risk assessment – it’s necessity 7 th august, 2014
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Risk Assessment – It’s necessity 7 th August, 2014. Parag Gupta Executive Vice President Head – Commercial Line IFFCO Tokio General Insurance. Risk Management. - PowerPoint PPT PresentationTRANSCRIPT
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Risk Assessment – It’s necessity7th August, 2014
Parag GuptaExecutive Vice PresidentHead – Commercial LineIFFCO Tokio General Insurance
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Risk Management
The Identification , Evaluation and Economic control of those risks which can threaten the assets,
human being or earning capacity of an enterprise.
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Risk Assessment !!!Identification and
Evaluation of Risks around us…
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Risk Assessment
If Identified and Evaluated at the earliest can prevent or diminish quantum of a future damage /
loss.
We are surrounded with potentially damaging physical event, phenomenon or human activity
that may cause the loss of life or injury, property damage, social and economic disruption or
environmental degradation.
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Fire & Explosion!!!!
Recent one??? Any
guesses
China Automobile part manufacturing unit
explosion/ fire
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Fire
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Milford HavenAugust 1983Loss: $30 Mn
Boil-over
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UVCESarawakDecember 1997PD 282 M$ US
Vapour cloud explosion
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UVCE
Norco, LouisianaMay. 1988FCC UnitPD 314 M$ US
Vapour cloud explosion
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BLEVEFeyzin, FranceJan. 1966LPG Sphere TanksOperation
Explosion (BLEVE)
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BLEVEMexico CityNov. 1984LPG Tanks500-600 died
Explosion (BLEVE)
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force of detonation was equivalent to 40 tones of TNT. Loss amount is roughly Euro 1.8 bn. 30 people were killed and 500 injured.
Explosion
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Fire
Office building fire
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Fire
French bank buildingMay, 1996
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Oil Rig sank in Brazil
15th March, 2001
Property loss - $496m
Marine
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The tanker broke into two because of heavy seas and sank at a dept of 3600m about 137 sea miles from Spanish coast. loss was about US$36m.
Marine
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Collision occurred between a car transporter Tricolor and a container ship kariba. The tricolor sank soon containing 2862 BMWs, Saabs and Volvos and 77 containers. Overall loss amount was euro 55 million.
Marine
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Risk Assessment
Sources of Fire
5% 7%6%
17%
29%
11%
5%12%
8%
Smoking Material
Gas
Oil
Unspecified fuels
ElectricalAppliances &InstallationsSpontaneousCombustion
Mechanical Heat &Spark
Cutting andWelding
Misc. Causes
There is a lot we can do to control these
sources…
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Oh. It’s a Snake
Let me
Kill it
Oh. It was
tail of a tiger
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Risk Assessment
• Following are the basic elements we may consider for Risk Assessment:– Management– Construction– Occupancy– Protection– Exposure
MCOPE
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Risk Assessment
•Management policies to ensure safety and loss prevention..
MANAGEMENT
•Issues in layout for factory facilities, Construction Aspect, fire-resistance of buildings, fire separations etc.
CONSTRUCTION
•Issues in fire load reduction (house keeping, stock control etc.), control of ignition sources, maintenance / Inspection of equipment, process hazards etc
OCCUPANCY
•Issues in fire protection and special protection e.g. Pressure safety valves, Equipment protection, fire alarms, interlocking system etc
PROTECTION
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Toyota Motors• Associate supplier – Aisin’s auto parts plant
was razed to ground on 01.02.1997, Saturday• Used to supply all but 1% of brake-fluid
proportioning valves (P-valves)• 20 Toyota plants were shut down• Each day Toyota is down, Japan’s industrial
output is cut by 0.1% point• Within five days plants were started
Good Risk Management
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How had Toyota managed to do that?• Mutual aid• Specific responsibilities• Top level commitment• Crises management plan
Good Risk Management
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Bhopal disaster• Leak of Methyl Isocyanate (MIC) from Union
Carbide Bhopal plant• Storage in 3 steel tanks, 171 M3• Three safeguards
- refrigeration
- scrubber
- flare stack
Bad Risk Management
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• Genesis of the disaster lies not in the failure of the safeguards but in the original design concept.
• Question is, was such a large inventory essential?
• Process of making Sevin (pesticide) without using MIC or
• Adopting a process which used up MIC as fast as it was made.
Bad Risk Management
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“The real objective of Risk Management is to reduce fear of the unknown and
unexpected events and to create confidence in
future.”
- Felix Kloman
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We Know not what tomorrow holds
Nor what the future will entail
Yet we know, those who fail to prepare
Must be prepared to fail !!
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Thanks For Your Kind
Attention !!!