Management of Change (MOC)

Why changes create risk

New construction, alterations, process changes, new machinery or altered materials frequently change existing hazard profiles unnoticed: fire compartments are breached, suppression systems no longer cover new stored commodities, or temporary arrangements from a construction phase are never reinstated. Without formal review, such deviations often remain undetected until a loss occurs.

The MOC process

A change request describes the nature, scope and reason for the proposed change and is reviewed and formally authorised by the relevant functions – operations, maintenance, fire safety, occupational safety – before implementation. Any deviation from the original condition (i.e. not a straight replacement in kind) triggers a fresh hazard review; once work is complete, the change is documented and reflected in drawings, operating procedures and training materials. Start-up and shut-down phases of process plant are particularly critical, since a large share of process-related losses occur during these transitions.

Relevance for insurance

Underwriters treat an established management of change programme as evidence that risk deterioration is identified systematically rather than discovered by chance at the next risk survey. The absence of management of change is a frequent reason why approved protection concepts no longer match the as-built, insured risk.