Economic Assessment of HSE Risk Management and Raising Efficiency of Financial Resources

Abstract

Summary In modern world the well acknowledged tool for management in industrial and environmental safety, and occupational health are the management systems conforming to ISO 14001 "Environmental Management System" and OHSAS 18001 "Occupational Health and Safety Management Systems" International Standards. Amid the increasing competitive ability and global financial crisis, it is very important to be able to assess the efficiency of investments in HSE activities aimed at mitigation of Company’s negative impact upon the environment and personnel. When developing such a system of economic assessment, the author has analyzed different methods applied for environmental performance assessment and has studied thoroughly the requirements of ISO 14031 "Environmental Performance Evaluation" International Standard. Based on mathematical and statistical methods, the author has elaborated an HSE performance evaluation system which enables to assess efficiency of HSE activities performed in the company. This evaluation system assumes differentiated approach to assessing all kinds of negative impact on the environment and the personnel of the company with application of input and output cost indicators. In compliance with ISO 14001:2004 and OHSAS 18001:2007 two kinds of impact on the environment and the personnel have been sorted out in Udmurtneft - environmental aspect and hazard to the personnel, correspondingly. The research paper contains the detailed calculation of efficiency of financial investments in the personnel hazard management "Feral-herd infections" in N company. This hazard is a top priority risk in the company since such infections are located in the region. High efficiency of the personnel infection risk mitigation activities was proved on the basis of mathematical method and risk mitigation results were demonstrated by the model risk matrix. Thus the developed HSE performance evaluation system enables to assess the effectiveness of HSE Integrated Management System on the whole and to allocate the financing wisely and implement risk management activities in the most successful way. Objectives of the research paper: –development of the HSE Integrated Management System efficiency evaluation system which would allow fulfilling several tasks:–optimization of planning the activities and financing;–providing visuality of HSE activity planning and assessment for the management team;–improvement of HSE management system;–providing transparency of HSE activity in the company.