A Live Picture of Organisational Risk -Integrating Risk Management

with Control Assurance

Alex Apostolou Jodi GoodallMeercat Incitec Pivot Limited

Safety in Design ConferencePerth 2015

Incitec Pivot Limited

Fatality Risk Programme Mk. 1

Objectivesq Identify Site fatality risksq Identify Critical Controlsq Develop Assurance programme

for Critical Controlsq Leverage existing systemsq Based on industry approach

EnterpriseRisk

Management

Fatality Riskmanagement

Critical ControlAssurance

Initial Fatality Risk Process

Initial Deployment PlanTaxonomy/Existing Risk Registers

List of Material Unwanted Events

Draft Master BowTies

SME Workshop

Master BowTies

Site BowTie Workshops

Site BowTies

Site AssuranceProgramme

Initial Deployment Experience

1. Getting site people to own the risk process was incrediblyimportant and rewarding

2. You can always learn something from a Site – how do wecapture this?

3. No two sites are the same …language, acceptance,knowledge, history

4. Customising = resource waste $ and time, no data rollup

5. Duplication

Leverage

BowtieMethodology

32 unique fatal risks168 unique critical

controls

Sustainable Global ControlMonitoring and Assurance

1,600 fatal risks5,400 critical controls

Building in the Leverage• Standardise:

– Fatal risks– Critical controls– Performance standards

• Link bowties into assurance program

StandardCriticalControl

Real time benefits

Ø A change in the Assurance result for one criticalcontrol …

Ø Changes the control effectiveness for all usages ofthat control …

Ø Therefore changes the risk rating for all related risksin the register

Linking assurance to risk

Fatality Risk Programme Mk. 2Objectivesq Identify common fatal risksq Identify Critical Controlsq Develop Assurance programme for

Critical Controlsq Based on ICMM approachq Standardisationq Shared learningsq Leverage existing systemsq Live risk profile to aid decision-

making on risk reduction

EnterpriseRisk

Management

Fatality Riskmanagement

Critical ControlAssurance

Establishing the Global Context

Fit Bowties to Site Conditions and Culture

Assurance activities

Live Roll-up of Data

Evaluate, Act & Notify

Site User Dashboard

OutcomesSetup Perform

Global and Site ActivitiesMaster

Bowties

MasterCritical

Controls& Perf Stds.

SetupSite

BowtiesSite RiskReviews

Site CriticalControl

Inspections

FTEs 1 0.5 2 4 2FTEs for

Setup/Perform 3 6

FTEs first Year 9FTEs following Years 6

Savings First Year Savings Subsequent Years

31 FTEs 13 FTEs

Other Benefits• Reduced training requirement

• Reduced data management and administration:

• Common Assurance Worksheet format eliminating errors;

• real-time hierarchical roll-up of risk exposure across the company;

• all actions correctly validated prior to submission;

• automated follow-up of overdue Activities and Actions;

• off-line Worksheets deliver data entry without rekeying;

• reporting: all statistics and reporting was updated automatically.

• Reduced program management through the use of Templates.

• Improved business process standardisation.

• Streamlined processes for measuring and reporting on KPI’s.

• Improved visibility over control budgeting and planning.

Questions