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You are here: Home / Archives for Articles / on Risk & Safety

on Risk & Safety

A listing in reverse chronological order of articles by:



  • Greg Hutchins (editor) — CERM Risk Insights series

  • Doug Lehr — Equipment Risk and Reliability in Downhole Applications series

  • Sanjeev Saraf — Operational Risk, Process Safety series

by Greg Hutchins Leave a Comment

Schedule Risk is a Major Reason for Project Failures

Schedule Risk is a Major Reason for Project Failures

Guest Post by John Ayers (first posted on CERM ® RISK INSIGHTS – reposted here with permission)

Studies show most projects fail due to poor management of known risks. The known risks on a project are:

  1. Scope.
  2. Schedule.
  3. Cost.
  4. Quality.

How to minimize the schedule risk on a project is addressed in this paper.  The approach to do this is based on my 30 years of project and project risk management experience and knowledge.

[Read more…]

Filed Under: Articles, CERM® Risk Insights, on Risk & Safety

by Greg Hutchins Leave a Comment

Short on Resources: Where to Apply Your Focus

Short on Resources: Where to Apply Your Focus

Guest Post by Andrew Sheves (first posted on CERM ® RISK INSIGHTS – reposted here with permission)

Effective execution is a matter of dealing with scarcity: a scarcity of time, a scarcity of resources, and scarcity of information (although too much information can also cause problems). Tools like a risk assessment help manage this scarcity by prioritizing things to allow you to better allocate resources on what’s most important.

[Read more…]

Filed Under: Articles, CERM® Risk Insights, on Risk & Safety

by Doug Lehr Leave a Comment

Failure Analysis – Setting the Scope

Failure Analysis – Setting the Scope

Analysis of the Storm Packer (SP) failure in Article 1 will be complicated. Some stakeholders will assume that the SP was defective, some will assume the drilling crew made mistakes, and others will assume that wellbore conditions predisposed the SP to fail. Any of these may explain the failure of the first SP, but only rigorous due diligence will uncover the root cause(s). What should be investigated, and what will be the roadmap for the analysis? [Read more…]

Filed Under: Articles, Equipment Risk and Reliability in Downhole Applications, on Risk & Safety

by Greg Hutchins Leave a Comment

ERM Implementation Requires Culture Change

ERM Implementation Requires Culture Change

Guest Post by John Ayers (first posted on CERM ® RISK INSIGHTS – reposted here with permission)

Enterprise Risk Management (ERM) is a relatively new concept (been around 10-12 years). It is a top down approach to business system management and execution It is a risk-based problem solving and decision-making process. Everything is looked through a risk prism. 

I suspect that many of the companies that have adopted ERM have not implemented it to the fullest extent of its capabilities. The reason is it takes a cultural change to do so and many companies do not know how to do it. This paper by example explains how to change the culture in a company to fully and completely implement ERM. [Read more…]

Filed Under: Articles, CERM® Risk Insights, on Risk & Safety

by Greg Hutchins Leave a Comment

Change and Resistance Are Futile

Change and Resistance Are Futile

Guest Post by Malcolm Peart (first posted on CERM ® RISK INSIGHTS – reposted here with permission)

Organisations exist in a dynamic world where business uncertainty and socio-political volatility can adversely affect their existence.  The mass of data available and the contradictory interpretations that can be made add ambiguity and complexity to the mix.  Our modern day organisations, or at least their management or leadership team realise, or should realise, that their operating environments are changing and, in order to adapt and survive, they too need to change.

[Read more…]

Filed Under: Articles, CERM® Risk Insights, on Risk & Safety

by Doug Lehr Leave a Comment

Failure Analysis – The Big Picture

Failure Analysis – The Big Picture

The floating drilling rig, operating in 6,000 ft. of water, pitched in rough seas 300 miles away from shore as the outer bands of the hurricane’s winds buffeted the drilling location. Per procedure, the crew installed the Storm Packer (SP) in the well to isolate its open wellbore from the ocean before the storm roared across the location – but it failed its pressure test. The crew then installed the back-up SP which passed the pressure test. The well was finally secured, and the 25,000-ton drilling rig was moved out of the hurricane’s path.  Because the first SP failed, a 12-hour process took 30 hours to complete, while wind speed and wave heights increased.

[Read more…]

Filed Under: Articles, Equipment Risk and Reliability in Downhole Applications, on Risk & Safety

by Greg Hutchins Leave a Comment

How Less Data Can Give You Better Results

How Less Data Can Give You Better Results

Guest Post by Andrew Sheves (first posted on CERM ® RISK INSIGHTS – reposted here with permission)

“Hi, I’m Andrew, and I have a weakness for data.”

There, I said it.

I love spreadsheets. I love national statistics. I love primary sources.

I could probably have completed my Master’s dissertation without an extension if I had just accepted that cited quotes were valid instead of looking for all the original sources*. And I don’t need to read the last three years of a company’s annual reports before I have a 20-minute call with them.

[Read more…]

Filed Under: Articles, CERM® Risk Insights, on Risk & Safety

by Greg Hutchins Leave a Comment

Poor Management of Known Risks is Major Cause of Failed Projects

Poor Management of Known Risks is Major Cause of Failed Projects

Guest Post by John Ayers (first posted on CERM ® RISK INSIGHTS – reposted here with permission)

Studies show most projects fail due to poor management of known risks. The known risks on a project are:

  1. Scope
  2. Schedule.
  3. Cost.
  4. Quality.

The question is how do we manage known risks better?  Known risks can be significantly mitigated with application of basic Project Management methods and processes.

This article will address scope. The other known risks will be addressed in separate articles.

[Read more…]

Filed Under: Articles, CERM® Risk Insights, on Risk & Safety

by Doug Lehr Leave a Comment

Lab Testing Programs

Lab Testing Programs

The Critical Equipment Series has covered design and design risk reduction. A Laboratory Test Program (LTP) is the final step in validating the equipment design after updating it with all improvements determined through design risk reduction and related activities. 

[Read more…]

Filed Under: Articles, Equipment Risk and Reliability in Downhole Applications, on Risk & Safety

by Greg Hutchins Leave a Comment

Delivering Outcomes, Building Trust

Delivering Outcomes, Building Trust

Guest Post by James Kline (first posted on CERM ® RISK INSIGHTS – reposted here with permission)

On July 17, 2020, the American Council for Technology – Industry Advisory Council (ACT-IAC) issued a report entitled “Delivering Outcomes, Building Trust”.  The ACT-IAC is a non-profit educational organization established to create a “more effective and innovative government”. The report provides some ideas on how the United States Federal government can become “more resilient, adaptable, and responsive.” This piece will look at the report and its recommendations.

[Read more…]

Filed Under: Articles, CERM® Risk Insights, on Risk & Safety

by Greg Hutchins Leave a Comment

Electric Car Hidden Risk

Electric Car Hidden Risk

Guest Post by John Ayers (first posted on CERM ® RISK INSIGHTS – reposted here with permission)

Fifty years ago, having your own car was a sign of adulthood and your ticket around town. But that is all going to change within the next five to ten years due to rising CO2 levels and a new trend called Transportation as a Service. TaaS sits at the intersection of four technical macro trends. These are:

  1. Autonomous vehicles
  2. Electric vehicles
  3. Connectivity
  4. Sharing economy

[Read more…]

Filed Under: Articles, CERM® Risk Insights, on Risk & Safety

by Doug Lehr Leave a Comment

FMEA Improves the Bottom Line

FMEA Improves the Bottom Line

Refer to Article 7 for the expansion joint project. This project had progressed – perhaps beyond lab testing – before it was realized that the design could not meet ASME LRFD criteria. LRFD was considered necessary for reliability. The engineering manager had to consider a redesign. 

Missing the LRFD may be the result of not conducting a design failure modes and effects analysis (dFMEA). FMEA is a risk discovery process. Discovering design risks early in the project improves reliability and increases profitability by avoiding redesign and schedule delays. [Read more…]

Filed Under: Articles, Equipment Risk and Reliability in Downhole Applications, on Risk & Safety

by Greg Hutchins Leave a Comment

In Risk Management, It’s the Destination, Not the Journey

In Risk Management, It’s the Destination, Not the Journey

Guest Post by Andrew Sheves (first posted on CERM ® RISK INSIGHTS – reposted here with permission)

A while back, I felt that pretty much everything was out of sync and I was highly disorganized. There was a growing list of undone things whether that was around the house, at work, with my family, or at the places where I volunteer.

It was definitely time for a reorganization.

A few weeks later, things were back in order (I even had time to write again), and a big part of my reorganization was refocussing on the systems I use for productivity.

[Read more…]

Filed Under: Articles, CERM® Risk Insights, on Risk & Safety

by Greg Hutchins Leave a Comment

Derecho. A Black Swan Event?

Derecho. A Black Swan Event?

Guest Post by Geary Sikich (first posted on CERM ® RISK INSIGHTS – reposted here with permission)

On 10 August 2020 the US Midwest experienced a Derecho that brought widespread devastation to many areas.  A Derecho is a widespread, long-lived, straight-line wind storm that is associated with a fast-moving group of severe thunderstorms known as a mesoscale convective system.  Derechos can cause hurricane-force winds, tornadoes, heavy rains, and flash floods.  As depicted below the 10 August 2020 Derecho spanned serval states over a 12 hour period.

[Read more…]

Filed Under: Articles, CERM® Risk Insights, on Risk & Safety

by Doug Lehr Leave a Comment

Modelling and Simulation

Modelling and Simulation

A high-pressure packer for use in 9 5/8”, thick-walled, P-110 casing is being developed for a well barrier application. It is based on a legacy configuration. Is it a candidate for simulation?

[Read more…]

Filed Under: Articles, Equipment Risk and Reliability in Downhole Applications, on Risk & Safety

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