bowtie bowtiexp risk management made easy

Risk Management Made Easy

Purpose and objectives of this presentation:• To introduce the BowTieXP methodology and software

Introduction

HistoryThe exact origin of the bow tie methodology is unknown. The first scientific reference (that we are aware of) was in a publication of the University of Queensland, Australia in 1979.The Bow tie methodology matured in the early nineties when the Royal Dutch/Shell Group developed the technique as a result of the Piper Alpha disaster.Because of its background Bow ties have been traditionally associated with ‘major hazard’ risk analysis, often a bow tie file is referred to as a ‘safety case’

Introduction

Risk Evaluation and ManagementThere are many descriptions of risk management processes, but they all can be simplified into the following four underlying steps:

Introduction

Are people, environment or assets exposed to potential harm?What could go wrong?

What are the causes and consequences?How likely is it?How bad will it be?What is the risk?

Can the causes be eliminated?Is there a better way?How can it be prevented?How effective are the controls?

IDENTIFY

ASSESS

CONTROL

RECOVERCan the potential consequences be limited?What recovery measures are needed?Are recovery capabilities suitable and sufficient?

Introduction

Hazards are part of normal business

Unwanted Consequences

Consequences are the result of losing control

TOXIC GAS CLOUD

CONSEQUENCE: Extent of the harm

LOSS OF CONTROLRelease of the hazard

HAZARDPotential to cause harm

FIRE

EXPLOSION

Loss of Control

Bow tie characteristics

Increasingly popular• Both commercial and governmental organisations accept the BowtieXP

methodology as their standard for risk management• The number of risk managers using BowTieXP increases day by day• Consultancies worldwide offer BowTieXP related training and services• Regulators are enabled to audit effectively

BowTie Methodology

Recommended by Victoria’s Worksafe - Major Hazard Facility Guidelines Dept Primary Industries, VicQueensland University - National Minerals Industry Safety And Health Risk Assessment GuidelineUsed by

Selection of Australian Users of BowTieXP

• BHP Billiton• SANTOS (Corporate Risk dept)• Murdoch University (OSHE Dept)• FBT Operations (Hazardous freight)• Jetstar (Airline Operations)

• TransOcean (Oil/Gas Drilling)• Inpex Petroleum (Oil/Gas Drilling)• Spryer (Human Factor in Safety)• SARP (Safety & Risk Consultancy)

• ADCO• Agip• An Mea• BHP Billiton• Dockwise (Heerema)• Engen• Falck Global Safety• Gulf Drilling

• KCA DEUTAG• Parker Drilling• Precision • Energy ProSafe• Raben Group• SADAF (SABIC)• SARP• Shell

BowTie methodology is recognised by• International Regulatory organisations• International Association of Drilling Contractors (IADC)• US Fed Aviation Administration for Aviation Safety & Risk ManagementUsed by

Selection of International Users of BowTieXP

• TNO SSC• TransOcean• TU Delft/TopTech• UK Ministry of Defence• University of Leiden• University of Stavanger• Weatherford

BowTieXP Characteristics

Risk Assessment Made Easy• Simple and elegant way of assessing risks• Relatively inexperienced risk professionals quickly develop useful risk

assessments• More experienced professionals gain insights into risk control that are not

found by more traditional methods

BowTie Characteristics

A Picture Paints a Thousand Words• Clearest graphical illustration of risk management • Easy to understand at all levels of an organisation• Best tool for communicating risk issues • A bow tie diagram summarises large documents• Work floor gets involved and feedback is guaranteed

BowTie Characteristics

Bow tie is commonly used for major risks• Operational• Safety (HSE)• Financial• Security• Asset Management

BowTie Characteristics

Simple and elegant methodologyQualitative approach to risk assessment

Integral risk managementFocus on how risks are managed

Easy to understand at all levels of the organisationNo need for thick reportsA bow tie model summarises complex risk issues

Assess Risks

Manage Risks

Communicate Risks

Audit Risks

Easy auditing toolWelcomed by regulators

BowTie Characteristics

Why is it called bowtie?

BowTie Method Explained

BowTieXP Explained

HazardThe potential to cause harm, including ill health and injury, damage to property, products or the environment, production losses or increased liabilities.

Top EventThe ‘release’ of the hazard. The initial consequence. What happens when control is lost.

Some examples of Hazards:• Driving vehicle• Stored materials• Working at height• Money transfers• Electrical systems

• Crowding• Working at night• Moving machinery• Construction work• System maintenance

Some examples of Top Events:• Loss of Containment• Structural Failure• Dropped Object• Loss of Control• Electrical Shock

• Falls to Same Level• Falls to Lower Level• Oxygen Deficiency• Loss of Separation• Contact

BowTieXP Explained

ThreatA possible cause that will potentially release a hazard and produce a Top Event.Some threats / potential causes

BowTieXP Explained

• Thermal - high temperature• Chemical – corrosion• Biological

• Bacteria• Marine growth

• Electrical - high voltage• Environmental Condition

• poor visibility• Flooding

• Human Factor - incompetence

BowTieXP Explained

ConsequenceAn event or chain of events that potentially results from the release of a hazard.Some examples of Consequences:• Reputational damage• Financial damage• Property damage• Production loss• Injuries / fatalities• Distressed personnel• Unemployment• Complaints

BowTieXP Explained

Threats and consequences need to be controlled

Control of Threats – Threat BarriersA protective measure put in place to prevent threats from releasing a hazard. Can be engineered / hardware or actions carried out by people.

Threat Barriers

BowTieXP Explained

Recovery Preparedness for Each ConsequenceAll technical, operational and organisational measures that limit the chain of consequences arising from a top event.

Some examples of Recovery Preparedness Measures:• Systems to Detect and Abate Incidents

• gas, fire & smoke alarms, ESD, deluge• Systems Intended to Protect the Safeguards

• fire & blast walls, protective coatings, drain systems• Operational Systems Intended for Emergency Management

• contingency plans, training, drills, clean up, restoration, medical treatment• Compensative measures

• re-stock fish, financial compensation

BowTieXP Explained

BowTieXP Explained

Threat barriers and recovery measures control the release of the hazard or reduce/prevent the

consequences

Escalation FactorsConditions that lead to increased risk by defeating or overriding barriers or recovery preparedness measures.

Escalation Factors, some examples:• Environmental Variations

• Extreme weather & tidal conditions• Loss of Services

• Hydraulics, electric power

BowTieXP Explained

Escalation Factor ControlsControls put in place to manage conditions that lead to increased risk due to loss of barriers or loss of recovery preparedness measures.

BowTieXP Explained

Escalation Factors

Escalation FactorControls

When we look at the bow tie method, we see the four underlying stepsof risk evaluation and management implemented:

BowTieXP Explained

BowTieXP Software ToolBowTieXP software tool is a Modeling Tool – but extends beyond the simple bowtie methodology

BowTieXP makes it possible to highlight what is risk critical within your organisation:

BowTieXP Software Tool

BowTieXP Software Tool

Quality checks (help to improve quality and consistency)BowTieXP Software Tool

ReportingBowTieXP Software Tool

Why use BowTieXP?• Clean & readable diagrams• Link bow ties to the management system

• Tasks & activities• Procedures• Responsible parties & competencies• Linked documents (checklists, technical drawings, websites, etc.)

• Generate reports• Manage operations

BowTieXP Software Tool

Screenshot 2

BowTieXP Software Tool

Summary

BowTieXP Analysis in 8 Steps

Top Event(Business

upset)

“What can directly causes a loss of control of the hazard?” 3

1

4

“What occurs when the control over the hazard is lost – the hazard is released?” 2

“What are the Hazards we are dealing with?”

“What outcomes can arise from the top event?“

BowTieXP Analysis in 8 Steps

TopEvent

Hazard

“How can we stop the hazard from being release?”

5

“How can we reduce the likelihood or severity of the potential outcome?”

6

7

“How do we maintain the controls so they do not fail?” 8

“In what way could the controls fail?”

BowTieXP Analysis in 8 Steps

TopEvent

Hazard

ALARP: As Low As Reasonably Practicable

Demonstration of ALARP“What other controls can we add? Can we improve the effectiveness of the controls? Is it practical to add to and strengthen our barriers?”

Trial version available• Please send a request to:

bowtiexp@bowtiexp.com.au to receive a free 30-day evaluation version.

Get Started Today

Licensed International DistributorsBowTieXP Software, Training & Consultancy Services

Authorised Publishers and Joint copyright holders(Official) BowTieXP Training Solutions

Head Office Contact details: Phone: +61 (0)8 9211 1111Fax: +61 (0)8 9211 1133Web: www.sarp.com.auE-mail: bowtiexp@bowtiexp.com.auHead Office Address:Level 1, 610 Murray StreetWest Perth WA 6005

Developer and Copyright Holder, Sales & SupportBowTieXP, TOPSET BlackBox, etc Software Products

Joint copyright holder, (Official) BowTieXP Training Solutions

Contact details: Phone: +31 (0)71 512 87 53 (CET, or GMT+1 hours)Fax: +31 (0)71 519 05 79 Web: www.governors.nlE-mail: info@governors.nl AddressZoeterwoudsesingel 632313 EL LEIDEN, The Netherlands