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Management Of Change


The management of change is an important business discipline; this has resulted in the formation in Australia of the Change Management Institute (CMI) with connections to various countries around the world, including the UK - The objective of the CMI is to promote and develop the profession of change management internationally.

The concept of change management has been a critical part of risk management in the petro-chemical and nuclear power industries for many years owing to the severe hazards present. However, the proven benefits of change management can also apply to industry and commerce in general, as a key measure in preventing and controlling property loss and accidents.



Change management as far as RiskSTOP is concerned is essentially centred on the following:

  • Encouraging the Policyholder to identify and appreciate the potential hazards of the changes planned, how these will impact on the risk profile of the business in both the short and long-term, and the nature of any risk mitigation measures required.

  • Keeping the Insurer up to date with changes at the planning stage, thereby creating an opportunity to provide sound risk management advice to mutual benefit and fostering good relationships.

Examples of projects which may benefit from a changed management process include:

  • New buildings or extensions;

  • Installation of new plant and machinery;

  • Introduction of new manufacturing processes or major changes in production:

  • Changes in the nature and quantities of highly flammable materials employed;

  • Significant changes to storage arrangements;

  • Fundamental changes in occupancy or tenancy;

  • Installation of new fire or security protection systems;

  • Major changes in building services such as the installation of standby generators, new heating or air-conditioning systems, or

  • Anything involving significant capital expenditure.



There is no blueprint change management procedure, and much will depend on the size and type of the business concerned. The procedures should be flexible enough to accommodate not just major changes, but also minor changes and emergency repairs. Key measures would normally include:

  • Define the physical areas of the premises, processes and storage facilities to which the change management procedure is to apply;

  • Ensure that changes are identified and planned for in advance;

  • Define minor changes that are either outside the scope of the procedure, or that require a simplified review process;

  • Prescribe specific arrangements for emergency repairs;

  • Determine the suitably skilled personnel who are required to participate in the process, their roles and responsibilities and how the process is to be managed;

  • Define specific requirements for monitoring the operations of outside contractors;

  • Establish a formal “Request for Change” policy;

  • Ensure that all changes are fully risk assessed at the planning stage and appropriate risk control measures formulated, both short and long-term;

  • Liaison with Local Authorities, Insurers and other agencies;

  • Review and update the procedure periodically, based on experience.


When conducting surveys of a risk for which change management is likely to have an application, enquiries are to be made concerning the existence of any future plans for the premises. Where changes are proposed, a risk improvement (normally as recommendation only) calling for the adoption of a documented “Change Management” procedure should be raised.

At the same time, it will often be appropriate to raise the importance of ensuring that contractors operations on site are suitably risk assessed and adequately supervised, and that for projects involving new builds or major renovations, reference is made to the Joint Code of Practice on the Protection from Fire of Construction Sites and Buildings Undergoing Renovation (Technical Bulletin 19 refers). Standard risk improvement wordings are available.

Irrespective of any plans that may be on the table at the time of survey, Consultants should raise a recommendation for Change Management based on their judgement of its relevance to the risk. Recommendations would be expected as standard practice for higher hazard occupancies and any risk with MD Sums Insured in excess of £10m.

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