RISK MANAGEMENT IN PROCESS

INDUSTRIES
RISK IDENTIFICATION,
MITIGATION & HANDLING

Abhijit Das
LOSS PREVENTION ASSOCIATION
OF INDIA LTD.
 MAJOR FIRE LOSSES
(Rupees in Crores)
Year
Type of 94-9 9-94 94-95 95-96 96-97 97-98
Industry
Engineering 12.37 2.35 2.9 65.3 52.01 54.28
Industry (6) (2) (1) (15) (10) (13)
Textile Industry 35.25 15.33 22.18 91.38 12.53 81.55
(5) (4) (5) (23) (5) (13)
Chemical 9.15 2.75 30.91 99.8 15.70 283.87
Industry (4) (2) (10) (11) (6) (15)
Petro Chemical 21.9 - 2.8 17.6 - 4.09
Industry (5) - (1) (4) - (2)
Others 1.0 10.65 - 83.75 12.55 63.39
(1) (5) - (20) (9) (11)
Total 79.67 31.26 83.87 357.23 92.79 488.18
• Source : Annual Reports of GIC
• Figures in Bracket indicate no of fire losses amounting more than Rs. 1.0
Place Year Approx. Cause
Loss of
Life
Feyzin, 1966 18 LPG: BLEVE
France
Flixborough, 1974 51 UVCE of
U.K. Cyclohexane
Mexico City, 1984 500 LPG: BLEVE
Mexico
Bhopal, India 1984 2000 Release of MIC
Pasadena, 1989 23 UVCE of
USA Isobutane
Vizag, India 1997 58 UVCE of LPG
FEYZIN, 04.01.1966, FRANCE
FEYZIN DISASTER
4TH JAN. 1966 FRANCE
18 KILLED, 81 INJURED
LEAK IN 1200 M3 PROPANE SPHERE
BLEVE - FURTHER SPHERE
TOPPLED
- ADJACENT PETROL
TANK CAUGHT FIRE
- 48 HRS TO GAIN
CONTROL

SAMPLING REMOVABLE SPANNER

(I) OPEN FULLY UPPER VALVE

(II) ADJAST SMALL DRANOFF RATE
FILXBOROUGH, 01.06.1974, UK
FILXBOROUGH
1st June 1974
Cyclohexane
TNT equivalent32 tonnes
Lethal Radius 125 meters
Causality 28
Loss $ 412 million (Rs.. 1854 Cr.)
Process
Six reactors gravity circulation.
Cyclohexane → Cyclohexanone and cyclohexanol. Oxidized (AIR)
Operating Condition 8.8 Kg/Cm2 Pr. 155oC Temp. Exothermic reaction.
Nitrogen Controlled atmosphere - HighPr.N2 Storage
Reactor pr. Maintained by off-gas venting SRV - Setting 11.0 Kg/Cm2
Trip - Air shut off at high O2 content/Nitrogen Injection
MEXICO CITY, 19.11.1984, MEXICO
MEXICO DISASTER
19TH NOV 1984

- leak in LPG Storage

facility
- BLEVE OCCURED
500 Deaths

Loss US$ 100

Millions
BHOPAL GAS TRAGEDY (2 & 3 Dec. 1984)

 40 T METHYL ISOCYANATE
(MIC) LEAKED
 WORST INDUSTRIAL ACCIDENT
 8000 PEOPLE DIED
IMMEDIATELY AND OVER
500,000 PEOPLE SUFFERED
FROM INJURIES
 MANY DIED DUE TO DELAYED
MEDICAL TREATMENT (UNION
CARBIDE WITHHELD
TOXOLOGICAL INFORMATION)
PASADENA, 23.10.1989, USA
“PHILLIPS” Pasadena Texas USA
 23rd Oct. 1989
 23 Deaths 130 Injuries
 Vapour Cloud explosion
 Loss US$ 500 Millions
FIRE & EXPLOSION IN
HPCL REFINERY VIZAG

 7th Sept.1997
 Capacity - 6.5 million tons per annum
 Facility for handling LPG
Vapour clould Explosion involving
LPG
LOSS Rs. 256Cr.
Life Loss 58
RISK MANAGEMENT

“Risk Management is the Identification,

Analysis and Economic Control of
those RISKS which can Threaten the
Assets (Property, Human) or the
Earning Capacity of an Enterprise”
HISTORICAL DEVELOPMENT
•1955- 1964: Birth of Modern Risk
Management
•Post 1960: Shift from Traditional Insurance
Products
•“Reliability” Movement in 1950s
•“System Safety” Movement in 1960 &
1970s
•Development of QRA: filtered to the
“Financial” side of Risk Management
HAZARD
ANYTHING WITH POTENTIAL FOR
PRODUCING AN ACCIDENT.

RISK

PROBABILITY OF HAZARD
RESULTING AN ACCIDENT.
 Strategic
Management

Operations Risk
Management Management
 RISK IDENTIFICATION

RISK ANALYSIS

NO TRANSACTIONAL DECISION YES

No Risk Risk Control

Management

Transfer Reduce Retain

For any Industrial Process Plant
Following questions must be asked and
answered

4. What are the Hazards ?

5. What can go wrong and how?
6. What are the chances?
7. What are the consequences?
 CONESQUENCES OF
HAZARDOUS EVENT

•FIRE/ EXPLOSION
•VAPOUR CLOUD EXPLOSION
•FORMATION OF TOXIC
ATMOSPHERE
 Different Terminologies of Hazardous
Situations
•Pool Fire
•Jet Fire
•Flash/ Cloud Fire
•Vapour Cloud Explosion (VCE)
•High Pressure Rupture
•BLEVE
•Release of Toxic Gases/ Liquids
Heat Radiation levels and Damage Effects
(As per API 521)

Radiation Observed Effect

Level
(kW/Sq.m)
4.0 Sufficient to cause pain to
personnel within 20 second
12.5 Minimum Energy required
for piloted ignition of Wood
and melting of Plastic
Tubing
37.5 Sufficient to cause damage
to Process Equipment
 Explosion Over Pressure Level and
Damage Effects

Overpressure Damage produced by

(bar) Blast Effect
0.02 No considerable damage
except shattering of few
glass panes
0.13 Partial collapse of
Buildings
0.20 Steel framed building
distorted and pulled away
from the foundation
 TOXIC GAS RELEASE

• LC (Lethal Concentration)
•IDLH (Immediate Danger to Life &
Health)
•ERPG (Emergency Response
Planning Guideline)
 THE FIRST STAGE OF RISK
ASSESSMENT IN A PROCESS
PLANT ESSENTIALLY CONSISTS
OF THREE STEPS:
2. IDENTIFYING THE HAZARD
3. ESTIMATING THE EFFECTS OR
CONSEQUENCES OF THE HAZARD
4. DETERMINING PROBABILITY OR
LIKELIHOOD OF OCCURRENCE OF
HAZARDOUS EVENT
 THE NEXT STEP OF RISK
ASSESSMENT

TO DETERMINE WHETHER
EFFECTS OF THE CONSEQUENCE
AND THE PROBABAILITY OF
OCCURRENCE OF THE HAZARD IS
WITHIN THE ACCEPTABLE LIMIT
OR NOT.
HAZARD IDENTIFICATION
METHODOLOGY
HAZARDS IN PROCESS PLANTS ARE PRIMARILY
IDENTIFIED BASED ON FOLLOWING INFORMATION
•HAZARDOUS PROPERTIES OF MATERIALS
•TYPE OF UNIT PROCESS/ OPERATION
•OPERATING PARAMETERS
•ANY OTHER RELEVENT DATA

NFPA CODE NO. 325 M

CHECK-LIST
COMMONLY USED STRUCTURED
HAZARD IDENTIFICATION
TECHNIQUES
• WHAT IF ? ANALYSIS:
• What if the Raw Material contains impurities?
• What if Cooling Water is Lost?
• What if the Vessel Agitation Stops?
• What if Power Supply Fails?
• What if the Temp./ Press. Sensor Fail?
• What if the Pump Stops? etc.
1. HAZOP STUDY
GUIDE WORDS
• NO
• MORE
• LESS
• AS WELL AS
• PART OF
• REVERSE
• OTHER THAN, etc.
3. FAILURE MODE AND EFFECTS
ANALYSIS (FMEA)
FMEA evaluates the ways in which an
Equipment can Fail and the Effects of such
Failures on an Installation

4. FAULT TREE ANALYSIS (FTA)

Deductive Reasoning Process

5. EVENT TREE ANALYSIS (ETA)

Inductive Process
 RISK ACCEPTABILITY CRITERIA
Statistical Experience Shows
•Chance of Death due to Risk of Driving, Flying or
Smoking is 1 in 100000 or 10 –5
•Chance of Death from Lightning or Falling of
Aircraft is around 10 –7 or 1 in 10000000
It is therefore generally accepted that the Risk of
Death 1 in 100000 or 10 –5 per Year is Alarming.
Action needs to be taken to Reduce the Risk BELOW
the level 1 in 1000000 or 10 –6 per Year and it is
generally accepted without concern for Industrial
People.
 PROBABILITY ESTIMATION
Failure Rate data for Some Equipment

Equipment Failure Rate

(Failures/ Year)
Process Pressure Vessel 2.7x 10 -3
Pressure Storage Vessel 1.8x 10 -3
Heat Exchangers 1.7x 10 -3
Fired Heaters 405x 10 –3
High Temperature vessel, 7.4x 10 -3
except Fired Heater
Low Temperature Vessel 1.5x 10 -3
 CONSEQUENCE ESTIMATION
Software Organisation
Package
EFFECTS TNO, Netherlands
CISCOM CISRA, CLRI, CHENNAI
CHARM Radian Corporation
POOL FIRE/ BLEVE/ IIT, Kanpur
EXPLOSION Package
EAHAP Energy Analyst Corporation
HASTE ERT Inc
SLAB Lawrence Livermore National Lab
TRACE Safer Corporation
PHAST DNV Technica
Ex- TOOL Swiss Re
 Public or Societal Risk
E
x 103
FN Curve for Societal Risk
p
e
ct F
e Unacceptable
d 105

F Reduction F.N. Lines

re Desired
q
u
e Acceptable
n
c
y
102 103
Nos. of Probable Fatalities N
RISK CONTROL MEASURES
•Physical Protection
•Procedural Protection
•Educational Protection
 Physical Protection
•Strict & Rigorous approach in following the Relevant
Standards , Codes & Practices
•Built in Safety Devices and Safety System
•Venting through Tall stacks
•Field Monitors for Different Toxic Gases
•Burning Waste gases in a Flare System
•Provision of Wind Cones
•Fire Proofing of Steel Structures
•PPE
•Passive Protection System
•Active Protection system 1
•Automatic Protection system 0
•Improved Waste Water Management
2
 PROCEDURAL PROTECTION
•Fire Emergency Procedure
•Disaster Preparedness Plan
•Mutual Aid Scheme
•No Smoking Policy
•Investigation of All Accidents
•Hazard Identification through Safety
Committee, House Keeping Committee,
Safety audit Committee
•Conducting Plant Survey, safety survey
•Work Permit System
•Statutory Requirement
•Safety Promotional Activities
 Contd.
•Information notes on Unsafe conditions
•MSDS
•Annual Medical Check up of Employees
•Safe Start up & Shut Down Procedure
•Regular and Preventive Maintenance
•Periodic testing of Fire Fighting Appliances
EDUCATIONAL PROTECTION
•Periodic Training Programme on
Safety, Fire Safety and Hazardous
properties of materials
•Mock Fire Drill
•Safety Manuals
•Health & Safety News Bulletins
•Safety Motivation schemes
•Plant Operating Manual
•Educating the Public Living nearby
about the activities in the industry
GROWING IMPORTANCE OF
RISK MANAGEMENT DUE TO

•LEGISLATION
•CUSTOMER ATTITUDE
•SOCIETAL EXPECTATIONS
•MANAGEMENT ATTITUDES
RETENTION OF RISK
IS BUSINESS

&

RETENTION OF
CUSTOMER IS
PROGRESS
THANK YOU
PETER F. DUKER
“To try to eliminate Risk in
Business Enterprises is Futile”.
“Risk is inherent to the
commitment of present resources
to future expectations”.
Indeed, economic progress can be
defined as the ability to take
greater RISKS. Even the attempt to
minimise them, can only make
them irrational and unbearable.