June 2011

Columns

HP Automation Safety: Is it possible to communicate risk issues successfully?

A safety project has a better chance of being approved if the person making the payback decision understands the concept of “risk cost.” If there is a likelihood of a $1,000,000-cost event h..

Goble, W., exida LLC

A safety project has a better chance of being approved if the person making the payback decision understands the concept of “risk cost.” If there is a likelihood of a $1,000,000-cost event happening once every 100 years, then the risk cost/yr is $10,000. A project gets approved when the cost of the safety project is less than a reduction in risk cost. However, one big problem is that risk cost is well not understood by many people, and the concept is hard to explain. Often, the risk is estimated to be “noncredible,” therefore the risk cost is extremely low. Therefore, no risk cost reduction, no payback. One time when I tried to explain risk cost, I was asked, “Who do

Log in to view this article.

Not Yet A Subscriber? Here are Your Options.

1) Start a FREE TRIAL SUBSCRIPTION and gain access to all articles in the current issue of Hydrocarbon Processing magazine.

2) SUBSCRIBE to Hydrocarbon Processing magazine in print or digital format and gain IMMEDIATE ACCESS to the current issue as well as to 3 articles from the HP archives per month. $239 for an annual subscription.

3) Start a FULL ACCESS PLAN SUBSCRIPTION and regain IMMEDIATE ACCESS to this article, the current issue, all past issues in the HP Archive, the HP Process Handbooks, HP Market Data, and more. $1,695 for an annual subscription.  For information about group rates or multi-year terms, contact J'Nette Nichols-Davis at  jnette.davis-nichols@gulfpub.com or +1 713.520.4426.

Related Articles

From the Archive

Comments