Chemicals

Energy, labor and raw material costs all contribute to the uncertainties that companies in the chemical industry face. In addition to the business risks that are largely introduced by fluctuations in global demand and the rise of global competition, the industry also has to deal with operational risks introduced by a dwindling talent pool, isolated pockets of risk management experience, inefficient manual processes, and aging plants and equipment. In addition, many companies have no systems for transforming safety issues into preventative actions that can be monitored, and there is often a lack of visibility into what will impact the business next.

The cost of chemical manufacturing continues to rise while regulatory requirements and sustainable development initiatives become more stringent, integrated, and expensive – not to mention more visible, both internally and externally. Complying with industry and environmental regulations like those from OSHA, EPA, ISO, SEVESO, ABSA, COMAH, EU and NOHSC is increasingly important and becomes more difficult as operations grow either organically or through acquisition. Exaggerating this problem is the fact that facilities across all business lines are using different methods and descriptions to define and assess risks, and using different systems to document them. This creates isolated pockets of knowledge globally, and a silo approach to knowledge management. All of these factors create a strong business need for strategic Operational Risk Management.

• A consistent corporate standard for all risk management processes, ensuring that risks are identified, measured and mitigated in similar ways and with shared best practices;
• Audit trails to ensure compliance with regional and adopted regulations like OSHA 29 CFR 1910.119, EPA 40 CFR Part 68, ISO 31000, AS/NZ 4360, Seveso II Directive, COMAH, MHFs, REACH, and Responsible Care;
• The ability to predict and prevent issues from occurring by uncovering leading and lagging indicators and understanding patterns of risk;
• A continuous improvement approach to risk management, integrating PHA, JSA and SVA studies with Management of Change, Incident Management and Action Tracking;
• The ability to transform risk management data into key decision making criteria;
• Corporate visibility of risks, aggregate risks, risk management adoption and regulatory compliance across regions, business units, and sites.