Power Deep Dive:
Human Elements
Energy & Power Risk Engineering
“
A suite of in-depth surveys
conducted by specially
qualified and certified Marsh
Specialty engineers, deep
dive surveys are designed to
provide a better understanding
of risk quality and considered
insights that result in risk
recommendations that deliver
real value to your business.
Transforming risk recommendation programs to
ensure clients understand their risks and make
informed decisions about mitigation and transfer.
Energy & Power Risk Engineering – Power Deep Dive: Human Elements
What is a human
elements deep dive?
Developed in 2019, a deep dive survey is a focused, targeted
(towards known areas of improvement), and collaborative
exploration of a key issue in systems or processes. Focused
thinking, beyond that applied during a standard risk
engineering survey, emphasizes strengths and opportunities
for improvement.
Marsh Specialty risk engineers who conduct Deep dives can be conducted as a stand-alone
these surveys are professionally qualified and review or integrated with a general survey visit.
experts in the specific area they conduct deep
dive surveys. Generally, the in-depth examination takes one
day, involving specific departments, field visits,
Their knowledge and skill has been gained and structured interview sessions.
through significant practical experience in
the power industry including an in depth
understanding of the criticality of asset
integrity and reliability across the major asset
classes integral to the power industry.
Given the complexity of power generation systems, both automated
and human operated, it is inevitable that human error can play a
significant role in power generation losses.
The Bowring Marsh Report – Global Loss Trends: Analysing the Causes
of Power Generation Claims – presented a breakdown of losses arising
between 2001 and 2015 in the power generation industry.
The report cited that “human error/fault” accounted for approximately
30% of total losses for the period, equating to US$317 million in claims.
This figure is even higher if the total cost of risk is considered to include
deductibles, uninsured losses, and reputation.
4
Why is a human
elements deep
dive important?
Avoidable, expensive losses in the power generation
industry often result from ‘failure on demand’ of safety
relevant equipment.
Equally, losses can result from the ‘human A human elements deep dive allows
element’ failures relating to systems and organizations to improve their understanding of
processes. This can include performing routine performance against key metrics that correlate
tasks through to critical decision making to losses.
under stress.
These include maintenance and testing, training
There is an increasing focus on the importance and competence, audit and improvement of
of managing the human elements that may human related processes, that ensure people
contribute to losses. What is crucial for risk do the right thing, at the right time, in the
management is how people, roles, and the right place.
organization interact as a whole system, to
achieve improved safety, plant reliability and Following the deep dive, Marsh Specialty is
business performance. able to provide tailored insights and advice on
industry best practices to positively impact the
The emphasis of this deep dive is to explore risk profile of the plant.
the human elements, and look for any possible
gaps within operation and maintenance
departments. This includes leadership and
setting clear direction.
Energy & Power Risk Engineering – Power Deep Dive: Human Elements
How is a deep
dive structured?
A human elements deep dive is a focused The topics included in the deep
dive are ranked and mapped on
review, drawing on the plan–do–check–act the basis of system and process
philosophy, assessing system maturity across maturity to provide a visual
representation of our findings.
seven key performance parameters:
SYSTEMS
Systems provide structured
and controlled means
of achieving certainty of
outcome. Risk thrives in
REVIEW uncertainty. PROCEDURES
Review provides Current, regularly
the mechanism for reviewed, controlled
organizational learning documents, available
and continuous SYSTEMS and used. The value
improvement. 4. Optomizing
of procedures is
Review and audit key understood, use of
performance indicators PR procedures is normal
(KPIs) are established, operating behavior
OC
EW
3. Improved
ED
and no critical activity
VI
tracked, and reported.
UR
RE
occurs without a
ES
Closing the loop is
2. Minimum Standard procedure.
deemed critical to the
success of learning.
1. Below Minimum
0. Inadequate
IO N S
D O C U ME N
ENTAT
TATI
LEM
DOCUMENTATION IMPLEMENTATION
ON
IM P
Documentation not Systems and
only supports a processes
systematic are fully
approach to work but S implemented,
provides auditable N ES maintained,
CO RE
evidence of the MP A controlled, and
ET E AW
N CY ND
activity. It underpins NG A audited. Evidence
TR AINI
audits and is a key of implementation
element in retaining should be widespread
organizational and implementation
knowledge. effectiveness is a KPI.
COMPETENCY TRAINING AND AWARENESS
Competency is a core strength Training and awareness
of the organization; response are integrated into the
to emergencies are instinctive, organization’s strategic fabric,
well-rehearsed, and regularly the approach is pro-active
refreshed. Competency and student-centric, with rich
assurance is inherent to content. Training and awareness
all position qualification effectiveness KPIs defined,
requirements. monitored, and reported.
6
What is the
The process provides an organization
with an understanding of its resilience
to loss, through effective management
output of
of human elements and good decision
making. The deep dive delivers
practical insights to:
a human
elements
Mitigate against potential losses and
associated costs, including loss of
production.
deep dive?
Undertaking a human elements deep
dive provides a risk-based approach to
assessing the functional relationship
between systems, processes and
Protect against exposure of company human behaviors.
personnel or third parties.
On completion of a human elements deep dive, the plant will
receive a detailed report describing the strength of people
related capability at the site, including tailored risk rankings and
specific recommendations to address identified exposures.
The depth and breadth of the assessment can be customized to
suit unique organizational requirements.
Site risk resilience and strengthening barriers to loss are just two
of the immediate benefits from a human elements deep dive. In
Reduce the risk of loss of containment addition, it improves the information provided to underwriters
of energy. about site capabilities, which will support insurance placement.
Reduce property damage and business
interruption exposure.
Demonstrate the corporate approach
to ‘tolerance of risk’ and enhance
positive safety culture.
For further information, please contact: riskengineering@[Link]
or visit the risk engineering page on our website.
KANCHAN SHERE SYLVAIN ANDRAUD IAN HENDERSON
Vice President Engagement Lead Managing Director
Power & Property Risks Risk Consulting Risk Engineering
Marsh (Bahrain) Company SPC Energy & Power Energy & Power
Marsh Specialty Marsh Specialty
+973 6671 0698 +336 2098 6271 +971 50551 2178
[Link]@[Link] [Link]@[Link] [Link]@[Link]
About Marsh
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situation and cannot be relied upon as such.
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