...... •........ - .. - ..-........... ..... -.

--~,

Zurich Hazard Analysis

Methodology

( The Zurich Hazard Analysis (ZHA) was developed over twenty years
ago and has been used successfully by various industries to identify
and manage all types of risks. It relies on your in-house expertise of
those who are most knowledgeable about the component, product
or process being analyzed. Its ability to reveal risks makes it one of
the most powerful risk management tools. With the ZHA, you make
all the key decisions yourself: you determine the gravity of the risks
identified, and you decide what level of risk you're prepared to
tolerate. This level of involvement increases risk awareness and
builds confidence in the results of the analysis, making it easier to
develop tailor-made risk improvement measures.

The ZHA is straightforward and simple. Identify Hazards, Define and

The steps of the process are outlined below:
Define the Scope
The scope of the ZHA describes both the
content and the boundaries of the product,
process or components to be analyzed.
A realistically delineated scope takes into
consideration the expertise and time
avallable for the analysis.
Choose the Team & Teamleader
Ideally, the people most knowledgeable
about the product, process or components
to be analyzed are selected to participate as
team members. A Teamleader is needed to
faciUtate the ZHA process. This is the only
person on the team who really must under-
stand the ZHA process well.
Assess Hazard Scenarios
Scenarios are developed as the team brain-
storms through a ·Pathway" . a defined
route through the scope of the analysis.
The ZHA "Tickler List", a set of thought
provoking words that encourage the team
to systematically focus on each type of
potential threat, is used to stimulate the
thought process and t o ensure that hazards
are revealed. Once a hazard scenario is
Identified and documented it is then rated
for relative severity and frequency. Both
elements determine the significance of the
risk.
Build the Risk Profile, set the Risk
Tolerance Boundary and plot the
risks
The Risk Profile is a matrix divided into
four severity categories and six probability
levels. From a risk management point of
view, the most important aspect of the
Risk Profile Is the Risk Tolerance Boundary
- a segmented line drawn across the
Risk Profile. The Risk Tolerance Boundary
establishes the border between tolerable
and intolerable risks. Exactly where that
line is drawn on the matrix depends on
your company's risk management strategy.
The risks categorized in the Hazard
Catalog are then plotted onto the
corresponding coordinates of the Current
Risk Profile matrix. The Risk Profile
thus provides you with an Instant graphic
overview of your risk exposure.
Develop Risk Improvement Actions
Improvement actions are devised to elimi-
nate or reduce the risks above the Tolerance
Boundary. The risk scenarios are re-ranked
to take into account the improvement
actions. This, then, defines the Target
Profile.
Implement the Risk Improvements
The Risk Improvement Actions developed
by the team provide concise direction as to
how, when and by whom they should be
implemented.

Review the Analysis

Given that legal reqUirements, industrial
standards, as well as consumer expectations
- and indeed your own processes -
continue to change, it will be necessary to
periodically review the results of the analysis.

The power ofthe ZHA

Simpl icity. A ZHA projectcan begin immediately because the methodology is simple and
straightforward and the team members only require minimal training.

Efficiency. A ZHA takes Jess time than other hazard analysis methodologies. because it focuses
on risk(s) that you have defined as intolerable.

Visibility. A graphical depiction of the CUrrent and Target Risk Profiles lets you 'see' the
results of implementing the improvement actions.

Proficiency. The team-based nature of the ZHA brings together individuals who have fi~t hand
knowledge and expertise of the scope of the analYS;s.

Flexibility. The ZHA can be appl ied across a wide range of irn:1ustries, and at any phase of a
process, project. or product life cycle.

~
ZURICH
Zurich Insurance Company
Risk Engineering
Group Head Office

MythenqlJai 2
8022 ZlJich
Switzerland

Telephone + 41 {O}1 6253951

Fax + 41 (0)1 6252600
E-Mail rlsk.engineering®zurich.com
Internet WW\N.risk ·engineerlng .com

~ 1509001
Quality Assured Support Unit
Zurich Hazard Analysis

Software: ZHA-NT 3.0

The Zurich Hazard Analysis is the ideal tool for identifying and
analyzing hazard and risk exposure. ZHA-NT 3.0, the latest version of
the ZHA software support package, is the most effective way of
recording, tracking, and 'interrogating' the data from a ZHA. For those
already familiar with the ZHA-NT software, you will be pleased to
know that the new, improved release is fully compatible with older
versions.

Recording ZHA data
With ZHA-NT3.0 there is no need. for example.
to first scribble hazard scenarios on paper copies
of the Hazard Catalog and then t ranscribe them
into a more legible electronic form. N ow you can
rerord all data directly into the appropriate
form at ill one simple step. as the team develops
them. (For a d escription of the Z HA process,
please see the flyerl"ZHA Methodology".)
Of course, the Explorer facility also enables you
to re-name files or create new ones.
Editing features
The same hazard scenario may feature more than
once in a hazard analysis. ZHA-NT 3.0 allows
you to copy and paste any number of scenarios
(including 'hazard', 'trigger' and 'effect') any-
where within the Hazard Catalog.

An effective use of the software is to project it Exporting capabilities

during a ZHA session so all the team members
can see the data as it is being rerorded. This leads
to qUjcker consensus as well as more concise and
accurate wording, and at the end of the day the
process is documented in the system.
Finding your way
ZHA-NT 3.0 makes it easy to navigate through
the system. The entire database makes extensive
use of the Windows Explorer file or 'tree' struc-
ture. So if you are familiar with Windows. you
will have no trouble orientating yourself. Indeed.
the Project Wizard, ZHA-NT's logical guide
through the Zurich Hazard Analysis process,
automatically provides you with an overview of
all recorded 'projects' or hazard analyses, and
gives you qUick access to individual screens and
scenarios every time you open ZHA-NT 3.0.
With ZHA-NT 3.0 you can distribute eiectroni-
cally risk analyses information to anyone in your
own organization, or externally: all hazard
analysis data, including the Risk ProfUe, can be
exported into Microsoft Excel, where they can be
freely edited and revised. This function is
particularly useful to those who don't have access
to the ZHA software.
Multi-language and language
editing function
ZHA-NT 3.0 has a language editor that enables
you to modll)< the ZHA terminology in three
currently available languages: i.e. English,
French, Gennan. Other language versions can be
d eveloped, subject to demand, e.g. Portuguese or
Spanish.
HACCP
Hazard Analysis Critical Control Points
methodology was specifically integrated to meet
the requirements of the food industry.
This feature enables users to define the hazard
analysis cdtica! control points and attach the list
of improvement measures requlred by health
authorities.
Interrogating ZHA data
A m'!ior development in ZHA-NT 3 .0 is the
'consolidation' feature. This feature allows you
to merge any number of hazard analyses and
categorize each scenario with risk 'keywords'.
For example: by location, area of risk such as
'strategic' or 'operational' and type of risk; e.g.
under ·operational' . you might have 'business
interruption' or 'health & safety' as sub-cate-
gories. Having established !)lese categories, the
consolidation feature now enables you to extract
specific information; for example. you might
want to know your company's total business
interruption exposure. ZHA-NT 3.0 will auto-
matically generate these statistics and produce a
corresponding graph. Of course, you can also
extract two or more risk areas and!or types of
risks, either from specific sites or from all
locations (e.g. all reputation risks). Please note,
however, this feature is only available in the 'Pro'
version of ZHA-NT 3.0.
ZHA-NT 3.0 'Standard' and 'Pro'
Essentially the ZHA-NT 3.0 Pro and ZHA-NT
3.0 Standard versions are bullt in with the same
framework. Both are compatible with each other
and their precun;or, ZHA-NT 2.0; and both are
stand-alone packages. The one big difference
between ZHA-NT 3.0 Pro and ZHA-NT 3.0
Standard is that the latter doesn't include the
'oonsolldation' (merging) function.
The Standard version, therefore, is primarily
intended for recording and monitoring risks at
single locations, while ZHA-NT 3.0 Pro is the
ideal supporting tool for m anaging numerous
locations of one or several companies. It's the
tool for the Risk Manager!

ZHA NT 3.0 at a glance

Contains all ZHANT 2.0 features.
Exports all data entered in ZHA-NT 3.0, including the Risk Profile, into Microsoft Excel, vvhere it can be
furtheredited.
Organized around Windows Explorer-type 'file tree structure'.
MUlti-language functionality: available in English. French and German .
Other language versions can be developecl. subject to demand, e.g. Portuguese or Spanish.
Compatible with older ZHA-NTversions.
Stand alone software, which runs on Windows 95/98 , Windows NT and Windows 2000.

Additional ZHA-NT 3.0 'Pro' features

Combines any number of hazard analysis scenarios.
Defines scenarios according to category and type of risk.
Creates dynamic graphs and charts of selected categories and risks.

To order your copy of ZHA-NT 3.0 'Standard or 'Pro', or to find out more about the software:
Contact your local Zurich Risk Engineering representative. for details visit our website
W\VW.risk~engineerj ng .com, or
Contact: Risk Engineering at Group Head Office in SWitzerland on: +411 6253951. or
Send us an e-mail to:risk.engineering@Zurich.com

~
ZURICH
Zurich Insurance Company
Risk Engineering
Group Head Office

Mythenqual2
80221u-ich
Switzerland

Tel ephone +41 {O)1 62539 51

Fax+41 (0)16252600
E-Mail risk.engineering§zurich.com
Internet www.risk·engineering .com

~ 1509001
Quality Assured Support UI,it
 Zurich Hazard Analysis (ZHA)
Methode & Software
fur die unternehmensweite Risikobeurteilung

(Auszug aus dem Teamleader's Handbook)

1) Copyright 1998 by t he Zurich Insurance Company. Mythenqual 2. 8002 ZuriCh Switzerland

Ori gi nally published as "An Introduction to Zu ri ch Hazard Analysis" in 19B1
., Copyri ght 1 981. 1984, 1987 by t he Zurich Insurance Company, Mythenquai 2, B002 Zurich Switze rland .

All rights reserved. No parlof this publication may be reproduced in any form without prior written
permission of the copyright owner.

ISBN 3-909292-00-4
 1 Introduction .. .......... .... .. .... ... ... ..... ...... .............................. .
2 Hazard Analysis Fundamentals .. .. ..... .. ... .............. .. .....
What is a Hazard? ................. .. .... ..... ... .. .... ... .. ......... .. .. .. ........ .
What is a Risk? ....................... " .. ... ..... .. ........ .. .................. ..... ..
What is Hazard Analysis? ....... .... ... ........ ..... ........... .. ................ .
Why Hazard Analysis? ............ .......... .... ...... .. .................... " ..
When Hazard AnaJysis? ...... ... ....... ...... .... .............. .. .... .. .......... .
Which Hazard Analysis Methodology? .. .............. ............... ..... .
Inducti ve versus DL'CiuctiVG ..... ........ ......... ... .......... .... .. ....... .... .
Selecti on Factors... ....... ..... ..... ... .... ... .. ... ...... .. .. ................ ... .

3 Zurich Hazard Analysis ..... .. ... ............... ......... ............. ... .

Methodology Overview .... ...... .,....... ... ......... ..... ........ ....... .. ... ..
Define the Scope ................. ... ... ....... .... .. ... ............ ....... ........ ..
( Scope versus Perspective ... .. .. ............ ... .. .... .... .. ............. .. .... ..
ZHA Documentation .... ..... .. .. .. .. ............. ..... .. .. .. ... ........ .... .. ..
ZHA Planning Variabl es ....... ... .. .... ... ... .. .... ... ....... ... .............. ... .

Choose the Teamleader ........ ... ,.. ...... ...... .... ...... ...................... ...
leamleader Responsibilities ............. .. ........... .. ....................... .
Important Teamlollder Cllaracteris\lcs ................. ... ............ ,,, ... .
Select a Team ....................... .......... ........ ..... .......................... ..
ZHA Tea m Size ...... .. ...... .. .. .... .. ........ ... ..... ......... ;............... ..
Typ ical ZH A Duration ....... .. .. ..... .. ..... .. ..... ..... ..... .................. .
ZHA Team Compatibil ity ........... .. .. .. ... .. .. .. .... ...... ...... ..... .. .. ... .
Identity the Hazards ... .... ... ...... .... ... .. ........... .. ............ .. .. .. ....... .
ZHA Tickler List. ... ...... ... .. .. .. ... ... ... ... ..... .... ... ........ ... ... .. ..... .. .
ZHA Pathways .. ... .... .. ... ....... .. ... .... .. ... .. .... .... .. .. ....... .. ... ... ... . .

Complete the Hazard Catalog .. .. ... ............ .. ......... .......... ........ .

Discussing the Scena rio .... .. ..... .... ..... ... ..... .... .. ..... .. .. ..... .. .. .... .
Addi ng the Scenario to th e Hazard Cata log ..... .. .. ... ..... .. ..... ..... ..
Scenario Specifics.. ......... .. .... .. ...... ... ...... ... ... .... .. .................. .
TllO Timeline or Time Axis ... ... ..... ... ...... .. " ..... .. .................... ..
Rating tile Haza I'd Scenarios .......... ........ .. .......... .. .. ............... .
Severity Categories .................. .. ... .. ....... .. ........................... .
Probability Levels ......... ......... ... ....... .... ... ..... ........................ .
Selecting the Severity Category and the Probabil ity Level ............. ..
The Severity Matrix ......... .. ... ... .. ..... ... .... ...... ...................... .. .
Complete tile Risk Profile .. .. ........ .. ... .... .. .. ......... ...... ............ .. ..
Setting the RlsK Tolerance Boundary ... ...... " ..... .... .. ...... ... ... .. ... .
Plotting the RiskS ............ " ... ... .. ...... .................... .. ...... ... ... ..
Risk Profile Quality Cheek ... ... .... .. ... .......... .. .... ...... ..... .. ..... .... .
Families of risk .. ..... ......... ... ... ...... ... ... ... ... ... ..... .. ..... .. .. ... .... .
Develop Improvement Actions...... ... ............. ..... ... ... .......... .. .. ..
Priority for Risk Improvement ...... ........ ... .. ... ... ........ ... ...... .. .... .
Sequence far Applying Improvement Action s ...... .. ................... ..
CostlBenefit .......... ......... ... ... ...... .... .. ... ..... .. .... .................. .
Final Cll0k for "AutomatiC IlTi provernents .. ... ... ...................... ..
Revi ew the Analysis .................. ...... .... ... ................................. .
4 Glossary of Terms ........ ................................................. ..
5 References ................ ..... .... .. ........... ......... ... ... .. ................. .
ZHA-Form Beispiel: Massnahmenkatalog

Zunch Hazard AnaJysis

Risk Improvement Catalog ZURICH•
r~="",i6""=======-=======11·11-'""-'" ' =='...' -===9
i:r.p;' B!t'001lK
Risk.
Prof ile No. Risk ImprD'l'el'mHlt Action By-lOam
location

Probability level-: A: Frequent B: Moderate C: OccaSiOOBi 0 : Remote E: Unl i k~[)' F; AImcst ImpCIl!ible
~ .sew~rit.y Cat~QOfY : I: Catin:trophk: II : Critical III; Marginal IV: Negligible
~
 ZHA-Flowchart: Approach & Ergebnisse

Scope
I Team I
Hazard Identification

Hazard
Catalog
Hazard Assessment
Probability
I Severity

,
Company Risk Policy I

Risk Tolerance Boundary

Risk
Profile

Risk Improve ment I

Priority I Sequence
!
I

Risk
Improvernent
CatalOg

ZURICH
o
Zurich Im:urilrlctl Company
Risk Engineering
Mythenquai 10
8C02 Zurich
Switzerland

- . " . - ~- T(~hl ph()nf! ~· 41 (Ol'

2m; :m Sl
Fax ..41 (01 20S 25 00
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