Risk Management Plan for Tianjin Port: Principles and Implementation

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 Potential loss.....................................................................................3
Analyzing of consequence...........................................................................................4
Estimation of likelihood..............................................................................................4
Measure and rank of risk.............................................................................................4
Risk management plan.....................................................................................................5
Cost benefit analysis......................................................................................................10
Conclusion.........................................................................................................................12
References..........................................................................................................................13

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Introduction
Two massive explosions on the port of Tianjin and north China have resulted in the death
of a large number of people (Zhou et al., 2014). This particular incident in China resulted in the
injury of around hundred people along with affecting the whole city. The incident was
encountered at a warehouse which has stored various inflammable and hazardous materials. This
explosion is considered to be one of the deadliest accident in China which has caused a huge
economic loss.
The upcoming pages of the report mainly deal with a proper plan regarding the disaster at
Tianjin port chain. Different risk management principles with respect to Tianjin port explosion
have been discussed in brief. The risk management principles mainly comprise of objectives,
potential loss, consequence, likelihood, and measure of risk. At the end of the report, a proper
risk management plan with respect to matrix have been provided.
Discussion
Disaster plan analysis
A DRP (Disaster recovery plan) is a well-known business plan which provides
information regarding the fact that how fast the work can be resumed after a disaster. Disaster
recovery plan can be considered to be a part of a business continuity plan which is generally
applied to different aspects of the business(Ying & Yijun, 2016). In the year 2016, the
administrative department of China has provided an idea regarding the explosion at Tianjin port
China. The incident took place at the port just because of emission of nitrocellulose. The
emission of harmful chemical was due to damage packing of material. Later on, the investigative

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team pointed out the fact that ammonium nitrate was responsible for the explosion. The
explosion at Tianjin port took place due to illegal storage of ammonium nitrate.
The incident at the port created a serious concern to the general public regarding the use
of various hazardous chemicals (Loucks & Van Beek, 2017). At the same time, it created a
proper sense of warning to the insurance industry regarding the use and importance of
identification of various risks. For proper risk control, the basic aspect is to properly the analyze
the hazardous nature of various chemicals. After reviewing the incident at Tianjin port, it is
expected that various insurance organization should stress risk management principles.
Risk management principles
Risk management mainly comprises of five stages that are identifying, prioritizing and
proper classification of risk (Nicholls et al., 2018). It is mainly done by making use of various
aspects like control, monitoring and lastly overcoming various risk.
Risk management objectives
The risk management objective mainly comprises of a series of steps like
 The adopted process or method should create a proper value at Tianjin port.
 It should be taken to an integrated part of the overall process for this Tianjin port.
 It should affect the overall process of decision making at this port.
 The plan should be transparent in nature so that it is understandable to various
stakeholders of this port.
 The plan needs to properly check an analyzed so that it can provide benefit to a
large number of people.