Risk Assessment. Marvin Rausand
several other factors may be considered:
Scope. Will the measure have an effect on one or more hazards?
Reliability and availability. Can we expect the measure to work when required?
Robustness. Will the measure be implemented in practice and will it have an effect?
Duration. Will the effect last for just weeks or months, or for many years?
Negative effects. Will the measure have negative side‐effects?
Cost. How much will the measure cost to implement and operate/maintain?
Chapter 14 discusses this in more detail.
3.2.5.6 Step 5.6: Determine Cost of Risk Reduction Measures
An important factor that influences the decision to implement a risk reduction measure is cost. In Chapter 14, cost–benefit analysis is discussed, as a tool for analyzing efficiency of risk reduction measures. In a cost–benefit analysis, the cost of introducing a risk reduction measure is compared with the benefits that can be expected. Because the benefit is a risk reduction (e.g. reduction in injuries and fatalities) that cannot be compared directly with costs, we also need to express the benefits in monetary terms. This is one of the contended aspects of cost–benefit analysis, in particular because of the need for expressing loss of life and human injuries in monetary terms.
3.2.6 Step 6: Risk Presentation
Step 6 is divided into two substeps: 6.1 Prepare report and 6.2 Present results.
3.2.6.1 Step 6.1: Prepare Report
The outcome of the risk assessment is a description of risk. The description can be done in many ways, ranging from purely qualitative descriptions to describing risk as one or more numbers. What is important is that
The risk is presented in such a way that the audience of the analysis (decision‐makers and other stakeholders) can understand the results.
The risk is presented in a way that supports decision‐making, meaning that it provides answers to the questions that need to be answered before making a decision about risk.
Information is provided about the uncertainty associated with the results and the sensitivity of the results with respect to changes in assumptions, data, and modeling principles and methods.
Chapter 6 presents several ways of expressing risk and reporting is discussed in more detail in Section 3.3 .
3.2.6.2 Step 6.2: Present Results
In many cases, it is beneficial to present the results from the risk assessment in other ways than just through a report. This can be done in different ways, through brochures, popularized versions of the report, or by presentations. This needs to be considered depending on the stakeholders and the importance of the decisions that the risk assessment supports.
3.3 Risk Assessment Report
The risk assessment is usually presented in a report, but may also be accompanied by brochures, slide presentations, and videos. To be useful as a decision basis, the decision‐makers must be able to understand the conclusions and recommendations made by the study team. The information from the risk assessment must, therefore, be presented as clearly and concisely as possible.
The decisions to be made are often important and far‐reaching. It is, therefore, important that the decision‐makers can have confidence in all the findings made by the study team. The risk assessment reports must be well founded and trustworthy, and it must be possible to review and verify all the results. All conclusions and recommendations must be traceable to documents describing the background, models, input data, calculations, and so on.
The complexity of a risk assessment, and probabilistic methods in particular, may pose a significant barrier to understanding the report. It is, therefore, important that the main results be described clearly and documented in a language that decision‐makers and other stakeholders understand.
The level of detail in the report(s) should correspond to the risk level. A study object with a low level of risk typically requires a less extensive report than that for a study object with a very high level of risk.
How the report is written and the level of detail depends on the objectives of the study and for whom the report is intended, e.g.
1 The report will only be used as a decision basis for the line management, and no external parties are expected to get access to the report.
2 The report will be used by the company management to establish good risk management practices. Thus, the results of the risk assessment can be used to help define the requirements for various elements of the facility safety program, including maintenance, training, operating procedures, safety inspections and audits, and management of change.
3 The report will be presented to the board of directors as a background for strategic discussions.
4 The report will be made public. This is, for example, required for companies that have to fulfill the requirements of the EU Seveso III directive (EU 2012).
5 The results and the report will be presented at public meetings with stakeholders.
Some laws and regulations have special requirements to the format of the risk assessment report. This applies, for example, to the Seveso III directive.
3.3.1 Contents of the Report
A possible structure of a risk assessment report is presented subsequently. It is recommended that too much narrative text be avoided and that important points be enumerated for referential purposes.
3.3.1.1 Title Page
In cases where the risk assessment has to be updated regularly, the initial and all subsequent revision numbers should be recorded on the report's title page. The title page should show the date of the latest revision, the revision number, and be signed (e.g. see U.S. DOE 2004).
3.3.1.2 Disclaimer
A disclaimer is sometimes included in the report. The purpose is to describe the limits of the legal claims that can be filed against the organization responsible for preparing the report.
3.3.1.3 Executive Summary
The main results should be listed, together with recommendations for risk reduction measures and further actions. When the report is updated, the revision number and who has performed the assessment should be noted.
Introduction (including why the risk assessment is executed).
Objectives and limitations.
Analysis approach.
Main conclusions and recommendations (each conclusion or recommendation should be briefly justified).
The executive summary should provide an overview of the background, assumptions, objectives, scope, results, and conclusions at a level that is useful to a wide audience of safety specialists and at the same time is adequate for high‐level review.
3.3.1.4 Document References
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