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1.0 Introduction

Hazard risk management is a structured technique to proactively identify, assess, evaluate and respond to construction, commissioning and operational safety risks associated with executing projects.

The objectives of following a structured and systematic hazard analysis risk workshop process, under the guidance of a Hazard Analysis/Risk Facilitator, will be:

- The identification of potential hazards inherent in execution of a project which may expose the project owner, project manager, contractors, sub-contractors or supplier personnel to harm during construction, and/or commissioning. 

- The identification of potential operability problems which may expose operational staff to harm.

- The identification of appropriate responses to identified hazards through the knowledge obtained during the hazard analysis risk workshop. 

2.0 Objectives

This procedure covers the six-stage hazard analysis methodology and the following are the essential objectives that are to be met:

- Ensure that the hazard analysis risk workshop include an assessment of the level of risk according to the agreed risk criteria of the project owner.

- Ensure that the hazard analysis risk workshop include a consideration of controls necessary to reduce risk to a level that is As Low As Reasonably Practicable (ALARP).

Confirmation that, given the circumstances at hand, a hazard analysis risk workshop is the most effective technique for identification of all hazards associated with the design, operation and maintenance of a plant or process, including controls and electrical supplies must be explicitly obtained. Should this not prove to be the case for any given circumstances, an alternative methodology, such as a Quantitative Risk Analysis (QRA) needs to be applied.

3.0 Scope

The Scope includes :

Implementing Hazard Studies by:

i. Obtaining an overview of the project.

ii. Identifying equipment and process functions.

iii. Examining and agreeing the design and operational intent of each major equipment/process function.

iv. Identifying hazards to the construction, commissioning, and operation of the infrastructure 

v. Implementing the incremental identification, analysis, evaluation and treatment of hazards so that they are reduced to As Low As Reasonably Practicable (ALARP).

vi. Identifying changes to be made to the design to reduce or remove the most critical hazards identified.

4.0 Responsibilities

Key responsibilities associated with the execution of hazard analysis workshops are:

- Project Owner Representative 

Ensure that appropriate hazard analysis workshops are included in the project scope of work and are satisfactorily completed by the project team, on all systems including new designs & modifications to a process plant, operational facility, pipeline systems, construction site, etc.

- Project Manager 

Ensure that hazard workshops are initiated in accordance with the Project Management Plan, findings and results are documented and any actions identified are implemented and completed. 

Incorporating the results of the hazard analysis report into the Hazard Risk Register. Holding regular, formal risk reviews to monitor progress of the hazards and the implementation of outstanding actions.  If a proposed risk mitigation action is not accepted or implemented after the Hazard workshop, such a decision must be formally documented.

Establish if all actions identified in preceding hazard studies have been implemented

- Lead Engineer 

Assist the project manger by ensuring that all actions identified during hazard analysis workshops are implemented. 

Hazard workshops (according to the PLP process) to be initiated, findings and results are documented and any actions identified are completed.

Ensure that modifications to the design following a hazard analysis workshop are re-evaluated and do not introduce new or unacceptable hazards and that the changes are cost-effective. Assisting the project manager in establishing and maintaining the Hazard Risk Register.

- Operations Representative 

Implementing any changes to operating and maintenance procedures, instructions or training manuals, which may be required as a result of a hazard analysis workshop. 

Ensuring that a detailed occupational health assessment is prepared and that appropriate monitoring procedures for Safety, Health and Environmental hazards are established.

- Commissioning Manager 

Ensuring that all the actions identified during hazard analysis workshops are completed before clearance for operation is approved. The final updated Hazard Risk Register, including formal reports and supporting documentation regarding the close out of hazard analysis actions must be included in the O&M Manuals. 

- Hazard Analyst

Responsible for Hazard Studies and input to the Hazard risk registers.  

o Ensure that all Hazard studies appropriate for the phase in the Project lifecycle have been carried out.

o Ensure a robust, thorough and accurate assessment of hazards during a workshop.

o Ensure that an adequate standard of hazard analysis report is issued that includes relevant documentation adopted during the hazard analysis workshop.

o Establish a hazard risk register and issue as part of the Hazard Study Report

o Elevate any risks identified in the Hazard study that should be elevated to the Project risk register

5.0 Hazard Workshop Methodology

The Hazard workshop methodology is a systematic and structured process of evaluating a facility by using deviations guide words to identify possible construction, commissioning or operating Hazards. 

The Hazard Workshop follows a structured hazard analysis methodology via a multidisciplinary team, using a technique for examining a project through a systematic and careful consideration of deviations that may occur from the design intent as represented by engineering drawings, and results in a systematic way to identify Hazards related to an operational plant, construction site, etc.

Applying a structured and systematic hazard analysis risk workshop methodology, under the guidance of a Hazard Analysis Specialist, will result in the:

- Identification of potential hazards in a project, which may include both those essentially relevant only to the immediate area of the system and those with a much wider sphere of influence, e.g. health, safety and environmental hazards.

- Identification of potential operational safety risks.

- Identification of appropriate remedial measures through the knowledge obtained during the hazard analysis risk workshop.

5.1 Steps for Executing a Structured Hazard Analysis Risk Workshop

1. Each identified potential health and safety risk must be analysed in order to determine what control and/or preventative measures are currently in place in order to either mitigate the consequence or likelihood of the occurrence.

2. The potential risk is then ranked qualitatively based on a scale of pre-defined PROBABILITTY and CONSEQUENCE ratings from a Risk Matrix table compiled by the project owner in order to determine the initial risk level. 

3. An Assessment is then made on whether any additional mitigation actions are required to further mitigate and/or reduce the probability of occurrence of the potential deviation.  Any additional actions identified must be assigned to an individual attending the workshop, who will then be accountable for the decision pertaining to and ultimate implementation of the action.

4. Hazards with an initial risk value greater than  or equal to the maximum agreed risk tolerance level (e.g. intolerable risks), should be further reviewed using quantitative risk evaluation techniques, such as LOPA (Layer of Protection Analysis), FMEA (Failure Mode Effect Analysis) or Fault Tree Analysis to determine whether they require further risk mitigation and to evaluate the validation and effectiveness of the proposed mitigation action.

5. The Hazard scenario must then be re-evaluated (analysed) in order to determine the residual risk level  based on the assumption that the proposed additional mitigation action will not completely eliminate the exposure of the hazard. 

6. All data captured during the Hazard analysis workshop must be recorded in the Hazard Risk Register of the project, plant or facility (refer to Annexure 2  for an example of a Hazard Risk Register). 

7. Copies of applicable engineering drawings (e.g. P&ID’s), operating philosophy, control narrative, etc. must be obtained at least seven (7) working days prior to the Hazard analysis workshop and must be distributed to all workshop participants.

8. The applicable engineering drawings (e.g. P&ID’s, plant layout, operating philosophy, control narrative, etc.) need to be discussed and explained to the Hazard Analyst and the workshop team by a process engineer or an expert in any of the specific systems, as required.

9. The process, plant layout or other system drawings are then split into “Hazard Nodes” based around a consolidated plant/system layout or operational function.

10. Each node is then evaluated applying the Hazard analysis process by discussing the possible safety risks.

6.0 Six Stage Hazard Study Process

It is common to apply a six-stage hazard analysis (study) process throughout a project’s life cycle.  The six-stage hazard analysis process ensures that Hazards are incrementally identified, analysed, evaluated and treated throughout the project lifecycle so that they are either eliminated, or reduced to As Low As Reasonably Practicable (ALARP). 

This procedure relates to the Design, Construction and |Commissioning Phases, which require Hazard Studies 3, 4 and 5, thus only these studies are described below.

6.1 Hazard Study 3 - Hazard & Operability Risk Review (HAZOP)

The purpose of Hazard Study 3 is to uncover and assess any operability health and safety risks and put in place risk controls prior to the commencement of operations.

The Hazard Study 3 workshop normally commences during the detailed designphase of the project. Where this is not practical, it may be executed during the construction phase but this is not desirable.  Hazard Study 3 must only be conducted when firm design details become available, i.e. engineering or Process and Instrumentation, electrical and control system drawings, outline operating and maintenance procedures and functional specifications. 

The methodology followed is the execution of a Hazard Study (HAZOP) by evaluating Process and Instrumentation Drawings (or similar engineering deliverables) through a systematic and careful consideration of Hazard guide words or deviations that may occur from the process operability, functional control systems and design intent as represented by the drawings. The required inputs are operational procedures, instrument functional specification, detail fire briefing report, and P&IDs and/or other detailed engineering drawings. 

From the Hazard 3 outcome, the requirements for further Technical Quantitative Risk Analysis (QRA) studies will be defined, such as LOPA, FMEA, Fault-tree Analysis, etc.  

Where the project could create significant on-site or off-site health and safety and/or environmental risks a Quantitative Risk Analysis (QRA) of those risk events shall be performed by a Hazard Analyst with appropriate training and experience to conduct the QRA. 

Following the completion of Hazard Study 3 any modifications made to the design, including those made during the commissioning stage, shall be controlled by means of approved engineering change notices. Any such changes shall also be formally reviewed by a Hazard analysis process to ensure that additional Hazards that are created by the changes are identified, evaluated and where required proposed mitigation actions are identified to either eliminate, or reduce the hazard risk level to As Low As Reasonably Practicable (ALARP). 

The Hazard Risk Register shall be updated according to the Hazards and actions identified during Hazard Study 3.

6.2 Hazard Study 4 - Constructability Risk Review

The purpose of Hazard Study 4 is to identify any health and safety risks associated with construction and put in place risk controls prior to the commencement of construction activities. 

Hazard Study 4 will take the form of a construction Hazard risk analysis workshop with the main focussed on the construction work and the identification of Hazards that could arise during the construction phase through a systematic and careful consideration of Hazard guide words or deviations that may occur during the execution of construction activities.  A required input to Hazard Study 4 is the Construction Safety Management Plan and construction models (3D) supplied by the Project Manager or Construction Manager.

The Hazard Study 4 risk workshop normally commences towards the end of detailed design during  FEL4, and after Hazard Study 3 has been completed.

The Hazard Risk Register produced during the study will include the Hazards and actions identified during Hazard Study 4.

6.3 Hazard Study 5 - Commissioning Risk Review

The purpose of Hazard Study 5 is to ensure that the project has been built to the intended design and to verify that actions from previous Hazard Studies or Risk Assessments have been incorporated into the design and are implemented in the project facility. 

It should also provide an opportunity for those responsible for personnel safety, employee health and environmental protection to verify that the detailed implementation of the project meets the project owner’s and national safety legislative requirements. Hazard Study 5 shall be performed prior to the commencement of operations during the commissioning phase.

The methodology is to conduct a commissioning Hazard analysis or risk review (some times also refer to as a Pre-Start-up Safety Risk Review (PSSR), by evaluating and identification of Hazards that could arise during the commissioning phase through a systematic and careful evaluation of the actual implementation and recommended process actions required from previous Hazard studies.

The Hazard Risk Register shall be updated by the Project Manager according to the Hazards and actions identified during Hazard Study 5 as well as any required changes to the operating manual.

7.0 Hazard Analysis Tools & Techniques

The techniques and tools that are utilized during the Hazard analysis workshops will be largely determined by the scope and depth of Hazard analysis and the phase of the project.

The selection of the Hazard Analysis Tool or Technique depends on the complexity of the process, plant, facility or rail operation.

8.0 Hazard Quantitative Risk Analysis (QRA)

The art of making wise and justifiable decisions is the hallmark of successful management and requires both pertinent information and good judgement. Safety related decisions, in particular, have traditionally been based on hard-earned operating experience and intuition.

As greater demands for improving the safety, health, environmental and economical aspects of process plants & facilities are placed on company’s limited resources, the decision-making process becomes more difficult and the need for better information becomes more critical.

During each Hazard analysis workshop, the identified risks must be evaluated according to the agreed risk matrix between Project Manager and the Project Owner. It is imperative that risks falling in the “intolerable” zone of the agreed risk matrix (“High” or “Extreme”) must be subject to closer consideration such as a detailed QRA study, as these risk scenarios have the greatest potential for impacts on the design, maintenance and safe operation of the plant or process facility.

Efficiency dictates that leaders use QRA only in selected cases when decision-making information cannot be supplied by less elaborate means. Conducting a detailed QRA appropriately scoped will provide powerful insights for allocating the limited resources of any company.

The QRA will never make a decision; it will only help Project Managers to increase the information background when making a decision. A detailed QRA study offers the benefit that by the application of the technique, the areas where risk reduction is necessary, will receive the best corrective action as identified, as well as the quantified effect of the risk reduction action.

Sometimes a consequence analysis or a frequency analysis alone may provide sufficient information for decision-making purposes. 

A quantitative risk assessment (QRA) needs to be conducted if the following conditions exist:

i. The risk is significant (the risk falls in the high or intolerable area) 

ii. When existing, recognised best practice engineering activities are inadequate.

iii. When no clear understanding of the risk exists.

iv. When more information is needed to determine adequacy of suggested additional risk control measures.

v. The cost of risk reduction is substantial.

vi. When a QRA is required by law (e.g. Major Hazard Installation (MHI) Regulations).

vii. If the consequence modelling is needed by Emergency Management to determine fire protection/prevention strategies as well as for compiling emergency plans.

The purpose of QRA is to:

i. Develop a detailed model of the risk scenario/event, its contributing causes and potential impact.

ii. Quantify the likelihood of the risk event and the range of potential consequences, applying relevant quantitative analysis tools.

iii. Confirm the initial qualitative risk evaluation, based on the outcome of probability and/or consequence quantification (using a relevant tool or technique).

iv. Confirm and Quantify the likelihood, potential consequences and residual risk level, which could be achieved with the risk treatment/s in place.

v. To develop risk treatment or mitigation actions to reduce the risk level to a broadly acceptable or tolerable risk level, which will ensure that risks/hazards are mitigated to a As Low As Reasonably Practicable (ALARP) level.

9.0 General Hazard Analysis Principals

9.1 New Facility/ Infrastructure

The six-stage Hazard Study Process should be carried out for all project phases involving new plants. This Hazards Analysis methodology comprises a series of six distinct, pre-defined Hazard studies, carried out at key times throughout the project, Conceptual Study) through to Operational phase. 

9.2 Existing Facility/ Infrastructure

Hazards related to modifications and upgrades to existing Facility/ Infrastructure should at least be evaluated, applying a Hazard Study 3 ‘Operability Risk Review’, as well as Hazard Study 4 and Hazard Study 5 as part of the project scope and acceptance process. A detailed QRA may also be applied to existing plants and operations, as appropriate.

9.3 The Project Dossier

Copies of all reports, records and supporting documents produced or collected during the Hazard analysis process shall be collated into a record document or file, known as the plant dossier. The plant dossier should also include detailed QRA reports and specific technical risk studies that are completed, such as Fire Risk Assessments, Hazardous Area Classifications, Functional Safety Studies, etc. 

9.4 Risk Control 

Risk control and Hazard mitigation actions shall be adopted and applied in the following sequence (subject to cost benefit analysis):

i. Elimination of hazard.

ii. Substitution of the hazard with less hazardous equipment, materials and/or processes.

iii. Reduction of risk through engineering/design controls (eg. Machine guarding, active/passive fire protection, shutoff-valves, etc.)

iv. Reduction of risk through administrative controls (eg. safe works procedures, safety signs, emergency procedures,  training, etc.)

v. Reduction of risk through personal protective equipment.

vi. Reduction of risk through behavioural controls (eg. Reliance on awareness of hazards and personal judgement regarding actions to reduce the risks).