Empower your Risk Management Program

Operational Risk Management

by Paul Mainprize

Companies need emphasis on how operational risk management is conducted, a systematic approach to analyzing risk, and a standard platform on which to log data.

Paul Mainprize

Interview Transcript

How are companies responding to the greater emphasis on operational risk management?

Companies currently realize that there is a need to have a better emphasis on the way that they conduct their operational risk management. They realize that they need a more systematic approach to analyzing the risk. They also realize that there's been a great loss of knowledge and lessons learned by not being able to log this information into library format. And they also realize that there is a need to have better terminology -- and more consistent -- that will describe the hazards and failings they're realizing; the types of effects and also the controls that are in place to prevent and/or mitigate the causes that are creating these failures. There's also a higher level of need for risk visibility. And so reporting and dashboards has become a very important part of any solution that a company would adopt. IHS Markit has these types of features in place in a web-based tool called Stature that enables all of these considerations to be realized in one complete package.

How can oil & gas firms leverage risk assessment techniques to lower operational costs?

Oil and gas industry has lately been finding that the best way to prevent hazards is really trying to identify the causes more accurately. And what we're finding is that there's a lot more interest lately with Failure Mode and Effects Analysis on the equipment itself, because those equipment failures tend to lead to be the causes for these hazards occurring. So Failure Mode and Effects Analysis is a great tool because it allows us to evaluate failures in equipment based against the functionality of the equipment. Other tools such as Fault Tree Analysis can also be used, which help us to analyze how likely a failure is to occur in a piece of equipment and how often that may occur.

How can chemical companies benefit from having a single operational risk assessment system?

Chemical companies have realized that many studies that they have been doing in the past have been done on desktop-type products. What the real need is to be able to consolidate these results onto a common platform such as IHS Markit's Stature system. It's a web-based system that allows you to be able to document all of the studies against one single template, so there's standardization that's put in place with a common analysis tool. This will also allow for what we call Cross Study Reports and dashboards to be created across the board for all studies that are done within the company. This gives much better visibility and a clearer picture of what really needs to be done to minimize the risks that have been realized.

Paul Mainprize Quality Risk Management Consultant, IHS Markit
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