Risk Management Made Easy

Introduction
Purpose and objectives of this presentation:
• To introduce the BowTieXP methodology and software
 Introduction
History
The exact origin of the bow tie methodology is unknown. The first scientific
reference (that we are aware of) was in a publication of the University of
Queensland, Australia in 1979.
The Bow tie methodology matured in the early nineties when the Royal
Dutch/Shell Group developed the technique as a result of the Piper Alpha
disaster.
Because of its background Bow ties have been traditionally associated with
‘major hazard’ risk analysis, often a bow tie file is referred to as a ‘safety case’
 Introduction
Risk Evaluation and Management
There are many descriptions of risk management processes, but they all can
be simplified into the following four underlying steps:
 Introduction
Are people, environment or assets exposed to potential
harm?
IDENTIFY What could go wrong?

What are the causes and consequences?

How likely is it?
ASSESS How bad will it be?
What is the risk?

Can the causes be eliminated?

Is there a better way?
CONTROL How can it be prevented?
How effective are the controls?

Can the potential consequences be limited?

RECOVER What recovery measures are needed?
Are recovery capabilities suitable and sufficient?
Hazards are part of normal
business
Unwanted Consequences
 Loss of Control
Consequences are the result of losing control

EXPLOSION

FIRE
HAZARD LOSS OF
Potential to CONTROL
cause harm Release of the
hazard TOXIC GAS
CLOUD
CONSEQUENCE: Extent of the harm
Bow tie characteristics
 BowTie Methodology
Increasingly popular
• Both commercial and governmental organisations accept the BowtieXP
methodology as their standard for risk management
• The number of risk managers using BowTieXP increases day by day
• Consultancies worldwide offer BowTieXP related training and services
• Regulators are enabled to audit effectively
Selection of Australian Users of
BowTieXP
Recommended by
Victoria’s Worksafe - Major Hazard Facility Guidelines
Dept Primary Industries, Vic
Queensland University - National Minerals Industry Safety And Health Risk
Assessment Guideline
Used by
• BHP Billiton • TransOcean (Oil/Gas Drilling)
• SANTOS (Corporate Risk dept) • Inpex Petroleum (Oil/Gas Drilling)
• Murdoch University (OSHE Dept) • Spryer (Human Factor in Safety)
• FBT Operations (Hazardous freight) • SARP (Safety & Risk Consultancy)
• Jetstar (Airline Operations)
Selection of International Users
of BowTieXP
BowTie methodology is recognised by
• International Regulatory organisations
• International Association of Drilling Contractors (IADC)
• US Fed Aviation Administration for Aviation Safety & Risk Management
Used by
• ADCO • KCA DEUTAG • TNO SSC
• Agip • Parker Drilling • TransOcean
• An Mea • Precision • TU Delft/TopTech
• BHP Billiton • Energy ProSafe • UK Ministry of Defence
• Dockwise (Heerema) • Raben Group • University of Leiden
• Engen • SADAF (SABIC) • University of Stavanger
• Falck Global Safety • SARP • Weatherford
• Gulf Drilling • Shell
BowTieXP Characteristics
 BowTie Characteristics
Risk Assessment Made Easy
• Simple and elegant way of assessing risks
• Relatively inexperienced risk professionals quickly develop useful risk
assessments
• More experienced professionals gain insights into risk control that are not
found by more traditional methods
 BowTie Characteristics
A Picture Paints a Thousand Words
• Clearest graphical illustration of risk management
• Easy to understand at all levels of an organisation
• Best tool for communicating risk issues
• A bow tie diagram summarises large documents
• Work floor gets involved and feedback is guaranteed
 BowTie Characteristics
Bow tie is commonly used for major risks
• Operational
• Safety (HSE)
• Financial
• Security
• Asset Management
 BowTie Characteristics
Simple and elegant methodology
Qualitative approach to risk assessment
Assess Risks

Integral risk management

Focus on how risks are managed
Manage Risks

Easy to understand at all levels of the organisation

No need for thick reports
Communicate Risks A bow tie model summarises complex risk issues

Easy auditing tool

Welcomed by regulators
Audit Risks
Why is it called bowtie?
BowTie Method Explained
 BowTieXP Explained
Hazard
The potential to cause harm, including ill
health and injury, damage to property,
products or the environment, production
losses or increased liabilities.

Top Event
The ‘release’ of the hazard. The initial
consequence. What happens when
control is lost.
 BowTieXP Explained
Some examples of Hazards:
• Driving vehicle • Crowding
• Stored materials • Working at night
• Working at height • Moving machinery
• Money transfers • Construction work
• Electrical systems • System maintenance

Some examples of Top Events:

• Loss of Containment • Falls to Same Level
• Structural Failure • Falls to Lower Level
• Dropped Object • Oxygen Deficiency
• Loss of Control • Loss of Separation
• Electrical Shock • Contact
 BowTieXP Explained
Threat
A possible cause that will potentially
release a hazard and produce a Top
Event.
Some threats / potential causes
• Thermal - high temperature
• Chemical – corrosion
• Biological
• Bacteria
• Marine growth
• Electrical - high voltage
• Environmental Condition
• poor visibility
• Flooding
• Human Factor - incompetence
 BowTieXP Explained
Consequence
An event or chain of events that potentially
results from the release of a hazard.
Some examples of Consequences:
• Reputational damage
• Financial damage
• Property damage
• Production loss
• Injuries / fatalities
• Distressed personnel
• Unemployment
• Complaints
 BowTieXP Explained
Threats and consequences need to be controlled
 BowTieXP Explained

Control of Threats – Threat Barriers

A protective measure put in place to prevent threats from releasing a hazard.
Can be engineered / hardware or actions carried out by people.

Threat Barriers
 BowTieXP Explained
Recovery Preparedness for Each Consequence
All technical, operational and organisational measures that limit the chain of
consequences arising from a top event.

Some examples of Recovery Preparedness Measures:

• Systems to Detect and Abate Incidents
• gas, fire & smoke alarms, ESD, deluge
• Systems Intended to Protect the Safeguards
• fire & blast walls, protective coatings, drain systems
• Operational Systems Intended for Emergency Management
• contingency plans, training, drills, clean up, restoration, medical treatment
• Compensative measures
• re-stock fish, financial compensation
 BowTieXP Explained
Threat barriers and recovery measures control
the release of the hazard or reduce/prevent the
consequences
 BowTieXP Explained
Escalation Factors
Conditions that lead to increased risk by defeating or overriding barriers or
recovery preparedness measures.

Escalation Factors, some examples:

• Environmental Variations
• Extreme weather & tidal conditions
• Loss of Services
• Hydraulics, electric power
 BowTieXP Explained
Escalation Factor Controls
Controls put in place to manage conditions that lead to increased risk due to
loss of barriers or loss of recovery preparedness measures.

Escalation
Factors
Escalation Factor
Controls
 BowTieXP Explained
When we look at the bow tie method, we see the four underlying steps
of risk evaluation and management implemented:
 BowTieXP Software Tool
BowTieXP software tool is a Modeling Tool – but extends beyond the
simple bowtie methodology
 BowTieXP Software Tool
BowTieXP makes it possible to highlight what is risk critical within your
organisation:
BowTieXP Software Tool
 BowTieXP Software Tool
Quality checks (help to improve quality and consistency)
 BowTieXP Software Tool
Reporting
 BowTieXP Software Tool
Why use BowTieXP?
• Clean & readable diagrams
• Link bow ties to the management system
• Tasks & activities
• Procedures
• Responsible parties & competencies
• Linked documents (checklists, technical drawings, websites, etc.)
• Generate reports
• Manage operations
BowTieXP Software Tool

Screenshot 2
Summary
BowTieXP Analysis in 8 Steps
 BowTieXP Analysis in 8 Steps
“What are
1 the
Hazards
we are
dealing
with?”
“What occurs when
the control over the
hazard is lost – the
“What can hazard is
directly
causes a
released?” 2 “What
loss of outcomes
control of the Top Event can arise
hazard?” (Business 4 from the
3 upset) top event?“
 BowTieXP Analysis in 8 Steps
“How can we reduce
“How can we stop the the likelihood or
hazard from being 5 severity of the potential
release?” outcome?”
6
Hazard

Top
Event

“How do we
maintain the
controls so they
7 do not fail?”
8
“In what way could the
controls fail?”
ALARP: As Low As Reasonably Practicable

Hazard

Top
Event

Demonstration of ALARP
“What other controls can we add?
Can we improve the effectiveness of
the controls? Is it practical to add to
and strengthen our barriers?”
 Get Started Today

Trial version available

• Please send a request to:
bowtiexp@bowtiexp.com.au
to receive a free 30-day evaluation
version.
Licensed International Distributors
BowTieXP Software, Training & Consultancy Services
Authorised Publishers and Joint copyright holders
(Official) BowTieXP Training Solutions
Head Office Contact details:
Phone: +61 (0)8 9211 1111
Fax: +61 (0)8 9211 1133
Web: www.sarp.com.au
E-mail: bowtiexp@bowtiexp.com.au
Head Office Address:
Level 1, 610 Murray Street
West Perth WA 6005
Developer and Copyright Holder, Sales & Support
BowTieXP, TOPSET BlackBox, etc Software Products
Joint copyright holder,
(Official) BowTieXP Training Solutions
Contact details:
Phone: +31 (0)71 512 87 53 (CET, or GMT+1 hours)
Fax: +31 (0)71 519 05 79
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E-mail: info@governors.nl
Address
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