Tianjin China Explosion Incident Risk Analysis

This article discusses the risk management principles, after-effects, likelihood, and mitigation techniques of the Tianjin China explosion incident. It also includes a cost analysis and a risk management plan.

Running Head: TIANJIN CHINA EXPLOSION INCIDENT RISK ANALYSIS
Tianjin China Explosion Incident Risk Analysis
Name of the Student
Name of the University
Author note

1TIANJIN CHINA EXPLOSION INCIDENT RISK ANALYSIS
Table of Content
Introduction......................................................................................................................................2
Risk management.............................................................................................................................2
Risk management principles........................................................................................................4
After effects of the explosion......................................................................................................4
Likelihood....................................................................................................................................5
Risk mitigation techniques..........................................................................................................6
Cost analysis....................................................................................................................................7
Risk management plan.....................................................................................................................8
Conclusion.....................................................................................................................................10
Reference.......................................................................................................................................11

2TIANJIN CHINA EXPLOSION INCIDENT RISK ANALYSIS
Introduction
Risk can be defined as uncertain processing of incidents that are harmful for the being
and has the potentiality to cause harm to individuals who are facing the risk. Risk can also be
termed as danger that arises during completion of tasks. Mitigation of risk during completion of
projects has been a major concern for organizations who are undergoing projects. This leads to
the fact that risk management theories have been proposed to manage unseen and undue risks
that might arise during processing of the project.
Risk management
Risk management principles are undertaken by organizations who want to protect their
organization from major losses that are incurred during performing project schedule. Risk
management is one of the most important step that is taken by organizations to maintain
efficiency of their performance. Few risk management techniques used by
 Legal issues: According to Chinese legislation, storing of chemicals requires proper
permission from government. Chemicals which are flammable in nature, will require
special permission from government and huge amounts cannot be stored in a same place
without proper authentication from government. Despite all this bounds, 800 tons of
Ammonium Nitrate was stored in same place without much safety measures. This illegal
method of storing hazardous and flammable chemicals have been a major reason for
spreading of fire. As government was unaware of this illegal storage of chemicals,
mitigation steps that were taken by fire fighters were not up to the mark and lead to
worsening of conditions that were caused due to hazardous and flammable chemicals.
Risk in an uncertain phenomenon, this leads to the fact that a proper risk management

3TIANJIN CHINA EXPLOSION INCIDENT RISK ANALYSIS
strategy must define uncertainties that might arise during completion of projects. In case
of Tianjin explosion, dynamicity of risk management was limited which resulted in the
fatal explosion. Tianjin was highly affected by this unauthenticated storage of chemicals.
Dry nitrogen was also stored in Tianjin port.
 Human Resources: Human Risk management technique must consider risk that might
arise due to human factors during completion of project. Flaws that might be committed
by human and this factor must be taken into consideration before initiating risk plan. In
case of Tianjin port, they did not consider that mistakes can be committed by their
employees while storing Ammonium Nitrate (Lo, 2016). Human resource management
committee must be hired who will take care of functioning of employees. This ensures
that employees stays in efficient way. This is the main reason that processing of data
management of employees must be done for better job management. This increases the
efficiency of the project that is under progress and project gets completed with higher
accuracy. Transparency must be maintained in organizational framework and employees
must be aware of issues that might happen due to lack of efficiency in completion of the
project. Human resource management committee must portray issues to the employees
that might occur in case accuracy is not maintained in completion of the task. Environment: Environment was highly affected due to the fact that pollution was all over
China and marine life cycle was highly affected by this explosion. This is acid rain was
one of the major reason for damaging the environment. Water pollution was at its peak,
leading to depletion in health of people who were consuming polluted water. People
vacated Tianjin for many days, epidemic disease being the major reason. Generation born

4TIANJIN CHINA EXPLOSION INCIDENT RISK ANALYSIS
after decades of this explosion were still affected, leading to the fact that they had
deformities in their DNA. Finance: $9 billion was wasted during the course of this explosion. With an addition $50
million spent on destruction of car factory that were situated near Tianjin port.
Centralised computer centre was also affected adversely. This is due to the fact that it was
located near Tianjin port and this massive explosion affected the organization directly,
leading to devastation namely damaging of ceilings, shattering of windows. Overall
wastage of money in treating patients who were affected in this explosion was very high.
Risk management principles
Risk management is performed with the help of identification, classification and
prioritizing of risks that might approach Tianjin port.
Identification: Risks involved in Tianjin port is identified initially before processing the
project.
Planning: After identification of risks that are present in Tianjin project, planning
regarding mitigation of risks is performed.
Derive safeguards: After planning strategies of risk mitigation, safeguard deriving acts as
a process of implementing steps that were planned in the previous terminology.
Monitoring: After implementation of the steps that were decided in planning section,
monitoring of completion of the steps is done. This step takes into consideration the fact that
efficiency of risk mitigation is maintained.

5TIANJIN CHINA EXPLOSION INCIDENT RISK ANALYSIS
After effects of the explosion
This incident marked a total of 173 deaths that was measured after a month of happening
of the incident. This is the highest number of deaths that is marked in industrial explosions.
There was a fatal combination of chemicals and water acted as catalyst that increases intensity of
fire. First earthquake measured the intensity level of 2.3. This incident shook seismic plates with
an energy level that is equal to that of 2.9 tons of TNT. The second earthquake was much more
severe in nature. It marked the magnitude of 2.9. The intensity level of this earthquake was so
high that seismic plates shook with an intensity of that of 21.9 tons (Jiu-zhou & Plant, 2015).
There was a series of 8 explosions that resulted from the fire that contributed to spread, resulting
in huge loss of lives and fatal injuries. Damages caused due to this explosion was immense in
nature. Over 8000 cars were destroyed in this explosion. Cars parked in Tianjin port got
destroyed in this explosion. Over 300 buildings were damaged due to this explosion and over
12000 cars were physically damaged during the explosion. A hefty amount of $9 billion was
wasted in this explosion. Dhongai road station was affected due to this explosion. National
supercomputing center of Tianjin was also adversely affected as windows and ceilings of
National supercomputing center of Tianjin was blown away.
Likelihood
2 consecutive explosions took place that harmed employees who were working during the
time of explosion. Both the explosions occurred in time span of 30 seconds. Second explosion
was larger in nature in compared to the 1st explosion. 2nd explosion marked detonation of 800
tons of Ammonium Nitrate. In beginning there was a fire at the warehouse of Binhai (Aitao &
Lingpeng, 2017). The fire was uncontrollable in nature. Fire fighters were on spot, fighting the
fire and trying to prevent it from overflowing. Fire fighters were not aware of the fact that the

6TIANJIN CHINA EXPLOSION INCIDENT RISK ANALYSIS
fire that has struck is due to explosion of hazardous chemical substances. Applying water to fire
increased intensity of the fire. This in return increased the intensity of explosion (Irshad, 2015).
Risk mitigation techniques
Techniques to mitigate the risks: -
Avoiding risk: Risk avoidance is one of the easiest way to mitigate risk. Avoiding risk by
proper planning of risk management and deploying the same might act beneficial in mitigating
risk (Li, Zhu & Shi, 2016, December). Avoiding risk management is very obvious as it acts as
preventive measures in the processing of risk mitigation. Avoiding risk incurs nearly $28 million
to maintain safety related issues
Minimizing risk: Risk minimization helps in mitigating risks. Minimization of risk is
possible by proper acknowledgement of risks that are present in the processing of Tianjin
project. Minimizing risk can be performed by proper planning an implementation of the plans
that are used for reducing risks. Proper planning is required to perform minimization of risk. This
implementation of plans that will be made by project managers will be very expensive in nature,
a total of $ 77 million will be spent in minimizing risk.
Retention of Risk: Retention of risk is a managerial decision making process, higher
authorities of Tianjin port must be taking into consideration the fact that level of interpolation
must be maintained and in order to maintain the level of certainty, decisions regarding risk
retention is taken. Retention of risk will earn revenues from insurance companies as proper
insurance policies are already present for Tianjin port. Insurance making for such huge estate
will cost around $ 4 billion.

7TIANJIN CHINA EXPLOSION INCIDENT RISK ANALYSIS
Cost analysis
Cost/Benefit Analysis for Tianjin
China explosion
Year of
Project
year 0 year1 year 2 year 3 year 4 year 5 TOTALS
Net economic
benefit $36,000
.00
$36,000.0
0
$36,000
.00
$36,000.
00
$36,000.
00
0.3400 0.1200 0.7600 0.1200 0.4600
PV Of Benefits $0.00
$12,240
.00 $4,320.00
$27,360
.00
$4,320.0
0
$16,560.
00
NPV of all
BENEFITS $0.00 $12,240
.00
$16,560.0
0
$43,920
.00
$48,240.
00
$64,800.
00
$64,800.
00
One Time Costs $9,000,000,0
00.00
Recurring Costs $0.00
($14,40
0.00)
($14,400.
00)
($14,40
0.00)
($14,400
.00)
($14,400
.00)
Discount Rate
8% 1.0000 0.9434 0.8900 0.8396 0.7921 0.7473
PV Of Recurring
Costs $0.00
($13,58
4.91)
($12,815.
95)
($12,09
0.52)
($11,406
.15)
($10,760
.52)
NPV Of All Costs ($60,000.00)
($73,58
4.91)
($86,400.
85)
($98,49
1.37)
($109,89
7.52)
($120,65
8.04)
($120,65
8.04)
ROI $0.34

8TIANJIN CHINA EXPLOSION INCIDENT RISK ANALYSIS
Risk management plan
Risk
Description
Impact Reason Crucial
factors
Triggers Risk Response
Strategy
Contingenc
y Plan
Tianjin
China
explosion was
one of the
most tragic
incident that
has ever
taken place
due to
mismanagem
ent in
industrial
level. This
incident took
place on 12th
August in the
year 2015.
This incident
took place at
This
incident
marked a
total of
173
deaths
that was
measured
after a
month of
happenin
g of the
incident.
This is
the
highest
number
of deaths
that is
2nd
explosion
marked
detonation
of 800 tons
of
Ammonium
Nitrate. In
beginning
there was a
fire at the
warehouse
of Binhai.
The fire was
uncontrollab
le in nature.
Fire fighters
were on
spot,
Improper
packaging
of products
as well as
incomplete
knowledge
regarding
inflammab
le and
exploding
elements
that were
present in
the port
(Zhao,
2016).
Preventing
fire with
application
of water
was not
very
helpful as
chemical
infrastructu
re got
triggered in
a negative
way (Xu &
Webb,
2015).
Risk
mitigation
strategies
that must
be
implement
ed to
reduce the
risk related
to Tianjin
port is by
monitoring
the risks
that are
approachin
g Tianjin.
Another
risk
mitigation
technique
is that
Contingenc
y plan will
ensure that
similar
incidents do
not occur
again. These
kind of
incidents
can be
stopped by
implementin
g plans like
usage of air
bags in
ammonium
nitrate
storage
places.

9TIANJIN CHINA EXPLOSION INCIDENT RISK ANALYSIS
port of
Tianjin. This
lead to a loss
of several
lives and
non-fatal
injuries were
caused to
many
employees
who were
performing
their duties
in Tianjin
port.
marked in
industrial
explosion
s. Over
8000 cars
were
destroyed
in this
explosion
. Cars
parked in
Tianjin
port got
destroyed
in this
explosion
. Over
300
buildings
were
damaged
due to
this
fighting the
fire and
trying to
prevent it
from
overflowing.
Fire fighters
were not
aware of the
fact that the
fire that has
struck is due
to explosion
of hazardous
chemical
substances.
Applying
water to fire
increased
intensity of
the fire. This
in return
increased
planning
risk
mitigation
techniques
during
project
initiation
must be
done.
Analysing
situations
also helps in
understandi
ng problem
and
planning
can be made
accordingly.

10TIANJIN CHINA EXPLOSION INCIDENT RISK ANALYSIS
explosion
and over
12000
cars were
physicall
y
damaged
during
the
explosion
. A hefty
amount
of $9
billion
was
wasted in
this
explosion
.
the intensity
of
explosion.
Conclusion
From the above discussion it can be concluded that Tianjin china explosion was one of
the biggest explosion that has ever occurred due to industrial mismanagement. Loss of lives has
been one of the major highlight of this explosion. Physical damaging of frameworks has been

11TIANJIN CHINA EXPLOSION INCIDENT RISK ANALYSIS
another highlight of this explosion. More than $9 billion was wasted in this explosion. Risk
mitigation analysis is done in a proper way in this report. The mitigation strategies that are stated
in this report will decrease risk in case of future risk approach. In case of following the risk
mitigation processing that is stated in this report will reduce the approaching of risk in industries.
Reference
Zhao, B. (2016). Facts and lessons related to the explosion accident in Tianjin Port,
China. Natural Hazards, 84(1), 707-713.
Xu, F., & Webb, J. P. (2015). Tianjin chemical clean-up after explosion.
Chung, Y. S., & Kim, H. S. (2015). On the August 12, 2015 occurrence of explosions and fires
in Tianjin, China, and the atmospheric impact observed in central Korea. Air Quality,
Atmosphere & Health, 8(6), 521-532.
Aitao, Z., & Lingpeng, F. (2017). A new insight into the accident investigation: A case study of
Tianjin Port fire and explosion in China. Process Safety Progress, 36(4), 362-367.
Li, X., Zhu, Y., & Shi, Y. (2016, December). Conflict analysis in redevelopment of brownfield
caused by contingency: Tianjin port “8· 12” explosion Hazard, in China. In Industrial
Engineering and Engineering Management (IEEM), 2016 IEEE International Conference
on (pp. 1106-1110). IEEE.
Jiu-zhou, G. U. A. N., & Plant, S. O. P. (2015). Analysis and Control of Oil and Gas Explosion
During Air Injection for Heavy Crude Oil Development. Contemporary Chemical Industry, 6,
098.

12TIANJIN CHINA EXPLOSION INCIDENT RISK ANALYSIS
Lo, S. S. H. (2016). Policing Crises in Mainland China: The Shenzhen Landslide, Tianjin
Explosion and Shanghai Stampede. In The Politics of Policing in Greater China (pp. 223-242).
Palgrave Macmillan, New York.
Wang, L. (2018). Features of the microblog and its role in the formation of a green public sphere
in China: The case of 2015 Tianjin Explosions. Catalan Journal of Communication & Cultural
Studies, 10(1), 133-142.
Sen, X. U., Wehrstedt, L. D. K. D., & Krebs, H. (2016). 2015 Tianjin explosions.
Yao, W., & Qin, S. (2014). A Three-State Faulty Bayesian Network for Solving Combinational
Explosion Problem. Journal of Northwestern Polytechnical University, 32(6), 857-864.
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13TIANJIN CHINA EXPLOSION INCIDENT RISK ANALYSIS