Risk Management - Your Key to Successful Leadership Alfred MOERGELI

1. XVIIth World Congress onSafety and Health at Work Orange County Convention Center, Orlando, FL-USASeptember 20, 2005 Risk Management - Your Key to Successful Leadership Alfred MOERGELI Certificated Civil Engineer FH, EUR ING SWISS Safety + Health Engineer EigV/BSV http://www.moergeli.com

2. Risk Management – Key to Successful LeadershipContents • Why Should You Use Risk Management? • How Does Risk Management Work? • Risk Management in Action • Risk Management for Safety + Health • Risk Management – Your Key to Leadership • Conclusions • Lessons Learnt • What’s Next?

3. Why Should You Use Risk Management?To Successfully Deal with Your Uncertainties How do you deal with the remaining uncertainties of your ... • Projects ? • Business ? • Life ? Risk Management (RM) is your best investment to pro-actively control all your uncertainties. RM is your only tool for a successful leadership that is feasible, affordable and available to you just in time.

4. Why Should You Use Risk Management?For Real Added Value (continued) • Process / ProjectOptimization • Cost Reductions • Practical Improvements down to Details Before ... ... and aftera thorough risk assessment

5. 1. Why Should You Use Risk Management?For Real Added Value (continued) • Unambiguous definition of your system’s limits • Comprehensive list of all your relevant hazards • Everyone’s commitment to a protection goal • Have a Safety System leading up to System Safety • A Safety Plan enhancing your productivity and safety • Transparent communication of all your residual risks • Have a thorough and updated documentation • Win legal compliance, your liability remains limited!

6. 2. How Does Risk Management Work? Begin with a Risk Matrix How do you decide if you can or cannot live with your risks? Use a Risk Matrix / Profile as a Preliminary Hazard Analysis (PHA) (e.g. by ISO Guide 51:1999 / ISO TS 14’798:2000 as a starter kit):

7. 2. How Does Risk Management Work? (continued) Use a Well Accepted Risk Assessment Method Important steps for Risk Assessment (RA): 1 Define your limits 2 Identify all relevant hazards 6 Document all your results 8 Keep it periodically updated If you cannot live with your Residual Risks => start Risk Mitigation

8. 2. How Does Risk Management Work? (continued) Use an Approved Risk Mitigation System Safety System => System Safety (STOP): 10Substitution 13System/Strategy 16Technology 19Organizational/Personal Measures => Use O/P measures with caution! US 882 D (02/10/2000), Appendix A, A 4.3.3, i. requires: Behavior oriented measures must not be allowed as the only measure, if hazards can lead up to an irrecoverable outcome!

9. 2. How Does Risk Management Work? (continued) When are Residual Risks to be Accepted? Residual Risks = Risks after protective measures have been taken. Residual Risks must be accepted only, if … • they are identified • they are evaluated and assessed by an approved method in a moderated, inter-disciplinary and inter-hierarchical team • they are minimized by aSafety System • they cannot be reduced more with reasonable effort (System Safety) • they are well knownto everyone involved • everyone involved is well trained and equipped to safely control them • everyone involved has a fair chance to survive • they are periodically updated and reviewed.

10. 3. Risk Management in Action Example – Risk Assessment

11. 4. Risk Management for Safety + Health Use a Safety + Health 10 Points System Important steps for your Safety + Health: 1 Win everyone‘s commitment 3 Systematic and periodic crew training 4 Use available safety rules 6 Plan and implement all necessary measures 10 Keep on learning! Keep your Continuous Improvement Process (CIP) working Please feel free to download all original flowcharts from our websitehttp://www.moergeli.com

12. 4. Risk Management for Safety + Health Use a Preliminary Hazard Analysis

13. 4. Risk Management for Safety + Health Make Sure You Have the Right Partners • Request Self Certification ... • from all your suppliers and subcontractors • as early on as possible • declaring their fulfillment of all relevant legal requirements for Safety + Health • explaining which way they choose for S+H compliance • legally signed off ... to minimize your own liability

14. 5. Risk Management – Your Key to Leadership Protect Yourself by Protecting your Crew Risk Management makes them safe – saving yourself and your business Video: Shot Concrete, 01/14/04 Video: Shotcrete Clean-up, 01/14/04 Swiss AlpTransit, Gotthard Base Tunnel: http://www.alptransit.ch Lot 252, Tunnel Amsteg: http://www.agn-amsteg.ch If Risk Management works here ... it works everywhere!

15. 6. ConclusionsSet up Your Team and Get Started ... Today! Risk Management (RM) is not rocket science and does not take a wizard! All you have to do is: • Set up your team as early on as possible • Select your team members with care • As interdisciplinary as possible • Under the leadership of an experienced Risk Manager • Start with a Preliminary Hazard Analysis • Start documenting all your plans, ideas and results • Use a well known and accepted risk management method

16. 7. Lessons Learnt: What are Your Critical Success Factors? • Define your system’s limits • List all relevant hazards • Target a positive protection goal • Use a Safety System leading up to System Safety • Communicate all Residual Risks • Thoroughly document every step • Keep your Risk Management going andupdated

17. 8. Your Consequences - What’s Your Next Step? Just do it! Risk Management is not rocket science and it does not take a wizard! Just get it started – and keep it going and current. So, start (or resume) your Risk Management today! We are here to assist you: http://www.moergeli.com All our tools are available for download from our website. Take care and stay safe! We need you all to shape a safer and more economic world!

18. XVIIth World Congress onSafety and Health at Work Orange County Convention Center, Orlando, FL-USASeptember 20, 2005 Risk Management - Your Key to Successful Leadership Alfred MOERGELI Certificated Civil Engineer FH, EUR ING SWISS Safety + Health Engineer EigV/BSV http://www.moergeli.com