Risk management - assessing the impact of failure
The Health & Safety Executive, the policemen of the CDM safety scheme, have decided that all concerned with health & safety on the construction site have had sufficient time to undertake their learning curve. Prohibition orders bringing site work to a halt until compliance is achieved are becoming more commonplace, and even prosecutions are starting to take place.
Incidents less dramatic than terrorism, but equally as devastating for business, may occur through a simple loss of power. For instance, a major bank's dealing room could be brought down within 20 minutes if electricity is lost, and a hospital could lose lives in a similar situation. Failure of vital services is brought about by:
- Plant breakdown leading to loss of environmental conditions
- Accidents
- Improvement notices served by statutory authorities
- Action of disruptive persons within the organisation
- Action by a third party such as terrorism
If all five of these possibilities are recognised, assessed, and catered for, a building user cannot be accused of failing to plan for every eventuality. The way to prepare for the worst is to commission a risk assessment from a professional organisation able to translate the data into a comprehensive risk management programme.
Every employer should already be treading the path of risk management by complying with the various health and safety requirements covering such demands as the protection of water systems against the growth of bacteria. But true risk management takes the subject significantly further, taking account of the operation of the building and its occupants, and the impact of any failure. From a building services point of view, risk assessment will highlight every weak link in every system from plant breakdown to availability of spares, while in terms of building operation the assessment covers security and sensitive areas. Critical examination is made of all health and safety issues, including fire protection and means of escape, risk of accidents, environmental air quality and lighting standards which, if poor, may result in potential health hazards.
Risk assessment also takes in all COSHH requirements. Any organisation that commissions a risk assessment exercise is presented with the risk management strategy: a document detailing how all risks may be optimised in terms of the operation of the client's business.
In every instance the risk is matched to the impact of the failure of each individual system: a strategy for standby availability is devised and even stock levels for replacement parts are detailed.
The document also includes a complete review of all statutory obligations a client is required to meet; confirming that all checks and inspections have been carried out and all legislation and regulations are catered for.
Probably the most difficult aspect of risk management is the legislation against deliberate actions, either by disruptive personnel or terrorists. A comprehensive risk management policy will include a review of personnel access to all areas and security systems - it is a well known fact that more security breaches occur through personnel employed within the company than by third parties.
However, as recent events have shown, third party damage, and even destruction, remains a risk to be assessed. In those spheres a competent risk management consultant should be perfectly happy to join forces with a disaster planning expert to offer a complete scenario: 'events' that could happen and how they should best be dealt with, no matter how devastating they may be.
Contact FHP ESS.