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DNV GL © 2015 14 June 2017 SAFER, SMARTER, GREENER DNV GL © 2015 14 June 2017 Introduction to Quantitative Risk Assessment 1 Webinar June 2017

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Page 1: Introduction to Quantitative Risk Assessment - DNV GL to Quantitative RisK... · Introduction to Quantitative Risk Assessment 1 ... and offshore assets 2 ... Guidelines for chemical

DNV GL © 2015 14 June 2017 SAFER, SMARTER, GREENERDNV GL © 2015

14 June 2017

Introduction to Quantitative Risk Assessment

1

Webinar June 2017

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DNV GL © 2015 14 June 2017

Kenny ShabaPhast and Safeti Product Manager

with extensive experience in

Technical Safety projects

(especially QRA) for both onshore

and offshore assets

2

Mark HunterChartered Engineer

in DNV GL’s Advisory business

10 years’ experience of safety related studies in the oil & gas

sector

SpeakersSpeakers

Page 3: Introduction to Quantitative Risk Assessment - DNV GL to Quantitative RisK... · Introduction to Quantitative Risk Assessment 1 ... and offshore assets 2 ... Guidelines for chemical

DNV GL © 2015 14 June 2017

For further inquiry, demo, test, training or quote,

please contact us:

3

Please use the chat window on Go to Webinar control panel

to send your questions.

The questions will be collected and handled during Q&A session at the end.

Please accept our apologies if we do not have time to answer

all your questions. In that case we will follow up with you

after the webinar.

Any questions during the webinar?

[email protected]

NotesNotes

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DNV GL © 2015 14 June 20174

Agenda

Drivers for QRA why QRA?01

03

05

02

04

06

Pros/Cons of QRA

Conclusion

What is QRA?

Challenges that QRA can help address/Applications of QRA

Doing a QRA –Practical considerations, best practices, pitfalls

Agenda

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DNV GL © 2015 14 June 2017

What is QRA?

5

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DNV GL © 2015 14 June 2017

What is Risk?

6

Commonly used definition…

The LIKELIHOOD and consequence of a specifiedundesired event occurring within

a specified period or under specified circumstances

R = f(L,C)

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DNV GL © 2015 14 June 2017

What is Quantitative Risk Assessment?

7

is a risk assessment methodology that allows

for numerical estimates of the level of risk

associated with a certain activity or series of activities to

be estimated and then assessed

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DNV GL © 2015 14 June 2017

What Can Go Wrong?Hazard Identification

How Big?Consequence Analysis

How Often?Frequency Analysis

So What?Risk Assessment

What Do I Do?Risk Mitigation

8

What is Quantitative Risk Assessment?

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DNV GL © 2015 14 June 2017

Typical QRA Outputs

Individual Risk Societal (Group) Risk

– “Relationship between frequency and the number of people

suffering from a specified level of

harm from the realisation of

specific hazards”

9

1 in 1,000

1 in 10,000

1 in 1,000,000

1 in 100,000

1 in 10,000,000

UNACCEPTABLE RISK

BROADLYACCEPTABLE

RISK

Riskiest Industry

Traffic Accident

(driving 10h per week)

SafestIndustry

Struckby lightning

Solo rockclimbing

(5 hr per week)

HeartDisease

Smoking(10 cigarettes

per day)

Accidentat home

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DNV GL © 2015 14 June 2017

Typical QRA Outputs – Individual Risk

10

0.00 0.20 0.40

km

LSIR

Location Specific Individual Risk

IRPA

Individual Risk Per Annum

“1 in 10 000/Yr” or “10-4/Yr”

“1 in 100 000/Yr” or “10-5/Yr”

“1 in 1 000 000/Yr” or “10-6/Yr”

“1 in 10 000 000/Yr” or “10-7/Yr”

10-8/Yr

10-9/Yr

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DNV GL © 2015 14 June 2017

Individual Risk – ALARP Principle

11

NEGLIGIBLE RISK

Unacceptable region

The ALARP or Tolerabilityregion(Risk is undertaken only ifa benefit is desired)

Broadly acceptable region(No need for detailed working todemonstrate ALARP)

Risk cannot be justifiedsave in extraordinary

circumstances

Tolerable only if risk reduction isimpracticable or if the cost is grosslydisproportionate to the improvement

gainedTolerable if cost of reduction would

exceed the improvement

Necessary to maintain assurancethat risk remains at this level

LOW RISK

HIGH RISK

MaximumTolerableCriterion

Desirable Target

ALARP – As Low as Reasonably Practicable

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DNV GL © 2015 14 June 2017

Individual Risk Criteria – Global Examples

Country 2 Bands 3 Bands

UK: Safety Cases/Reports

UK: Land Use Planning

Netherlands

Belgium: Flanders

Hong Kong

Brazil (3 states)

Singapore

Malaysia

Australia: Western Australia

Australia: New South Wales

Australia: Queensland

Australia: Victoria

Canada

France

Switzerland

USA: Federal Agencies

USA: Santa Barbara County, CA

USA: New Jersey

IMO

Abu Dhabi

3 bands

2 bands

Intolerable

Tolerable

Intolerable

ALARP

ALARP

12

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Typical QRA Outputs – Societal (Group) Risk

13

FN Curves

Frequency/Number of fatalities

PLL

Potential Loss of Life

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DNV GL © 2015 14 June 2017

Sample Societal Risk Criteria (Upper Limit)

UK HSE

RdJ & RGdSVictoria

Hong KongSão P & WA existingFlanders

Santa BarbaraNetherlands & CHWA newNSW

1 100010010 10000

10-2

10-3

10-4

10-5

10-6

10-7

10-8

10-9

Fre

qu

en

cy (

/year)

of

N o

r m

ore

fata

liti

es

Number of fatalities, N

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Drivers for QRA

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Drivers for QRA

16

NRC WASH-1400 Reactor Safety Study

?

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DNV GL © 2015 14 June 2017

Drivers for QRA

17

Decisionsupport tool

Core processsafety methodology

Key to Risk Regulation

Today, QRA is a …

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Challenges that QRA can help address? /Applications of QRA

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Examples of QRA Applications

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Equipment Design

Technology Option

Selection

Land Use Planning

Quantify the benefit of mitigation measures

Safety Case Development

Life Cycle Asset Risk Management

• Design• Construction• Operations • Decommissioning

Escalation Assessment

Layout Optimization• Site• Equipment

Insurance

Cost Benefit AnalysisDecision

Support

Operational Risk

Management

Compliance (Legal

Requirement)

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Example of Cost Benefit Analysis

Base

Risk

Cost

1 2 3 4

1 Cost a lotLittle reduction in risk

2 Cost a littleLittle reduction in risk

3 Cost is moderateModerate reduction in risk

4 Cost is relatively littleLarge reduction in risk

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Pros/Cons of QRA

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Pros of QRA

2222

Identify Risk Drivers

Enables risk (various)

to be quantified

Visual Depiction of

Risk

Understanding an

Engineered System

Offers an

objective/rational

approach to risk

assessment

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Strengths of QRA - Understanding an Engineered System

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“The key benefit of estimating risk lies in the achievement of detailed understanding

of the engineered system and the implications of various siting and technical

options”. (Royal Society, 1999)

Hazard

• Flammable material

• Toxic material

Environment

• Weather• Ignition• Explosion

sources

Receptor

• People

• Assets

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DNV GL © 2015 14 June 2017

Strengths of QRA – Visual Depiction of Risk

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0.00 0.20 0.40

km

“1 in 10,000/Yr” or “10-4/Yr”

“1 in 100,000/Yr” or “10-5/Yr”

“1 in 1 000,000/Yr” or “10-6/Yr”

“1 in 10 000,000/Yr” or “10-7/Yr”

10-8/Yr

10-9/Yr

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Strengths of QRA – Identify Risk Drivers

25

“The process of undertaking a QRA can lead to a better understanding of the important features contributing to risk and weaknesses in the systems as well as allowing a numerical estimate of the residual risk to be derived” (HSE, 1999)

Risk at Control RoomBreakdown by Scenario

Scenario 1 Scenario 2

Scenario 3 Scenario 4

Risk at Control RoomBreakdown by Hazard Type

Toxic Explosion Jet Fire

Pool Fire Flashfire Fireball

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Cons of QRA

2626

Uncertainty in the risk

estimates

Addressed by adopting a

conservative approach

Highly specialised

activity

Expertise e.g. DNV GL is

available

Susceptible to “GIGO” Expertise is key

Cost/time intensive

Addressed by software tools

such as Safeti reduce the

analytical burden approach

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Doing a QRA – Practical considerations, best practices, pitfalls

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DNV GL © 2015 14 June 2017

QRA is akin to predicting the weather…

Goal is to predict the weather based on

available data, models

Accuracy is dependent on a range of

factors:

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Key Considerations for QRA

29

Choice of Software application Competency of resources

Quality ManagementUncertainty

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DNV GL © 2015 14 June 2017

Practicalities

Do I need a QRA?

– Is it appropriate for my site?

– How will I use the results?

– Regulatory requirements?

Information needed?

Can I do the QRA myself or do I need someone else to do it?

– Capabilities/competencies

– Software

– 3rd party assurance (may be regulatory requirement)

– Maybe mix both in-house and external

Documentation – the QRA should be well documented (all assumptions etc.)

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DNV GL © 2015 14 June 2017

Software Applications for QRA

Many solutions exist, most are in-

house proprietary and Microsoft

Excel® based (i.e. spreadsheet

models)

Commercial quality QRA software is

available e.g. Safeti/Safeti Offshore for

on/offshore QRA respectively

– High quality, integrates codified best

practice and industry standards

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How to check a QRA Study/Report for quality etc.

Independent checks - verification

Validation versus comparable assets

Specifically, check:

– Main risk contributors – are they as expected and consistent with experience?

– Consistency of:

– Individual versus Societal risk

– FN Curve and PLL

– FN Curve and individual risks

32

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DNV GL © 2015 14 June 2017 Slide 33

The need to dig deeper: Hazards With Same PLL

1.0E-06

1.0E-05

1.0E-04

1.0E-03

1.0E-02

1.0E-01

1 10 100 1000

Number of Fatalities

Fre

qu

ency

of

Exc

eed

ance

FrequencyNo of

fatalitiesPLL

1 per 10 years 1 0.1

1 per 100 years 10 0.1

1 per 1000 years 100 0.1

1 per 10000 years 1000 0.1

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Conclusion

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Conclusions

What is QRA?

Why/ how is it done?

What is it used for?

35

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DNV GL © 2015 14 June 2017

Useful resources on QRA and Risk Analysis

American Institute of Chemical Engineers. Center for Chemical Process Safety,

2000. Guidelines for chemical process quantitative risk analysis (Vol. 1). Wiley-

AIChE.

CPR (1999) CPR18E “Purple book”. Sdu Uitgevers, Den Haag, 1999

HSE (1999) Reducing Risks, Protecting People

McQuaid, J (2007) “A Historical Perspective on the Tolerability of Risk” in “Bouder,

Frédéric, and David Slavin. The tolerability of risk: a new framework for risk

management. Earthscan, 2007”.

Royal Society (1992) Royal Society Study Group on Risk “Risk: analysis, perception and management” - report of a Royal Society Study Group. London:

Royal Society , 1992.)

OECD (2003) “OECD Guiding principles for Chemical Accident Prevention, Preparedness and Response”. OECD

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Q&A

37

Page 38: Introduction to Quantitative Risk Assessment - DNV GL to Quantitative RisK... · Introduction to Quantitative Risk Assessment 1 ... and offshore assets 2 ... Guidelines for chemical

DNV GL © 2015 14 June 2017

For further inquiry, demo, test, training or quote,

please contact us:

38

Webinar recording, presentation slides, together with a Q&A

document will be sent to all registered delegates in ~ 2 wks

Any further questions can be sent to [email protected]

[email protected]

NotesThank you for attending