Background

When information about risk is communicated, it is often presented as an average, such as the chance of being attacked by a shark, the likelihood of being struck by lightning or the probability of contracting a particularly nasty illness. These averages are highly misleading; the risk of suffering one of these fates is dominated by the location the person is in, the activity being undertaken and the risk controls in place.

Exactly the same principle applies to industrial and transport risks, consequently risk management strategies need to be focussed on the specific circumstantial and locational factors. Sotera pioneered the development of location-specific risk models where the risk for each location and activity is analysed and managed.

Why do we need risk models?

Risk models are our way of determining the level of risk currently and to be able to make predictions about future in terms of undesirable event and particular consequences. The applications of a risk model include:

  • Enabling the prioritisation of expenditure to maximise return on investment.

  • To help demonstrate risk is reduced so far as is reasonably practicable.

  • To understand the relationship between acts, errors and omissions and the potential consequences.

  • To seek additional budget for investment in assets and people.

  • To help minimise the potential for catastrophic events.

  • To help convey the safety of a product, system or process.

Breathing life into a model

Developing a risk model involves significant investment in knowledge acquisition, data analysis and model building.

At Sotera we believe that the long term benefits are delivered by breathing life into the model. What we mean by this is:

  • Linking the model to data systems, such as incident data and asset, this two-way process that ensures the relevant events are recorded and the model is updated to account for changes in performance levels.

  • Developing leading Key Performance Indicators that provide a responsive, early indication of areas of non-optimal performance, allowing proactive action to manage is taken.
  • Running investment plans through the model to ascertain whether the perceived benefits are likely to be realised in practice.