Selection and Design of Cost-effective Risk Reduction Systems

摘要

With the many design requirements, recommendations, personal opinions, and company preferences, how does one determine a safe, cost-effective risk reduction design? A quick solution may be to incorporate all the potential safeguards that are identified, but that is neither practical nor cost-effective. Companies have turned to various methods to evaluate their mitigation options for fire, explosion, and reactivity hazards. Most methods simply identify the high-risk issues; they do not determine the most cost-effective risk reduction options. A method known as Cost-Benefit Analysis (CBA) is a consistent, objective, and systematic approach that can be used to determine: 1. Which risk reduction option is the most cost-effective 2. When you have reached the point of diminishing returns for risk reduction 3. Which options to mandate, keep optional, or reject in your design standards 4. What is the most effective approach to meet regulatory obligations Whether it is for a capital project, regulatory compliance, or to define standards, CBA is a proven method for cost-effective risk management. Three case studies are presented in this paper to illustrate the flexibility and benefits of this approach.