Organisational Risk Management is the identification, assessment, and prioritization of Risks followed by coordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events or to maximize the realization of opportunities.
Integrated Technical Risk Management (ITRM) is not only the integration of Safety, Health and Environment Risks (SHE Risks) into one system but also the integration of all the SHE Risk activities and initiatives into one focused risk reducing effort driven within the business processes of the organisation. In addition to the above, risk management should be re-directed from being based on Lagging Indicators (SHE performance statistics) to being directed by Leading Indicators.
Integrated Technical Risk Management is part of Operational Risk Management in the Expectra OBM™ model and should not be viewed as a separate process, nor as a loose standing initiative that do not relate to the other activities of the organisation. The relationship between Technical Risk Management and Human Risk Management as two parts of Organisational Risk Management is illustrated in the diagram below.
KEY PRINCIPLES OF THE INTEGRATED TECHNICAL RISK MANAGEMENT PROCESS
- It should be customized for every organisation, taking in consideration their “readiness” in terms of their unique culture, systems and in general “Leadership and Company Maturity” to be successful. Off the shelf products to date has had very limited success.
- Depends heavily on Leadership involvement and commitment
- It is a primary source to identify patterns and trends, hence leading indicators
- It should address the principles of identification of risk before an incident occurs.
- It clearly builds on the principle of influencing decision making, which in turn influences behaviours/actions
- It supports the process of “critical few” (Pareto Principle), both in terms of fatal risks and fatal behaviours, hence focuses the observation process on these critical behaviours first.
- It should build on “risk skill/competence”, i.e. address the risk perceptions of people. Appropriate, customised risk training is therefore essential.
Expectra OBM™ deals with both Technical Risk and Human Risk Management as these two elements are inseparable and interconnected. Expectra OBM™ has a massive suite of tools to deal with critical safety issues in an innovative way to improve Risk Management, Planned task observations, HIRAC, Behavioral Capacity, Visible Felt Leadership, Fatigue Management and Worker Engagement. All of these are not stand-alone interventions but take account of the holistic nature of high risk Organisations. This inseparebale relationship between is illustrated below:
