STO Risk Mitigation
When Shutdown, Turnaround and Outage Stakeholders discuss risk, during the Strategic Planning Phase of their STO project, their primary focus is on Safety; ensuring workers are protected from potential incidents or accidents. While this is an important initiative, it’s not sufficient to achieve overall STO project success. Only when risk mitigation is implemented, and practised for each decision, can STO Stakeholders be confident that their STO project will be successful.
STO Risk Mitigation must begin with day-to-day Reliability Asset Management, where decisions are made to establish the scope of work for Shutdowns, Turnarounds, Outages, in conjunction with Routine Maintenance and Major Projects. Risk mitigation will then be carried-over to all decisions made in association with safety, downtime, budgets, contracts [quality], and wrench-time Key Performance Indicator Targets. Each task associated with the preparation of a STO project, and the execution of a STO project must undergo risk mitigation to identify the probability and consequence [impact] on business in accordance to the established Vision, Mission, and KPI Targets. There is a lot at stake when a company stops production to clean, inspect and maintain its physical production assets, which can only be managed and controlled through effective risk mitigation.
Risk Mitigation Techniques and Tools
Using a common Risk/Cost Benefit Analysis Technique, where a matrix is used to determine a risk level—typically A B C or 1 2 3—based on a probability decision and a consequence measurement, i.e., loss/impact, in reference to: life, environment, corporate image, cost, production, asset, etc. will help to determine which actions are to be taken to mitigate the risk. It’s important to remember, however, that this type of decision-making relies primarily on subjective information (personal preference, for example) as opposed to objective (factual) information. It’s for this reason that I recommend using a formal methodology management tool for risk mitigation: STOrm™ (Shutdown, Turnaround and Outage Risk Mitigation).
“By investing in a formal risk mitigation methodology system you’re guaranteed to establish realistic, achievable KPI’s, while ensuring you’ve done everything possible to prepare for your STO project…” —Ej Lister – STOrm™ contributor
The Top 5 Risks Encountered in a Shutdown or Turnaround
A White Paper by Ej Lister