When organizations measure the effectiveness of their PSM, which of the following is a key indicator?

The measurement of the effectiveness of Process Safety Management (PSM) is crucial for ensuring that safety protocols are being successfully implemented and that risks are being managed efficiently. Incident rates serve as a key indicator in this context because they directly reflect the safety performance of an organization. A lower incident rate typically indicates that processes are safe and effective, while a higher rate signals potential failures in safety measures that need to be addressed.

Monitoring incident rates can help organizations understand the frequency and severity of accidents, near misses, and other safety-related issues within their processes. This information is vital not only for compliance but also for fostering a culture of safety and continuous improvement in safety practices. By analyzing trends in incident rates, organizations can identify areas that require further risk management efforts and enhance their overall PSM strategy.

The other options—shareholder profits, product diversity, and employee turnover rates—are not directly linked to the efficiency of PSM. Shareholder profits relate more to financial performance than to safety outcomes. Product diversity might indicate market strategy rather than safety efficacy, and while employee turnover rates can reflect employee satisfaction and workplace conditions, they are not specific indicators of process safety effectiveness.