Risk Management Plan for Tianjin Port Blast

Running head: RISK MANAGEMENT
RISK MANAGEMENT
Name of the Student
Name of the University
Author Note

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Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................2
Disaster plan analysis..................................................................................................................2
Risk management principles........................................................................................................3
Risk management objectives...................................................................................................3
Identification of hazard and potential loss...............................................................................4
Estimation of consequences.....................................................................................................4
Estimation of likelihood..........................................................................................................5
Measure and rank risk..............................................................................................................5
Risk management plan.................................................................................................................7
Conclusion.....................................................................................................................................10
References......................................................................................................................................11

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Introduction
On the port of Tianjin and north China, two massive explosions have resulted in the death
of more than hundred people. The incident left more than hundred people injured along with
devastating the whole city (Beresford et al., 2012). The whole incident took place at a warehouse
which contains hazardous and flammable chemicals like calcium carbide, sodium cyanide,
sodium nitrate and many others.
In the coming pages of the report, an idea has been provided regarding disaster plan
analysis for the explosion at Tianjin port China. After that risk management principles have been
discussed with respect to the given case study. An identification and analysis have been done on
the impact of risk on the people and other bodies. In the end, a proper plan has been provided
which can be used for measuring and monitoring of performance.
Discussion
Disaster plan analysis
A disaster recovery plan (DRP) is a well-known business plan which mainly describes
the fact that how work can be resumed quickly and effectively after a disaster. The main idea of
disaster recovery plan is to allow an organization to recover enough it's important data or
material. This plan will allow the organization to operate at minimum possible level. In Feb
2016, the administration of China state of work safety made an investigation report about Tianjin
port explosion (Berkman, Cole & Fu, 015). The report focuses on the fact that the initial fire was
mainly triggered by continuous emission of nitrocellulose which has mainly resulted due to
damage packing. The report mainly pointed out the fact that chemical mainly responsible for this
explosion was ammonium nitrate. The investigation team mainly points out various violation by

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the owner of the warehouse. There were various issues like illegal construction and issues in
operating. Apart from this, there was a certain number of problems due to risk control failure
along with violation of national industry (Speece & Kawahara, 2015). It is mainly inclusive of
various things like illegal storage of ammonium nitrate at this Tianjin port. After from this there
were several overcapacities of throughput along with excessive storage and volume of illegal
mixture storage and proper staking of goods over the given height. The disaster has also taken
place due to illegal unpacking, transportation, loading and unloading and other kinds of
operation.
The incident has caused a major concern among the general public which makes use of
hazardous chemicals. However, the fact should be taken into consideration that many hazardous
and indispensable raw materials are used for the goods in the society (Shao et al., 2014). At the
similar instance, it provides a proper warning to the insurance industry about the need and
importance of properly identifying and analyzing risk. In risk and control, the most important
aspects of this chemicals are to properly identify and understand the hazardous nature of this
chemicals (Nicholls et al., 2018). After reviewing and analyzing the cause of an explosion at the
port of Tianjin, it is suggested that insurance company should put much emphasis on risk
management. It is also suggested to look for ability, control, and reduction of risk which can be
used for improving the risk control level.
Risk management principles
Risk management can be easily defined as the identification, prioritizing and
classification of various risks (Wang et al., 2014). This is mainly done with an effort which can
be used for controlling, monitoring and mitigating the risk.