Tuesday, March 01, 2011

Weaknesses leading to systemic failure

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
  •  Poor operator training or inexperienced operators leading to human errors
  •  Not enough personnel due to downsizing
Equipment
  • Poor maintenance and wear-and-tear leading to equipment failure
  • Wrong material, capacity, or equipment
Procedures
  • 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
Safety Systems
  • Safety systems not tested and maintained properly
  • Back-up and/or emergency systems not on automatic but on manual
Management • Failure in communication between ranks
  • 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
Corporate Board
  • Rewarding short term performance instead of long term
  • Setting up perverse incentives that are detrimental to the long term survival of the company
Government: Policies and Regulators
  • 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)
National: Political
  • Anti-government or anti-regulations sentiment dominant
  • Sustainability warnings ignored
  • Celebration of greed

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