Session 14 (risk Management, system safety, fault tree analysis, process hazard checklist, HAZOP).pd - Safety and Health For Engineers Roger L Brauer

Session 14 (risk Management, system safety, fault tree analysis, process hazard checklist, HAZOP).pd

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Safety and Health For Engineers Roger L. Brauer Safety & Health/MA/Apr'18
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Session #13 23 April 2019 Agenda System Safety Safety & Health/MA/Apr'18
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Risk Management Risk and Losses In life there are events that results in gains or losses for people and organizations. Most people do not want losses, although they will take a chance at achieving a gain in the face of some potential loss. Risk involves avoidance of losses and unwanted consequences as well as probability and potential for losses. Rowe defines risk as the potential for realization of unwanted, negative consequences of an event. Risk aversion is action taken to control or reduce risk. There are many definition of risk. For safety and health, a common definition of risk infers a quantitative concepts. Risk is the product of frequency and severity of potential losses. Frequency is the probability of occurrence of an event, such as once per week or once per year or once every 100 years. Severity is the potential loss when an event occurs. The loss may be expressed in human terms, such as loss of life, serious injury, serious illness, number of cancer cases, and so forth. The loss may also be expressed in financial terms, like dollars lost, cost to replace loss equipment, cost of downtime, or cost to replace facilities. Loss may be expressed in legal terms, such as claims, lawsuit, and liability. There are formal methods and risk management methods. Risk assessment and management applies to general operation of a business ultimately are financial. The idea of risk for a business has a broad meaning that implies any kind of detriment to a business. Companies apply risk to financial decisions, security or trade secrets and computer systems, and other potential losses. Risk also is used in dealing with losses associated with accidents, human error, and health exposures. It is the latter aspect of risk that this discussion addresses. Safety & Health/MA/Apr'18
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