Quantified Risk Assessment

Ans : “ Risk is the potential for realization of the unwanted consequence of an event.” As said by Row WD (1997), An Anatomy of Risk, Wiley Interscience New York, p.24.

As the risk is defined as the frequency by which an uncertainty that an adverse outcome of a particular size will occur and the parameters describing risk will enable to describe uncertainty and adverse consequences. The consequence associated with risk can vary from minor to major . The minor consequence can be likely least and the major consequence can be likely worst.

Further ,uncertainty is measured by probability. The process leading to damage, injury is probabilistic- whether it will occur or not . If it occurs how severe will the damage be as a result of the risk. If

Quantified Risk Assessment(QRE) – It uses judgement based knowledge , experience or indicative value to estimate real number values of the risk variable. The risk in this case is estimated as a cost per year value. ISO 30000 2009 uses cost – benefit analysis for QRA.

3. Quantified Risk Analysis(QRA) – QRA uses judgement, experience or indicative values to synthesize real number values of the risk using logic number such as fault tree analysis or ETA. ISO 30000 -2009 8.13 uses fault tree analysis and ISO 30010 B.17 uses the cause-effect analysis for such type of risk

Risk is the relationship between frequency and consequence value where risk can vary from minor to major (likely least to likely worst) . The units of risk can be defined as :

Frequency (bushfire event per year ) x Consequence value ($ per delay event) = Risk ($ per year)

With risk measured in this way is termed as loss. Loss can be defined as the money spent with no favourable or productive outcome. It is expresses as ($ per year) figure. The difference is that loss is actually experienced whereas risk is the loss which may be experienced as an outcome. If the frequency of consequence is once per year we are talking about risk and if the frequency of consequence is more than once per year we are talking about loss.

There are several methods by which risks can be reduced by either reducing the probability of consequence or exposure to the circumstances. Probability reduction can be done by making existing control measures more reliable which can be done by considering either of the following:

1. The quality of design of equipment and facilities

2. The condition of equipment and facilities

3. The way the operations are planned and organised.

4. The way operations are