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1/14 Risk: Theory and Application
            However,  an  informal approach to risk management does   strengths and weaknesses, including costs ofthe evaluation and
          not hold up  well to close scrutiny, since the process is often   appropriateness to a situation:
          poorly documented and not  structured to  ensure objectivity
          and consistency of  decision making. Expanding public  con-   0  Checklists
          cerns over human safety and environmental protection have   0  Safety review
          contributed  significantly  to  raising  the  visibility  of  risk   Relative ranking
          management. Although the pipeline safety record is good, the   0  Preliminary hazard analysis
          violent intensity and dramatic consequences of some accidents,   0  “What-if” analysis
          an aging pipeline infrastructure, and the continued urbaniza-   HAZOPstudy
          tion  of  formerly rural  areas has  increased perceived,  if not   FMEA analysis
          actual, risks.                             0  Fault-tree analysis
            Historical (Informal) risk management, therefore has these   Event-tree analysis
          pluses and minuses:                        0  Cause-and-consequence analysis
          Advantages                                 0  Human-error analysis
          0  Simplehtuitive                            Some of the more formal risk tools in common use by the
            Consensus is often sought                pipeline industry  include some of  the  above  and  others as
          0  Utilizes experience and engineering judgment   discussed below.
          0  Successful, based on pipeline safety record
          Reasons to Change                            HAZOP. A hazard and operability study is a team technique
          0  Consequences of mistakes are more serious   that  examines all  possible failure  events and  operability
                                                       issues through the use of keywords prompting the team for
            Inefficiencies/subjectivities              input in a very structured format. Scenarios and potential
            Lack of consistency and continuity in a changing workforce   consequences are identified, but likelihood is usually not
            Need for better evaluation of complicated risk factors and   quantified  in a  HAZOP.  Strict discipline ensures that all
            their interactions
                                                       possibilities are covered by  the team. When done properly,
                                                       the  technique  is very  thorough  but  time consuming  and
          Developing a risk assessment model           costly  in  terms  of  person-hours  expended. HAZOP  and
                                                       failure  modes  and  effects  analysis  (FMEA)  studies  are
          In  moving  toward  formal risk management, a structure and   especially useful tools when the risk assessments include
          process  for  assessing  risks  is required.  In  this  book,  this   complex facilities such as tank farms and pump/compressor
           structure and process is called the risk assessment model. A   stations.
           risk assessment model can take many forms, but the best ones   0  Fault-tree/event-tree  analysis. Tracing  the  sequence  of
          will have several common characteristics as discussed later in   events backward from a failure yields afault tree. In an event
          this chapter. They will also all generally originate from some   tree, the process begins from an event and progresses for-
          basic techniques that underlie the  final model-the   building   ward through all possible subsequent events to determine
           blocks.                                     possible  failures.  Probabilities  can  be  assigned  to  each
            It is useful to become familiar with  these building blocks   branch and then combined to arrive at complete event proba-
           of  risk  assessment  because  they  form  the  foundation  of   bilities. An example of this application is discussed below
           most models and may be called on to tune a model from time   and in Chapter 14.
           to  time.  Scenarios, event trees,  and  fault trees  are the  core   Scenarios. “Most probable” or “most severe” pipeline failure
           building  blocks  of  any  risk  assessment. Even  if  the  model   scenarios are envisioned. Resulting damages are estimated
           author  does  not  specifically  reference  such  tools,  models   and mitigating responses and preventions are designed. This
           cannot be  constructed without at least  a mental process that   is often a modified fault-tree  or event-tree analysis.
           parallels the use  of these tools. They  are not,  however, risk
           assessments  themselves.  Rather,  they  are  techniques  and   Scenario-based tools such as event trees and fault trees are
           methodologies we use to crystallize and document our under-   particularly  common  because  they  underlie  every  other
           standing of sequences that lead to failures. They form a basis   approach. They  are always used,  even  if  informally or as a
           for a risk model by forcing the logical identification of all risk   thought process, to better understand the event sequences that
           variables. They  should not be considered risk models them-   produce failures and consequences. They  are also extremely
           selves, in this author’s opinion, because they do not pass the   useful in examining specific situations. They can assist in inci-
           tests of a fully functional model, which are proposed later in   dent investigation, determining optimum valve siting, safety
           this chapter.                              system  installation,  pipeline  routing,  and  other  common
                                                      pipeline analyses. These are often highly focused applications.
           Risk assessment building blocks            These techniques are further discussed in Chapter 14.
                                                       Figure 1.3 is an example of a partial event-tree analysis. The
           Eleven  hazard  evaluation  procedures  in  common  use  by   event tree shows the probability of a certain failure-initiation
           the chemical industry have been identified [9]. These are exam-   event, possible next events with their likelihood,  interactions
           ples of the aforementioned building blocks that lay the founda-   of  some possible mitigating events or  features, and, finally,
           tion  for  a  risk  assessment model.  Each  of  these  tools  has   possible  end  consequences.  This  illustration  demonstrates
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