Risk management is an important activity in any business, be it Chemical Process sector such offshore Oil & Gas, onshore processing, petrochemicals, refineries, pharmaceuticals or Nuclear, Aerospace, Transport or Finance sector. Risk management involves several phases starting from identification of risks, then evaluation of risks, controlling and continuous monitoring risks. Various tools are adopted in each of these phases.
Chemical process facilities involve storage and processing of hazardous chemicals, that if released to atmosphere, can have adverse impact on people, assets, environment and thereby affect the reputation of a company.
Quantitative Risk Assessment is a well-known technique for evaluating risks. It involves the following steps:
The above-mentioned steps are key to any risk evaluation technique. Various software products provide assistance to competent risk analysts in completing some of these steps systematically and efficiently. However, communicating risks to appropriate level of organization and ensuring that these risks are well controlled is a critical step that requires strong experience in risk management.
Bell Energy not only performs risk evaluation but also advises companies on the management of risks.
Quantitative Risk Assessment have several benefits and should be used as an active tool in decision making. The list below presents some of the main applications of a quantitative risk assessment.
Quantitative risk assessment, by its nature, introduces challenges of being misunderstood and misused. Some pitfalls of such techniques are listed below:
One of the major pitfalls experienced in the growing QRA industry is the over reliance on QRA for risk management, which leads to companies spending disproportionate time and effort in risk evaluation. It is important to note that time should be spent on controlling and monitoring risks.