| Abstract: | As the use of hazard and risk assessments becomes more commonplace, the need for and importance of an overall risk management system become apparent. Such a system allows companies to prioritize both their efforts to identify and understand risks and their allocation of resources to manage and control risks. In the future, the most effective risk management systems will be integrated into other business processes and management systems, to ensure that their value as well as their costs are recognized and measured by line operations. For example, chemical and petrochemical companies such as BP Exploration, Monsanto, and Union Carbide are improving on well-established risk management systems by increasing their businesses' involvement in and ownership of the process. This article summarizes the key elements of a risk management system and uses the lessons learned by various companies to define best existing and emerging practices. |
