Risk Management

Process risk management involves the systematic identification, evaluation and control of potential losses that may arise in existing operating facilities from future events such as fires, explosions, toxic releases, runaway reactions, or natural disasters. Whether resulting losses are measured in terms of direct costs, impacts on employees and/or the public, property and/or environmental damage, lost business, penalties or liabilities, the possibility of experiencing such losses is considered a risk. Even when effective capital project review systems have been used to design out many risks, there will still be a residual risk. Corporate managers must inevitably face these residual risks in dealing successfully with the everyday operation of their businesses and with the long-term planning of new ventures.
The practice of process risk management anticipates the possibility of process safety-related losses and evaluates their potential impacts so they can be managed effectively. Process risk management requires recognition of possible risks, evaluation of the likelihood of hazardous events, the magnitude of their consequences, and determination of appropriate measures for reduction of these risks. Thus process risk management is a practical instrument that can assist in business decision-making in the face of uncertainty.
A company should put in place management systems that will assure appropriate process risk management. These systems might include review and approval programs, risk acceptability guidelines, business-area risk reviews, pre-acruisition risk reviews and residual risk management.
Reference: CCPS(1989) Guidelines for Technical Management of Chemical Process Safety
Systematic application of management policies, procedures and practices to the tasks of analyzing, evaluating and controlling risk.
Reference: IEC-60300-3-9