Name

Rana Pradhyumansinh V.

Institute

V.V.P. Engg. College

Virda Vajdi, Kalawad Road,
Rajkot 1.

Topic

Safety Business And Risk Management

Email

talvani2001@yahoo.com

Phone

(0281) 222 9938

Date of Submission :

29/01/2005

ABSTRACT
SAFETY BUSINESS AND RISK MANAFEMENT
The safety of the personal is the best to achieve the
organizational goal, as we know optimum use of money and machines
depend up on knowledge and skill of human being.
Accidents do not just happen they happen as a result of the
action or inaction of people. Whenever accidents occurs managements
spent time on accident, injury or illness. Its better to invest than loss.
This paper envisages the need of safety business in areas like,
commissioning, effective control of process equipment, auto shutdown
system, installation and proper maintenance of pressure relief devices,
alarms, trips, fire extinguisher equipment, safety audits, awareness
among employees through audio visual classroom teaching about
failing of technical measure, working of safety management systems,
knowledge of hazop and hazan.
Preventing injuries, illness and operational loses is good business
to be successful, requires senior management vision, leadership and
commitment to prevention. The investment for safety business is
gaining measure concern amongst developed and developing countries
after assessment of various aspect to run organization most effective
and with more profit. Indian market is still in need to be open to the
safety business as compared to the total strength of the company
across all states.

SAFETY BUSINESS AND RISK MANAGEMENT

Chemical provide society with a wide range of benefits, particularly

increased agricultural and industrial productivity and improvements in the
control of disease. On the other hand chemicals have the potential to cause
considerable health and environmental problems throughout their life cycle,
from production through to disposal.
Safety is prevention of accident by identification of hazards associated
with process and elimination of them before an accident occurs. Every activity
has risk associated with it. For a chemical plant it can be reduced by investing
more money in safety systems and personal training. Safety business
includes investment, personal training and risk management. Most of the
chemical manufacturing processes are, to a greater or lesser extent,
hazardous, if the process conditions deviate from the design value, safe
operation of such processes depend upon the design and provision of
engineered safety devices and on good operating practices, to prevent a
dangerous situation developing, and to minimize consequences of any
incident that arises from the failure of the safe guards.
Work place safety has been emerged as the biggest concern for
companies across industry with more than 125 deaths and 50000 people
getting injured each and every year in the country. Safety regulations are
pretty good but not put in to practice in the work place. As Indian companies
are going globaly, there will be direct economic benefits if safety norms are
followed. US companies spend $ 70 Billion in 2002 in safety but there is little
focus on this issue in India. We need to invest more on safety to ensure safe
workplace, we interpret the safety business as non-profitable investment. We
believe that any investment in chemical manufacturing equipment will give
use return but safety devices, their maintenance will decrease economy of the
plant. Human beings are the most essential assets for an organisation.

Optimum use of money and machines depends upon the skills of

human being of the organisation to exploit them. if the human are not safe
then they cannot put their best to achieve organisational goal. Whenever
accidents occurs, there will be damage to plant and there will be loss of men,
material, machine, the loss being financial also. This cost will not be the cost
of replacing damaged plant, but the loss of earnings from the lost production
and lost sales opportunity. As we being in a competitive globalize world we
cannot afford to lost production because it may loss our market share before
we can come back.
Several incidents occurring in the later part of the twentieth century
indicated that a significant improvement in the management of process
hazards was needed.

Technical Fault Case Study:Table below illustrate that technical measures which failed or were not
adequately implemented in each of the incidents, and can therefore be used
to identify good examples of importance of particular technical measures.

Incident
Abbeystead
exploision
(23/5/84)
Allied
Colloids Ltd.
(21/7/92)
Associated
octel (1/2/94)
B&R Hauliers
(25/9/82)
BASF
Warehouse
fire (9/10/95)
Beek
(7/11/75)
Bhopal union
carbide
(3/12/84)
B.P.Oil
refinery
(13/3/87)
B.P.oil
refinery
(22/3/87)
B.P.oil west
(17/1/81)
Chicago Gas
Release
(26/9/74)
Feyzin
(9/1/66)
Flixborough
Explosion
(10/6/74)

Active
corrosion design
Alarms Control
design
/Passive
Control selection codestrips
room
codesFire
system
of
pipe
interlock design
plant
Protection
materials work

Havkong
incident
(23/1/93)
Hickson &
Welch ltd. fire
(22/9/92)
International
biosynthetics
ltd. (7/12/91)
Mexico city
LPG-terminal
(19/11/89)
Pasadena
Philips
(23/10/89)
Polymerizatio
n
runaway
reaction (May
1992)
Seveso
icmesa
chemical
(9/7/76)
Texaco
refinery
(24/7/94)
Total

Active
Corrosion Design
Alarms Control
Design
/passive
Control selection codes/trips
room
codes
fire
system
of
pipe
interlocks design
plant
protection
materials work

Accidents do not just happen they happen as a result of the actions or

inaction of people. If we see the technical failure data than we will realize that
most of the accidents are due to:Improper design codes or bad control system, it represents that we
need to invest more on proper designing and control systems, which includes
alarms, trips, pressure relief devices, automatic shutdown systems, fire
frightening equipment, installation and proper maintenance of safety devices,

safety audits, commissioning, awareness among employees

through

audiovisual classroom teaching about failings of technical measures, working

of safety management systems, knowledge of hazop. At union carbide India
ltd. the flare system was a critical element within the plants protection system,
however, this fact was not recognized as it was out of commission for some
three months prior to accident. In all system stated above commissioning is
essential part of safety system.
Below table represents industrial injuries in factories, their incidence
and frequency rate by important industries during 1998.
(Per 1000 workers employed)

Industry
1
2
3
4

9
10

Textile
Wood &
furniture
Pulp &
paper &
printing
Chemical
ind.
Nonmetalic
mineral
product
Basic metal
industries
Metal
product
(except
machines)
Machinery
&
equipment
s
Transport
equip.
Electricity,
Gas &
Seam

Number
NonFatal
Fatal
94
24522

Incidence Rate
NonFatal
fatal
0.09
24.75

Frequency Rate
NonFatal
Fatal
0.02
6.52

576

0.05

6.63

1.01

1.45

29

1572

0.12

6.76

0.03

1.85

164

3543

0.34

6.70

0.09

1.78

68

2146

0.20

6.63

0.03

0.93

108

4901

0.26

12.71

0.08

3.84

35

1881

0.17

8.94

0.05

2.55

43

4085

0.08

8.08

0.02

2.10

50

36661

0.17

12.28

0.05

3.26

20

1199

0.23

14.18

0.56

3.36

If we see other than chemical accidents the analysis of 56 fatal injuries

during the year 2000 in Uttar Pradesh:
Cause Wise Fatal Injuries
Type of Accident
Fall of persons
Fall of objects
Stepping, strikling, struct against
Caught in between objects
Exposure or contact with high
temperature
Exposure or contact with electric
objects
Others

No. of
Accidents
17
8
7
12

Percentage
30.2
14.3
12.5
21.4

10.7

3.57

7.1

Above incident can be prevented by personal training and by providing

personal protective equipment effect of such incident can be minimized.
Safety business does not mean goes on investing on safety, and make
zero risk. We have to take risk, but at certain level that is acceptable and can
be manage.
Risk management is an important part of safety business. Infact, with
every activity there is risk associated. A successful manager is the one who
can compensate safety investment and risk. There are three parts of the risk
management risk identification, risk assessment and risk control. Risk
identification is a critical step in risk management. A hazard not identified is a
hazard not controlled. There are various techniques to identify potential
hazard. Some of common techniques includes:- risk analysis, hazard and
operability studies, fault free analysis etc. once a hazard is identified, the
probability of each occurrence and severity of the outcome are to be
estimated. Combining the estimates, the risk level of hazard is obtained. This
is a crucial step to the success of risk management. The results of the risk
assessment aid in the decision making process of priority setting, choice of
control alternatives and allocation of limited resources etc. the risk control

measures in chemical industries may be classified into two main areas:administrative control and engineering control., administrative control
includes:-

operating

procedures

for

startup,

shutdown,

response

to

emergencies, maintenance, programs, insurance.

Engineering controls:- are more protective in nature. There are more four
main strategies, elimination, isolation, retention and reduction.
Example Of Safety Business:Commitment and improvement to health on safety management will
prevent workplace injuries and illness and directly affect the companys
business and shareholder value. We may be surprised at how much injuries
and illnesses are actually costing an organisation.

Name

Costing an individual incident/injury

:____________________________________________________
_____________________________________________________

Date and time of injury/incident

__________________________________

______________________________________________________________
Location: _____________________________________________________
Brief description of accident/injury:

_______________________________

______________________________________________________________
______________________________________________________________

Injury/Incident Costing
Direct Injury Cost

Cost

Description of injury:______________________________________
________________________________________________________
Time away from work: _______ days/week
1. Compensation / medical/rehabilitation cost

Rs._______

2. Wage supplements/ continuation of benefits etc.

Rs._______

3. Other compensation/ benefit related cost

Rs._______

Total direct injury costs

Rs._______

Indirect Accident Costs

Cost

Property/ Equipment/ material damage

Was there equipment or structural damage?
Was it repaired or replaced?
Was equipment rated for temporary replacements?
Was there material or product loss?
Summary :- ______________________________________________
______________________________________________
______________________________________________
1.

Cost of cleanup

Rs._______

2.

Equipment repair/ replacement cost

Rs._______

3.

Property/structural repair cost

Rs._______

4.

Equipment rental cost

Rs._______

5.

Material/product loss

Rs._______

6.

Material/product rework

Rs._______

Administrative Costs

Cost

Administrative costs include extra management and

administrative time as a result of the injury/illness. Example
includes managing the accident scene, conducting accident
investigation and follow-up actions, rescheduling of people
and work, modification in work.
1.

Management effort at time of accident

Rs._______

2.

Management effort:- cleanup, restoration

Rs._______

3.

Follow up with injured employee

Rs._______

4.

Administrative effort in claim management

Rs._______

5.

Lost opportunity cost

Rs._______

Productivity Costs

Cost

These involve the costs associated with the work

interruption due to the incident, and ability to carry out work
following the incident. Calculation fun these cost items will
vary depending on how your organisation values the cost of
work interruption, equipment unavailability.
1.

Work interruption at time of incident

Rs._______

2.

How was work time made up :- overtime

Rs._______

3.

Rescheduling costs :- New setup, delays in

Rs._______

equipment availability
4.

Cost of reduced productivity

while employee on modified work.

Rs._______

Other Costs

Cost

1.

_______________________________________

Rs._______

2.

_______________________________________

Rs._______

3.

_______________________________________

Rs._______

Total

Rs._______

This chart will enable to detail and estimate the total costs of an
accident and/or an injury or illness within an organisation. The intent is to build
a complete picture of what accidents, injuries and illness cost. This will help
an organisation better understand the financial impact of injuries and illness
on their operations. Some of the cost information may be straight forward,
however, the methods to calculate or estimate some elements of the costs will
vary from organisation to organisation. This is especially the case in
estimating the cost of lower productivity or non being able to carry out work or
production because equipment is unavailable.

CONCLUDING REMARKS

Health and Safety of personal and loss prevention are the paramount
concerns of the chemical industry.

Preventing injuries, illness and operational losses is good business to

be successful, requires senior management vision, leadership and
commitment to prevention.

Eliminating the causes eliminates accidents, injuries and illness, this

can be achieved through better design and better control of the
process.

Health and safety is everyones responsibility so, employees must be

trained in health and safety requirements.

Acceptable risk should be taken to compensate safety and benefits and

risk must be controlled through safe operating procedures, which
specify how to do a job safely when hazards cannot be fully eliminated.

References:

1. www.hse.gov.uk
2. www.labourbureau.nic.in
3. www.wsib.on.ca/wsib/wsibsite.nsf/
public/BusinessResultsHealthSafety
4. www.knovel.com