ALLIANZ PROPERTY RISK MANAGEMENT CHARTER

Transcription

1 ALLIANZ GLOBAL CORPORATE & SPECIALTY ALLIANZ PROPERTY RISK MANAGEMENT CHARTER For over 50 years the Allianz Risk Consultants and Engineers have been focused on providing risk protection advice for our clients. The primary aim to ensure our clients are protected by minimising risk and preventing property damage, business interruption and reputational losses. Their expertise is built on industry knowledge and a pool of claims experience. 64% OF ALL PROPERTY LOSSES CAN BE ATTRIBUTED TO HUMAN ELEMENT FAILURES The world has evolved and with it the dependency on technology has changed the risk landscape. These changes include the development of new products, complex risk simulations, risk culture, big data, enterprise risk management, resilience, quantitative risk management, emerging markets and corporate governance etc. Despite these changes our experience indicates there are 12 human elements that are simple to introduce, and low cost, that will help clients protect their business and reputation. Our Risk Consultants have created the following Allianz Property Risk Management Charter. The charter uses the experience and lessons learnt to provide suggestions on the way to enhance a clients risk profile and embedding it into the local culture. agcs.allianz.com

2 The templates provided can therefore be tailored to meet your individual business and risk requirements. Our field engineers have also shared their experience on how to embed the best practice principles and procedures into your business, and as an example you may wish to choose a mixture of the following implementation initiatives to reach every location and also perhaps extend the initiatives for your key suppliers? a) Roll out to all locations using your internal company communication channels with reenforcement from the Chairman or senior figurehead. b) Post on your company risk management / risk and insurance intranet site. c) Insert into your company risk register to validate compliance. d) Include in your own company risk management manual and procedures. e) Present to your plant/site managers at quarterly off-site meetings etc. f) Present to plant/site managers when appointed and at budget time. g) Include within plant /site managers annual performance metrics. h) Include in your internal audit procedures. i) Include within your Health & Safety responsibilities for compliance. The following are the simple 12 proven Risk Management Principals which together with example documents in Appendices 1 can be tailored to suit your business risks as applicable. If you require any further details or advice, please do not hesitate to contact your Allianz Account Engineer. 1. MONTHLY LOSS PREVENTION SELF INSPECTIONS Implement a monthly self-inspection program to verify the following: a) Sprinkler control valves are locked or monitored in the open position, easily accessible, and they appear to be in good operating condition. b) Fire hydrants are easily accessible by the fire department, caps are in place, and they appear to be in good operating condition. c) Fire department connections are easily accessible by the fire department, caps are in place, couplings are free to rotate, and they appear to be in good operating condition. d) Fire extinguishers are adequately charged, easily accessible, appear to be in good operating condition, and have been serviced by a contractor within the past 12 months. e) Fire extinguishing systems are in automatic operation with no trouble indications and the systems have been serviced by contractor within the past 6 months. f) Fire doors appear to be in good operating condition and emergency escape routes are unobstructed. g) Flammable and combustible liquids stored and handled safely. h) Overall plant housekeeping is adequate including a clear desk policy and removal of rubbish, at the end of each day. i) Battery charging areas, plant rooms, and computer rooms etc. remain clear of all combustibles. j) Building roof coverings, flashing and drains are in good condition. k) Storage rack aisles remain clear of storage at all times. l) Horizontal and vertical rack storage flue spaces of 150 mm are maintained at all times. m) A minimum clearance of (0.5 /1 m) is maintained between the top of storage and the sprinkler deflectors. n) Idle pallet storage location and quantity is satisfactory. Inspection results should be recorded and retained for review by Allianz Risk Consulting and any deficiencies noted should be promptly corrected. Please See Appendix 1 for an example - Self Inspection Check Sheet

3 2. PLANT EMERGENCY PLAN Implement an emergency response procedure by designating a trained employee plus an alternate for each shift for the following responsibilities in event of a fire or other emergency: a) Person-In-Charge coordinates and manages all emergency efforts, including ensuring all other positions are assigned and proper training is provided at least annually. b) Notifier notifies the fire department as a backup to the fire alarm service and makes sure the fire department is directed to the scene of a fire. c) Fire Pump Operator reports to the fire pump house to verify the pump has started and continues to operate until instructed by the fire department. d) Sprinkler Valve Operator verifies the valves controlling sprinklers in the areas affected by a fire are open and remain open until ordered shut by the Person-In-Charge or fire department. This person should also be responsible for reopening any closed valves after any operated sprinklers have been replaced. e) Fire Fighting Salvage Crew performs incipient stage fire fighting and cleanup procedures. Members of this crew should be familiar with the location and operation of all fire fighting equipment. f) Electrician familiar with the location of all electrical power disconnects to ensure power is shut off to areas affected by a fire or other emergency. This person should also provide temporary lighting if necessary. g) Utility Operator familiar with the location of all shutoffs for natural gas, ammonia, propane, oxygen, flammable gases, air, domestic water, etc. to ensure these systems are shut off during a fire or other emergency. h) Salvage Crew promptly performs cleanup and salvage operations to restore production as quickly as possible. Training should be provided annually, coordinated with the local fire department and should also include natural hazards detailed below: white-papers-and-case-studies/ fire-protection-impairment-management/ 3. NO SMOKING Develop and implement an effective written policy that prohibits anyone from smoking inside the facility. If smoking is allowed outside the facility, establish designated areas with approved receptacles for proper disposal of all smoking materials.

4 4. IMPAIRMENT PROCEDURE For fire protection system impairments expected to exceed 10 continuous hours in duration, notify Allianz Risk Consulting 48 hours in advance of a planned impairment and as soon as possible for an emergency impairment by ing the Fire Protection System Impairment Notification & Restoration Form to impairments@allianz.com. The impairment form and guidance document can be downloaded at insights/white-papers-and-case-studies/ fire-protection-impairment-management. Fire protection systems include sprinkler systems, standpipe/hose systems, fire protection water supplies, fire pumps, fire mains, fire extinguishing systems, fire detection/alarm systems, etc. Work should be planned so as to minimise the time and area involved in the impairment of fire protection. 5. HOT WORK PERMIT Develop and implement an effective hot work permit program in accordance with Allianz Risk Consulting s Hot Work Management guidance document. The program should include written procedures for issuing a permit for any hot work conducted by employees or contractors outside designated fire safe areas (e.g., detached outdoor areas, maintenance shops, etc.). Before approving any hot work permit, the permit issuer should inspect the work area and complete a checklist to confirm all applicable precautions have been taken, including the following: a) Automatic sprinklers remain in service for sprinklered buildings. b) Cutting and welding equipment is in good operating condition. c) All combustible materials within an 11 m radius of the work site are relocated or protected by approved welding blankets. d) Hot work is not performed near walls, ceilings or roofs of combustible construction unless protected by approved welding blankets. e) A fire watch is provided during and at least 30 minutes after completion of hot work. The fire watch individual should have fire extinguishing equipment available and trained in its use. Upon completion of the fire watch, the permit issuer should complete a final recorded inspection of the work area to ensure it is safe. Completed hot work permits should be retained for review by Allianz Risk Consulting. Please see the attached link for hot work documents and permits in various languages: hot-work-management/

5 6. MANAGING CONTRACTORS Develop and implement a formal program for training and managing contractors prior to working on site. The training should include complying with the following procedures: a) Hot work management b) Fire protection impairment management c) Smoking regulations d) Risk assessments e) Lock out/tag out equipment f) Housekeeping practices g) Ensure that any contractor maintains a minimum of Euro 5 m public liability insurance and are responsible for any injury or damage they cause due to their negligence up to this minimum limit. A formal program will ensure contractors are properly trained on the facility s hazards and safety programs, which will prevent property damage caused by fires, explosions, etc. 7. FIRE DEPARTMENT PRE-FIRE TOUR Invite the local fire department to tour the facility on an annual basis to develop a preemergency plan so they are familiar with the site s layout and construction, as well as occupancy hazards and fire protection features (i.e. sprinkler systems, fire alarm systems, etc.).

6 8. FIRE PROTECTION TESTING AND MAINTENANCE Fire Alarm testing Contract with a qualified fire alarm company to perform functional testing of the following initiating devices in accordance with the latest edition of NFPA 1600, Standard on Disaster/ Emergency Management and Business Continuity Programs or equivalent local standards. The plan should include the following features as applicable: Quarterly: a) Dry pipe sprinkler system high/low air pressure b) Low building temperature c) Low water tank level and temperature d) Electric motor-driven fire pump, including running, power failure, and phase reversal e) Engine-driven fire pump, including running, failure to start, controller off automatic, and trouble (e.g., low oil, high temperature, over speed, etc.) f) Inspectors Test Connections (ITC) should be flowed to test the sprinkler system alarms to the gate hose and local water bell water flow alarms Semiannually: g) Sprinkler water flow h) Sprinkler valve tamper Annually: i) Manual fire alarm j) Smoke and heat detectors k) Fire extinguishing system l) Fully close and open all fire protection valves to ensure that they remain in operating condition. Test reports should indicate results for each device tested and disposition of any problems identified during testing. Any devices found inoperable should be repaired as soon as possible. All reports should be retained for review by Allianz Risk Consulting. 9. FIRE PUMP INSPECTION AND TESTING Test and inspect the (electric motor/diesel engine)-driven fire pump as follows: a) Conduct weekly inspection and testing of the fire pump. The pump should be started automatically by a drop in water pressure and operated without flowing water for a minimum of (10/30) minutes. b) Contract with a qualified company to conduct annual performance testing of the fire pump under minimum, rated, and peak flows. Inspection and testing should be performed in accordance with the latest edition of NFPA 25, Standard for the Inspection, Testing, and Maintenance of Water-Based Fire Protection Systems or equivalent local standards. Any deficiencies noted should be promptly corrected. Results should be recorded and retained for review by Allianz Risk Consulting.

7 10. BUSINESS CONTINUITY PLAN Develop a comprehensive, written disaster recovery/business continuity plan addressing the actions necessary to restore normal operations at this site following a loss due to fire, windstorm, flood or other peril in accordance with the latest edition of NFPA 1600, Standard on Disaster/ Emergency Management and Business Continuity Programs or equivalent local standards. The plan should include the following features as applicable: Step 4: Measure Test, Train, Maintain Step 1: Identify Risk Assessment Business Continuity Lifecycle Step 3: Creative Strategy & Plan Development Step 2: Analyze Business Impact Analysis a) Undertake a business critical / impact analysis review. b) Store all critical backup computer data off site to prevent loss of both primary and backup data in event of a loss to the computer room from fire, windstorm of other peril. c) An inventory of critical equipment. d) A list of vendors who can replace lost equipment or provide spare parts. e) Plans and specifications for any custom equipment. f) Sources for temporary utilities such as emergency power, air conditioning equipment, etc. g) Potential sites to which the operations may be temporarily relocated. The plan should be a living document subject to continuous updating as changing conditions dictate. One or more copies of the plan should be maintained off site in order that the plan is not subject to the same loss as the facility itself. A copy of the plan should be submitted to Allianz Risk Consulting for review. 11. SECURITY Dependent on your risk provide a security service to perform hourly recorded rounds when the facility is not fully occupied in accordance with the latest edition of NFPA 601, Standard for Security Services in Fire Loss Prevention or equivalent local standards. Security rounds should be recorded by an approved recording system with tour stations strategically located to ensure all important areas of the property (including site boundary fences) are adequately monitored. Records should be reviewed at least weekly by management and retained on file for review by Allianz Risk Consulting. Security personnel should be trained on their duties and responsibilities, including how to respond to emergencies such as fire, severe weather, unauthorized entry, water leakage, etc., with annual refresher training.

8 12. NEW PROJECTS AND CONSTRUCTION Plans and specifications for all new construction projects, renovation to existing facilities, installation of new fire protection systems or fuel-fired equipment, or modifications to existing fire protection systems should be submitted to Allianz Risk Consulting for review and comment prior to construction or installation: As a general rule: All construction should be non-combustible. All fire protection equipment should be designed to a recognised standard such as NFPA or any equivalent (local) standard and listed or approved by a nationally recognised testing laboratory. A suitable risk assessments and business impact analysis should be undertaken to identify all business hazards. Suitable lightening protection, exterior lighting, and emergency escape routes etc. should be provided. Any hazardous or business critical operations i.e. computer equipment, plant rooms should be provided with a minimum 1 hr rated fire separation. All electrical cable opening should be fire stopped and consideration given to providing local gaseous protection and smoke detection in critical plant areas. For new locations provide Allianz with geographical codes to aid a natural hazards site review. Ensure that a Change Management System is in place to identify and manage any risk associated with: - Unforeseen or new hazards - increases in risk associated with known hazards - Increases in the vulnerability of Business Interruption See the attached link for further information on Change Management: PDFs/ARC/Tech%20Talks/TTVol14- ManagingChange-May2014.pdf

9 Appendix 1 DETAILED - SELF INSPECTION CHECK SHEET Premises Inspected by Date Accompanied by Report No. Sheets Distribution Item Identified Action Comments Yes No Fire Risk Assessments Completed Fire Plans of site available Fire Wardens appointed including deputies Emergency / Fire Controller appointed Appointed persons trained Staff Induction includes fire precautions arrangements Emergency / Fire Log maintained Pre-Emergency Response Team in place & personnel trained person in charge utility fitter sprinkler pumps/valves operator greeter for fire brigade director for fire brigade fire team trained in the use of portable fire fighting equipment & updated salvage squad spill/leak procedures emergency equipment in place winterisation natural hazards ie flood, storm etc. Visitor Controls in place Fire Evacuation Drills completed (specify frequency) Fire Safety provisions adequate number of exits travel distances acceptable escape routes clear and in good repair directional notices displayed & adequate Portable Fire Extinguishers - extinguishers in position - accessible - extinguishers adequate - maintenance adequate

10 Item Identified Action Comments Yes No Hose Reels - adequate coverage - accessible - maintained Emergency lighting in place & adequate - weekly check - function test monthly - full test check yearly Fire Detection systems checked/tested - operation check weekly - full system check yearly - adequate coverage - detector heads unobstructed Sprinkler System - weekly bell test - weekly pump test - sprinkler valves secured in open position - periodic inspection of system adequacy - maintenance Assembly points identified Fire Points - clearly identified - not obstructed - equipment in place Break Glass Point - notices displayed - weekly function test Smoking - prohibition signs displayed and are adequate - receptacles in areas smoking permitted - waste removal adequate - was smoking noted in prohibited areas High Risk areas identified - persons trained for work in high risk areas (competence) - equipment suitable for area, e.g. zoned electrical system - warning notices posted Site fire hydrants - marked adequately - kept clear - pumps tested - discharge tested and valves exercised Emergency vehicle access is adequate Housekeeping Management - Internal combustible materials adequately stored - External combustible materials adequately stored

11 Item Identified Action Comments Yes No Fire Doors - in working order - function tested - maintained - adequate lighting Waste - suitable waste containers being used within the premises - adequate removal frequency - waste skips located away from buildings Flammable Liquids - adequate precautions in use - adequate storage - adequate transport arrangements - spill procedures in place - fire fighting arrangements adequate Electrical Systems - PAT Testing in place - Fixed Testing adequate - Thermographic Scanning undertaken - Cabinets closed/locked - Extension Cable use appropriate - Temporary wiring in use - Multi-Adaptors not used - Adequate zoning - Circuit breaker rating adequate - Earthing adequate - Any storage adjacent to switch gear - Electrical utility rooms are kept locked Gases - storage adequate - use adequate - transportation adequate - emergency procedures adequate Heating Systems - Any portable forms of heating noted - Adequate clearance around fixed space heaters - Fusible links or fire valves operational - Frost thermostats fitted and operational - maintenance Building Maintenance - gutters & down/ drain pipes clear - roof in adequate condition - signs of water penetration - exposed combustible insulation materials Security - any breaches in fencing - any broken glazing - obstructed movement detectors - physical security adequate - electronic security adequate - check security guard log - check CCTV coverage

12 Item Identified Action Comments Yes No Services - kitchen filters & ducting cleaned - fire dampers installed and operational - any unstopped service penetrations in compartment walls - service risers fire stopped adequately - cavity barriers adequate Other Checks ALLIANZ RISK CONSULTING (ARC) Global Head of Property Risk Consulting Maarten Van Der Zwaag maarten.vanderzwaag@allianz.com Regional Unit London Richard Park richard.park@allianz.com Mediterranean Damien Liebart damien.liebart@allianz.com Americas Peter Richardson prichard@aic-allianz.com Central and Eastern Europe Ralf Dumke ralf.dumke1@allianz.com Asia Samuel Tan samuel.tan@allianz.com ABOUT AGCS Allianz Global Corporate & Specialty is the Allianz center of expertise for global business insurance and large corporate and specialty risks. For further information please visit the ARC Homepage