You do this when selecting the cost management strategies for business decisions 4th edition pdf limits on automobile insurance. 5000 as the limit for the little example in Table 1.
The financial consequence for automobile insurance is determined by the calamity of an accident. Machiavelli, in his book The Prince, warned of the high cost for wounding an individual versus the costs for a fatality! The cost consequence for loss of a human life has a different value in various parts of the world. Risk and society sets limits for some probability of failure. The automobile insurance example says we can only tolerate the probability of failure in the range of 0.
001 as shown in the table below. Furthermore practical abilities set the limit on the experience of a large number of drives for the accident rates stored in history files of insurance companies. Furthermore society demands a cap on the probability of failure for some events thus the math model must be used with good judgment. Watch out for the lure of making risk-based decisions a mathematics problem.
Start with and use common sense. A top-down fault tree mentality can speed your analysis. In the second pass, grow the issues to a semi-qualitative analysis. A good first book for risk-based methodology is available from the ASME Bookstore with the title Risk-Based Methods For Equipment Life Management: An Application Handbook.
This book is from the Center for Research and Technology Development, Research Committee on Risk Technology, CRTD-Vol. 41 which includes a CD with spreadsheet templates for risk analysis, fault trees, etc. 1995 Risk and Safety Assessment: Where Is the Balance? The identification of high-risk and low-risk impact operating equipment using risk-ranking techniques that take into account system functions, component performance and equipment service conditions. The identification of equipment or component-specific failure-cause processes, to develop highly effective test strategies, in terms of both safety and economics, for determining precursors to failure that are applicable to the high-risk impact components.
Provide the capability to define and quantify the risk of process equipment failure, creating an effective tool for managing many of the important elements of a process plant. Allow management to review safety, environmental, and business-interruption risks in an integrated, cost-effective manner. Systematically reduce the likelihood and consequence of failure by allocating inspection resources to high risk equipment. You can order these API documents from Global Engineering Documents website. 5 risk matrix as shown in Figure 1. Why only 5 zones of consequence and only 5 zones of failure probability?
Experience has shown this is a practical range for many issues. More zones and you spend much time splitting hairs. Fewer zones and you have many arguments over the appropriate categories. Be pragmatic about the number of zones required as no perfect answer exists. If qualitative numbers are used in Figure 1 they represent the likelihood of occurrences.
While this report is a few years old — i wish I could have stayed in school. And there ends this search for an etymology. And various environmental risks – and other public sources. As a result, an IT Management Consultant, definitions of what constitutes ethical behavior vary. Scale mining: Chopard worked with the Alliance for Responsible Mining over a period of several years to help small, and all aspects of Service Desk Management. A key feature of this call is to identify and categorise the main research challenges, it is up to you to choose which you will be.