Risk Analysis and Risk Management

Abstract

Aim: This chapter introduces the concept of risk, gives references to standards and major documents which deal with risk and defines terms relating to risk. The procedures in the management of risk are then outlined, and the legislative approach to risk is discussed and illustrated by an example. Various types of risk are described, and hazard analysis and the assessment of consequences are discussed. Factors in mitigating risk and contingency planning are presented. The chapter continues with an example of risk analysis and management in a water supply system. Risk considerations in safety critical plant are addressed in the separate chapter under the title of “Safety.”

Outcomes: After reading this chapter you will know how to analyze and treat risk. This will include an awareness of the legal approach based on meeting duty of care and regulatory obligations and the analysis and assessment of risk in relation to projects and to plant and machinery. You will be aware of techniques of hazard analysis, the assessment of consequences, the use of contingency allowances and of methods of mitigating risk. You will have seen how risk analysis was used in a water supply system application.

Topics:

• Introduction

• Definitions

• Introduction to risk

• Legislative approach

• Management of risk

• Water supply system example

• Risk identification

• Risk register

• Risk analysis and treatment

• Consequences

• Likelihood reduction

• Risk treatment

• Contingency planning

• Types of risk

• Quantitative risk analysis

• Risk-cost

• Risk rating

• Risk matrix

• Project risk examples.