Diamond SHEQ Integrated Risk Management System INTRODUCTION

INVERITAS GLOBAL HOLDINGS (PTY) LTD

TABLE OF CONTENTS
Content Page

IGH Group Vision ........................................................................................................................3 IGH Group Mission ....................................................................................................................3 Foreword ....................................................................................................................................4 Diamond system Overview ................................................................................................. 5 Diamond system Introduction ............................................................................................. 6 Diamond system structure ........................................................................................................9 Diamond system principles .....................................................................................................11 What the Diamond system can do for you .............................................................................13 The Characteristics of Diamond system.................................................................................14 How to conduct a Diamond system ........................................................................................15 How to Score the Diamond system ........................................................................................19 Recognition for the Diamond system..........................................................................................20 Successful Application of the Diamond System ....................................................................21 Diamond Integrated SHEQ System Framework ...............................................................22-35

Purpose:
Creating global SHERQ solutions and standards in the occupational environment through Information, Intelligence and Innovation.

Mission:
To dedicate knowledge and experience to an ever-changing occupational environment contributing to decent work and sustainable client growth, by deploying cutting edge customer centered risk technology.

Vision:
To be globally respected for what we believe in, our purpose and mission. Leaving a legacy of productive reward for current and future SHERQ stakeholders.

Forward
Under the globalization of economy, follows the development of social economy and productivity, business organizations under the driving force of competitive pressure, on the one hand, seeking economic opportunity and reward, on the other hand, ensuring the health and welfare of the employees and the environment, and at the same time, required to minimize the risk. In order to satisfy this business requirement, IGH painstakingly developed the Diamond SHEQ Integrated Risk Management System, it provided business organizations, in the world market filled with competition, a total solution of occupational safety, health, environment and quality. The Diamond SHEQ Integrated Risk Management System is developed by professionals with practical experiences in safety, health, environment and quality, who audited over thousands of management systems, involved in various industries such as petrochemical, mining, transport, manufacturing and medicine etc. It stresses on the idea of people are the cornerstone", it integrates safety behavior science, through behavior intervention technology, improving employees at risk behavior, enhancing business organizations baseline quality and quantity, improving organizations production capability and employee morale, finally bringing business organizations the result of world class of occupational, safety, health, environmental and risk management. The Diamond SHEQ Integrated Risk Management System is proved to be a plug and play, ready to use framework, it is an integrated system, including all risk elements of occupational safety, health, environment and society, in accordance with ISO9001, ISO14001 and OHSAS18001 standards requirements. It is a systematic, procedure, self regulated and self sufficient system. The Diamond SHEQ Integrated Risk Management System includes 12 component, 71 elements, 215 sub-elements and over 3000 requirements.

Diamond System Overview

Many hazardous industries the world over have proven that the inherent risk in these industries can be minimized by introducing an integrated safety health environmental and quality management system throughout the organization. These companies use formal risk management processes for prioritizing all their decisions. Safety, health, environment and quality management should be an integral part of management systems, from planning through every aspect of operations to the closing down of the operations or parts of the operations. Integrating safety, health, environment, and quality management with other management systems in the organization does have many financial and non-financial benefits for the organization and the workers alike. Leading and operating an organization successfully requires managing it in a systematic and visible manner. Success should result from implementing and maintaining a management system that is designed to continually improve performance by addressing the needs of all interested parties. Managing, in this instance, encompasses safety, health, environment and quality management amongst other management disciplines. The integrated SHEQ management system is an important part of the overall management system of an organization. The organization should define its IMS and the processes contained within it to enable them to be clearly understand, manage and improve. Management will enhance effective operation and control of the processes and the measurement of data used to determine satisfactory performance.

Diamond System Introduction

The Diamond Safety Health Environmental and Quality Integrated Risk Management System is one of the finest Safety, Health, Environment and Quality, (S-H-E-Q) integrated risk management systems available in the world. The Diamond system was developed by Safety, Health, Environment, Quality and Behavior Intervention professionals with practical experience in hundreds of management systems from a wide variety of industries including: Process/Petrochemical Mining (surface and underground) Transportation (including road, rail and sea) General Manufacturing Food Processing Pharmaceutical Power Generation, Transmission and Distribution The Diamond Systems have proven to be a practical management framework applicable to many industries. They represent a comprehensive system comprising Safety, Health, Environment, Quality and social risk elements that can be applied to manage SHEQ in an integrated fashion. They are fully compatible with systems such as ISO 9000:2000, OHSAS 18001 / AS/NZS 4801 and ISO 14001:2004.

The Diamond Systems are built on the idea that "people are the cornerstone" and also unifies the science of safe behaviour and operations integrity. Through behaviour intervention technology, the Diamond Systems improves/corrects the at-risk behaviour of staff, promotes the quality and the quantity of the business organizations baseline, and improves the productivity of the organization and the morale of the staff. Finally, it brings achievement at a world-class level in the Occupational Safety, Health, Environment, Quality and Risk Management disciplines to organizations.

The design of the Diamond Systems has a strong flexibility and focuses on the

enterprise operating practices. It also has the ability to ensure that the enterprise is compatible with any special requests of the local industry and any technical requirements. The successful utilization of international and multinational corporations (such as: Eskom, Anglo Platinum, BHP Billiton, BP and Weyerhaeuser) in the Diamond Systems, fully shows that it is a scientific and a complete SHEQ management system. The system success is directly related to the level of commitment from senior management as well as all other levels and functions of the organisation. As the system integrates the processes outcomes are also dependant on the level of integration of the system within other business management systems. The overall aim of the diamond SHEQ integrated risk management system is to improve Safety, Health Environment and Quality Management in a balanced manner with socio-economic requirements and other business management requirements. The Diamond System has 12 Standard Industry Classification (SIC) variations or specific systems that cater for industry specific risks:

1. Coal Mine Diamond SHEQ Integrated Risk Management System 2. Non-coal mine diamond SHEQ Integrated Risk Management System 3. Power generation diamond SHEQ Integrated Risk Management System 4. Power grid diamond SHEQ Integrated Risk Management System 5. Construction diamond SHEQ Integrated Risk Management System 6. Transport diamond SHEQ Integrated Risk Management System 7. Manufacture diamond SHEQ Integrated Risk Management System 8. Metallurgy diamond SHEQ Integrated Risk Management System (steel industry) 9. Office Diamond SHEQ Integrated Risk Management System 10. Petrochemical Diamond SHEQ Integrated Risk Management System

11. Pharmaceutical Diamond SHEQ Integrated Risk Management System 12. Timber Diamond SHEQ Integrated Risk Management System

The Diamond System Structure

The Diamond System is organized into twelve (12) components. These components represent good management practices and are compatible with several International Standards such as ISO 9000, ISO 14001 and OHSAS 18001. It is also compatible with British Standard 8800 and AS/NZS4801. The Diamond System components are as follows: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. SHEQ ORGANIZATION MANAGEMENT COMPETENCY, TRAINING AND COMMUNICATION HAZARD IDENTIFICATION, RISK ASSESSMENT AND CONTROL DESIGN AND CHANGE MANAGEMENT WORKPLACE MANAGEMENT PRODUCTION SYSTEM, PROCESS AND EQUIPMENT INSPECTIONS OCCUPATIONAL HEALTH/HYGIENE SYSTEM INCIDENT/ACCIDENT INVESTIGATION, ANALYSIS AND INSURANCE EMERGENCY PREPAREDNESS AND RESPONSE (BUSINESS CONTINUITY) MEASUREMENT, MONITORING AND AUDITS CORRECTIVE AND PREVENTIVE ACTION SYSTEM

A feature of the Diamond System is that it can be used to objectively measure work being done to manage the sites S-H-E-Q management system. The technique used to ensure that the audit results obtained by using diamond system are consistent and objective is as follows: 1. Break down the necessary work into PDCA (Plan, Do, Compliance and Achievement) four modules. 2. Place a value factor on each module. 3. Ask sufficient, probing, and relevant questions. 4. Quantify and record results. The components of a S-H-E-Q management system have been classified into twelve elements. These elements have been divided into sub-elements. Each sub-element has been divided into specific questions. There are questions addressing Safety,

Health, Environment, Quality, Behavioral and Equipment Integrity issues. Value factors, in the form of points, have been assigned to each question. When the points for questions are totaled you have the points or score for each sub-element and element. DIAMOND SHEQ INTEGRATED RISK MANAGEMENT SYSTEM COMPONENT AND VALUE FACTORS VALUE FACTOR (POINTS)
1675 780 1665 330 540 1165 685 705 870 685 375 335

COMPONENT
1. SHEQ ORGANIZATION MANAGEMENT 2. 1. COMPETENCY, TRAINING & COMMUNICATION 3. 2. HAZARD IDENTIFICATION , RISK ASSESSMENT AND CONTROL 4. 3. DESIGN AND CHANGE MANAGEMENT 5. WORKPLACE MANAGEMENT 6. PRODUCTION SYSTEM, PROCESS, FACILITY AND EQUIPMENT 7. INSPECTION 8. OCCUPATIONAL HEALTH SYSTEM 9. INCIDENT/ACCIDENT INVESTIGATION AND INSURANCE 10. EMERGENCY PREPAREDNESS (BUSINESS CONTINUITY) 11. MEASUREMENT, MONITORING AND AUDITS 12. CORRECTIVE AND PREVENTIVE ACTION SYSTEMS 13.

TOTAL POINTS

9810

The Diamond System Principles

Based on Risk Management The Diamond SHEQ integrated risk management system introduces risk management into the SHEQ management of the enterprise. It defines risk as the possibility, chance or probability of loss that certain specific hazards create. Risk measuring takes the probability of the damage occurring, the consequence and the exposure as the basic elements. This process is called Hazard Identification and Risk Assessment (HIRA) and includes applicable legal issues at all times. Based on risk according to the actual condition, all of the Hazard Identification and Risk Assessment processes start with the site conditions of the enterprise and then identifies the risk which may have the potential to cause loss. This makes any management standards of the system be based on the risk of the element management determines the direction of SHEQ management, controls and the potential loss. The principle of the incident/accident pro-active approach Through the entire management process of incidents/accidents, implementation takes place at the incident/accident pro-active controls phase. This is prevalent in: Before the incident/accident occurring, the enterprise can develop measures, control the hazard, minimize the risk, avoid the accident occurring by hazard identification and risk assessment and foreseeing the probability of the incident/accident so that can realize the no accident, no deviation long-term objective. Foresee the energy amount or any harmful interactions in the occurring of the incident/accident. Take measures before the occurring of the incident/accident, for example: Choose less harmful materials reduce the amount of the energy consumed or released, block or the isolate the source, modify the interface, strengthen the physique of personnel, reduce the severity of the accident etc. Through maintenance and labeling of the emergency equipment after the occurrence of the incident/accident, the management in advance of the development and the training and the drill of emergency program, after the occurrence of an incident/accident, the enterprise can put the emergency system into action immediately and prevent the escalation of the accident and control the scope of the loss. (Business Continuity) The systematic principle The systematic principle of the Diamond SHEQ integrated risk management system is evident in that every part of this management system is linked closely to each other and form a chain of circle controls crosswise and longitudinal. It is a specific expression of the PDCA cycle. The Diamond SHEQ integrated risk management system forms an organic whole which is closely coordinated, mutually compatible and connected so that it can overcome the traditional management defects, such as: poor safety supervision and regulation execution.

The principle of full staff participation The implementation of the Diamond SHEQ integrated risk management system doesnt only involve any single leader or department. It emphasizes the participation of the entire staff compliment which includes top management to all levels of employees, especially the participation of the front line employees who are the basis of the SHEQ management. The employee is exposed to worksite hazards everyday and will understand the hazards related to SHEQ well. The Diamond SHEQ integrated risk management system focus on training the employee into star SHEQ performers who can participate in the management of SHEQ positively and drive the group effectively. The principle of the safe behavior and attitude In the management of health and safety in companies has traditionally only paid attention to physical condition and training. Behavior-based health and safety is the imperative third dimension of health and safety performance excellence. The implementation of the Diamond SHEQ integrated risk management system regards individual employee as the carrier and support. It provides the employee the related knowledge of the operational skill and the experience of dealing with the risk by behavior intervention technique to realize the change of the attitude, value and behavior norms in conclusion. The principle of Continuous improvement Continuous improvement and innovation is the eternal goal of the enterprise and the process which can enhance the SHEQ management system and realize the improvement of the whole performance and make it conform to the organization policy

What the Diamond system can do for you

Organizations who use the Diamond SHEQ integrated risk management system to manage their SHEQ systems, find they obtain significant reductions in the number and severity of accidents/incidents and non-conformances. Other benefits of using are: 1. 2. 3. 4. 5. 6. 7. 8. 9. Identifying the work that needs improvement through the SHEQ management systems Measure the work that is done to improve the SHEQ management systems Quantifying the work objectively in order to prevent the occurrence of at risk behaviors and accidents. Identify the defects of the main management system that may lead to substandard work/accidents/incidents and events Improve risk management, reduce DIFR and promote the SHEQ performance. Allocate the required software support which will simplify the administration procedure and realize the use of electronic management in SHE&Q management. Conduct integrated audits; reduce time and costs of carrying on each audit and save costs. Stimulate the ability of the staff to enhance the cohesive force of the organization Cultivates the enterprises safety (risk) culture which is based on beliefs, norms and values.

10. One of the most important outcomes is to achieve international recognition and benchmark with management at world-class level. The diamond SHEQ integrated risk management system will help the enterprise conform to the external management system standards, such as: ISO 14001:2004, ISO 9001:2000, OHSAS 18001, AS/NZS 4801 etc. and relevant legal requirements.

The Characteristics of Diamond System

The Diamond SHEQ risk integrated management system has the following characteristics comparing with other international management system: 1_ The Diamond SHEQ integrated risk management system is the standard which is independently developed by IGH and has been practiced, proven and recognized by more than 500 international companies. 2_ It differs from ISO9001, ISO14001, OHSAS18001 and other IMS. The Diamond SHEQ integrated risk management system comprehensively considers the internal and the external safety, health, environment and quality influence of the enterprise 3_ The Diamond SHEQ integrated risk management system not only includes the management framework and the guide, but also provides the theory and the technical support and the best practice experience for each management element, and provides an effective way that guides the enterprise as to how to achieve the management requirement. 4_ The Diamond SHEQ integrated risk management system not only has the common management system requirements, but also considers the production process, the equipment integrity and the technical requirements of the different industries. 5_The Diamond SHEQ integrated risk management system is the unique risk management system which includes behavior technology as standard I the system. It provides the best framework for improving the unsafe behavior of the staff. 6_ The Diamond SHEQ integrated risk management system has necessary support software. It provides a good opportunity for realizing the electronic management of the enterprise, simplifying administration procedure, improving the performance. The ISO and the OHSAS management systems do not provide this type of support. 7_ The Diamond SHEQ integrated risk management system is fully compatible with the ISO, the OHSAS and other management system. 8_ The audit methodology of the Diamond SHEQ integrated risk management system is unique. The Diamond SHEQ integrated risk management system divides the recognition of the implementation in the enterprise SHEQ system into 5 levels. It not only provides a platform for the continuous improvement of the SHEQ management performance in the enterprise, but also provides a benchmark for the crosswise comparison with other enterprises in the same industry.

How to Conduct a Diamond System Audit (Guide: ISO 19011)

In order to accurately evaluate and measure the performance of the Safety, Health, Environment and Quality Management Systems in the work place, the organization should implement an effective audit process. The recommended diamond SHEQ integrated risk management system audit process is described in the following discussion using the ISO 19011 Audit Standard as a guide. SELECT A QUALIFIED AUDIT TEAM Diamond system can be used by site personnel or people external to the site. There are several important considerations in developing the audit team and all team members should have the competencies, characteristics, and skills listed.
1. 2. 3. 4. 5. 6.

Proper training in management systems auditing in general, and in Diamond system in particular. Unbiased, they must be able to render an objective finding and not have a vested interest in the outcome. Have expertise in the activities being audited, e.g. Safety, Health, Environmental and Quality management (or any combination for the sites system). Possess excellent people skills and personal demeanor. Have excellent time management and organizational skills. Have excellent listening skills.

SELECT THE AUDITABLE UNIT The unit being audited should be a fairly autonomous management unit. Experience has shown that audits work best in units that are neither extremely large nor small. Large units, e.g. those with more than 1500 employees, are often broken down into several auditable units to permit a better assessment of programs which reflect work actually being done at the working level. Likewise very small units, e.g. those less than 50 or 75 employees, are often clustered into logical groups, such as areas, regions, or districts for auditing. TIME TO COMPLETE THE AUDIT Experience has shown it takes five to eight working days to complete an audit of all twelve elements. For larger operations, more time may be needed to verify that the systems are in place and working. Less time will be needed if fewer diamond system elements are used or if the site is very small. COMMUNICATE WITH THE UNIT PRIOR TO AUDIT The auditor and the site must communicate prior to the audit to address such issues as audit schedule and timing, accommodation, auditor needs, and site objectives. The communication should take place at least three weeks before the audit begins. Here is a list of specific pre-audit activities, which should be done before the audit begins:

Establish a point of contact at the site. Define the scope of the audit, such as elements to be audited for Safety and Health, or Environment or Quality or any combination. Become oriented to the site regarding the number of employees, the manufacturing processes, work schedules, management titles, and organizational structure. Identify knowledgeable people to interview. Establish a tentative audit schedule. Identify PPE needs. Review regulatory requirements as appropriate.

CONDUCT THE AUDIT The diamond system audit proceeds more smoothly if a formal schedule is maintained. Here are the major aspects of an audit schedule that should be completed while conducting the audit. OPENING MEETING Conduct a brief opening meeting to introduce the parties involved. Senior site management, as well as any other site personnel deemed appropriate by management, should be welcomed. All audit team members should attend the opening meeting. The scope of the audit should be confirmed and the Lead Auditor should briefly explain the audit process, which will take place and ask for any activities, which might adversely impact the audit. After a brief question and answer session the meeting should be adjourned with no more than fifteen to thirty minutes spent for the entire meeting. ORIENTATION TOUR If the auditors are not already familiar with the site, they should be given a tour. The purpose of the tour is to provide the auditor with a perspective of the work performed and the facilities to be audited. INTERVIEWS OF KNOWLEDGEABLE PEOPLE Following the orientation tour, the auditor begins the first phase of the audit, which is to interview knowledgeable people and review documents to establish the programs, which allegedly exist at the site. It is common for people most familiar with the work being audited to take responsibility for answering these questions. For example, the Leadership and Planning questions are often answered by the Site Manager with support from the S-H-E-Q coordinator; the communications element is often answered by the human resource manager, questions regarding health and hygiene are often answered by the nurse and industrial hygienist etc.

Typical people to interview to determine the existing programs are: Senior Site Manager Nurse or Physician Engineering Manager Human Resources Manager Warehousing and Distribution manager Contractor Coordinator S-H-E-Q Staff Professionals Fire Specialist Maintenance manager/Planner Purchasing Manager Safety and Health Representatives Public Relations Manager

VERIFYING INFORMATION The auditor should spend at least half the audit time on verifying that the S-H-E-Q system is in place and working. Verification work involves management and employee interviews at all levels, record checks and conditions assessments. Standard interview questions should be used to verify the program is in place. These questions should be developed by the auditor; however, DIAMOND SYSTEM has sample audit verification questions found in section two of the Audit Verification Booklet, which is provided to assist auditors. The condition of the site should be assessed to confirm it reflects the level of programming indicated by the knowledgeable person interviews. Special care should be taken to ensure this exercise does not become a comprehensive inspection. Diamond system includes an Audit Verification Booklet, which includes checklists for Safety and Health as well as the environmental, and quality conditions and a sample employee perception survey. This booklet should be used whenever a diamond system audit is completed to verify that the sites S-H-E-Q systems are in place and working throughout the site. Section one of this workbook is designed to quantify the sites level of compliance to general criteria, not any specific legal criteria. Using section one of the booklet to quantify the level of compliance to good working conditions provides an excellent indicator of how well the sites S-H-E-Q management systems are working. Information gathered from employee interviews, and workplace assessments should be used in scoring diamond system. If the information obtained in the verification work does not substantiate the alleged activities that are supposed to be in place, credit should be removed. CLOSING MEETING The Closing meeting is conducted with site personnel to overview preliminary audit findings. The meeting should be attended by those who were at the opening meeting. The auditor should plan to have this meeting completed in thirty to forty-five minutes;

however, if site personnel want to extend the length of the meeting they may do so. The following is a suggested agenda for the closing meeting: 1. 2. 3. 4. 5. 6. 7. Extend a thank you to those who helped with the audit Overview what has taken place Address Significant noteworthy efforts Nonconformities identified Address Significant suggestions / observations for improvement Summarize significant findings from the Conditions Assessments and Employee interviews Questions and Answers.

The closing meetings are best received if a brief written report of findings is provided to participants at this time. PROVIDE A WRITTEN REPORT OF AUDIT FINDINGS Auditors should promptly provide the site with a written report of their findings. Promptly means approximately within one month from the last day of the audit. The audit report provides information the site needs to improve its S-H-E-Q systems. It provides the basis for continuous program improvement. While the contents of the final report is up to the auditor to decide the following has been proven to be well received and is suggested as a model for the reports content: 1. 2. 3. 4. 5. A summary of the audit process that took place Include the scope and level of the audit Significant noteworthy efforts Significant suggestions / observations for improvement Diamond system Elements scores Suggestions for improving the S-H-E-Q management systems, which the audit team feels the site can reasonably implement over the next one to two years. Should be included in the main report. Workplace assessment findings. Responses to audit questions

6. 7.

How to Score the Diamond System

The techniques for scoring diamond system are easy. Each question has a mechanism for scoring provided. The types of scoring mechanisms included are: 1. All or nothing points This type of question is illustrated by a number over zero or some other number. It means that the answer is either yes or no e.g. 10/0. 2. Percentage Many questions are scored as percentages. The auditor determines the percentage of compliance to the question and calculates this percentage of the points indicated. 3. Frequency of Activity These questions have a score based on the frequency in which an activity occurs. The auditor awards points based on the frequency the activity takes place. 4. Minimal to Optimal Some questions ask for the auditors opinion regarding the quality or adequacy of the activity. These questions have five categories of possible answers ranging from minimal to optimal. Auditors select the answer, which best reflects their perception of the activity being evaluated. 5. Not-Applicable Auditors can make a question not applicable (NA) if the work being evaluated does not apply to the site. If the site does not wish to address Environmental or Quality management as part of Diamond system, the not-applicable (NA) designation could be used extensively. If a question is scored Not Applicable the auditor must subtract the points from both the element and from the diamond system total when determining the sites overall score. 6. Part of Whole. When a question has several components the score for each component is indicated as a fraction. The numerator is the points for the part and the denominator is the total points possible, for example 2/10. The difficult part of scoring diamond system is making the judgment needed to determine whether or not the intent of the question is being met. In addition, auditors rarely find a perfect system or one that is fully implemented throughout 100% of the operation. When auditors are asked to give a yes or no answer they should be sure that the work is being done throughout the site. Auditors should allow a little flexibility for individuals or work sections that may not be up to full compliance, particularly as long as this is mentioned in the audit report. They should never accept anything less than 75% percent compliance to the question when answering yes. In addition, all critical and high-risk operations must meet the questions intent before it is scored yes. Auditing requires a great deal of professional judgment and expertise to be done well and IGH offers specific training on how to use and interpret diamond system

Recognition for the Diamond System

Users may achieve awards from IGH (Amtri Veritas) based upon their performance against the standards defined in diamond system. The prerequisites for receiving a rating from IGH are: (1) Assessments be conducted following an acceptable assessment protocol, (2) The assessors be properly qualified, (3) The assessments are conducted by IGH or agent for verification. Awards are based upon the effort being put into managing the sites S-H-E-Q systems and the effects those efforts are having. Measurements of effort are reflected by diamond system scores, whereas the effects that are being achieved are reflected in S-H-E-Q incident frequency and severity rates. The award criterion follows: DIAMOND AWARD
Diamond 1 Diamond 2 Diamond 3 Diamond 4 Diamond 5

DIAMOND SYSTEM EFFORT

_ 45% _ 50% _ 65% _ 80% _ 95%

DIAMOND SYSTEM EXPERIENCE DIFR EIFR

_5 _4 _3 _2 _1 _3 _2 _1 _0.5 _0.2

A formal grading certificate will be issued reflecting the level of performance.

The Successful Application of the Diamond System

Since the utilization of the Diamond SHEQ integrated risk management system, many companies have implemented this system around the world and gained great achievements. These companies are from different industries including power generation, mining, petrochemical metallurgy, machine manufacture, construction, timber and government etc. IGH has some world famous customers, such as: Komatsu, CSG, BHP Billiton, Eskom, Weyerhaeuser Australia etc. Once the enterprise starts to practice this system, it does not only improve the SHEQ performance of the enterprise, reduce the accident frequency and severity rate, but also enhances the awareness of the staff, improves the behavior of the staff effectively and promote the culture of the enterprise. Such changes have happened at a large-scale ore service company in certain country after utilizing the Diamond SHEQ integrated risk management system. As explained by their risk manager, after implementing the Diamond SHEQ integrated risk management system, there has been significant changes in staffs attitude and behavior towards safety and health at work. Obvious returns are reflected in staffs commitment and culture together with significant improvement in overall safety and health performance. The company also experienced a significant improvement in reducing the frequency rate of occupational injuries / diseases. The group DIFR was reduced from 1.2_200000 at the end of 2002 to 0.7_200000 at the end of 2003, which was reduced by 42_ sharply. Its safety management system also won the local and the international recognition and obtained each kind of great honor. As for this company, the Diamond SHEQ integrated risk management system has become a significant management tool in achieving safety excellence and world-class performance.

Diamond SHEQ Integrated Risk Management System Framework

Important Information
If there is a need to understand more of the Diamond SHEQ Integrated Risk Management Systems management, audit and training information, please contact IGH Group or your local IGH office. Inveritas Global Holdings (Pty) Ltd PO Box 3782, Randburg, 2125, Gauteng South Africa Tel: +27 (11) 907-0336 Fax: +27 (11) 907-0332 Website: www.ighgroup.com E-Mail: toconnor@ighgroup.com

Copyright All global publishing and sales right of this guide book belong to IGH. This framework outline and all information included and copyright belong to IGH. Without the consent of IGH, any part of this framework, cannot in anyway be copied, recorded, or by electronic, machine, photocopy, record or any other way translated into any mechanical language. It is forbidden for any organization with business or any purpose to use, communicate or sale. To obtain the right, please contact IGH. This framework is a directive document without any legal effect. IGH is not responsible for any clients or employees, staff and related organizations due to usage of the Diamond SHEQ Integrated Risk Management System, acceptance of system advice, any responsibility or loss resulting from the application of system or failure to comply with the current legal requirements. IGH does not promise to provide editing services, nor guarantee its accuracy. However, staff of IGH will provide prompt reply to clients requests at any time.

1. SAFETY, HEALTH, ENVIRONMENT & QUALITY MANAGEMENT

PURPOSE: To ensure the site commits sufficient time, effort, resources, and management effort to its S-H-E-Q program SCOPE: 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 SHEQ policy SHEQ responsibility system SHEQ laws, regulations and other requirement SHEQ object and target SHEQ department setting and people appointment SHEQ commitment and employee involvement SHEQ documents and data control External relation Management review Purchase system Contractor management SHEQ science and technology Off-the-job SHEQ management

2. COMPETENCY, TRAINING AND COMMUNICATIONS

PURPOSE: Establish the effective competency, training and communication programs, identifying and evaluating the employee competency, promoting their SHEQQ awareness through the training and communication, and provide employees with the knowledge and skills for doing their work to the required S-H-E-Q standards. SCOPE_ 2.1 2.2 2.3 2.4 2.5 Employee orientation/awareness Employee selection and placement Training SHEQ internal communication SHEQ performance recognition

3. HAZARD IDENTIFICATION, RISK ASSESSMENT AND CONTROL

PURPOSE: To identify and control S-H-E-Q risks associated with operations, equipment, facilities, tasks, operating processes and changes, eliminating or controlling the S-H-E-Q incidents/nonconformities and related losses. SCOPE_ 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 The general requirements of risk assessment & control process Power Grid risk assessment Process & equipment risk assessment Health risk assessment Environmental risk assessment Fire risk assessment Motorized equipment & traffic risk assessment Hazardous substance risk assessment Organization risk profile Issue based risk assessment Continuous risk assessment Significant task identification and analysis Task & operation control SHEQ investment & financial management

4. DESIGN & CHANGE MANAGEMENT

PURPOSE: To realise SHEQ operational risk control in the process of design and development and change. Ensure the effectiveness and efficiency of the application to meet the expectation of the clients and other interesting parties. SCOPE: 4.1 4.2 4.3 Design and development Change management Ergonomic

5. WORKPLACE MANAGEMENT

PURPOSE: To ensure the workplace is neat, tidy, clear, safe and in good order. SCOPE: 5.1 5.2 5.3 5.4 5.5 5.6 Work environment Demarcation Hand tools Personal protective equipment/safety equipment Sign and traceable Natural resource conservation

6. PRODUCTION SYSTEM, PROCESS & EQUIPMENT

PURPOSE: To identify, evaluate and manage SHEQ risk associated to production system, process and equipment. SCOPE: 6.1 6.2 6.3 6.4 6.5 6.6 Maintenance system Production and equipment management Specialized equipment management Other equipment management Isolation lockout system Operation permit

7. INSPECTION

PURPOSE: To identify and correct workplace hazard through all kind of inspection

SCOPE: 7.1 7.2 7.3 7.4 7.5 Planned general inspection Specialized safety, health, environment equipment inspection Equipment, tools, facility pre-use inspection Equipment, facility statutory compliance inspection Housekeeping inspection

8. OCCUPATIONAL HEALTH SYSTEM

PURPOSE: To eliminate occupational injuries and illnesses through identifying, evaluating and controlling health hazards. SCOPE: 8.1 8.2 8.3 8.4 Occupational health administration Occupational health hazard controls Occupational hygiene monitoring Occupational medicine

9. ACCIDENT/INCIDENT INVESTIGATION & INSURANCE

PURPOSE: To prevent the recurrence of S-H-E-Q incidents / non-conformities and accidents by ensuring thorough and effective investigations take place and by analyzing them to identify and address their causes. SCOPE: 9.1 9.2 9.3 9.4 9.5 Accident/incident report Accident/incident investigation Accident/incident statistics & analysis Insurance & compensation Accident/incident recall

10. EMERGENCY MANAGEMENT AND RESPONSE

PURPOSE: To ensure the organization has made adequate provisions for assessing, responding to, and mitigating the consequences of S-H-E-Q related emergencies. SCOPE: 10.1 10.2 10.3 10.4 10.5 10.6 Emergency preparedness administration Emergency response plans Emergency response teams Emergency equipment & mutual aid Management of fire S e c u r i t y s y s t e m

m a n a g e m e n t

11. MEASUREMENT, MONITORING AND AUDITS

PURPOSE: Provide motivation for continual improvement through the measure of the SHEQ management system and the related process and outcome SCOPE: 11.1 Routine measurement 11.2 System audits

12. CORRECTIVE AND PREVENTIVE ACTION SYSTEM

PURPOSE: To ensure that systems exist to implement the corrective actions identified from all sources within the S-H-E-Q program. SCOPE: 12.1 Corrective & preventative action process 12.2 Corrective & preventative action communication