Risk Management in Industrial Plants

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RISK MANAGEMENT IN INDUSTRIAL PLANTS
Risk Management in Industrial Plants
Name
Institution

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RISK MANAGEMENT IN INDUSTRIAL PLANTS
Abstract
Risk management involves
evaluation, identification, and prioritization
of risks accompanied by a cost-effective
allocation of resources to control the
probability or impact of the risk in case it
happens. Strategies to manage risks include
reducing the negative impacts of the threat,
generally avoiding the threat, reducing the
probability of the threat, as well as devising
measures to retain the after-effects of the
risk. For ideal risk management, risks with a
greater impact, associated losses or with the
greatest probability of occurring are
prioritized over risks with a lower impact or
probability to happen. An effective risk
assessment strategy is, therefore, necessary
to assess the possible impacts of risks in any
engineering works. [1, p. 46]
The overall process of risk
assessment can be difficult with situations
for instance where there is a risk with a high
probability to occur with low losses
associated versus a risk with high losses but
lower probability of occurrence. Risk
management faces major drawbacks in
resource allocation. Many organizations see
money spent on risk management as money
that could have been input in production or
more profitable activities. From another
point of view, ideal risk management helps
save on spending in an organization (cutting
on manpower and other resources) and as
well minimizes the negative effects of risk.
In this research paper, we focus on a
cost-effective allocation of safety
regulations and measures in industrial
plants. We provide an extensive analysis on
the possible risks in industrial plants, assess
the impact they pose and provide cost-
effective techniques on avoiding or lowering
the damages posed as well as containing the
after-effects in case the risk actually occurs.
Introduction
A hazard is defined as a potential
source of harm to a person, property, or the
environment. Risk on the other side is
defined as the probability that a person will
be injured or harmed by a hazard. Industry
plants pose a lot of risks to both employees
and the environment. Safety measures,
therefore, need to be allocated to help
maintain the risks given the probability of
occurrence.
The theme of this study was to find
out the various safety measures laid by
industrial plants and the risk assessment and
mitigation techniques employed. It covers
the view of risks and hazards in industrial
organizations providing a detailed view of
risk assessment.
Research questions
To drive our research, we came up with
some questions to guide us through:
i. What are a risk and a hazard?
ii. What are the common risks in
industrial plants?
iii. What are the laid down safety
measures in industrial plants against
risk?
iv. What is risk management?
v. What is risk assessment?
vi. Which are the procedures associated
with risk assessment?
vii. How do you identify the various risk
factors that affect a particular
industry?
viii. How do you lessen the impact of risk
events in case they happen?

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RISK MANAGEMENT IN INDUSTRIAL PLANTS
Objectives of the study
The following were the objectives of our
study:
i. To find out the various causes of risk
in various industrial plants by
conducting case studies on various
industries.
ii. To find out the various risk
management plans laid by various
organizations.
iii. To develop a framework of
procedure for risk assessment in
industrial plants.
iv. To come up with a cost-friendly
allocation of safety measures in
industrial plants.
Theoretical background
Risk assessment is described as a
procedural process where you i). Identify
high priority risks. ii). Analyze and
determine the risk matrix. iii). Come up with
appropriate ways to control the risk.
Risks and hazards in industrial plants
We described a hazard as a source of
potential damage or harm to a person or
employee. Hazards in an industry can be
grouped as:
 Biological - Bacteria, viruses, plants,
etc.
 Psychological - Violence,
depression, etc.
 Chemical - Toxic industrial
chemicals and gasses.
 Ergonomic - Improper setup of a
workstation, improper movements
within a workstation, etc.
 Safety - Equipment malfunction,
slipping, tripping, breakdowns, etc.
Workplace hazards also refer to
conditions or practices in industries
associated with uncontrolled energy release
like objects falling from high grounds, an
uncontrolled accidental chemical reaction,
contact of electrodes and electrical faults,
entanglement of clothing in rotating
machinery, release of uncontrolled
compressed gas, etc. The manufacturing
industry despite the difference in scope of
operations between different types of
industries has many common hazards such
as falls, machine guarding, a power failure
in industrial trucks and machinery, electrical
faults, Lockout etcetera.
As mentioned earlier, a risk is a
combination of the probability of harm and
severity of the harm. The term Likelihood is
used to describe the chances or probability
that something happens. There are various
factors that determine the degree or
likelihood of risk in industrial plants:
 The extent and nature up to which a
person is exposed to hazardous
material or hazardous conditions.
 How a person is exposed to a hazard.
 The severity of the effect of the
hazard.
This hazards and risks predispose
employees in the industry as well as the
surrounding environment to harm. This
harm could be in the form of death, diseases,
and physical destruction of the surrounding
environment. Hazards may however not
cause harm and risks may not necessarily
have to occur if an organization lays down
proper management and assessment
measures prior. [1] this brings out the need
for various industries to lay down techniques
for risk assessment and management so as to
contain the harm possessed by hazards by
limiting the risk of incidents related to the
hazards.
.

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RISK MANAGEMENT IN INDUSTRIAL PLANTS
Research methodology
The research methodology adopted for this
research include:
 Conducting a detailed literature
survey to identify the prime
perception of risk and risk
management. This was done by
referencing various literature articles
relating to risk and risk management
from books to magazine articles.
 Reviewing the laid down legislation
on occupational safety and health.
 Conducting case studies in various
industrial plants. A case study is an
important part of research which
focuses on understanding the
dynamics present within an industrial
or organizational setting. This
enabled to form a comprehensive
analysis of the take on risk
management in various industries
and the risk management strategies
in place in the various study
industries. This was done through
physical trips to three processing
industries in our proximity (cotton
and textile industry, milk processing
plant, and fruit processing plant). We
conducted interviews with
employees and management as well
as administered a questionnaire to
random workers in the plants.
 Brainstorming among the group
members to come up with original
and brilliant ideas on safety and risk
management and assessment
strategies in industries.
 Development of structures and
frameworks to risk assessment and
mitigation from the data gathered.
Implementation and results-Case studies
In this section, we focus on the key
findings from the three organizations that we
considered for our case study. We analyze
the current risk management practices in the
organizations and the results associated with
our model on safety measures.
Case study- Cotton and textile industry
 Major hazards- Rotating machinery,
sewing needles, and electricity
 Number of major accidents
experienced in the past year- 5
 The major cause of accidents- Fatal
wounds from sewing needles.
 Perception of operational risks-
Limited to occupational safety and
health as well as overall business
performance.
 Available tools and techniques for
risk assessment- Accident and
incident recording and reporting
form, Health and safety manual, risk
matrix.
The workplace was fitted with key
safety measures with regard to the OSHA
regulations. With killer switches and fire
extinguishing water and gas placed at
strategic points within the plant. There was
ample workspace with limited congestion.
The machinery was well arranged, and the
entire place looked neat. Interviews with the
individual workers indicated that they were
provided with insurance cover against
injuries within the industry premises.
Despite the laid regulations that
workers should maintain an appropriate
attire within the working environment
comprising of safety apparel, most of the
workers in the industry were dressed in
casual wear as they undertook their tasks.
The management did not seem to mind this
tendency.
Case study- Milk processing plant
 Major hazards- Bacteria, electricity,
and milk spills.