EMPLOY THE RISK MANAGEMENT PROCESS DURING JOB PLANNING and EXECUTION Jack R. Cooper II FESCO Health / Safety/Training

OUTLINE To provide Employees with an understanding of the Risk Management Process

Risk Management Process 3 2 Assess Hazards Develop Controls 4 1 Risk Management Process Identify Hazards Implement Controls Supervise & Evaluate 5

● High degree of demand on getting the job done WHY RISK MANAGEMENT IS IMPORTANT TO PETROLEUM INDUSTRY EMPLOYEES ● Mobile workforce with an ever changing environment ● High degree of demand on getting the job done ● Must have a team effort to make the workflow process seamless ● All employees are required to multitask ● Constantly thinking on the move, must be able to keep up with a rapidly changing environment

Workers in our industry are surrounded by heavy machinery that can kill or maim in an instant. About half the workers who die are struck by equipment ( WHY ? Was equipment properly secured, were machines being used as designed? Was there a lack of training? ) or are killed in motor vehicle accidents. ( Are we as safety leaders pushing a positive defensive driving culture? Are proper decisive actions taken immediately upon violators? ) Others fall from catwalks,( Was fall protection available and being used properly ?) are crushed by falling loads, burned in explosions or become tangled in chains and cables. ( Was any type of Risk Management Being Promoted in the Company Culture, and was it being supervised ? )

TERMS AND DEFINITIONS RISK MANAGEMENT- Risk management is a Five step process used to ID and control hazards to protect the work force. It is a continuous on-going process that begins with the receipt of job or task and is applicable to any situation and environment.

TERMS AND DEFINITIONS RISK ASSESSMENT- Risk assessment is the identification and assessment of hazards HAZARD- Any actual or potential condition that can cause injury, illness, or death of personnel; damage to or loss of equipment or property.

TERMS AND DEFINITIONS RISK The probability of exposure to injury or loss from hazard. Risk level is expressed in terms of hazard probability and severity. Accident risk - Includes all operational risk considerations, and can include activities associated with hazards concerning personnel, equipment, readiness, and environmental conditions.

TERMS AND DEFINITIONS Frequent Likely Occasional Seldom Unlikely PROBABILITY- The likelihood that an event will occur. There are five degrees of probability: Frequent Likely Occasional Seldom Unlikely SEVERITY- The degree of injury, property damage, or other mission impairing factors. There are four degrees of severity. Catastrophic Critical Marginal Negligible

DETERMINE THE DEGREE OF PROBABILITY PROBABILITY - The likelihood that an event will occur. Determine what is the chance or likelihood of the event occurring? There are five degrees of probability: - Frequent - Occurs often, continuously experienced. - Likely - Occurs several times. - Occasional - Occurs sporadically. - Seldom - Remotely possible: could occur at some time. - Unlikely -Can assume it will not occur, but not impossible.

DETERMINE THE DEGREE OF SEVERITY SEVERITY- The degree of injury, property damage. There are four degrees of severity. - Catastrophic - Loss of ability to accomplish the job or task. Death or permanent total disability, equipment loss, or major property damage. - Critical - Significantly degraded job performance capability or team readiness. Permanent partial disability, temporary total disability in excess of three months, major equipment damage, or significant property damage. - Marginal - Degraded job performance capability or team readiness. Minor injury, lost workday accident, minor equipment damage, and minor property damage. - Negligible - Little or no adverse impact on job performance capability. First aid or minor medical treatment, minor equipment impairment.

TERMS AND DEFINITIONS RISK LEVEL- Expressed in terms of hazard probability and severity. There are four levels of risk. - Extremely High Risk (E) - Loss of ability to accomplish the job or task. - High (H) - Significantly degrades job performance capabilities in terms of required job standards. - Moderate (M) - Degrades job performance capabilities in terms of required job standards. - Low (L) – Little to no impact on accomplishment of job or task.

TERMS AND DEFINITIONS CONTROLS- Controls are actions taken to eliminate the hazard or reduce their risk. Controls may take many forms, but fall basically into three categories: Elimination - Take steps to completely eliminate the hazard - Educational Controls - These controls are based on the knowledge and skills of the teams and employees. - Physical Controls - These controls may take the form of barriers and guards or signs to warn individuals and teams that a hazard exists. Avoidance - The control is applied by taking positive action to eliminate the presence of an identified hazard.

TERMS AND DEFINITIONS RESIDUAL RISK- Residual risk is the level of risk remaining after controls have been selected for hazards (Controls are identified and selected until residual risk is at an acceptable level or it cannot be practically reduced further). HOT WORK PERMIT, CONFINED SPACE ENTRY PERMIT, SSE MENTOR RISK DECISION- The decision whether to accept or not to accept the level of residual risk

RISK MANAGEMENT PRINCIPLES Integrate risk management into job planning, preparation, and execution. Make risk decisions at the appropriate level . 3. Accept no unnecessary risk.

RISK MANAGEMENT PROCESS Step 1 - Identify the hazards Step 2 - Assess the hazards Step 3 - Develop Controls and make risk decision Step 4 - Implement controls Step 5 - Supervise and evaluate Risk Management Process Assess Hazards Develop Controls Implement Supervise & Evaluate Identify

RISK MANAGEMENT PROCESS Risk Assessment Step 1: Identify hazards Step 2: Assess hazards Verify Controls have been developed Step 3: Develop controls Step 4: Implement controls Verification Process Step 5: Supervise and evaluate

COMPETENT WELL TRAINED EMPLOYEE TOOL BOX CONTENTS POSITIVE SAFETY ATTITUDE ( THERE IS ALWAYS TIME TO DO THE JOB RIGHT ) ( OBLIGATED TO STOP UNSAFE WORK ) -RISK MANAGEMENT TRAINING ( BJSA ) ( BBSP) ( STOP CARD) (PRE-TRIP INSPECTION), ETC. -DEFENSIVE DRIVING TRAINING MEDIC FIRST AID TRAINING FORK LIFT CERTIFICATION TRUCK CRANE CERTIFICATION CONFINED SPACE TRAINING WATER SURVIVAL THESE ARE JUST A FEW OF THE MANY TOOLS WE AS SAFETY LEADERS MUST ENSURE THAT OUR EMPLOYEES ARE SUPPLIED WITH TO ENSURE A SAFE WORKING ENVIRONMENT.

CONCLUSION Employees must identify hazards and then implement measures to reduce or Eliminate the risks. We must teach and Mentor our employees that this process can Be done on the move, it does NOT ALWAYS have to be written out to work effectively. THINK – SLOW DOWN – GET ASSISTANCE This is how we protect the work force and increase job and task accomplishment while working Toward our Goal of Zero Incidents.

Summary The Risk Management process is an essential tool in our ability to reduce the threat to our employees in daily operations.

IT IS YOUR RESPONSIBILITY / OBLIGATION SAFETY IS EVERY INDIVIDUAL’S RESPONSIBILITY AS SAFETY LEADERS IT IS YOUR RESPONSIBILITY / OBLIGATION TO PROMOTE A POSITIVE SAFETY CULTURE IN OUR INDUSTRY WARNING YOUR SAFETY PROGRAM AND THE LIGHT AT THE END OF THE TUNNEL