From Systemic failures: Challenges and opportunities in risk management in complex systems, Venkat Venkatasubramanian (emphasis added)
Table 2. Some Typical Examples of Failures at Various Levels in a Systemic Failure
Individuals
Equipment
- Poor operator training or inexperienced operators leading to human errors
- Not enough personnel due to downsizing
Procedures
- Poor maintenance and wear-and-tear leading to equipment failure
- Wrong material, capacity, or equipment
Safety Systems
- Standard operating procedures not followed, workers make up their own or perform short cuts
- Past mini-accidents and warnings ignored
- Process hazards analysis (PHA) not conducted thoroughly
- Poor emergency planning and training
Management • Failure in communication between ranks
- Safety systems not tested and maintained properly
- Back-up and/or emergency systems not on automatic but on manual
Corporate Board
- Safety is not made priority #1, cost cutting is
- Senior management lacking the background to appreciate the risks inherent in complex process plants – too much emphasis on financial spreadsheets and not enough on process flowsheets
- “Performance at all costs” culture encouraging excessive risk taking and unethical behavior among its employees
Government: Policies and Regulators
- Rewarding short term performance instead of long term
- Setting up perverse incentives that are detrimental to the long term survival of the company
National: Political
- Laissez-faire regulatory policies, reliance on self policing
- Policies not strictly enforced due to limited resources or inherent conflict of interests of the regulatory bodies (as seen in SEC and MMS)
- Anti-government or anti-regulations sentiment dominant
- Sustainability warnings ignored
- Celebration of greed