Bow Ties in Risk Management: A Concept Book for Process Safety
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AN AUTHORITATIVE GUIDE THAT EXPLAINS THE EFFECTIVENESS AND IMPLEMENTATION OF BOW TIE ANALYSIS, A QUALITATIVE RISK ASSESSMENT AND BARRIER MANAGEMENT METHODOLOGY
From a collaborative effort of the Center for Chemical Process Safety (CCPS) and the Energy Institute (EI) comes an invaluable book that puts the focus on a specific qualitative risk management methodology – bow tie barrier analysis. The book contains practical advice for conducting an effective bow tie analysis and offers guidance for creating bow tie diagrams for process safety and risk management. Bow Ties in Risk Management clearly shows how bow tie analysis and diagrams fit into an overall process safety and risk management framework.
Implementing the methods outlined in this book will improve the quality of bow tie analysis and bow tie diagrams across an organization and the industry. This important guide:
- Explains the proven concept of bow tie barrier analysis for the preventing and mitigation of incident pathways, especially related to major accidents
- Shows how to avoid common pitfalls and is filled with real-world examples
- Explains the practical application of the bow tie method throughout an organization
- Reveals how to treat human and organizational factors in a sound and practical manner
- Includes additional material available online
Although this book is written primarily for anyone involved with or responsible for managing process safety risks, this book is applicable to anyone using bow tie risk management practices in other safety and environmental or Enterprise Risk Management applications. It is designed for a wide audience, from beginners with little to no background in barrier management, to experienced professionals who may already be familiar with bow ties, their elements, the methodology, and their relation to risk management.
The missions of both the CCPS and EI include developing and disseminating knowledge, skills, and good practices to protect people, property and the environment by bringing the best knowledge and practices to industry, academia, governments and the public around the world through collective wisdom, tools, training and expertise. The CCPS has been at the forefront of documenting and sharing important process safety risk assessment methodologies for more than 30 years. The EI's Technical Work Program addresses the depth and breadth of the energy sector, from fuels and fuels distribution to health and safety, sustainability and the environment. The EI program provides cost-effective, value-adding knowledge on key current and future international issues affecting those in the energy sector.
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Bow Ties in Risk Management - CCPS (Center for Chemical Process Safety)
ACRONYMS AND ABBREVIATIONS
AIChE American Institute of Chemical Engineers ALARP As Low As easonably Practicable API American Petroleum Institute ATP Authorized To Proceed BOP Blowout Preventer CCPS Center for Chemical Process Safety (of AIChE) COMAH Control of Major Accident Hazards (UK Regulation incorporating most of the EU Seveso Directive requirements) CSB Chemical Safety Board (US) DNP Do Not Proceed ETA Event Tree Analysis ESD Emergency Shutdown EI Energy Institute EU European Union FMECA Failure Modes, Effects and Criticality Analysis FRAM Functional Resonance Analysis Method FTA Fault Tree Analysis HAZID Hazard Identification Study HAZOP Hazard and Operability Study HOF Human and Organizational Factors HSE Health, Safety and Environment HSE Health and Safety Executive (UK) IADC International Association of Drilling Contractors IOGP International Association of Oil & Gas Producers IPL Independent Protection Layer ISO International Standards Organization KPI Key Performance Indicator LOPA Layer of Protection Analysis LOTO Lock Out Tag Out (part of Permit to Work) LPG Liquefied Petroleum Gas MAE Major Accident Event MOC Management of Change MOPO Manual of Permitted Operations NFPA National Fire Protection Association NOPSEMA National Offshore Petroleum Safety and Environmental Management Authority (Australia) NORSOK Norwegian Oil Industry Standards (Norsk Sokkels Konkuranseposisjon) OSHA Occupational Safety and Health Administration (US) PHA Process Hazard Analysis P&ID Piping and Instrumentation Diagram PSA Petroleum Safety Authority (Norway) PTW Permit To Work QRA Quantitative Risk Assessment RBPS Risk Based Process Safety SCE Safety Critical Element (also Safety or Environmental Critical Element or Equipment) SIL Safety Integrity Level (as per IEC 61508 / 61511 standards) SIMPOS Simultaneous Operations SOOB Summary of Operational Boundaries STAMP Systems Theoretic Accident Model & Processes
GLOSSARY
Terms in this Glossary, where relevant, match the online CCPS Glossary of Terms for Process Safety.
ALARP As Low As easonably Practicable – a term used to describe a target level for reducing risk that would implement risk reducing measures unless the costs of the risk reduction in time, trouble or money are grossly disproportionate to the benefit. In bow tie analysis, it is a performance-based standard used for determining whether appropriate barriers have been put in place such that residual risk is reduced as far as reasonably practicable. Barrier A control measure or grouping of control elements that on its own can prevent a threat developing into a top event (prevention barrier) or can mitigate the consequences of a top event once it has occurred (mitigation barrier). A barrier must be effective, independent, and auditable. See also Degradation Control . (Other possible names: Control, Independent Protection Layer, Risk Reduction Measure ). Barrier Type These are categories of a barrier. The purpose of defining a barrier type is to clarify its operational mode and to make transparent the case where only one type (e.g., active human) is relied on exclusively. Active barriers must contain the three elements of detect-decide-act. •Passive Hardware A barrier system that is continuously present and provides its function without any required action. •Active Hardware A barrier system that requires some action to occur to achieve its function. All aspects of the barrier detect-decide-act functions are achieved by hardware or software. •Active Hardware and Human The barrier detect-decide-act aspects are achieved by a mix of hardware, software and by at least one necessary human action. •Active Human The barrier detect-decide-act aspects are all achieved by humans. Some interaction with hardware will be necessary but the functions are predominantly human. •Continuous Hardware The barrier function is achieved by some continuous action. Bow Tie Model A risk diagram showing how various threats can lead to a loss of control of a hazard and allow this unsafe condition to develop into a number of undesired consequences. The diagram can show all the barriers and degradation controls deployed. Consequence The undesirable result of a loss event, usually measured in health and safety effects, environmental impacts, loss of property, and business interruption costs. Another possible name: Outcome . The magnitude of the consequence may be described using a Risk Matrix Critical Barrier An optional designation, sometimes required by companies or regulators, which identifies a subset of barriers that are designated to be more significant in risk control. The designation can assist prioritization of the barrier in terms of inspection, testing, maintenance and training. In principle, all barriers in a bow tie diagram are important and need an ongoing management process to ensure their effectiveness. Dashboard A simplified management diagram displaying KPIs or metrics (both leading or lagging) considered important in achieving the organization’s safety, environmental or commercial objectives. Barrier status could be a key element to be displayed on a dashboard. Degradation Factor A situation, condition, defect, or error that compromises the function of a main pathway barrier, through either defeating it or reducing its effectiveness. If a barrier degrades then the risks from the pathway on which it lies increase or escalate, hence the alternative name of escalation factor. (Other possible names: Barrier Decay Mechanism, Escalation Factor, Defeating Factor ). Degradation Control Measures which help prevent the degradation factor impairing the barrier. They lie on the pathway connecting the degradation threat to the main pathway barrier. Degradation controls may not meet the full requirements for barrier validity. (Other possible names: Degradation Safeguard, Defeating Factor Control, Escalation Factor Control, Escalation Factor Barrier ). Dike Synonymous with bund. A passive barrier describing a secondary containment system around a tank, the walls of which act as the primary containment. Hazard An operation, activity or material with the potential to cause harm to people, property, the environment or business or simply, a potential source of harm. HAZOP Hazard and Operability Study. A systematic qualitative technique to identify and evaluate process hazards and potential operating problems, using a series of guidewords to examine deviations from normal process conditions. Human Factors A term with both ergonomic and organizational implications. A discipline concerned with designing machines, operations, and work environments so that they match human capabilities, limitations, and needs. Human Factors is also the discipline used to describe the interaction of individuals with each other, with facilities and equipment, and with management systems. This interaction is influenced by both the working environment and the culture of people involved. Impaired Many degree of degradation of barrier performance from its intended function (i.e., partially available, not available, unknown status, etc.). Incident An event, or series of events, resulting in one or more undesirable consequences, such as harm to people, damage to the environment, or asset/business losses. Such events include fires, explosions, releases of toxic or otherwise harmful substances, and so forth. Independence The condition that no significant common mode of failure exists that would degrade two or more barriers simultaneously in an incident pathway. LOPA Layer of Protection Analysis. An approach that analyzes one incident scenario (cause-consequence pair) at a time, using predefined values for the initiating event frequency, independent protection layer failure probabilities, and consequence severity, in order to compare a scenario risk estimate to risk criteria for determining where additional risk reduction or more detailed analysis is needed. Main Pathway Barrier A barrier that lies along the direct route from a threat to the top event or from the top event to a consequence. (Another possible name: primary barrier ). MAE Major Accident Event (MAE). A hazardous event that results in one or more fatalities or severe injuries; or extensive damage to structure, installation or plant or large-scale, severe and / or persistent impact on the environment. In bow ties MAEs are outcomes of the top event. (Other possible names: major accident, major incident ). Metadata Information about other information. In the barrier context, the base information would be the barrier name and description; metadata would be the collection of other data relating to the barrier. Mitigation Barrier A barrier located on the right-hand side of a bow tie diagram lying between the top event and a consequence. It might only reduce a consequence, not necessarily terminate the sequence before the consequence occurs (Other possible names: Reactive Barrier, Recovery Measure ). MOPO Manual of Permitted Operations. An operational management diagram derived from bow ties that maps all required barriers that must be functional before a defined activity can be carried out. Impaired barriers must be repaired or replaced with an equivalent alternative before the activity can be carried out. (Other possible name: Summary of Operational Boundaries – SOOB ). Multi-Level Bow Tie An advanced approach that extends the standard bow tie to show deeper level degradation controls that support degradation controls from themselves degrading. The first level of build-out beyond the standard bow tie is termed Extension Level 1. Additional extension levels are possible. (See Standard Bow Tie ). Pathway A bow tie arm on which barriers or degradation controls are located. A Main Pathway is an arm connecting the various threats to the top event, or the top event to the various consequences and these contain barriers. (Alternative term: Prevention Pathway or Mitigation Pathway ). Arms connecting degradation factors to a main pathway barrier are termed Degradation Pathways and these contain Degradation Controls . Performance Standard Measurable statement, expressed in qualitative or quantitative terms, of the performance required of a system, equipment item, person or procedure (that may be part or all of a barrier), and that is relied upon as a basis for managing a hazard. The term includes aspects of functionality, reliability, availability and survivability. Prevention Barrier A barrier located on the left-hand side of bow tie diagram and lies between a threat and the top event. It must have the capability on its own to completely terminate a threat sequence. (Other possible names: Proactive Barrier ). Process Hazard Analysis An organized effort to identify and evaluate hazards associated with processes and operations to enable their control. This review normally involves the use of qualitative techniques to identify and assess the significance of hazards. Conclusions and appropriate recommendations are developed. Occasionally, quantitative methods are used to help prioritize risk reduction. Process Safety Management A comprehensive set of policies, procedures, and practices designed to ensure that barriers to episodic incidents are in place, in use, and effective.
The term is used generically in this document and is not restricted to the scope and rules of OSHA 29 CFR 1910.119 (frequently referred to as Process Safety Management or PSM). It is often aligned with the CCPS Risk Based Process Safety (PBPS) Guideline or the EI PSM Framework.
RAGAGEP Recognized and Generally Accepted Good Engineering Practices (RAGAGEP) – a US regulatory requirement. They are the basis for engineering, operation, or maintenance activities and are themselves based on established codes, standards, published technical reports or recommended practices or similar documents. RAGAGEP details generally approved ways to perform specific engineering, inspection or asset integrity activities, such as fabricating a vessel, inspecting a storage tank, or servicing a relief valve. Risk Matrix A tabular approach for presenting risk tolerance criteria, typically involving graduated scales of incident likelihood on the Y-axis and incident consequences on the X-Axis. Each cell in the table (at intersecting values of incident likelihood and incident consequences) represents a particular level of risk. Risk Register A regularly updated summary of potential major accident events over a facility life cycle, with an estimate of risk contribution and the barriers needed to achieve that level of risk. The risk register can be developed from facility PHA studies. Risk Assessment The process by which the results of a risk analysis (i.e., risk estimates) are used to make decisions, either through relative ranking of risk reduction strategies or through comparison with risk targets. Safety I / II A transition in safety thinking proposed by ollnagel from where humans are regarded primarily as a source of errors in process safety (Safety I) to where humans are regarded as contributing more to ongoing safety successes (Safety II). Safety Critical Element Many part of an installation, plant or computer program whose failure will either cause or contribute to a major accident, or the purpose of which is to prevent or limit the effect of a major accident. Safety Critical Elements are typically part of barriers. In the context of this book, safety includes harm to people, property and the environment. (Other possible names: Safety and Environmental Critical Element, Safety Critical Equipment ). Safety Critical Task A task where human or organizational factors could cause or contribute to a major accident, or where the purpose of the task is to prevent or limit the effect of a major accident, including:
initiating events;
prevention and detection;
control and mitigation, and
emergency response.
Safety Critical Tasks are typically part of barriers.
Safety Integrity Level (SIL) A relative level of risk reduction provided by a safety function, or to specify a target level of risk reduction. In simple terms, SIL is a measurement of performance required for a safety instrumented function (SIF). Defined in the IEC 61511 standard. Standard Bow Tie The basic bow tie showing hazard, top event, threats and consequences, with prevention and mitigation barriers, and optionally degradation pathways containing degradation controls supporting the main pathway barrier against identified degradation threats. (See also Multi-Level Bow Ties ). Swiss Cheese Model A model of accident causation developed by James Reason. It represents a system of safety barriers depicted as slices of cheese with holes. In this model, the slices of cheese represent the safety barriers and the number and size of the holes an indication of the vulnerability of the barrier to fail. Threat A possible initiating event that can result in a loss of control or containment of a hazard (i.e., the top event). (Other possible names: Cause, Initiating Event ). Top Event In bow tie risk analysis, a central event lying between a threat and a consequence corresponding to the moment when there is a loss of control or loss of containment of the hazard.
The term derives from Fault Tree Analysis where the unwanted event lies at the ‘top’ of a fault tree that is then traced downward to more basic failures, using logic gates to determine its causes and likelihood.
ACKNOWLEDGMENTS
The committee structure for this concept book differs from other CCPS books in that this was a joint project done in full collaboration with the Energy Institute. In addition, the contribution of the European Commission Joint Research Centre Major Accident Hazard Bureau is gratefully acknowledged. The American Institute of Chemical Engineers (AIChE) and the Center for Chemical Process Safety (CCPS) express their gratitude to all the members of the Bow Ties in Risk Management Subcommittee and their member companies for their generous efforts and technical contributions. Similarly, the EI acknowledges its Bow Ties in Risk Management Subcommittee, and to its Technical Partner and Technical Company Members for co-sponsoring the development of this concept book.
The authors from DNV GL and CGE Risk Management Solutions are also acknowledged, especially the principal authors Dr. Robin Pitblado and Paul Haydock, with additional inputs from Tatiana Norman, Jo Everitt, Amar Ahluwalia, Chris Boylan, and Ben Keetlaer.
Many of the figures in this concept book have been created in software, either from Thesis (ABS Group) or BowTieP (CGE Risk). This contribution is acknowledged. Details on the software are provided in Appendix A.
PROJECT TEAM MEMBERS:
European Commission Joint Research Centre Major Accident Hazards Bureau
Maureen Wood
Zsuzsanna Gyenes
Before publication, all CCPS and EI books are subjected to a thorough peer review process. CCPS and EI gratefully acknowledge the thoughtful comments and suggestions of the peer reviewers. Their work enhanced the accuracy and clarity of this concept book.
Peer Reviewers:
ONLINE MATERIALS ACCOMPANYING THIS BOOK
Although the bow tie figures in this book are shown in black and white and reduced in size to enhance readability, some of them are available in color and larger size in an online register.
To access this online material, go to:
www.aiche.org/ccps/publications/BTRM.aspx
Enter the password BTRM2018
PREFACE
CCPS and EI Introduction
The American Institute of Chemical Engineers (AIChE) has been closely involved with process safety and loss control issues in the chemical and allied industries since the 1970s. AIChE publications and symposia have become information resources for those devoted to process safety and environmental protection.
AIChE created the Center for Chemical Process Safety (CCPS) in 1985 after the disasters in Mexico City, Mexico, and Bhopal, India. The CCPS is chartered to develop and disseminate technical information for use in the prevention of major chemical incidents. The Center is supported by around 200 chemical process industry sponsors that provide the necessary funding and professional guidance to its technical committees. The major product of CCPS activities has been a series of books to assist those implementing various elements of a process safety and risk management system. To complement the longer, more comprehensive Guidelines series and to focus on more specific topics, the CCPS extended its publication program in the last few years to include a ‘Concept Series’ of books. This book is part of the Concept Series.
The Energy Institute (EI) is the chartered professional body for the energy industry, developing and sharing knowledge, skills and good practice towards a