How do you determine the level of risk associated with a process?

1 Process hazard analysis

Process hazard analysis (PHA) is a systematic and structured way of identifying, evaluating, and controlling the potential hazards of a process. PHA involves examining the process design, equipment, materials, operating procedures, human factors, and external factors that could cause or contribute to a hazardous event. PHA also considers the possible consequences and impacts of such an event on people, property, environment, and business. PHA can use different techniques, such as what-if analysis, checklists, hazard and operability study (HAZOP), fault tree analysis, and failure mode and effect analysis (FMEA).

2 Risk matrix

A risk matrix is a simple and visual tool that helps plant operators to compare and prioritize the risks of different hazards. A risk matrix consists of two axes: one for the likelihood of a hazard occurring, and one for the severity of its consequences. The likelihood and the severity are usually rated on a scale from low to high, or from rare to frequent, or from minor to catastrophic. The risk matrix then assigns a risk level to each combination of likelihood and severity, such as low, medium, high, or extreme. The risk level indicates how urgently the risk needs to be addressed and reduced.

4 Risk assessment cycle

Risk assessment is not a one-time activity, but a continuous cycle that requires regular review and update. Plant operators should perform risk assessment before starting a new process, after making any changes to the process, or following any incidents or near misses. Plant operators should also monitor and audit the process performance and the effectiveness of the risk reduction strategies. Plant operators should document and communicate the results and recommendations of the risk assessment to all relevant stakeholders, such as management, workers, regulators, and customers.

5 Risk management benefits

Risk management is not only a legal and ethical obligation, but also a business advantage for plant operators. By assessing and reducing the risks associated with a process, plant operators can improve the safety and health of their workers and the public, prevent or minimize the damage and loss of their assets and environment, enhance the quality and reliability of their products and services, and increase the customer satisfaction and loyalty. Risk management can also help plant operators to comply with the regulatory requirements, avoid the legal liabilities, and reduce the insurance costs.

6 Risk management challenges

Risk management is not without challenges, however. Plant operators may face some difficulties or barriers when implementing risk management, such as lack of resources, time, or expertise, resistance to change, human error, or uncertainty. To overcome these challenges, plant operators need to adopt a proactive and systematic approach, involve and consult with all relevant stakeholders, use appropriate methods and tools , and seek continuous improvement and learning . Risk management is not a goal, but a process that requires commitment, collaboration, and innovation.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?