Importance of Identifying Risks for Engineering Projects
There are several methods and styles that can be adopted for the assessment and evaluation of the risks associated with a project [1]. The suitability of the risk assessment process also determines the types of risks identified as well as the effectiveness of the risk mitigation strategies.
It is necessary for any engineering projects to consider identifying the most relevant risks that exposes and hampers the operational and functional capabilities [2]. The primary risks that can be identified in the case of the Bhopal gas tragedy is in relation to the inefficient management and non-existent risk mitigation strategies. The management did not consider identifying the most pertinent risks. However, the risk identification also helps in knowledgeable information about the problems that may affect the plant as well as formulate efficient plans. The risk identification forms the basis of the risk mitigation strategies as well [3]. In this case, the maintenance and management of the equipment and tools that were being used in the plant was not efficient. In addition to it, the resources that were used in the plant where of inferior quality which also compromise the ability of the tools to prevent disaster.
There are several methods and techniques that can be utilized in order to identify the risks which is contingent upon the type of the project [4]. For the Bhopal Gas tragedy case, the stakeholder interviews and brainstorming as well as root cause analysis helped.
Root Cause analysis: it is a systematic process which consists of five steps in order to identify the root causes of the problems [5]. It considers the most pertinent causes and focuses on solving or mitigating the probable causes of the risks rather than focusing upon the risk mitigation strategies itself.
Brainstorming: It is a process of risk identification in which the construction as well as the factors associated with the event is broken down into component structure and arrange them through the use of the FMECA technique. It helps in in numerating the risks that are imposed as well as help in finding the potential solution through deliberation and discussion.
Stakeholder Interviews: The stakeholder interview also helps in getting critical perspectives as they are the primary parties of interest associated with the Bhopal gas tragedy. It helps in identification of the common problems through the lived experience of the employees and affected people along with the management who are responsible for actions to be undertaken during the event.
The preparation of the risk register will help in preventing reputation of such tragedies in the future as well as adhering to the standards of operational functional requirements. The risk score is also to gain critical knowledge from the event in order to develop academic literature as well as ensure safety and security of the employees and integrate risk mitigation and risk management strategies for implementation within the organizational framework.
Risks register contains the detailed information and record of all the possible findings from the project as well as ensuring listing of the most pertinent order of the events [6]. It needs to be continuously updated and new information needs to be integrated within the risk register to maintain balance between the various components of the project as well as ensure that the management of the Union Carbide are aware of the risks which currently exists and needs to be mitigated immediately.
The analysis of the risks that are imposed by various factors is necessary to gain critical insights from them as well as formulate the basis of the risk mitigation strategies [7]. Before the tragedy, it was necessary for the management of the Union Carbide to analyze the risks for mitigation. The risk register prepared also presents a quantifiable list of all the risks as well as its potential effects and impacts which helps in the analysis of the risks. The risk analysis is a systematic procedure which must be followed in order to make sure that the risks are not overlooked as well as the immediacy of the mitigation strategies are followed for handling the most problematic issue first. The risk analysis conducted regularly helps in identification of any new potential risks that might also be imposed on Union Carbide which would have been critical for the prevention of the Bhopal Gas tragedy.
There are several methods of risk analysis which can be used. For the Bhopal Gas Tragedy however, the FMECA technique was used. It consists of different elements such as the modes of failure as well as the causes and effects along with hierarchically arranging the risks in terms of occurrence, severity and others as well. It presents a overview of all the risks as well as helps in identifying the most detrimental risks that exists among the plethora of high or low impact risks. The FMECA technique enables linking of the potential failure, causes and impacts through numbered methods of scale [8]. It is reflective of the risks through a concise method presented in a table format. For the Bhopal gas tragedy, the FMECA technique has been applied for the analysis of the risks as follows:
|
Components |
Failure Mode |
Failure Effects |
Causes |
Controls |
OCC |
SEV |
DET |
RPN |
Comments |
|
Management |
Employee quality decrease |
Compromising the ability of the employees to handle disaster |
Insufficient training and screening during recruitment |
Lacking resources for training and development |
5 |
5 |
6 |
150 |
Training and development needed |
|
Reduced safety training of the staff |
Not knowledgeable employees about the risk mitigation techniques |
Saving financial resource of the plant |
Lacking financial resource capability |
7 |
6 |
5 |
210 |
Invite external trainers and specialists |
|
|
Poor culture of health and safety within the organizational framework |
Health and safety procedures are taken for granted and not paid attention to |
Inherently biased and narrow view of adhering to safety standards |
Lack of organizational policies and frameworks |
9 |
5 |
8 |
360 |
Improve morale and workplace culture |
|
|
Carbon steel piping replacing the stainless-steel pipes |
Integrity of the pressure and force on the pipes was more than could be handled |
Reducing financial costs of infrastructure and maintenance |
Lack of financial estimation tools |
3 |
5 |
6 |
90 |
Conduct expert analysis |
|
|
Human detection; lack of automatic computerized warning systems |
Inefficient human systems meant that the employees failed to detect the gas leak |
Advanced technology was not utilized for the warning systems |
Less dependency on machines as a motto |
7 |
6 |
4 |
168 |
Automation needed |
|
|
Unavailability of unit storage tanks |
Lack of space for storing the volumes of gases |
Defective valves in the storage tanks means it is unusable |
Lack of slip in valves rendered it useless |
8 |
7 |
9 |
504 |
Manage and maintain storage tanks better |
|
|
Ineffective and inefficient spray system |
Unable to douse the fire or the poisonous gases spread to other areas |
Lack of storage tanks for the water to be sprayed |
Not maintaining the quality and functioning |
4 |
8 |
6 |
192 |
Replace the sprinkler system |
|
|
Safety device quality reduced |
Inefficiency in the working of these safety valves |
Saving on costs |
Financial allocation reduced |
7 |
6 |
8 |
336 |
Conduct safety checks and integrate redundancies |
|
|
Number of safety devices reduced |
Inefficient coverage of safety precautions being implemented in case of an accident |
Cost savings for the plant |
Financial allocation reduced |
5 |
9 |
7 |
315 |
Greater financial allocation |
|
|
Lack of redundancy strategies |
Misalignment of the redundancy strategies for risk mitigation |
Efficient management strategies |
Inefficient management or leadership style |
6 |
7 |
8 |
336 |
Better leadership and planning |
|
|
System not designed or incapable of handling volumes of gases |
Unable to check or restrict the volume of gases that erupted after the incident |
Scope of redundancy not included in the planning stages |
No oversight to assimilate scope and objective of the project |
9 |
8 |
7 |
504 |
Revise scope and objectives |
|
|
Shutting down of the refrigeration unit |
Unable to cool the plant during the tragedy |
To prevent pressure building |
Poor management judgement |
5 |
6 |
4 |
120 |
Check and conduct expert analysis |
|
|
Reducing the manned levels of the plant |
Ineffective vigil of the plant and required systems |
Lack of HR |
Total cost rise |
7 |
8 |
3 |
168 |
Hire more employee for manned oversight |
|
|
Operation of the plant outside the scope of the parameters of design |
Induced inability to handle the risks and ineffectiveness of the risk mitigation strategies |
Scope of parameters was not followed by the management of the plant |
Mismanagement |
8 |
7 |
4 |
224 |
Control management decisions, oversight needed |
|
|
Lack of emergency procedures and planning |
Unplanned response to the risks and not being able to manage the issues |
Ineffective management system within the organizational framework |
Risk registers not prepared |
7 |
6 |
3 |
126 |
Risk register and risk analysis |
|
|
Plant management failed to notify the incident for damage control |
Emergency response to the incident was delayed which led to the loss of life and destruction |
Not following the protocol as well as hierarchical system of reporting |
Ineffective management decision |
8 |
6 |
4 |
192 |
Better and accountable leaders, training in ethics |
|
|
Management decision to turn off the alarm siren |
The people in the vicinity as well as the employees of the plant was not aware of the critical incident |
Inefficient management decision justified by the management of the plan to not alarm the employees |
Faulty management decision |
7 |
5 |
4 |
140 |
Protocol and procedures formulated |
|
|
Blow down valve in the MIC tank was defective |
The dissolved chemicals in the boiler water were not removed sufficiently |
Plant was not efficiently managed and maintained as well as repairing was not conducted on time |
No maintenance or management of the valves |
8 |
4 |
6 |
192 |
Engineering imporvements |
|
|
Not repaired the defective gauges |
Inability to effectively measure the extent of the incident as well as respond in time |
Lack of oversight and management control by the plant |
Cost rise prevention |
8 |
7 |
2 |
112 |
Regular checks and recording of assessment results |
There are several risk mitigation strategies that can be implemented by the Bhopal gas tragedy incident. The risk mitigation strategies should always be utilized by the business organization in order to ensure management and control of the exposure []. The risk mitigation strategies also integrate the redundancy policies that would be followed during an emergency incident. It helps in inducing a state of procedure which are preconceived and available at the disposal of the employees in order to mitigate issues and risks. Therefore, risk mitigation strategy not only enables business organization to control any potential risk of operational functionality communities that may be attributed but also helps in integrating the redundancy policies of the business organization to also to help the business organization to deal with any unforeseeable incidents that may occur.
The primary risk mitigation techniques that are recommended for the Bhopal gas tragedy are as follows:
- It is recommended for the installation of slip line in the pipe which will act as the watertight seal and also block the flow of water. As the carbide mixed water was allowed to follow, freely into the MIC tanks, the effects of the disaster were most work now. Hence, it is recommended to install slip line as a safety device into the pipes to prevent such incidences. This recommendation is financial exhaustive as it requires complete overhaul of the installed pipelines with watertight seals as well as labour costs involved in this process. However, liabilities and damage to the operational and functional capabilities of the organization can also be averted that has high-cost impact.
- It is necessary for industrial corporations to consider integration of redundancy as well as risk mitigation strategies which did not exist at the time. Hence, it is recommended for the management to formulate effective risk mitigation strategies to following procedures of risk assessment and risk identification as well as preparation of the risk register which will enable formulation of policies and frameworks that can be implemented in case of such events. There would be minimal cost involved such as bringing an external consultant for risk redundancy planning.
- It is also recommended for all such incidences to immediately report and document any problems that are being faced so that emergency response teams can be notified in time. It would enable saving lives as well as limit the damage and destruction caused by such incidences. The external help that might be required in case of disproportionate industrial risks open require external help that cannot arrive on time if sufficient reporting and recording strategies are not implemented. The implementation of risk reporting, recording systems would require very little financial cost to the organization.
- It is also recommended to train and develop the skills and abilities of the employees in the risk assessment and risk mitigation strategies as well which will equip them with the necessary expertise to respond in time. The employees of the plant were not equipped with the necessary information and skills to handle such problems. While the cost of training and developing the employees with the necessary skills would be there, it would also lead to greater reduction in risk or damage control that has greater financial consequences.
|
Recommendation Serial No. |
Cost |
|
1. |
High cost to the decision making as considerable financial resources is needed |
|
2. |
Minimal cost to the company as only hiring a consultancy or risk management firm or expert is needed for redundancy planning |
|
3. |
Cheap and comprehensive as well as ready to use softwares are available for risk recording and reporting |
|
4. |
Moderate cost involved in training and development with greater benefit to the organization |
References
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- Zio, E., 2018. The future of risk assessment. Reliability Engineering & System Safety, 177, pp.176-190.
- Siemaszko, A., Grzyl, B. and Kristowski, A., 2018, June. A Model for Risk Assessment and Management of Construction Projects in Urban Conditions. In 2018 Baltic Geodetic Congress (BGC Geomatics)(pp. 7-11). IEEE.
- Oehmen, J., Guenther, A., Herrmann, J.W., Schulte, J. and Willumsen, P., 2020, May. Risk management in product development: risk identification, assessment, and mitigation–a literature review. In Proceedings of the Design Society: DESIGN Conference(Vol. 1, pp. 657-666). Cambridge University Press.
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- Kudszus, R., Klemencic, R. and Spyridis, P., 2020. Basic Concepts of Engineering Risk Management for Fastenings and Risk Register Based on Industry Survey. CivilEng, 1(3), pp.275-290.
- Nagendra, A. and Sharan, A., 2018. Risk Analysis for Project Management. Journal of Applied Management-Jidnyasa, 9(2), pp.22-31.
- Taghipour, M., Shabrang, M., Habibi, M.H. and Shamami, N., 2020. Assessment and Analysis of Risk Associated with the Implementation of Enterprise Resource Planning (ERP) Project Using FMEA Technique (Including Case-Study). Management, 3(1), pp.29-46.
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