Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Operational Risk Management

Operational Risk Management prevents loss by identifying, evaluating and controlling hazards and differentially managing associated risks.
The most effective approach to risk management combines both technical and behavioral solutions.

  • Be the first to comment

Operational Risk Management

  1. 1. OPERATIONAL RISK MANAGEMENT: BUILDING A STRONG BUSINESS FOUNDATION Key benefits of Operational Risk Management: Maintain right To operate Ensures that our people And our neighbors are Safe and healthy Ensures significant Savings through Operational efficiencies WHYOPERATIONALRISKMANAGEMENT? A successful business must protect key components of its operations: Operational Risk Management prevents loss by identifying, evaluating and controlling hazards and differentially managing associated risks. The most effective approach to risk management combines both technical and behavioural solutions. •PEOPLE •ASSETS •ENVIRONMENT INTEGRATION:THEKEYTOSUCCESS The most effective approach to risk management combines both technical and behavioral solutions. Technical Model • Defines hazards • Assesses associated risks • Provides standards and procedures • Sets the strategy and tactics • Monitors performance • Sets up the organizational structure Managing Processes Mindsets and Behaviours • Engages corporate leadership • Encourages ownership of results • Builds company-wide safety culture • Motivates employees • Communicates expectations • Promotes teamwork and collaboration Capability Engine all elements of an Operational Risk Management system must be addressed. 0INCIDENTSAND0INJURIES To achieve THERISK-BASEDAPPROACH Not all risks are the same. Because organizations have limited resources, it isn’t practical to respond equally to all risks. • No one-size-fits-all approach to managing risk • Risks are assessed by frequency and occurrence • Proportionality is paramount in risk response • Resources must be deployed to reap maximum benefit THEHUMANELEMENTTORISK An Operational Risk Management system will achieve better results if it takes into account how individuals interact with each other, with facilities and equipment, and with management systems. Its critical to consider the following human factors: • Pressure and stress • Human factor integration • Human error and non-compliance • Organizational change • Human reliability analysis • Training and competences THEDUPONTBRADLEYCURVE:BENCHMARKGROWTH Risk Reduction & Control REACTIVE Incident&InjuryRate OperationalExcellence DEPENDENT INDEPENDENT INTERDEPENDENT Value Generation & Operational Disciplin e Stabilize & Maximize Efficiency Shift in Values, Attitudes & Beliefs • Time • Attention • Resources Reactive Employees do not take responsibility and believe safety is more a matter of luck than management. Dependent People see safety as a matter of following rules that someone else makes. Independent Individuals take responsibility for themselves, believing that safety is personal and that their own actions make a difference. Interdependent Teams feel ownership for safety, believing that improvement can only be achieved as a group—and that zero injuries is an attainable goal. The real strength of a management system is reflected in the cultural maturity of the enterprise. Indeed, we often see correlations within an organization with elevated culture and effective management processes having superior technical practices and achieving better results: CULTURALMATURITY:TRUEMEASUREOFPROGRESS The real strength of a management system is reflected in the cultural maturity of the enterprise. As an organization moves towards an interdependent state, it begins to excel in areas such as operations risk, productivity and overall operations excellence. DuPont Sustainable Solutions helps organizations achieve a mature and elevated culture that demonstrates all the ingredients of an engaged workforce, including problem solving and innovation capabilities. sustainablesolutions.dupont.comi Copyright © 2015 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, The miracles of science™ and all products denoted with ® or ™ are trademarks or registered trademarks of E. I. du Pont de Nemours and Company or its affiliates. Embracing grassroots leaders Adopting a collaborative and team-based culture Focusing on learning and development Building a sense of ownership and pride have been proven to propel organizations towards operational excellence: 4KEYORGANIZATIONAL CHARACTERISTICS

×