ISRS for the health of your business

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2Best practice safety and sustainabilitymanagementISRS is a world leading system to assess, improve and demonstrate the health of an organisationsbusiness processes. Using ISRS gives organisations and their stakeholders peace of mind that theiroperations are safe and sustainable. Organisations are under increasing scrutiny from a growingnumber of stakeholders. Regulators, customers, employees and society expect ever high standards ofsafety and sustainability. Satisfying these expectations is often a matter of business survival and is oneof the major challenges facing organisations today. ISRS helps organisations cope with this challenge.Demonstrating the health of an organisations business processes with ISRS is a proven way to showstakeholders that operations are under management control, giving an organisation freedom tooperate and grow their business.

International Safety Rating SystemISRS represents 30 years of accumulated best practiceexperience in safety and sustainability management. ISRSfirst edition was developed in 1978 by Frank Bird, a safetymanagement pioneer following his research into thecausation of 1.75 million accidents. Since then, ISRS hasbeen implemented on thousands of sites worldwide andbecome a global benchmark for excellence in safetymanagement. Over three decades, ISRS has been regularlyupdated to reflect and lead best practice. Its continuedsuccess is testimony to its vision and strong foundation inresearch.

International Sustainability Rating System ISRS seventh edition was developed in 2005 and its scopeexpanded beyond occupational health and safetymanagement to address best practice in a range ofsustainability issues including environmental, quality andsecurity management and sustainability reporting. Thesechanges were made to address the changing needs of ourclients and the increasing expectations of theirstakeholders.

ISRS eighth edition was launched in 2009. Once more itsscope was expanded to help organisations improve processsafety management following growing industry concernsover the increasing frequency of major accidents.

Many ISRS clients have major hazard processes with thepotential for significant process safety accidents e.g. fire,explosion or release of flammable or toxic materials abovethreshold levels.

To address these risks, ISRS eighth edition includesspecific controls needed for managing process relatedevents. The eighth edition also includes updates toreflect changes in international standards includingOHSAS 18001:2007, ISO 9001:2008 and GlobalReporting Initiative 2006.

Risk ManagementISRS helps organisations ensure systematic and effectiverisk management.

Effective risk management begins with implementing thenecessary processes for risk evaluation concerningemployees, the community and the business. Theorganisation should identify the "bottom up" risksassociated with specific hazards for occupational health,occupational safety, process safety, environment, securityand quality. Site management should identify the "topdown" business risks which threaten the survival orreputation of the organisation associated with majorinternal or external events, the loss of major clients, keysupply chain partners or key personnel.

Adequate risk controls should then be in place includingengineering design, rules, procedures, training andprotective equipment to meet defined performancestandards. Preventing major loss events requires thenecessary people, process and plant barriers are in place.The risk management improvement loop concludes withrisk monitoring activities including inspection,observation, audit and review processes to ensure thecontrols are adequate to address the identified risks.

3The ISRS system includes a range of triedand trusted tools which may be used inflexible ways to develop, train, implementand audit safety and sustainabilitymanagement in an organisation.

ISRS eighth edition consists of 15 key processes,embedded in a continual improvement loop. Eachprocess contains sub processes and questions.

1. Leadership

2. Planning and Administration3. Risk Evaluation4. Human Resources5. Compliance Assurance6. Project Management

7. Training and Competence8. Communication and Promotion9. Risk Control10.Asset Management11.Contractor Management and Purchasing12.Emergency Preparedness

13.Learning from Events14.Risk Monitoring

15.Results and Review

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Assessment

Strategy

Plan

Implement

Monitor

Review

An ISRS assessment is a thorough evaluation of thesequestions and involves interviews with process ownerswhere the questions are scored and commented. Thescope of the assessment is entirely flexible determinedby the size and complexity of the organisation and themanagement teams requirements. Detailedverification is conducted and organisations must beprepared to offer evidence to support their answers.The process scores determine an overall level ofperformance between one and ten. The resultsprovide a detailed measure of performance and a gapanalysis against the organisation's desired level ofperformance. This becomes the planning basis forimprovement during the next period.

ISRS seventh and eighth editions are structured with15 processes embedded in a continuous improvementloop:

Strategy and Policy

Planning

Implementation and Operation

Monitoring andMeasurement

Management Review

Continual Improvement Strategy and

Policy

Planning

Implementation and Operation

Monitoring andMeasurement

Management Review

Continual Improvement

Training

Modern Safety Management

This course provides participants with thefundamental concepts, tools and techniques foreffective safety management.

Modern Safety Management is the most widelyattended course of its kind in the world and DNVsbest selling course worldwide. Modern SafetyManagement is based on proven principles of safetymanagement and provides participants with thefundamental concepts and techniques for a practical,proactive approach to managing safety and controllinglosses. The course is available in 3, 4 or 5 day versions.

Modern Safety Management 1st Edition wasestablished in 1985 and has been taught to more thanhalf a million participants worldwide. This pioneeringcourse has defined good practice in safetymanagement for industry worldwide.

Modern Safety Management 2nd Edition was launchedin 2007 to include the latest risk managementconcepts and techniques needed to implement anintegrated health, safety, security, environmental andquality management system. Modern SafetyManagement 2nd Edition provides participants withpractical and proactive management techniques toensure safe and sustainable operations.

ISRS Assessor

This 4 day course provides participants with theknowledge to conduct an ISRS assessment.

ISRS Assessor is a mandatory course for individualswho wish to conduct an ISRS assessment. ISRS has aunique structure and quantified scoring methodologyand requires specific assessment training. The courseprovides an overview of the 600 questions in the ISRSworkbook and gives participants an opportunity topractice scoring the questions to reach the requiredstandard of consistency. The course also explains theassessment process, how to plan and scope anassessment, behaviour during the assessment andreporting using the ISRS Summit assessment software.

Participants practice scoring questions usinganonymous real life case study evidence. Scores arethen discussed in the group and compared against themodel answer in order to practice consistent scoring.

Effective training for supervisors and managers is essential for the effective implementation of anymanagement system. ISRS offers a range of standard and customised training courses to supportdifferent client needs.

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6ISRS eighth edition contains best practice in Process Safety Management to help you manage major accidentrisks, process related loss events and achieve operational efficiency.

ISRS eighth edition helps you ensure systematic and effective control of process risks, effective evaluation of thecondition of plant and equipment and improved process safety. It describes the key activities for effective processsafety management including:

PSM leadership Management of change Asset integrity management Process safety information Process hazard analysis Operating procedures PSM in projects Pre-start-up safety review.

ISRS Processes

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1. LeadershipGood leadership is essential for the effective operationof any organisation. Good leadership begins withdefining the organisation's expectations (purpose,vision, values, goals and policies), aligning these withthe expectations of other stakeholders and developinga strategy for achieving these expectations. Leadersare responsible for defining the core business of theorganisation and identifying the major business risks.Leaders must also demonstrate commitment toimprovement through practical leadership by "walkingthe talk".

2. Planning and AdministrationEffective planning and follow-up ensures that businessgoals are achieved on time, to the desired quality, andon budget. Strategic plans and shorter term businessplans detail the individual responsibilities andresources to deliver leadership expectations. Efficientdocumentation and record systems help ensureexcellent business processes and captureorganisational knowledge.

3. Risk EvaluationThe first duty of managers is to effectively managerisk. Risk management begins with the identificationand evaluation of occupational health, occupationalsafety, process safety, security and environmental risks.Employees must have a good awareness of risk at alltimes and access to the necessary information onhazards. A team approach to process and task riskevaluation will drive a strong risk culture in theorganisation.

4. Human ResourcesPeople and the knowledge they possess are the mostimportant assets in many organisations. Good HumanResource systems ensure these assets are managedeffectively, from recruitment through to leaving theorganisation. Systems for recognition, discipline andregular performance reviews guide the developmentof individuals. Organisational change is a constant inthe modern workplace which should be controlledwith an effective change management process. Thisincludes having mechanisms for effectively retainingcritical skills and capabilities.

5. Compliance AssuranceSociety expects ever higher standards of health, safetyand environmental performance, which is reflected ina growing body of regulations that must be compliedwith. Every organisation needs a system to identifyrelevant regulations, codes and standards, and assesstheir impact on the business. Information security isimportant to ensure compliance with internal andexternal standards. Societal expectations also demandhigh standards of stewardship throughout the productlifecycle from design to disposal.

6. Project ManagementProjects are unique activities with a beginning and anend. Their unique character introduces risks into theworkplace and requires careful planning to ensurerisks are controlled and that projects are completedon time, on budget and to the desired quality. Formalaccountabilities should be defined for each project.Project plans define the goals, responsibilities,resources and risks throughout the project lifecycle.Effective execution and control ensures changes aremanaged, work is completed correctly and stakeholderexpectations are met. Post project review ensureslessons are learned for future projects.

7. Training and CompetencePersonnel must have the necessary competence toexecute their jobs effectively. An effective training systemis important in order to identify and deliver the trainingnecessary to ensure individual competence. Trainingshould only be performed to fill an identified need,based on an analysis of existing competence, rolerequirements, training objectives and employeeaspirations. Training should be delivered by competentinstructors using appropriate communication techniquesand resources. Effective orientation/inductions areimportant for leaders and employees to ensure they arenot at risk when they start in a new position.

8. Communication and PromotionGood communication is essential for effectivemanagement of change. In an ever changing workplaceeffective communication is critical both to inform andmotivate personnel. Good communication is more thantelling - it should be an interactive process of "giving andgetting understanding". Promotion campaigns andvaried communication channels should be used topromote HSEQ improvement in a fresh and interestingway. Management and group meetings should befocused on key HSEQ issues and co-ordinated to ensureimportant information is filtered up and cascaded downeffectively. Exceptional group and individualperformance should be identified and widelycommunicated to reinforce correct behaviours.

9. Risk ControlOnce occupational health, occupational safety, processsafety, security and environmental risks have beenidentified, a hierarchy of controls should be in place tomanage the risks. Engineering/design controls are thefirst choice to eliminate risks where possible.Administrative controls including procedures, rules,work permits and warning signs are the next choice tomitigate risk. Personal and environmental protectiveequipment are the last line of defence. Materials andproducts should be effectively identified, labelled, storedand inspected to ensure quality is controlled. Controlsshould be in place to ensure processes perform withincritical parameters. The control of process hazardsshould be demonstrated to stakeholders through the useof Major Hazard Reports.

10. Asset ManagementAsset Management is the maintenance of physicalassets in the workplace to ensure acceptably low riskfor optimum operability and cost. The maintenanceprogramme describes the maintenance regime foreach asset in the asset register. Maintenance andoperations personnel must co-ordinate activities toplan and execute the management programme.Inspections of appropriate areas ensure the generalcondition of assets is maintained. An effectiveengineering change management process is essentialto ensure risks are managed when new assets areintroduced. Risk assessments must be conductedwhen assets are acquired or sold.

11. Contractor Management andPurchasingIn their drive for efficiency, organisations areincreasingly making use of contractors, outsourcingand temporary employees. A major challengeassociated with this trend is how to ensure contractorscomply with the organisation's safety andenvironmental standards, when contractor personnelare managed by others. Effective contractormanagement requires a rigorous selection process,clear definition of responsibilities, competencechecks, adequate supervision and careful monitoringof performance. Excellent communication is requiredto ensure effective co-ordination with companypersonnel and processes. Effective purchasing andsupply chain management ensures materials andequipment are sourced on time, of the desired qualityand at the optimum cost.

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9A management system based on ISRS assures the health of your business processes.

12. Emergency PreparednessNot all accidents can be prevented. Effectiveemergency preparedness means planning andpractising in advance so that, in the event of anemergency, the harm to people, the environment andto the business is minimised. Firstly, potentialemergencies should be identified and categorised.Plans should then be developed to respond to theseemergencies. Systems for emergency communicationshould be established and technical systems, forexample, for fire protection and emergency power,should be put in place. Emergency teams ofexperienced personnel should be established toexecute the emergency plans and their competenceshould be assured through regular drills and exercises.Finally, adequate first aid and medical support shouldbe available if required.

13. Learning from EventsLearning from events is critical to drive continualimprovement in safety, environmental and businessperformance. An effective Learning from Eventssystem transforms undesired events into improvementopportunities. Managers should strive to create a "noblame" culture in the organisation to foster high levelsof event reporting. Personnel should be particularlyencouraged to report near misses which offer thegreatest number of learning opportunities. All eventsshould be risk assessed and investigated appropriately,involving both managers and front line personnel.Investigations must uncover the basic causes of eventsbefore determining the necessary corrective andpreventive actions. Actions must be tracked tocompletion and the results communicated to allnecessary stakeholders.

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14. Risk MonitoringRisk monitoring is essential to provide assurance tomanagers and other stakeholders that all risks areeffectively controlled. Risk Monitoring builds on RiskEvaluation (Process 3) and Risk Control (Process 9) tocomplete the risk management continual improvementloop. Effective monitoring should identify where riskcontrols are inadequate and initiate the necessaryimprovement actions. Customer satisfaction andemployee perception surveys monitor the perceptionsof key stakeholders. Behavioural observation isimportant to reinforce desired safety, environmentaland quality behaviours in the workforce.

15. Results and ReviewTo survive and prosper a business must achieve goodresults. Business results are measured simply bycomparing actual performance against the safety,environmental and business goals set by the leadershipteam (Process 1). The challenge for business leaders isto direct business and work processes both to managerisks and achieve good business results. Sustained orcontinually improving performance can bedemonstrated by preparing trends of business results.Performance benchmarking may be undertaken bythose organisations who wish to compare themselveswith industry leaders or world class. The managementsystem is the leadership team's primary tool to managerisks and drive improvement. Formal managementreviews are necessary to evaluate the performance ofthe management system, identify improvement actionsand feedback into the strategy and planning process.Corporate Social Responsibility demands thatbusinesses report their social, environmental andeconomic performance to all relevant stakeholders(identified in Process 1).

ISRS describes best practice in safety and sustainability management. In addition, ISRS eighth edition includesthe requirements for the below-mentioned international standards which make it an effective tool to guideorganisations in improving their systems to meet certification requirements.

OHSAS 18001:2007 - Health and Safety Management ISO 14001:2004 - Environmental Management ISO 9001:2008 - Quality Management Global Reporting Initiative 2006 - Sustainability Reporting PAS 55:2004 - Asset Management OSHA 1910.119 - Process Safety Management Seveso II Directive - 96/82/EC - Process Safety Management.

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Software

ISRS Summit

ISRS Summit is software to facilitate an ISRSassessment and allows organisations to simplymeasure, improve and demonstrate theimplementation of their management systems.

ISRS Summit is a networked assessment software toolwith two integrated parts: The web application is usedto create new assessments and to analyse results. Therecording tool is a local application used during anassessment for capturing scores and comments. Theweb application must be used online. The recordingtool can be used offline. When online, assessment datais stored and backed up on a secure data centre.Assessments may be shared with the others in theorganisation providing a valuable aid for decisionsupport and transfer of good practice.

ISRS Book of Knowledge

ISRS Book of Knowledge is an online book of goodpractice in safety and sustainability management. It isa continually evolving resource that describes goodpractice for management system implementationusing the ISRS framework. Available as a wiki, it may be freely added to and edited by ISRS licensed clientsand consultants.

ISRS Book of Knowledge is recommended as acompanion reference for management systemimplementation activities or to support ISRSassessment and training.

ISRS software tools facilitate the effective implementation of the management system across anorganisation. These sophisticated but easy-to-use web enabled tools are available in up to ninelanguages. The ISRS software tools are supplied to organisations under license.

NOTE: ISRS Summit may be used on any computer with Microsoft Windows Explorer (Microsoft .NET framework 2.0 should be installed). ISRS Summit is supplied subject to the Terms and Conditions of the ISRS License Agreement.

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A management system is a framework of controls to manage key processes, organisational risks and drive continualimprovement. The management system is important to the operation of every business because it guides thebehaviour of personnel in the organisation. The management system is the management teams main tool forensuring safe and sustainable operations. The challenge facing organisations is How can we get our managementsystem to work more effectively?

The ISRS contains 30 years of best practice experience in safety and sustainability management. Using ISRS givesnecessary personnel the ability to measure, improve and demonstrate the implementation of their managementsystem. Using the assocated ISRS Summit networked software, managers can monitor system implementation onlineacross all sites in the organisation, providing valuable information for decision support.

ISRS helps you:

Ensure business operations are safe and sustainable Ensure systematic and effective risk management Save money by reducing your accidents, process stoppages and other loss events Provide assurance to stakeholders that external standards are being met Establish or confirm regulatory compliance Benchmark performance against industry peers and world class Highlight current strengths and weaknesses in the management system Identify any improvements required and monitor their implementation Establish optimized work processes using industry best practice Develop employee skills and foster the right workplace behaviours and culture Improve systems leading to accreditation in relevant certification standards Establish a single integrated management system to drive continual improvement Provide web enabled assessment software to the desktop of employees and managers Standardise your assessment approach internationally ISRS available in nine languages Join the global ISRS community and network with other organisations to share good practice.

All companies have a management system but many struggle to get their management systemimplemented effectively. ISRS can help.

Benefits

DNV is a global provider of services for managing risk. Established in 1864, DNV is an independent foundationwith the objective of safeguarding life, property and the environment. DNV comprises 300 offices in 100countries, with 7,000 employees.

For more information:

isrs@dnv.comwww.dnv.com/isrs