organizations can increase their profit margins by two ways:
Risk management is a scientific approach to the problem of dealing with the pure
risks faced by individuals and business.
Definition of Risk Management:
Three folded nature of Risk Management is highlighted in the definition. Risk must
be identified before they can be measured, & only after their impact has been
evaluated & at same time Cost of control must be commensurate with the benefits
to be derived.
It also mentions the assets & earning capacity of organization .These assets can be
physical or human. However, risk does not strike at assets directly & for this
reason the definition also mentions the earning capacity of an Enterprise.
Nature of risk management:
It is scientific approach to the problem of dealing with the pure risks faced by
individuals & business. It deals with insurable & uninsurable risk & appropriate
techniques for dealing with them. Basic difference between insurance management
& risk management is that insurance management includes all the techniques other
than insurance [e.g. non insurance, retention etc].
But insurance management is restricted to the area of those risks that are
considered to be insurable. Risk management on the other hand is concerned
with pure risks regardless of whether they are insurable or not, it has emphasis
on reducing the cost of handling risk by any means they are considered as
appropriate.
Risk management process:
It is comprised of 6 steps:
RISK IDENTIFICATION:
Risk identification is the first step in the Risk management process. It gives answer
to the question 'How can the assets be or earning capacity of an organization can
be threatened?” For this risk manager must dig into the operations of the
organization & discover the risks to which organization is exposed. He must be
armed with 'tools of trade ' & must make use of them.
RISK ANALYSIS:
Once the risk is identified then the steps have to be taken to measure potential
impact of that risk on the organization. Hence, this step includes statistical analysis
& measurement of risk. In practical sense measurement starts with gathering of
information, followed by analysis of past experience and then move to look at what
the data tells us about level of severity of risk & periodicity to which organization
is exposed.
Risk assessment:
The risk manager must evaluate the risk that are identified .This means that
measuring the potential size of loss associated with risk .The cost of risk can be
looked from different perspectives like:
a) Frequency of risk
b) Monetary cost or financial harmfulness
c) Human cost in terms of pain & suffering
Critical risks: All the risks in which possible losses are of magnitude that
would result in bankruptcy for e.g. - Bhopal (1984) Hillsborough, Mexico.
Important risks: These include those exposures in which the possible
losses would not lead to bankruptcy, but would require the firm to borrow in
order to continue operation.
Unimportant risks: These include those exposures in which the possible
losses could be met out of the existing assets or current income of the firm
without imposing undue financial strain. Also size of the organization would
influences the above categorization for example a risk which is important to
a small organization may be reckoned as unimportant risk by a large
organization
1. The risk management process does not tales place in vacuum. Things
change, new risk arises and old ones disappear. The techniques that were
appropriate last year may not be most advisable this year, and constant
attention is required.
2. Mistakes occur sometimes .Evaluation and review of risk management
programs permits the manager to review decisions and discover mistakes
hopefully, before become costly. For this purpose an independent risk
management consultant may also be hired to evaluate the entire risk
management to provide an independent outside review.
IMPORTANCE OF RISK MANAGEMENT:
8. Proper safety and risk management policies help companies keep their
general and liability insurance premiums low. Low overhead costs
allow companies to employ more workers and focus on profitable
business operations.
9. Companies may be sued if they are deemed liable for employee or third-
party injuries from negligent warehouse operations. Lawsuits arise when
companies do not have strong safety management policies or violate
their current safety policies.
ACTIVITIES IN RISK MANAGEMENT:
1 RISK IDENTIFICATION:
Risk Identification ascertains which risks have the potential of affecting the project
and documenting the risks' characteristics. Risk Identification begins after the Risk
Management Plan is constructed and continues iteratively throughout the project
execution. The Risk Identification process naturally progresses into the Qualitative
Risk Analysis or the Quantitative Risk Analysis Process. Sometimes it is wise to
include the identification of a risk and its response in order for it to be included in
Risk Response Planning.
Risk Register - The Risk Register containing the results of the Qualitative Risk
Analysis, Quantitative Risk Analysis, and Risk Response Planning. The Risk
Register illustrates all identified risks, including description, category, and cause,
probability of occurring, and impact on objectives, proposed responses, owners,
and current status. While the risk register will become the comprehensive output.
2 RISK ANALYSIS:
There may be some terminology and definition differences related to risk analysis,
risk assessment and business impact analysis. Although several definitions are
possible and can overlap:
1. Risk analysis involves identifying the most probable threats to an organization
and analyzing the related vulnerabilities of the organization to these threats.
Most businesses depend heavily on technology and automated systems, and their
disruption for even a few days could cause severe financial loss and threaten
survival. The continued operations of an organization depend on management‟s
awareness of potential disasters, their ability to develop a plan to minimize
disruptions of mission critical functions, and the capability to recover operations
expediently and successfully. The risk analysis process provides the foundation for
the entire recovery planning effort. A primary objective of business recovery
planning is to protect the organization in the event that all or parts of its operations
and/or computer services are rendered unusable. Each functional area of the
organization should be analyzed to determine the potential risk and impact related
to various disaster threats.
Risk analysis process:
Regardless of the prevention techniques employed, possible threats that could arise
inside or outside the organization need to be assessed. Although the exact nature of
potential disasters or their resulting consequences are difficult to determine, it is
beneficial to perform a comprehensive risk assessment of all threats that can
realistically occur to the organization.
Regardless of the type of threat, the goals of business recovery planning are to
ensure the safety of customers, employees and other personnel during and
following a disaster.
The relative probability of a disaster occurring should be determined.
All locations and facilities should be included in the risk analysis. Rather than
attempting to determine exact probabilities of each disaster, a general relational
rating system of high, medium and low can be used initially to identify the
probability of the threat occurring.
The risk analysis also should determine the impact of each type of potential threat
on various functions or departments within the organization. A Risk Analysis
Form, found can facilitate the process. The functions or departments will vary by
type of organization.
The planning process should identify and measure the likelihood of all potential
risks and the impact on the organization if that threat occurred. To do this, each
department should be analyzed separately. Although the main computer system
may be the single greatest risk, it is not the only important concern. Even in the
most automated organizations, some departments may not be computerized or
automated at all. In fully automated departments, important records remain outside
the system, such as legal files, PC data, software stored on diskettes, or supporting
documentation for data entry. An impact can be rated as:
0= No impact or interruption in operations,
1= Noticeable impact, interruption in operations for up to 8 hours,
2= Damage to equipment and/or facilities, interruption in operations for 8 -
48 hours,
3= Major damage to the equipment and/or facilities, interruption in
operations for more than 48 hours.
1. Although impact ratings could range between 1 and 3 for any facility given a
specific set of circumstances, ratings applied should reflect anticipated,
likely or expected impact on each area.
2. Each potential threat should be assumed to be “localized” to the
facility being rated.
3. Although one potential threat could lead to another potential threat (e.g., a
hurricane could spawn tornados), no domino effect should be assumed.
4. If the result of the threat would not warrant movement to an alternate
site(s), the impact should be rated no higher than a “2.”
5. The risk assessment should be performed by facility.
To measure the potential risks, a weighted point rating system can be used. Each
level of probability can be assigned points as follows:
Probability Points
high - 10
Medium -5
Low -1
To obtain a weighted risk rating, probability points should be multiplied by the
highest impact rating for each facility. For example, if the probability of hurricanes
is high (10 points) and the impact rating to a facility is “3” (indicating that a move
to alternate facilities would be required), then the weighted risk factor is 30 (10 x
3). Based on this rating method, threats that pose the greatest risk (e.g., 15 points
and above) can be identified.
Considerations in analyzing risk include:
DISASTER PREVENTION
Insurance considerations:
CONCLUSION
Insurance, by itself, does not provide the means to ensure continuity of the
organization‟s operations, and may not compensate for the incalculable loss of
business during the interruption or the business
Risk Assessment:
In the many activities we can offer, we provide challenges that seek to encourage
the development of young people. These are often challenges they do not face
every day and young people can experience a great sense of achievement in
completing them. Some degree of risk is unavoidable if the sense of adventure and
excitement is to be achieved, but it is - and should be - much less than the
participant perceives.
Accordingly we need to assess and control the risks associated with activities in
order to minimize the chance of injury.
It is not that difficult. A risk assessment is simply a look at what could go wrong -
both before and during the activity - and then deciding on ways to prevent - or
minimize - these potential problems.
Hazards and Risks two terms are frequently used during a risk assessment:
This determines what measures you can take to minimize the risk to an acceptable
level. It could be considered that hypothermia is a significant risk when taking part
in mountain activities, canoeing or sailing. However the risk can be reduced, for
example, by wearing appropriate windproof clothing or wet suits -depending upon
the activity!
It is necessary for you to stand back from the activity, and look afresh at what
could cause harm. It is important to concentrate on the significant hazards. These
are hazards which harm or affect several people. It might be a good idea to ask
others what they think; they may have noted things that were not immediately
obvious to you.
2 ACTIVITY TWO: DECIDE WHO MIGHT BE HARMED AND HOW?
These could be young people taking part (or waiting to do so), the instructors,
others supervising the activity, those in the area of the activity or casual observers.
In identifying the hazards (Step One) you have already identified the potential of
how these people might be harmed.
3 ACTIVITY THREE: EVALUATE THE RISK AND DECIDE WHETHER EXISTING
PRECAUTIONS ARE ADEQUATE OR WHETHER MORE SHOULD BE DONE :
You have already identified the hazards. Now consider the likelihood of each of
these hazards causing harm. This will determine whether or not you need to do
more to reduce the risk. It is possible that even after all reasonable precautions
have been taken some degree of risk will remain. What you have to decide, for
each significant hazard, is whether the remaining risk is high, medium, or low.
For some activities you have to ask yourself if everything has been done to comply
with the law - and, in our context, the requirements also of Policy, Organization
and Rules. Everything reasonably practicable must be done to reduce and control
the risk. Your aim is to minimize risks by adding such precautions as may be
necessary. Likewise, the competence of instructors/leaders and adherence to good
practice play a vital role in the provision of safe activities. There are many ways in
which risks can be minimized. This might be a change in venue, additional
training, an increased staff/participant ratio and properly equipped participants.
Likewise, plans may have to be modified during the activity, based on an on-going
risk assessment. Later in this fact sheet, we will relate this to typical Scout
activities.
4 ACTIVITY FOUR: RECORD YOUR FINDINGS:
You must inform those who will be taking part in the activity of your findings and
what action should be taken. The recording of your findings might vary depending
upon circumstances. A risk assessment for the use of a permanent climbing tower
on a campsite should be a document that each instructor has to read (and sign)
prior to the start of each session. It should cover the points you have identified in
Steps one-three above. The risk assessment must be suitable and effective and must
show that
The recording of the assessment should be in a format which is easily read - don‟t
write a book! Risk assessments are not operating procedures -they inform and
determine key aspects of the operating procedures. At the campsite your risk
assessment may have determined that no more than 30 people may be admitted to
the swimming pool at any one time due to the size of the pool and the need to
avoid overcrowding.
This assessment will then be reflected in the pool‟s operating procedure and a
requirement placed on the lifeguard and those controlling bookings for the pool to
count. A risk assessment for a day in the hills or on water that you have not visited
before cannot be formalized in exactly the same way. In these cases, refer to the
examples later in the fact sheet
.
5 ACTIVITY FIVE: REVIEW YOUR ASSESSMENT AND REVISE IT IF NECESSARY:
In all cases, it is good practice to review your risk assessments from time to time,
to ensure that the precautions are still working effectively. If there are any
significant changes, review and revise the assessments to take account of the new
hazard. For those risk assessments for a
Composite, and activities on site, it is important to ensure that when carrying out
a risk assessment the date is also set for the next review. Make sure that all
relevant documentation is changed.
The Bhopal disaster, also known as the Union Carbide disaster or the Bhopal gas
tragedy, was an industrial catastrophe that took place at a Union Carbide pesticide
plant in the Indian city of Bhopal, Madhya Pradesh on December 3, 1984.
Thousands died immediately from the effects of the gas and many were trampled
in the panic. The government of Madhya Pradesh confirmed a total of 3787 deaths
related to the gas release. Another source says that a few days later the death toll
had doubled. Over the next few years, the lingering effects of the poison nearly
doubled the toll again, to about 15,000, according to government estimates.
• Storing these chemicals in large tanks instead of over 200 steel drums.
• Possible corroding material in pipelines
• Poor maintenance after the plant ceased production in the early 1980s
• Safety systems shut down to save money – including the MIC tank refrigeration
system which alone would have prevented the disaster.
Data analysis:
Risk Manajgerrsenta clvice
M I n s u re n ce B ro ke rs M R i s k a na ge m e n t co n s u I to n ts Reg u In to rs
Risk management
The chemical industrial sector is highly heterogeneous encompassing many sectors
like organic, inorganic chemicals, dyestuffs, paints, pesticides, specialty chemicals,
etc. Some of the prominent individual chemical industries are caustic soda, soda
ash, carbon black, phenol, acetic acid, methanol and ago dyes. Chemical
manufacturing sector in India is well established and has recorded a steady growth
in the overall Indian industrial scenario. The Chemical and allied industries have
been amongst the faster growing segments of the Indian industry. It –
Chemical Safety
Safety with Compressed gases
Solvent Safety
Hazard Identification Techniques
Industrial Risk Management
Fire Prevention and Protection
Electrical Risk Management
Emergency Preparedness
Safety Management system
Accident Prevention
Personal Protective Equipment
5. It has been discovered that most of the enterprises are showing great concern
about competitive risk or risk associated with the managing of business.
6. This survey also reveals that primary goal of the chemical companies
is growth at a faster rate which is causing intense rivalry within
industry.
9. It has been found that near about 1000 chemicals are added to the market
every year from all the sectors like petrochemical, inorganic, organic,
paint& dyes and agrochemicals.
10.It is found that Chemical sector is one of the fastest growing sectors
of Indian economy.
2. http://en.wikipedia.org/wiki/Risk_management
3. http://www.indianchemicalportal.com/chemical-industry-overview/
4. http://www.oracle.com/us/industries/oil-and-gas/019366.pdf
5. http://www.nasa.gov/pdf/293261main_62868main_1_pmchallenge_stama
telatos.pdf
6. http://www.usaid.gov/oig/public/fy04rpts/5-391-04-001-s.pdf
7. http://www.scoutbase.org.uk/library/hqdocs/facts/pdfs/fs120000
8. http://en.wikipedia.org/wiki/List_of_industrial_disasters#Chemical_indus
try
9. http://en.wikipedia.org/wiki/Work_breakdown_structure
10.http://en.wikipedia.org/wiki/Risk_breakdown_structure