Risk Measurement

No risk standards in petrochemical industry -

many variables and uncertainties
- therefore no absolute risk (cannot fully quantify the risk)

For risk calculations associated with RBI

- usually use relative risk (rank equipment relative to each
other)
Accuracy is not as important as consistency in
assigning likelihood and consequence values
 Output and Reporting
1) Reporting relative risk as numbers or simply high, medium or low
2) Quantify risk as a value - Area or dollars / frequency (sq ft/year)
3) Risk matrix

Prioritize equipment
Inspection Scope and Frequency
Develop Specific Inspection Plans
Turnaround planning
 STUMBLING BLOCKS
Misconception that project may threaten jobs
Change may make personnel feel uncomfortable or
incompetent
People perceive risk differently

If you can remove the misconceptions that

1) Risk is a theoretical tool without practical application and

2) Meaningful risk calculations cannot be performed in
situations with sparse data,

the hardest part of the project is over.

 Options for Implementation
• Team Process
– Project Manager/Champion
– Data Clerks, Inspectors, Maintenance,
– Reliability, Operations
– Process Engineer
– Metallurgical/Corrosion Engineer
• Cost
– Priced per equipment item
– Software
• Time
– Depends on team size (approx. 50 items per week)
• Company Options
– Do it yourself
– Part time assistance or Technology Transfer
– Hand over to consultants
 Risk Directed Management Process
• Determine Goals/Objectives
• Assemble Resources
• Determine Technical Approach
• Conduct Initial Screen (Scope)
• Identify Hazards
• Develop Initial Risk Ranks
• Establish Inspection Plan
• Deal with High Risk Items
• Evergreen Implementation/MOC
 Goal/Ojectives

Assemble Determine Technical

Resources Approach/Software

Initial Screen (Scope)

RISK MANAGEMENT Identify

Hazards

Data
Collection

COF LOF

Quality Initial Risk

Assurance Ranks
(QA)

Risk Management Others

MOC/
Risk Reduction
Operational (Mitigation)
Changes No
Deficiencies Inspection Deficiencies
Others
Plans

Evergreen Fitness For

Implementation Services

Remedial
Actions