Company example into Energy/ Oil and Gas- Gas
Authority of India Ltd.:
- Identifying potential risk scenarios that may arise
from proposed drilling and other associated activities like
operation of ancillary facilities and equipment’s, mud chemicals
storage and handling etc.
- Analyzing the possible likelihood and frequency of
such risk scenarios by reviewing historical accident related data
for offshore oil and gas industries.
- Predicting consequences of potential risk scenarios
and if consequences are high, establishing the same through
application of quantitative simulations.
- Recommending feasible preventive and risk
mitigation measures as well as providing inputs for drawing up of
Disaster Management Plan (DMP) for the project.
Consequence analysis takes the following aspects
into account:
- Nature of impact on environment and
community
- Multiple fatalities/Permanent total disability to
more than 50 Persons.
- Single fatality/permanent total disability to one
or more persons
- Short term hospitalization and rehabilitation
leading to recovery
- Medical treatment injuries
- Asset and Property damage
- Net negative financial impact of >10
crores
- Net negative financial impact of 5 -10
crores
- Net negative financial impact of 1-5
crores
- Net negative financial impact of <0.5
crores.
- Corporate Image
- National stakeholder concern and media
coverage
- Loss of corporate image and
reputation
- Local stakeholder concern and public
attention
- State wide media coverage
- No media coverage
- Timeline for restoration of environmental and
property damage
- Natural recovery < 1year
- 1 year for natural recovery
- Short term violations of national limits for
environmental Emissions. 1-2 years for natural
recovery
- Major violations of national limits for
environmental emissions. 2-5 years for natural
recovery
- Severe violations of national limits for
environmental emission. More than 5 years for natural
recovery
Risk Assessment:
The risk matrix is a widely accepted and
standardized method of quantitative risk assessment and is
preferred over purely quantitative methods, given its inherent
limitations to define a risk event with certainty using order of
magnitude data (risk ranking = severity/consequence factor X
likelihood/probability factor).