The role of the introduction of risk assessment and enterprise management systems in order to avoid catastrophes in case of a utility company THESES OF THE Ph.D. DISSERTATION Álmos Dinnyés Scientic advisor: Dr. Kun-Szabó Tibor Pannon University Doctoral School of Chemical Engineering Veszprém, 2008
1 History of research I started the practical part of my researches at my previous works and during my professionals practice. Nitrogénm vek Zrt.: I have developed the rst version of irisk software for the support of HAZOP analysis based on and developed by my assessments, enabling small and medium-sized enterprises to procure a picture of health protection and safety status, and to be able to assess the applicable preventive and recovery actions. QER Bt.: For the risk analysis done by QER Bt. for MOL, I have developed the qrisk software enabling small and medium-sized enterprises working with hazardous chemical solvents to procure a picture of the status of their premises, and to be able to assess the applicable preventive and recovery actions. E.ON Észak-dunántúli áramszolgáltató Zrt.: Being the head of the CIS and Inside Regulation Department, I have carried out my researches in accordance with my eld of activity, aiming to deal with small and mediumsized enterprises in a way that my results might be implemented in other industries working with high risk. During my activity at E.ON Group, I have immediately and intentionally started to assess the occurring operational data and information, the history, elements and regulations of quality management. By analysing these disclosed operating progresses, I have recognised the problem of standardisation and explored its eects on the operation environment. I completed the collection and systematisation of information, data and documents in autumn 2007; however, in several cases, during the progress of the procession of literature and the revealed study material, I have also taken into consideration the results of the recent researches and developments. In the progress of the privatization of the energy sector, the liberalization of the electric power industry and the development of the market competition essential to the better supply of the consumers, the largest supply company group of the Hungarian electricity market, the E.ON Hungária Zrt. and its subsidiaries (hereinafter referred to as the E.ON Group) are also involved in the reorganisation. The systematically directed large-scale enterprise is to be broken up into several independent businesses striving to gain the trust of the consumers in the market competition with the rivalries. The elements of the direct management system are not allowed to be applied by the cooperation of the E.ON Group of the independent businesses, however cooperation might be formed within the requirements of quality management systems. However, this area as a whole cannot be analysed in one single thesis; therefore I am going to assess the security aecting elements of the cooperation - and particularly the E.ON Group -, from that I am going to draw conclusions and make suggestions. 2 The objectives of the research During the preparation to the fullment of the market and security requirements of the EU, the E.ON Hungária Zrt. and its subsidiaries (hereinafter re- 2
ferred to as the E.ON Group) expects from this research to cover service security laws and quality management regulations as thoroughly as possible, and to develop a specic, applicable operation model based on this. The objective of the research is to dene hazard analysis based security requirements and cost demands, and its software support in the operation of a medium-sized public service company - E.ON Group members. As the operation in this branch of industry is controlled almost completely by legal regulations, I found it essential to cover the legal background (26 EU sources of law and 39 Hungarian sources of law). Meanwhile, the methods of development, operation and assessment of the electricity network are also entirely regulated, as well (18 standard groups). 3 The methods of the research In the assessment phase, the objective of the research is to assess the framework of rules, standards, internal regulations directing the safe operation of a public service supply company, and the development of the additional solutions needed. In the development phase, the specication and development of a software system, adjusted to the conditions and technical demands revealed in the study, being part of the mamagement system, suitable for the identication of security requirements and tasks and for the completion of administrative tasks of the actions executed. Under the available technical regulations, I have done the compilation of the regulations controlling the security risk analysis systems and the interpretation of their specications. In the research, the detailed assessment of the security regulations of management system and quality management based on the voluntary actions of the businesses have been carried out, as well as the comparison of evaluation of experts of that eld. I have studied and assessed the known risk analysis systems, selected the method to be applied in the research and carried out its additional development. The novelty element of the method is based, primarily, on the development of the selected risk analysis system HAZOP assessment method. The method of analysis selected to be the objective of the research in itself is suitable for the assessment of the safe operation of the public service supply company, but not suitable for the assessment of the costs of its safe operation. The new phenomenon in the development of the selected cost assessment methods feasibility studies and being the core of the modication is the development of a software part suitable for the assessment of the costs (investment, maintenance) in the eld of security (labour safety, re, environment protection and disaster prevention). 4 New scientic results (theses) The dissertation introduces a model that can be applied by small and mediumsized enterprises operating under high risk level, to support the fullment of their strategic objectives. The three pilars of the model, the safety, the quality and the disaster management are connected on strategic level by the enhanced Balanced ScoreCard management framework. The eective operation is guaranteed by an integrating information system that supports the risk assessment requirements and their cost eect analysis. 1. 1.I have discovered the characteristics of the corporate risk assessment 3
regulation: (a) a.by assessing the researches, regulations dealing with risk analysis systems, quality managements and disaster recovery of the European Union and Hungary, and by drawing the relevant conclusions; (b) a.by the critical assessment of the trainings and IT support related to the safety-, quality- and disaster recovery management; (c) a.by analysing the internal regulations of the E.ON Group, using the experiences of the consumer and authority cooperation; (d) a.by analysing case studies of the E.ON Group on disaster-like events, and by drawing conclusions from the practical experiences of the operation of the quality management; (e) a.by developing my own plans of the safety, quality and disaster recovery management system for the E.ON Group. 2. I have discovered the regulation of the corporate activities of the E.ON Group and the management systems that assure their reliability, I have identied a number of common elements within these systems. On the bases of this, I have specied the conditions and phases of the development an integrated quality management system and I have developed the method and documents of the integration for the E.ON Group. 3. I have discovered the characteristic of the corporate risk assessment regulation systems, and I have revealed that there is a method the HAZOP system that can be made suitable for the development of the targeted complex safety management system. 4. I have found that the quality management systems described in the literature are based on the corporate risk assessment, but their safety regulations and the cost demands are unexplored, therefore I have specied the elds of safety regulations. 5. 1.I have found that the Balanced ScoreCard strategy management method can be applied only with restriction in case of companies where the high environmental or operational risks inuence signicantly their eectiveness. Therefore I have developed the enhanced Balanced ScoreCard modell that integrates a fth aspect, the corporate risks to the existing aspects. 6. 1.I have developed for the E.ON Group the IT supported safety and cost assessment method, the irisk method, and I have accomplished test operation of the information software for the implementation. During the further researches of the development of a quality management and security systems of medium-sized public service supply companies, this thesis might be used as literature. This thesis might be referred to as selected bibliography in BSc stream subjects, as well as in the development of quality management system security phases in the integration of stream requirements. It might be used as research background to the quality management systems integration processes both for companies developing similar systems and for system audit associations - in progress. Certain elements of the system developed by my researches have been implemented successfully by QER Bt., and it was bought, for 4
instance, by the SENEX Kft, the subcontractor of MOL Nyrt., by the Pannon University and with the recommendation of the Hungarian Society For Safety Sciences by the T z & Védelem Bt. 5 List of the author's publications Scientic articles in journals and in conference papers in foreign language Integrating management system to manage environmental risks at operative and at strategic level Álmos Dinnyés and Mariann Mezey Review of the Air Force Academy May 2008 (issue 1 / 2008) The irisk software to support the extended HAZOP analysis Álmos Dinnyés Hadmérnök, 2008 /3 http://www.zmne.hu/hadmernok Project Management Tool Development to Aid the Risk Management Álmos Dinnyés and Mariann Mezey Review of the Air Force Academy December 2007 (issue 2 / 2007) Extended HAZOP Analysis with the irisk Software Álmos Dinnyés and Gyula Mezey PhD The knowledge based organization Land forcing academy publishing house - June 2007 ISBN: 978-973-7809-71-1, 978-973-7809-94-0 Integrated Management System To Manage Environmental Risks At Operative And At Strategic Level Álmos Dinnyés PhD Hallgatók III. Nemzetközi Konferenciája, Debrecen, 2001 Possible Scenarios of an Environmental Change 2nd International Conference on Environmental Engineering, Veszprém 1999. Scientic articles in Hungarian Környezeti néz ponttal b vített Balanced ScoreCard modell Gyakorlati Controling Kézikönyv, Raabe Kiadó 2002. Magyar Elektronikus Könyvtár, 1997 http://www.mek.iif.hu/porta/szint/tarsad/kozgazd/kornyved/zoldfogy.hun 5
Scientic Conferences in Hungarian A Balanced ScoreCard, mint vállalati kockázati menedzsment eszköz 2005. Veszprémi Akadémiai Bizottság Vállalati kockázatelemzés használata munkahelyi és környezeti katasztrófaelhárításra Kun-Szabó Tibor és Veszélyhelyzet Menedzsment Technológia Konferencia, Balatonfüred, 2005. október 24-25. Veszélyes vegyi anyagok gyártásának min ségbiztosítása, munkahelyi és környezeti kockázatelemzési módszerek a katasztrófák elkerülésére Biztonságtudományi Ankét, Veszprém 2004. december 16. Munkahelyi kockázatok vizsgálata és kezelése az irisk szoftverrel Kun-Szabó Tibor és "Biztonságtudomány a min ségért konferencia", Veszprém, 2003. április 30. Balanced ScoreCard rendszer alkalmazása vállalati környezetvédelmi célok megoldására - Kun-Szabó Tibor "The 8th Symposium on Analytical and Environmental Problems", Szeged, 2001. október 1. Vállalati kockázati menedzsment rendszer DOSZ Poszterkiállítás, Budapest 2000. Ipari kockázatértékelés Kun-Szabó Tibor és "VEAB, Környezetvédelmi Technológiák Munkabizottság ülése." Veszprém, 2003. március 24. Egy környezeti változás lehetséges forgatókönyvei XIV. Országos Tudományos Diákköri Konferencia, Gödöll 1999. Egy környezeti változás lehetséges forgatókönyvei Veszpérmi Egyetem TDK, Veszprém 1998. VI. Országos Környezettudományi Diákköri Konferencia, Budapest 1998. Egy környezeti változás lehetséges forgatókönyvei VI. Országos Környezettudományi Diákköri Konferencia, Budapest 1998. 6
A környezetvédelem és a reklám kapcsolata Magyarországon III. Veszprémi Környezetvédelmi Konferencia, Veszprém1997. Veszprémi Egyetemi Nyomda [1997.] - 110. old. XIII. Országos Tudományos Diákköri Konferencia, Eger 1997. Veszprémi Egyetem TDK, Veszprém 1996. Participation in related scientic research projects EU Leonardo Program - NoDiscrim project Albert József és Szalai Péter: Diszkrimináció a foglalkoztatásban Magyarországon, különös tekintettel a nemzeti-etnikai és a mozgáskorlátozottakkal szembeni diszkriminációra QER Bt., Budapest 2004, Felel s kiadó: A Környezetvédelmi Minisztérium és a Magyar Tudományos Akadémia közös környezet- és természetvédelmi kutatási program (6. számó program, 2000-2002.) Tanulmány: A kockázati menedzsment rendszer, mint integrált vállalatirányítási rendszer EU Leonardo Program - S.E.C.A.L. project EU Leonardo Program - T.E.S. project Schwarz Márk: Kockázatkezel, -modellez segédeszköz középvállalatoknál történ felhasználásra, advisor and reviewer 7