HSE Management System ID: A-2362 Harsh Arora DNV GL AS, Equinox Business Park, Tower 3, 6th Floor, LBS Marg, Off Bandra Kurla Complex, Kurla (W), Mumbai – 400 070, India Presenting author, E-mail: harsh.arora@dnvgl.com Abstract In this paper, we look into the need for management system and the management control in minimizing losses. Management System – what are they and why do we need them? An effective management system ensures people and processes are aligned to meet organizational objectives. Management systems are composed of procedures and practices with clear performance standards describing who does what, when, and/or how often. Taken together, the controls of the management system define “the way we work around here.” A management system is simply a systematic way to manage. A management system is a framework of controls for managing key processes, organizational risks and driving continual improvement. As indicated in the opening definition, the primary purposes of a management system are: 1. Ensure the effective operation of key processes - Effective management systems will

ensure best practice processes are in place to deliver the organization’s objectives. 2. Effective risk management - Managing organizational risks concerns the systematic

recognition, evaluation, control, and monitoring of health, safety, environmental, quality, and business risks.

3. Driving continual improvement - In competitive environments where the expectations of customers, regulators, and the community are increasing, continual improvement is essential for organizational survival.

Management Systems Help to Maintain Consistency When managers change, the system remains to provide continuity through the transition. Management systems also provide structured paths for improved communication, accomplishment of goals, development of human resources, improvement of business processes, etc. We know that good health, safety, environmental, quality, and overall business performance doesn't just happen. It has to be managed. We also know that what we put into our management process (inputs) largely determines our business performance (outputs). Historical data proves that business performance leaders are those who work on the right things, in the right ways, at the right times. A systematic approach is essential to making that happen.

"People work in the system.

Management creates the system." Ideally organizations should try to integrate their health, safety, quality, environmental, and other business activities into one management system.

“You have one business.

You need one management system to run it”

Trends - occupational safety events and process safety events in oil & gas industry Looking at the 10 year trends for Safety losses in general, the Oil and Gas industry has made great strides in overall reduction in injuries and fatalities. However, when it comes to process oriented, major hazard type accidents and losses, the trend is disturbingly up. Establishing Management Control Developing a management system for proactive, effective risk management means moving from lack of control to management control. Management control is established by: 1. Develop an adequate management system 2. Develop adequate performance standards 3. Ensure compliance with performance standards through follow up by leaders at all levels. References 1. DNV GLs ISRS (International Sustainability Rating System) 8th Edition 2. DNV GLs ‘Modern Safety Management - 2’ training program

Figure 1: Management System

Figure 2: Managing Risk

Figure 3: Continual improvement loop

Figure 4: Management system processes

Figure 5: Occupational health & safety events in oil & gas industry

Figure 6: Process safety events in oil & gas industry

Tier 1 – Loss of primary containment with greater consequences e.g. Fire or explosion with > $25000 direct costs. Tier 2 – Loss of primary containment with lesser consequences e.g. Fire or explosion with between $2500 and $25000 direct costs.

Figure 7: Lack of control to Management control