Six Steps to Implementing a Successful Risk Matrix
Risk. It’s a common term, but has various definitions. A person’s experience and environment greatly affect the interpretation of risk. The term is even more subjective within dangerous working conditions, such as process facilities. Depending on an individual’s role within each department, that department’s interpretation of risk and how it impacts the company as a whole will vary. For example, an asset integrity engineer and a health, safety and environmental (HSE) manager will respond to situation s differently depending on the consequence that risk imposes on his/her individual department.
The solution to this common challenge is to implement a corporate risk matrix that analyzes the risks of each department with the probability and consequence of each risk identified on one unified graph. Building on this process, a corporate risk matrix allows all facilities to be plotted on the same matrix in order to assess the risks across all locations.
This paper outlines six steps facilities can use to implement a corporate risk matrix that will ultimately help the facility open communication between siloed departments, as well as improve safety, limit unplanned downtime and increase business performance.
HISTORICAL CHALLENGES OF RISK MATRICES
Years ago, companies tried to incorporate risk matrices in two ways – each department had its own risk matrix, or all departments shared one generic risk matrix. The challenge to this process was that facilities struggled to coordinate department priorities and costs because each department operated independently of one another.
As companies wasted time, effort and capital expense trying to force fit a standard risk matrix across all departments, they realized that there was, and is, no one-size-fits-all solution. Companies now recognize that it’s critical to understand each department’s particular risks in order to successfully scale and prioritize the levels of risk and response efforts across the organization.