Chemical Industry Risk Assessment and Decision Analysis Homework

This assignment solution delves into the critical aspects of risk analysis within the chemical industry, encompassing hazard identification, risk assessment, and management strategies. It explores various methods for identifying hazards, such as the HAZOP (Hazards and Operability) method, and discusses the risks associated with the chemical industry, including exposure to hazardous chemicals, fire, explosions, and electrical hazards. The solution further examines hazard identification processes, probabilistic design, risk aversion, risk profiles, and the concept of risk homeostasis. The assignment also covers the importance of risk management, its processes, and the significance of risk assessment in ensuring safety and operational efficiency within the industry. The solution provides detailed answers to the assignment questions, supported by relevant references.

Running Head: ASSIGNMENT Assessment and Decision Analysis
Assignment
Assessment and Decision Analysis

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Answer 1
Risk analysis is one of the science that deals with risks, their probability and evaluation (Aven,
2015). The risk assessment and management is carried out for each project as a part of risk
analysis. Risk occurs when someone is exposed to hazardous conditions that may cause injury
and severe health problem. There are several methods to identify the hazards like HAZOP
(Hazards and Operability problems) method (Dunjó, et al., 2010). It is a systematic approach to
identifying risks and its operability problems across the entire facility. This kind of method is
useful in identifying unwanted hazards designed into facilities due to lack of knowledge or
caused due to changes in the process or operating conditions into the preexisting installation.
Apart from HAZOP, there are other methods to identify the hazards such as “What if,”
Checklists, Task analysis, etc. HAZOP analysis is carried out by a multidisciplinary team with
team structure involving two kinds of members one is of the technical background while other is
of supporting role. In HAZOP criticality analysis, the relative importance of each failure effect is
quantified so that risk factors could be reduced. In this assignment, we would discuss the hazards
associated with the chemical industry and its management. There are several risks associated
with the chemical industry such as exposure to hazardous/poisonous chemicals. Such risks could
happen due to spillage, splash, inhalation, etc. which could be due to leakage. One of the known
examples for leakage is Bhopal gas tragedy. Apart from exposure to the chemicals are tenable to
explosion or fire that is not just because of flammable fluids but could also be done due to a blast
in pressurized chemicals or uncontrolled reaction. Another potential hazard that could be
overlooked in the chemical industry is an electrical hazard that can also be caused by static.

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Answer 2:
Hazard identification (HI) is a major step as the company is looking for the modifications in the
plant. The first phase of HI would start with planned site inspection, with an idea to identify any
gaps in the implementation. This review includes surveys on preplanned lines, of process
hardware and methods along with the interviews with field staff and operators. After that a
checklist is prepared to evaluate the equipment, resources or events during the installation. Task
analysis is carried out to know all occupations and jobs establishing the work efficiency and
hazards related to any of the successive steps. As a risk identification, HAZOP method was used
which is a rigorous and widely accepted technique for it. The following questions will be
considered for expert HAZOP analysis.
• Plant’s design intention
• Deviations from the plan, if any?
• Cause of deviation
• Outcomes of such deviation
The exact method of implementation of HAZOP varies according to the demand. As the detailed
plan has been made to the piping and instrumentation diagram phase, the outline, workouts and
first standard operating procedures are prepared, and HAZOP can be undertaken formally. This
action plan is subject to detailed and projected reviewing by a team with varying backgrounds. It
should always be remembered that HAZOPs are intended to identify the problem, not for solving
them.

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Answer 3 i:
The study of Probabilistic design comes under the domain of engineering design which deals
with the occurrence of events that cannot be predicted correctly. The probabilistic design tool is
commonly used in areas where there are concerns with quality and reliability. In such designs,
there is always some level of error attached to the prediction of the behavior system
Design factors or Factors of safety comes under the deterministic model where there is certainty
about say load carrying capacity of a system beyond the expected or actual loads. In such system,
the system state is known at a particular point of time of its operation; the next state can be
correctly anticipated (van der Meer, 1988).
Answer 3 ii:
A risk aversion is a human behavior as an attempt to reduce uncertainty when exposed to change.
Risk aversion is an important aspect of risk reduction during accidents like putting sprinklers
designed to bring out the fire is a good way to avert the possibility of fire.
Answer 3 iii:
Evaluation of an organization to take risks or threats to which it is exposed is termed as its risk
profile. It is important as through potential investments in the sector can be determined to have
safe operations. It is a method by which an organization could mitigate possible risks and threats.
Answer 3 iv:
Risk Homeostasis is a theoretical concept which says that for any action, people accepts
estimated risk with their health and safety up to only a certain level to gain from a range of
benefits associated with the action. It is a controversial hypothesis, proposed by Gerald Wilde in

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1982 (Wilde, 1982). When people intuitively perceive that the risk level is less than satisfactory,
then they adjust their behavior and increases their exposure to risk. As an example, Sweden
changed from driving on the left to driving on the right in 1967, which followed with reduced
traffic fatality rate for 18 months but it returned to previous values after that. Such retaliation of
trend happened because people become accustomed to the change.
Answer 3v:
The term ‘incommensurable’ means ‘no standard measure, ’ and when incommensurability of
the results meet risk they tend to be mutually incommensurable and they will remain
incommensurable in whatever state they are. When the outcomes are incommensurable, it just
means that they are neither better than another nor are equally good. The two actions also
become incommensurable if their results are incommensurable (Penner, 2014).
Answer 4:
Risk management is the procedure of identifying, studying and accepting or mitigating the
uncertainty in of risk. Its objective is to guarantee that chance does not rebound the
organization's efforts in achieving goals (Risk Management, 2017). The process of risk
management involves
• Risk identification
• Cause identification
• Control identification
• Planning of process remainder
• Development of framework

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• Risk analysis and assessment
• Risk Mitigation
As mentioned earlier too, the risk assessment is a prominent part of the process development. It
is important as
• It creates awareness about hazards and risks
• It recognize the person who may be at risk
• It analyses is the current risk mitigation methods are competent or no.
• It establishes the priority for hazards and control measures.

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References
Aven, T. (2015). Risk analysis. John Wiley & Sons.
Dunjó, J., Fthenakis, V., Vílchez, J. A., & Arnaldos, J. (2010). Hazard and operability (HAZOP)
analysis. A literature review. Journal of hazardous materials, 173(1), 19-32.
Penner, M. A. (2014). Incommensurability, incomparability, and rational world-
choice. International Journal for Philosophy of Religion, 75(1), 13-25.
Risk management. (2017). Retrieved February 09, 2017, from
https://en.wikipedia.org/wiki/Risk_management
van der Meer, J. W. (1988). Deterministic and probabilistic design of breakwater armor
layers. Journal of Waterway, Port, Coastal, and Ocean Engineering, 114(1), 66-80.
Wilde, G. J. (1982). The theory of risk homeostasis: implications for safety and health. Risk
analysis, 2(4), 209-225.