India Gas Pipeline Explosion (in Late June) – Harsh Reminder Why We Need GRC Implementation

Had there been regular checks on the assets (in this case rusty pipeline) and regulations were followed we wouldn’t have heard of this incident. In this case, authorities were notified before the incident took place and still there were no actions taken which led to this explosion. Improvement in regulations, forcing harder consequences for not abiding them are needed and better systems and processes in place can stiffen the gaps that leads to such unfortunate incidents.

Oil and Gas is the second most highly regulated industry in the world and yet there are incidents that cost lives, huge assets and revenue loss ending up with bad reputation for the convicted organizations. Powered by statistical fact, pipelines are considered to be the safer and efficient mode of transportation when compared to trucks and rails.

Where do we lack? Research has shown the “successful implementation” of Governance, Risk Management and Compliance to be the strongest failure. Many companies are adapting to GRC but the real problem rises up in thoroughly implementing the concept and having the control over all elements of GRC.

Manage regulations – complying with the standards and requirements pertinent to the very job that you are performing and responsible for. The meaning of each requirement can get fuzzy at times that very well may lead to a catastrophic incident. You must log all previous incidents, assess risk, perform audits Job Hazard Analysis on a regular basis, and then fill in the gaps by creating training plans to fill in compliance piece.