Improving Process Safety Management in 2024

Executive Summary
The 2024 Sphera Process Safety Report highlights the growing need for organizations to adopt digital solutions to bridge the gap between process safety management (PSM) goals and reality. Despite technological advances, 66% of companies still report a disconnect between safety goals and actual outcomes. This gap is attributed to slow digital adoption, limited visibility into risk, and a shortage of experienced personnel. However, with 95% of respondents recognizing the potential of digital tools to improve safety, the industry is poised for a digital transformation.

The Call for Digital Transformation
The report reveals that digital solutions are essential to achieving real-time visibility and proactive risk management. Currently, only 23% of organizations complete all safety-critical maintenance on time, while just 9% feel fully aware of their exposure to major accident hazards (MAHs). To combat this, companies are urged to adopt software that integrates safety-critical data, operational risks, and predictive analytics. The shift to digital enables faster decision-making, improved compliance, and better sustainability reporting.

Key Challenges

1. Human Factors and Workforce Gaps:
   • Loss of Experienced Personnel: 49% of respondents cite the loss of experienced personnel as the top risk factor. As seasoned employees retire, companies face challenges in training new staff to recognize early warning signs of process anomalies.
   • Human Error: Human factors, such as misaligned procedures or insufficient training, remain a leading contributor to risk.
2. Aging Facilities and Visibility Issues:
   • 39% of respondents highlight the lack of visibility into aging infrastructure as a growing concern. As facilities age, the probability and consequences of incidents increase, yet many companies lack digital tools to monitor these risks effectively.
3. Limited Risk Awareness and Management:
   • Companies struggle to identify MAHs due to the lack of comprehensive, real-time risk data. While most respondents believe it’s possible to achieve 100% of safety-critical maintenance, only 23% are doing so. Key blockers include limited resources (58%), shifting priorities (56%), and insufficient planning (37%).

Solutions and Next Steps
To improve PSM, the report outlines the following critical steps:

• Adopt Digital Platforms: Companies should leverage technology that provides real-time risk indicators and unifies process safety data across sites. Digital platforms support predictive analysis and real-time status updates on safety-critical equipment.
• Prioritize Workforce Training and Knowledge Retention: As experienced personnel exit the workforce, companies must capture knowledge through digital platforms. New hires are less inclined to work in high-risk areas, making it crucial to enable remote management and control-room-based training.
• Promote Leadership Involvement: Senior leaders are becoming more engaged in process safety, with 32% of companies reporting that executives are driving PSM initiatives. This shift underscores the role of leadership in advocating for digital solutions and championing a culture of safety.

Digital Transformation as a Catalyst
Digital tools offer a path to proactive risk management. Solutions like environmental, health, and safety (EHS) software, asset performance management (APM), and operational risk management (ORM) platforms are being adopted to bridge knowledge gaps and provide predictive insights. By moving beyond traditional paper-based processes, companies can enhance safety, minimize production downtime, and optimize costs.

Companies must embrace tools that provide real-time risk insights, predict hazards, and support comprehensive compliance. With aging facilities, a retiring workforce, and increased regulatory scrutiny, the pressure to act is mounting. Organizations that make process safety a strategic priority — supported by digital transformation — will not only protect people and the environment but also secure financial sustainability and business continuity.