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Process Safety Management & Its Importance

Process safety management reduces industrial risks by enforcing safety standards, training, and procedures for handling hazardous chemicals, ensuring compliance, preventing accidents, and maintaining operational continuity.

  • 22 Aug 2025
  • 5 min read
  • 1 views

Many sectors, such as manufacturing, chemicals, gas and oil, witness accidents that can be deadly and dangerous. Gas leaks, explosions and fires are some of the examples of what can go very wrong in these industries. Due to such reasons, organisations require good systems that can handle all these risks. This is where process safety management becomes important.

In this blog, you will get some deep insights about process safety management (PSM), its importance and the rules and standards every company must follow.

What is process safety management?

Process safety management is a system that addresses the risks associated with processes involving hazardous chemicals. It’s used mainly in industries where a small error can cause massive accidents. Here are some primary things you should know about PSM:

  • It helps in preventing chemical spills, explosions, fires and various other severe accidents.
  • It concentrates on individuals, procedures and equipment involved in managing dangerous chemicals.
  • This system is not just about reacting to accidents, but also about stopping them from happening via training, monitoring and planning.
  • It’s required by law in many countries, including in India under the Factories Act.

Importance of process safety management

In India, countless industrial plants, refineries and factories work with dangerous chemicals. Without PSM (process safety management), the chances of accidents increase greatly. A good PSM will help save lives, safeguard the company's reputation and avoid legal problems. Below are some other reasons why it matters:

  • Guarantees business continuity: It stops long-term interruptions and shutdowns of businesses.
  • Safeguards human life: Prevents fatalities and injuries to nearby residents and workers.
  • Lowers environmental damage: Helps avoid pollution, fires and chemical leaks.
  • Improves public trust: Shows that the organisation takes safety very seriously.
  • Legal compliance: Adhering to the PSM policies helps organisations to stay within the safety laws.
  • Avoids monetary losses: Reduces damage to operations, equipment and property.

Process safety management standards

The standards in P.M. safety management show how PSM is conducted. They assist enterprises by making them follow a clear structure and fulfil global and national safety norms. Here are some of the PSM standards:

  • Indian standards: Policies under the Explosives Act, Petroleum Act and Factories Act help various sectors in India to maintain safety.
  • OSHA PSM standards (US): This is the most well-known standard for PSM. Even though it's American, many Indian firms observe it to match international practices.
  • CCPS guidelines (AIChE): CCPS (Centre for Chemical Process Safety) provides best practices used internationally.
  • ISO 45001: Although this is an occupational safety and health standard, it functions well with PSM as well.

What falls under the PSM standard and what doesn’t

Apart from knowing what is process safety management, you also need to understand that not every chemical or activity falls under the PSM regulations. However, every sector dealing with dangerous materials should observe PSM willingly.

Things included under PSM are:

  • Storing or using reactive, flammable or toxic chemicals like hydrogen, chlorine, etc.
  • Chemical processing plants, gas plants and refineries
  • High-pressure systems can lead to leaks or explosions.
  • Storage tanks and transport of hazardous materials inside the facility.

Things not included under PSM:

  • Official or residential buildings without any chemical exposure.
  • Small-scale or temporary manual tasks.
  • Low-risk machinery, such as standard electrical panels and office AC units.
  • Non-risky chemical usage, such as food ingredients, soap, etc.

Even when something is not officially listed under PSM, basic safety regulations should still be observed.

Process safety management elements

PSM consists of many important elements. All of them work together to build a safety system within a workplace.

  • Worker participation: This involves employees in decision-making and safety planning.
  • Process safety information: Keeping all information updated on procedures, equipment and chemicals.
  • PHA (Process Hazard Analysis): Evaluating and detecting risks in processes.
  • Operating procedures: Clearly written instructions for running machines safely.
  • Training: Teaching all workers about emergency responses, equipment and safety.
  • Emergency planning and response: Preparing for accidents through equipment and drills.
  • Contractor safety: Making sure workers from outside follow the same safety regulations.
  • Incident investigation: Learning from all near misses and even accidents.
  • Pre-startup safety review: Inspecting everything before starting modified or new systems.
  • MoC (Management of Change): Handling all changes in personnel, methods or materials safely.
  • Hot work permits: Special approval for work that involves flames or welding.
  • Mechanical integrity: Making sure all pipes and machines are functioning correctly.
  • Compliance audits: Periodic checks to ensure all rules are followed properly.

Conclusion

PSM has become essential for every industry that handles dangerous chemicals, hazardous operations or high-pressure systems. It not only safeguards human lives but also protects the environment and guarantees uninterrupted business functions. For all the Indian organisations, opting for international PSM standards and aligning them with the on-ground factory conditions and local laws can greatly lower the chances of legal problems and accidents.

Besides, workmen compensation insurance offers coverage to workers in case of workplace injuries. It ensures that death compensations, disability benefits and medical expenses are all taken care of when working with such dangerous chemicals.

FAQ

  • Is PSM compulsory in India?

Many industries have to follow the PSM regulations under the Indian safety and labour laws. However, some organisations observe the global PSM rules willingly.

  • What sort of companies require PSM?

Pharmaceutical manufacturers, fertiliser enterprises, gas processing units, refineries and chemical plants need PSM.

  • Is PSM the same as general workplace safety?

PSM focuses on stopping massive accidents that involve hazardous procedures and not just the falls, slips or trips.


Disclaimer: The information provided in this blog is for educational and informational purposes only. It is advised to verify the currency and relevance of the data and information before taking any major steps. Please read the sales brochure / policy wordings carefully for detailed information about on risk factors, terms, conditions and exclusions. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.

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