How advanced, digital PSM drives safety, compliance, and business results.
In the whitepaper, Closing the Gaps in Process Safety Management: A Modern Approach, Wolters Kluwer discusses that despite decades of development, many process safety management (PSM) programs remain reactive and fragmented.
Safety incidents and operational failures continue, often repeated due to outdated hazard identification, limited risk control integration, and lack of real-time insight. Wolters Kluwer discusses that despite decades of development, many process safety management (PSM) programs remain reactive and fragmented. Safety incidents and operational failures continue, often repeated due to outdated hazard identification, limited risk control integration, and lack of real-time insight.
Key Takeaways
- Many PSM programs remain reactive and fragmented.
- Incidents and operational failures continue due to outdated or siloed hazard identification, limited risk control integration, and lack of real-time insight.
- Siloed and fragmented approaches put companies at risk of failing to spot preventable risks and potential noncompliance.
- Digital tools can help, but only if there is an established foundation built upon the right behavior and governance.
- Digitalizing PSM creates safer, smarter, and resilient operations.
- Centralizing data, automating compliance, creating real-time visibility, improving risk analysis, and faster learning help build a culture of operational excellence.
The costs of process safety failures
When process safety fails, the consequences are costly:
- $80 billion lost annually from process-related incidents globally
- 5%-15% drop in stock value within 30 days after major safety incidents
- Up to $1.2M per injury claim, with fatal incidents often exceeding $10M
- More than $50M in penalties issued annually in the US due to PSM non-compliance
- $54B in cleanup and recovery costs linked to major environmental disasters since 2000
Why Process Safety Management matters
A PSM framework, such as the 14 elements from OSHA, is designed to help high-risk industries prevent catastrophic accidents involving hazardous chemicals. It integrates engineering, procedures, and oversight, systematically identifying, analyzing, and managing process hazards throughout the life cycle of chemical operations.