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2. COF analysis should be performed to estimate the consequences that occur due to a
failure mode typically resulting from an identified damage mechanism(s) (see Section
9). Consequence should typically be categorized as:
4. They will not normally have much ability to modify the what?
5. Management and process safety personnel may desire to manage the consequence
side of the risk equation. How?
Numerous methods for modifying the COF are mentioned in Section 14. For all
of these users, the consequence analysis is an aid in establishing a relative risk
ranking of equipment items. The consequence analysis should address all
credible failure modes to which the equipment item is susceptible.
6. Loss of Containment
(such as "A" through "E" or "high," "medium," or "low") is typically assigned for
each unit, system, grouping or equipment item. It may be appropriate to
associate a numerical value, such as cost with each consequence category.
17. An approach for assigning monetary values to safety and health consequences is
included in?
API 581
20. Cost generally requires fairly detailed information to fully assess. It is possible,
although not always practical, to assign a monetary value to almost any type of
consequence.
The cost associated with most of the consequences listed above can be
calculated using standard methods. Information such as product value, capacity,
equipment costs, repair costs, personnel resources, and environmental damage
may be difficult to derive, and the manpower required to perform a complete
financial-based consequence analysis may be limited depending on the
complexity of the relationship of failure to lost opportunity cost. However,
expressing consequences in monetary units has the advantage of permitting a
direct comparison of the various categories of consequences on a common basis.
Therefore, it is often better to provide approximations or "best estimates" than
to use only verbal descriptions
21. Instead of determining point values or unique ranges of economic loss for each
consequence scenario, consequences may be placed into categories that have pre-
defined ranges.
The ranges may be adjusted for the unit or plant to be considered. For example,
$10,000,000 may be a catastrophic loss for a small company, but a large
company may consider only losses greater than $1,000,000,000 to be
catastrophic.