Risk-Based Safety Management Systems: A Necessity for Companies Handling Hazardous Chemicals

James Junkin, chair of the Veriforce Strategic Advisory Board, shares insights into the importance of risk-based safety management systems.

Even organizations operating below OSHA’s Process Safety Management (PSM) and the Environmental Protection Agency’s (EPA) Risk Management Program (RMP) thresholds must address evolving regulatory frameworks and risks associated with chemical handling by developing robust, risk-based safety management systems.

This article discusses the importance of these systems, the implications of the EPA’s General Duty Clause, and the role of OSHA PSM and EPA RMP standards in maintaining safety and compliance.

Understanding OSHA’s Process Safety Management Standard

OSHA’s PSM standard (29 CFR 1910.119) was enacted to prevent the release of highly hazardous chemicals that could have catastrophic consequences. The PSM standard applies to facilities that use specific chemicals above certain thresholds. It focuses on the management of hazards posed by processes that involve hazardous substances. Key elements of the PSM standard include:

• Process Safety Information: Keeping detailed information about the chemicals and processes involved.

• Process Hazard Analysis: Conducting thorough assessments to identify and mitigate risks.

• Operating Procedures: Establishing clear procedures for safely conducting operations.

• Training: Providing employees with proper training on hazards, processes, and emergency response.

• Management of Change: Implementing processes to evaluate safety implications of changes in the operation.

Even if a company uses hazardous chemicals below OSHA’s thresholds, these proactive measures are essential in creating a comprehensive safety culture and minimizing risks.

The EPA’s Risk Management Program Rule

Like OSHA’s PSM standard, the EPA’s RMP rule applies to facilities handling certain hazardous substances. The RMP aims to prevent accidental releases and mitigate the consequences of such releases. Key components of the RMP rule include:

• Risk Management Plans: Facilities must develop and implement plans that include hazard assessments, prevention programs, and emergency response programs.

• Public Access to Information: The RMP rule emphasizes transparency and requires facilities to provide the local community with information about potential risks.

• Regular Updates and Reviews: Facilities must conduct regular checks to ensure ongoing compliance and revise their RMPs as needed.

Despite operating below RMP thresholds, companies may still benefit from implementing an RMP-like structure, reinforcing a proactive and risk-focused culture.

The Importance of Developing a Risk-Based Safety Management System

Implementing a risk-based safety management system can bring multiple advantages to companies, regardless of whether they fall below OSHA and EPA threshold values. Some key benefits include:

1. Enhanced Organizational Culture: A risk-based approach fosters an organizational culture prioritizing safety at every level. Employees feel empowered to speak up about safety concerns.
2. Operational Efficiency: Regular risk assessments lead to the identification of potential hazards and streamlining processes, often resulting in operational efficiencies and cost reductions.
3. Regulatory Compliance Preparedness: Proactively managing risks can help companies remain compliant with current and future regulations, reducing the likelihood of fines and legal issues.
4. Reputation Management: Companies committed to safety and risk management can enhance their reputation, gaining the trust of stakeholders, customers, and employees.
5. Reduced Liability Risks: Demonstrating a commitment to safety can mitigate potential liabilities associated with accidents, releases, and other incidents.

The EPA’s General Duty Clause

The EPA’s General Duty Clause (Section 112(r)(1) of the Clean Air Act) mandates that facilities handling hazardous substances must identify hazards and take steps to prevent accidental releases. Notably, the clause applies to all facilities, regardless of whether they meet the RMP threshold. This means that companies intentionally staying below stipulated threshold values might still be held accountable under this clause.

The General Duty Clause obligates companies to maintain a proactive risk management stance, regardless of formal regulatory classification. If a release occurs, facilities may face penalties if they have not taken reasonable steps to prevent it, highlighting the need for comprehensive safety measures.

Even companies operating below OSHA and EPA threshold values should consider developing and implementing a risk-based safety management system. As regulations evolve, proactive risk management is key to maintaining safety, compliance, and a strong reputation. Integrating OSHA’s PSM and EPA’s RMP frameworks into a risk management strategy enhances safety and prepares organizations for regulatory scrutiny. This includes the EPA’s General Duty Clause. Investing in safety management goes beyond compliance—it’s a commitment to employee, environmental, and community well-being.

About the Author

James A. Junkin, MS, CSP, MSP, SMS, ASP, CSHO is the chief executive officer of Mariner-Gulf Consulting & Services, LLC and the chair of the Veriforce Strategic Advisory Board and the past chair of Professional Safety journal’s editorial review board. James is a member of the Advisory Board for the National Association of Safety Professionals (NASP). He is Columbia Southern University’s 2022 Safety Professional of the Year (Runner Up), a 2023 recipient of the National Association of Environmental Management’s (NAEM) 30 over 30 Award for excellence in the practice of occupational safety and health and sustainability, and the American Society of Safety Professionals (ASSP) 2024 Safety Professional of the Year for Training and Communications, and the recipient of the ASSP 2023-2024 Charles V. Culberson award. He is a much sought after master trainer, keynote speaker, podcaster of The Risk Matrix, and author of numerous articles concerning occupational safety and health.