What is quantitative risk assessment in RM?

• QRA is most commonly used in the process industries to quantify the risks of ‘major hazards’.

• QRA used in the offshore oil and gas industries, the transport of hazardous materials, the protection of the environment, mass transportation (rail) and the nuclear industry.

• Quantitative risk analysis is a necessary tool for assessing the impact of risk resulting from decisions, program changes, etc

• Quantitative results improves risk decision making

• Ability to prioritize risks is invaluable

QUANTIFYING RISKS. Whether or not the project is assessed for management risks, the ability to quantify risks requires high-quality management products from the project. For example, an integrated cost, schedule and technical risk assessment requires an IMP/IMS containing accurate predecessor-successor relationships. The IMP/IMS should be resource-loaded, or, if it is not, cost data must be correlated to the IMP/IMS. Even in the risk identification step of the process, a quality IMP/IMS is required to support the thorough search for risk.

10.What is qualitative risk assessment in RM?

Criteria Development

Ø Simplified criteria

Ø Severity of Consequence

v Low, Medium or High

Ø Probability of Occurrence

v Use number between 0 and 1

v or L, M or H

The benefits of a qualitative approach are that it overcomes the challenge of calculating accurate figures for asset value, cost of control, and so on, and the process is much less demanding on staff. Qualitative risk management projects can typically start to show significant results within a few weeks, whereas most organizations that choose a quantitative approach see little benefit for months, and sometimes even years, of effort. The drawback of a qualitative approach is that the resulting figures are vague and some decision makers, especially those with finance or accounting backgrounds, may not be comfortable with the relative values determined during a qualitative risk assessment project.

11.Please outline a practical risk assessment process.

If you are completing a risk assessment, follow this simple process:

Step 1 - Look for hazards

Step 2 - Decide who might be harmed and how

Step 3 - Analysing the risk

Step 4 - Record the findings and put measures in place to control the risks

Step 5 - Implementing and prioritising action

Step 6 - Communicate the findings to staff

Date: 2015-01-29; view: 1350