System Safety Engineering is an important component

Like all humans, systems too, come with inherent defects and flaws. It is often jocularly remarked that the only way to have a flawless system is to not create it at all! If it is given that systems have to necessarily come with faults, then that leaves systems professionals in a quandary: not build a system at all, or build one with flaws. There is one reasonable way out of this Catch 22 situation: System Safety Engineering.

System Safety Engineering is about minimizing defects

As we have just seen, there can be no system without a fault. There is, however, a way out of the predicament just mentioned: bring the defects down to a minimum. This is essentially what System Safety Engineering consists of.

Engineering, in whatever base form, has been the core force of technology. In a broad sense, its origins can be traced to the time early man build implements for hunting and other purposes. Again, in a broad sense, System Safety Engineering can also be said to have originated with the first attempts to improve these tools.

System Safety Engineering has grown alongside technology

This explains the very origins of this discipline, but its evolution into a more structured branch of engineering happened only with the advent of the modern times, when engineering became more advanced and scientific. With this development, System Safety Engineering has taken root as a scientific method that not only builds, but also analyzes issues and problems. Into it, System Safety Engineering built the ability of predicting the effectiveness of solutions that were in the process of emerging. As a result, System Safety Engineering has developed with modern technology.

This is a very generic description of System Safety Engineering; its applications are extremely wide and span the whole range of areas of engineering, be it aerospace, mechanical, nuclear, chemical or just about any other branch.

References:

http://www.systemsafetyengineering.com/

http://www.sseisolutions.com/

http://sunnyday.mit.edu/caib/concepts.pdf

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Operational Risk Management as a function of the management

Operational Risk Management has come to assume great significance to organizations. Any organization would be required to have both people and processes. Processes concerning these are prone to some kinds of discrepancy, which could result in losses for the organization. Operational Risk Management may be defined as the method by which these losses can be plugged.

There are several risks that organizations face, such as business, logistical, strategic, as well as compliance and legal. Operational Risk Management seeks to be a robust program that can address issues arising from these aspects.

How does Operational Risk Management differ from Enterprise Risk Management?

It is generally understood that the core differentiator between Operational Risk Management and Enterprise Risk Management is that the former looks after the risk the organization faces, from a legal viewpoint. People in charge of Operational Risk Management concern themselves more with important elements such as HR policy, due diligence and other related aspects that require legal attention or action.

From this description, it is quite clear that Operational Risk Management covers every possible risk the organization is exposed to, expect the reputational and strategic. This makes Operational Risk Management some sort of subset of Enterprise Risk Management. The Basel Committee gives high importance to Operational Risk Management, equating it with credit and market risks in terms of gravity and magnitude to the organization’s working.

Operational Risk Measurement

There is another element that is closely related to Operational Risk Management, and that is Operational Risk Measurement. To summarize the quintessential difference between the two; while Operational Risk Management is concerned with the qualitative assessment of operational risk; the latter is about the quantitative aspect of operational risk.

References:

http://www.garp.org/media/673303/operational%20risk%20slides.pdf

http://operationalrisk.blogspot.in/

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Enterprise Risk Management is an important element of organizational management

As businesses grow in size, they have to accommodate more and more people and processes. This inevitably results in more and more interaction with a host of sources, such as regulatory bodies, government, investors and so on. Internally too, companies need to be in the knowhow of how to get their employees aligned with these matters. Managing all these is what Enterprise Risk Management is, in a nutshell.

As companies put in place practices and processes, Enterprise Risk Management takes an important role because the people at the top have to continually create and adhere to risk-management policies and procedures. They and other staff have to assess the adequacy and effectiveness of these policies and procedures. Enterprise Risk Management is thus a function that concerns a number of important people in the organization.

How do we get an understanding of Enterprise Risk Management?

So, how do we define Enterprise Risk Management? Although it is difficult to come up with a single definition; Enterprise Risk Management may be thought of as including the planning, organizing, leading, and controlling of the activities of an organization, all of which is done with the intention of eliminating, or at least minimizing the effects of risk on an organization’s capital and earnings.

It has to be borne in mind that the organization faces several risks apart from only the financial. Enterprise Risk Management’s expanded and comprehensive role should also cover risks that come about as a result of unanticipated losses, as well as strategic, operational, and other risks.

Need for professionals

Many organizations, given the enormous and vast scope of Enterprise Risk Management; hire professionals who address the issues relating to it. Today, we have professionals that specialize in Enterprise Risk Management, just like there are finance and marketing professionals. These Enterprise Risk Management professionals assess and address Enterprise Risk Management issues, minimizing them and keeping the organization in good health.

References:

http://www.rims.org/erm/pages/WhatisERM.aspx

http://searchcio.techtarget.com/definition/enterprise-risk-management

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Chemical Safety for Sanitation Workers takes presidential preference

Sanitation workers are exposed, by the very nature of their daily work, to various chemicals. Many of these are usually harmful when workers come into contact with them either by touch or by inhalation. Since these can cause substantial damage to health; Chemical Safety for Sanitation Workers is of prime importance. This is why this matter has gone up to the level of the highest office of the land –the President. Barack Obama signed this Order on August 1, 2013. At its core, it directs the federal government to “…improve operational coordination with state and local partners; improve Federal agency coordination and information sharing; modernize policies, regulations, and standards; and work with stakeholders to identify best practices.”

Executive Order 13650

Chemical Safety for Sanitation Workers is ensured in the notification set out in the President’s Executive Order 13650 – Improving Chemical Facility Safety and Security. The core of this Executive Order (EO) is improvement in chemical safety and security with the aim of reducing harm to workers.

This EO gives utmost importance to Chemical Safety for Sanitation Workers by taking on the issue comprehensively. Its two-way approach starts by directing federal agencies and stakeholders to look at the whole range of extant industry initiatives and regulatory programs; it then reinforces this by suggesting that they be on the lookout for other new opportunities that could improve Chemical Safety for Sanitation Workers.

References: 

https://www.osha.gov/chemicalexecutiveorder/

http://www.americanchemistry.com/Policy/Security/Presidents-Executive-Order-13650
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