RISK MANAGEMENT

Risk Management

Introduction2

Discussion3

Realistic Estimate3

The Critical Effects of the Disaster4

The Causes of the Disaster4

Consequences of Failure9

Recommendations9

Conclusion10

References12

Risk Management

Introduction

In the modern world, the industries are expanding at a very rapid rate due to intensive development in science and technology. This advancement in science and technology allows for the deployment of huge industrial plants, usually for the purpose of production. However, the construction and operation of such huge plants also have some requirements that need to be strictly fulfilled for the purpose of safety and risk management.

However, there have been incidents that lead to huge disasters caused by the negligence reflected in the area of risk management by the authorities of the organization. These disasters have caused deaths of a large number of humans along with massive financial losses (Sage & Rouse, 2011, pp. 19-21). One of such disasters caused by poor and ineffective risk management along with negligence was the Bhopal disaster. This disaster caused massive destruction regarding both lives and capital. This report is aimed at describing the event along with its causes, its consequences and some analysis.

The Bhopal disaster resulted due to the leakage of gas at the Union Carbide India Limited pesticide production plant that was located in Bhopal, India, on the night between the 2nd and 3rd December, 1984. It is perhaps regarded as the world's most disastrous industrial disaster (Jasanoff, 1988, pp. 1113-1123). Immediate aftermath of the disaster was the exposure of more than 500,000 people to methyl isocyanate (MIC) gas along with other chemicals. It is a highly toxic gas and therefore extremely hazardous for the health of humans. The leakage of the gas was estimate at around 42,000 kilograms, which is indeed a very large value. The gas that leaked quickly spread into the surrounding areas and therefore worsening the situation.

The immediate death toll as announced by the officials was 2259. However, the real figure was far greater, since other estimates suggest around 16000 deaths along with 558,125 injuries. The main causes that gave birth to such a devastating disaster were poor risk management and negligence.

Discussion

The Bhopal disaster is considered as the worst disaster that took place in the world and caused huge losses. The prime reasons that caused this disaster were turning off of safety systems, poor engineering, reduction in workforce without any compensation and reduction in the training and educational levels of the workforce. A close analysis of all these initiatives reveals that the greed of saving money and criminal negligence by the company as well as the government were the root causes that led to this disaster.

Realistic Estimate

The figures mentioned above make it quite clear as what the disaster was and what were its consequences. The estimates regarding the aftermath of the disaster vary, but it is a reality that the losses and destruction were massive. The provincial government of Madhya Pradesh made confirmation of a total of 3787 deaths due to the leakage of gas from the ...