Safety related key performance indicators for securing long-term business development – A case study

Abstract

An application of the Bayesian Belief Network (BBN) modelling is presented as a support in establishing process safety related key performance indicators (KPIs) for business management purposes. A relation to the managers' trust into results of risk analysis results is made. The case study deals with a possible spill, ignition, and explosion of methanol during a ship tanker unloading operation at the liquid cargo terminal at the port of Koper, Slovenia. Considerations of business impacts of such a major accident proved to be of particular relevance to the top management. Besides direct financial costs indirect economic impacts, like longer business interruption and impact to reputation, caused stronger concern due to their possible overall financial scope. This finding triggered a management requirement for establishing new, direct, measurable KPIs in association with multiple organizational safety improvement measures. Despite their small individual contribution to overall risk reduction, they are altogether effective in better understanding of the benefits of risk analysis for business. The BBN modelling assisted in identifying dominant contributors to key failure events, which was the guidance for proposing the meaningful, measurable business relevant KPIs. Benefits of such KPIs rely on regular monitoring by mid and top managers.