Zurich Hazard Analysis (ZHA) Introducing

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© Zurich Zurich North America North Zurich 21st 21st 8,2019 March Michael Fairfield, CSP Fairfield, Michael Introducing ZHA ZHA Introducing (ZHA) Analysis Hazard Zurich Annual Master Property Program Annual Loss Control Control Annual Loss Program Property Master

Risk Engineering Risk

Workshop

– – – – – – – – – – – Havesomeadditional insight into ZHA Know the answerto somefrequently asked questions around ZHA Know how toget ZHA TRP) derivate, its (and ZHA of factors success the Know ZHA of process 7 step the Know a ZHA perform to When Know with which standardization organization ZHAdoes comply Haverecognized aselection of ZHAproof points Appreciate the broad applicability of ZHA ZHA use already customers which of an overview Have Know theessence of the Zurich HazardAnalysis (ZHA) Methodology

© Zurich Zurich by Definition used ‘hazard’? a is What • • • • • be continuous,can repeating or cyclical nature in exposure vulnerability or intended actionor even characteristic, property, conditionknown inherent a represents danger business environmentprofitability, or source of the to a property, people, potential to threat represents a Hazard = an unassessed loss potential

Assessed loss potential loss Assessed Probability of occurrence Probability of or risk effect the of Severity

assessed

loss potential loss R = f (P, S) R = P*S

Probability

Risk Severity

© Zurich risks,manage your To mustyou first risksknow your Zurich Hazard Analysis Hazard Zurich • • • • • • • In line EPA. standards. with and OSHA by ISO NFPA Approved and cause improvement the risk actions the directlyFocuses on your conductedlocationTeam approach usingat your experts and for gone undetected years had revealing catastrophiccustomers riskssurprised by that many has ZHA transportation…and safety, more employee projects, (CapEx) liability,Expenditure product protection, property Applications:operations, continuity,design,plant business Capital Successfully applied since in 1985 various industries powerful is a ZHA for identifyingmethod risk

© Zurich Typical Applications Zurich Hazard Analysis Hazard Zurich • • • • • Service Industry (Financial, Insurance, Public) Chemical/Pharmaceutical/Food/Beverage Industry Electronics Industry Manufacturing Industry and Heavy is successfullyZHA sinceapplied the 1980ies in:

Not justNot for safety existing: systematicFor analysis of potential hazards of new,or planned

         Personnel safety Construction projects Business interruption Product liability sites,machinesManufacturing facilities, systems or Documentation/procedures Business operations and processes Financial and emergency planningemergency Financial and damage Property

© Zurich Zurich Hazard Analysis Hazard Zurich Proof Points Interruption Business could swing into another plant Identified developed A Operational process improvements pharmaceutical company shutdown line. 20- 100 low ton machine efficiency & millions BI. in to a new to - cost -

cause a

that that

discovered above

Pipes ignited by

Property damage found in sprinklered room in found carrying Water reactivechemical Safety the lighting fixtures. flammable acetone office that couldbe

Not only will a ZHA helpNot onlywill you corporations to corporationscomplete Hazard Process Analysis. the EPA, and NFPA certain like ISO agencies, force that of other regulatory the requirements ZHA also satisfies recognized as being quick and relatively very robust. but ZHAis can utilize, customers that techniques Hazard Process Analysis are there also other course, Of more productiveworkplaces. and healthier, provide safer, helpsit Plus, requirements. OSHA’s satisfies that Hazard thusaProcess Analysis is standard. ZHA Management Safety per OSHA‘s Process 5 as every it andyears, review onprocess every Analysis Hazard a Process perform must dusts combustible that processes hazardous andinvolve chemicals run who customers example, For requirements. risks

, but it will help them satisfy regulatory regulatory them satisfy help but will it ,

manage manage

your company’s company’s your

10 © Zurich Zurich Hazard Analysis Hazard Zurich perform When to • • •

stages Process events Lifecycle regulators or by management As required          Manufacturing Development Design Concept processes) points (interaction assessment risk level System Modificationsequipment to Newtechnologies and equipment Disposal Use

(Costs) efforts Safety Concept Post sales Measures/Monitoring sales Post risks averting for Measures Application of hazard analysis Design

Hazard Analysis Hazard

Develop ment - Manufac turing

- Use Disposal procedure process, operation, system, product, of cycle Life (Time) experienced experienced Ideal Often Often curve curve

11 © Zurich ZHA Methodology Overview Methodology ZHA basicThe process 3 4 5 7 6

quality report for the customer. customer. the for report quality ion informat the ZHA of all records simple tool This software. ZHA proprietary Zurich’s using supported can be steps of All these • • • • • • Preparation II: Review Identify/Assess: Improve II: Improve I: Improve quality check the risk profile check therisk quality Rank:

Build the risk profile, set risk tolerance boundary each and risk; tolerance plot risk set profile, the risk Build

the analysis Develop action plan and plot target risks plantarget and Developaction plot Implement the action plan the action Implement Select the team, gather information theteam, Select

Define hazard scenarios, severity & probability & severity scenarios, hazard Define

and createsa high 12 - © Zurich Zurich Hazard Analysis (ZHA) Analysis Hazard Zurich Executive Summary (graphic version 2) supported software Optionally Risk Tolerance Boundary Tolerance Risk Severity Probability Priority Sequence Hazard Identification Company Risk Policy Risk Company Hazard Assessment Risk Improvement Risk Scope Team

Improvement rate’) (‘list & (‘address’) Catalog Catalog Hazard (‘rank’) Profile Risk Risk

13 © Zurich Zurich Hazard Analysis Hazard Zurich ZHA factors Success of influences”,operation”,“Use and“Life Cycle” Zurich Hazard Analysis (ZHA): AnalysisHazard Zurich

______• • • • • • Flexibility Proficiency Visibility Efficiency Simplicity Effectiveness

looks bottom

- up at Research “Hazardous characteristics ”,

Manufacturing

Liability Logistics Financial Quality Property team ZHA ZHA

Life “Malfunctions”, “Environmental “Environmental “Malfunctions”,

Sales Image Environmental

Services Information Technology Information Design & Development Design

14 © Zurich Zurich Hazard Analysis Hazard Zurich glance a At Features Parameters Application

• • • • • • • • • Interdependent factors which determine the value of the ZHA Forsystematic analysis hazardsof new, ofplanned existing: or Provides a foundation to prioritize and manage risks methods other with interface Good Relative quantification applicability Wide Pathways/tickler list Easy for theteam Skilledleaderteam ZHA • • • • • • • • • Data: information availableData: knowledge and base expertise Team: Depth:detaillevel of timeavailable Time: breadth and width Scope: projects and Products Manufacturing sites, facilities, machinessystemsor Documentation/procedures Business operations andprocesses

15 © Zurich

Zurich Hazard Analysis (ZHA) Analysis Hazard Zurich Features and Benefits and Features • • • • • Feature

and application Flexible in scope, duration, depth the in results immediate and -endscreening front Efficient tool, risks of management and prioritization for Profile Risk complex issues simplicity and visualization of for assessment hazard Relative of risk perspective degree’ ‘360 Thorough

, systematic coverage with with coverage systematic ,

Overview hands

• • • • • Benefit

needs your what matter no great ZHA provide results mitigation sooner tools will help you begin other to compared results Fast most the matter that risks the on resources your Focuses management to risks the explaining simplifies ZHA the of nature Graphic learn. to Easy risks your specified scope. You will know your within risks all Identifies

16 © Zurich Zurich Hazard Analysis (ZHA) Analysis Hazard Zurich Conclusion Why Zurich Hazard Analysis? Hazard Zurich Why Success factors Overview • • • • • • • • • • • • • •

image,environmental andoverall issues financial performance. identifyTo hazards area,includingalmostany in property, liability, employee safety,company methodology the of knowledge prior teams the need not Does The results are qualitative and canbeless detailed than someother techniques It requires anexperienced and competent teamleader tobe efficient team your from comes Knowledge Risk Profile toprioritize and manage your risks Qualitative/semi Scenario technique andrelative assessmentrisk allow visibility complexof issues Produces risk assessments that are based onyour company’s risk policy Wideranging analysis scopeoccupationalfrom safetyproduct to liability Can be applied to any stage of the product or system lifecycle integrationEasy already in existing QualityManagementRisk and systems Systematichazards(360 coverof applying ’Pathways’ and’Ticklers’ toensure thorough a and systematic assessment is realized. whichgraphically highlightsgivenTheanalysisscope,analysis.prioritiesa cover the risk team in Hazard scenarios are developed and illustrated on a ‘Risk Profile’, the core of the methodology, teamZHA isa based methodology which encourages analysis ofthe360 degrees of‘Total Risk.’

-quantitative toolproduceto immediate results

-degree

-perspective)

17 © Zurich Zurich Hazard Analysis (ZHA) Analysis Hazard Zurich get it to How • Zurich Risk Engineering can facilitate at your a ZHA – – – – – – Provide the report report the Provide completed the team through a Lead ZHA prepare to How Determine analysis – the duration of the Who should be on the team determine Work with to the analysisyou the scope of complexity generally days halfto 3 from day one -

logistics

depending on the

location:

18 © Zurich Michael W. Fairfield, CSP Fairfield, W. Michael 2019 March 8, ANNEX ANNEX I: The 7 steps ZHA of in some more detail (ZHA) Analysis Hazard Zurich

19 © Zurich Zurich Hazard Analysis (ZHA) Analysis Hazard Zurich Basic elements process of the 5 4 3 2 7 6 1

supported software Optionally Risk Tolerance Boundary Tolerance Risk Severity Probability Priority Sequence Hazard Identification Company Risk Policy Risk Company Hazard Assessment Risk Improvement Risk

Improvement rate’) (‘list & (‘address’) Catalog Catalog Hazard (‘rank’) Profile Risk Risk

20 © Zurich

Zurich Hazard Analysis (ZHA) Analysis Hazard Zurich Step 1 Step • • • • analyzed process or system system process or desired wide, as As deep broad or 3 and descriptively indicated both graphically should be scope The product, of the the boundariescontent and the describes both Scope - D

Define the scopeDefine

facility

to be be ,

21 © Zurich Zurich Hazard Analysis (ZHA) Analysis Hazard Zurich 1: Step Information support a ZHA to • • • • • • • • • • • Examples … Product inventory Loss information and experience plans disaster recovery Business interruption, interdependencies; contracts,party third operating personnel Information key from Process Instrumentation and I) & diagrams(P Manufacturing and operating procedures complaintscustomers Statistics of Scientific resultsresearch Regulations/GMP regulations for the branch Site/plant layout plans, process flow sheets

22 © Zurich Zurich Hazard Analysis (ZHA) Analysis Hazard Zurich Step 2: Choose Team Leader • • • • • • • • • The from a process view a from a success factor of An Team Manage the Challenge the Team Remain objective Manage time Bringconsensus team to identificationStimulate risk Possess basic knowledge analyzed the Scope of Understand the steps of ZHA Team Leader

must:

point

ZHA

23 © Zurich Zurich Hazard Analysis (ZHA) Analysis Hazard Zurich 2: Step Choose Team Members • • • • The

base of the analysis of base the The part of fullMade disciplines departments and/or Representing perspective experts to 7 with 4 Composeddifferent of knowledge and members Team teammain is the success factor, sincerepresents it the knowledge time

is:

or several

24 © Zurich Zurich Hazard Analysis (ZHA) Analysis Hazard Zurich Basic elements process of the 5 4 7 6 1

1 supported software Optionally

Risk Tolerance Boundary Tolerance Risk Priority Sequence Company Risk Policy Risk Company Risk Improvement Risk Scope Team

Improvement (‘address’) Catalog (‘rank’) Profile Risk Risk

25 © Zurich Zurich Hazard Analysis (ZHA) Analysis Hazard Zurich - Catalog Hazard The 3: Step

• • • 3 Scenario consists Hazard A Catalog Hazard the listed inScenarios are pathway with the tickler list Scenarios Hazard developed are as the team brainstorms through a Effect Trigger Hazard components:

Why? How? Controls Where? What? How Much? How Bad? How Big?How

Identify Hazard Scenarios (cont’d)

26 © Zurich Zurich Hazard Analysis (ZHA) Analysis Hazard Zurich – Catalog Hazard The 3: Step Using the ZHA WORKS software ZHA WORKS the Using

27 © Zurich Zurich Hazard Analysis (ZHA) Analysis Hazard Zurich Basic elements process of the 5 4 3 2 7 6 1

supported software Optionally Severity Probability Priority Sequence Hazard Identification Hazard Assessment Risk Improvement Risk Scope Team

Improvement rate’) (‘list & (‘address’) Catalog Catalog Hazard (‘rank’) Profile Risk Risk

28 © Zurich

Zurich Hazard Analysis (ZHA) Analysis Hazard Zurich Step 4: Step Build the Risk Profile 1. • • • Set the Set   of on

Team consensus Team the of eyes the Risk tolerance is inseen The risk are not are tolerable lineBoundary the above Risks the empty ‘line’stepped is the team set by as a across tolerability Risk Tolerance Boundary:

Risk Tolerance Boundary Risk Risk Profile

team

needed needed

the the Risk Tolerance Boundary

Probability

A F E D C B Severity IV

III 4

Zurich Hazard Analysis (ZHA) Analysis Hazard Zurich Step 4: Step Build the Risk Profile 2.

Plot the the risks –

plot the the risksplot

Probability

A F E D C B

Severity 2 Current Risk Profile Current 4

III 1

II 3

30 © Zurich

Zurich Hazard Analysis (ZHA) Analysis Hazard Zurich Step 4: Step Build the Risk Profile permitted!isboundary not Lowering *) the risk tolerance • 3. of rating and tolerabilityon Team consensus Team and boundary and boundary of rating consistency Perform risk

a quality check a position

needed needed

–

perform a quality check

Probability A F E D C B

Severity 2 Current Risk Profile Current 4

III 1

II 4

supported software Optionally Risk Tolerance Boundary Tolerance Risk Severity Probability Hazard Identification Company Risk Policy Risk Company Hazard Assessment Scope Team

rate’) (‘list & Catalog Hazard (‘rank’) Profile Risk

32 © Zurich Zurich Hazard Analysis (ZHA) Analysis Hazard Zurich 5: Step Develop Risk Improvement Actions (cont’d) • • • •    Profile) Re Follow a logical sequence priority order Follow Devised for risks the RTB above

- Reduce the probability Reduce the and/or severity an event: of Eliminate hazard, the risk level of highestrepresent the which hazards with Start those rate rate scenario the considering all proposed improvements (Target – – –

machine humanbunding, walls, fire the event (drains, against systems External human/machine guards, components, redundant against devices, the relief Protection systems alarms, event (interlocks, machine humanalarms, control,Controlagainst the systems event (automatic/manual - - interface, quality control, emergency response) control, quality interface, maintenance),preventive interface, if not possible:if

- interface)

33 - © Zurich Zurich Hazard Analysis (ZHA) Analysis Hazard Zurich 5: Step Revealing it all(another example) Probability A F E D C B

Severity 8 1 Profile Risk Current

III 7 3 4

II 2 5

Probability

A F E D C B

Severity 8 1 Target Profile Risk

3 4,6

III 7

II 5

2,5 I

• • • risksThe by: improvedare managed & analysis Occurs the after during Review Step 7 Review Step during the listwillto existing be added of Controls as definedHazard in the Control,fully once implemented (i.e. its action status = “completed”), Control,this risk improvement the was a actions of case one in Note: Documenting the Actions VerifyingReduction Risk implementationImprovementVerifyingRisk Actions the of    Action status dates Due Action responsible .

35 © Zurich Zurich Hazard Analysis (ZHA) Analysis Hazard Zurich Step 7: Review the ZHA • • • • • • • • • • • • • • Many aspectsofthe Tolerance Risk Workforce Technology risks Emerging Environment Materials Consumer expectations Industrial Standards Check on continuing realismof the scenarios and identify any new risks Scope or Process changed or assessneed for Processchange State ProgressControl on improvements Legal Scope -of

requirements -the

-art

analysis analysis

can change.

Review triggersarechanges in: