CHEE4002 Mid Semester Quiz

• loss reduction


  reduces risks that result in negative outcomes
• risk optimisation


  minimize negative and maximize positive consequences
• key characteristics of risk management

  1. uncertainty in the future
  2. taking and managing risks is good
  3. managing risks - collecting intelligence, forming perceptions, making decisions, taking action
• ISO31000


  international standard that guides risk management
• 6 concepts of risk management

  1. risk is the uncertainty that matters
  2. risk includes both threats and opportunities
  3. zero risk is unachievable and undesirable
  4. risk has 2 key dimensions - probability/frequency and impact/consequence
  5. understand both dimensions
  6. affected by perception
• hazard 


  potential source of harm
• threat


  something that releases a hazard
• opportunity


  something that can lead to the exceedance of objectives or produce better than expected outcomes
• risk analysis


  estimation of likelihood and consequence
• risk evaluation


  deciding if a risk is acceptable or tolerable
• control


  device or action that will arrest and mitigate an unwanted event. it is specifiable, measurable, and auditable
• control management system


  ensure that a control is implemented, maintained, and operating effectively
• how is the scope of risk management determined?

  using the PLEATESO framework (people, location, equipment, activities, timeframe, environment, scenarios, other assumptions)
• how is risk analysed qualitatively?


  using the PESTLE framework (political, economic, social, technical, legal, environmental)
• how are risks analysed quantitatively?

  risk register, risk matrix, QRA
• extension of risk treatment

  • treatment identification
  • control analysis
  • implementation assurance
• inherently safe design

  advises that risks should be treated first by eliminating, isolating, or minimising hazards, then removing threats by optimising risk controls
• strategic risk

  • created by the business strategy
  • made by board or senior executives
  • very significant impacts
• operational risks

  • affects the organisations ability to deliver the strategic plan
  • made by staff managing and delivering the operations
  • minor to very significant impacts
• risk assessment techniques to address technology failures

  • Failure Mode Effects Analysis (FMEA) - identify system components
  • Fault Tree Analysis (FTA) - quantifies the risks
  • Event Tree Analysis (ETA) - consequence diagrams with probabilities
• risk assessment techniques to address human error

  • HAZOP - identify and assess risk
  • Bowtie - determines if there are adequate controls
  • Swiss cheese
• resilience engineering approaches

  • Functional Resonance Analysis Method (FRAM) - how variation leads to unexpected outcomes
  • Blended HAZID - representations of failure causality
  • Strategies Analysis for Enhancing Resilience (SAfER) - improves design
• risk management process

  1. risk identification
  2. risk assessment
  3. risk monitoring
  4. control
  5. review and evaluation
  6. learning and adaptation
• era 1 of human operators

  • localised, direct, physical control
  • high experience workers
  • equipment within sight and reach
  • manual intervention
• era 2 of human operators

  • regionally, automated, and electronically controlled
  • located away from equipment
  • more instrumentation readings
  • resolve safety problems to better match humans
• era 3 of human operators

  • globally interconnected
  • remote work and human-AI control
  • low levels of experiential learning, separated from real-life operations
• role of humans in risk management

  • risk perceiver
  • risk analyser
  • risk controller
  • risk communicator
• tolerant systems


  prevent and protect against adverse outcomes
• adaptive systems


  support and promote human performance
• low risk appetite

  • value protection
  • very few or no risks taken
  • overestimate hazards and threats
  • avoid failures
  • low level of innovation
• high risk appetite

  • value creation
  • many risks taken
  • underestimate hazards and threats
  • failures are a part of learning
• levels of situational awareness

  • Level 1 - perception of environment
  • Level 2 - comprehension of current situation
  • Level 3 - projection of future status
• risk identification techniques

  • HAZID - identify hazards and threats
  • Process hazard analysis (PRA) - describe consequences, assess impacts
  • Job hazard analysis (JHA)
• plant failure analysis techniques

  • Failure Modes Effects and Criticality Analysis (FMECA) - determine inherent risk rating using consequence AND likelihood
  • HAZID - determine inherent risk rating using consequence
  • HAZOP - identify safeguards (treatment)
• bowtie analysis


  visually represent controls and management systems with threats on the LHS and consequences on the RHS
• CAMS (control assurance management systems)

  describes activities required to monitor, maintain, and improve control performance:

  • operational support - signs, procedures, plans
  • maintenance - training, calibration
  • engineering - monitor, verify, audit
• characteristics of a control

  • is it a physical object, technology, or human action?
  • does it directly prevent an unwanted event?
  • is the performance specifiable, measurable, and auditable?
  • can you check to see if the element will work as required when required?
• characteristics of a support activity

  • does it minimise erosion of control?
  • is the activity specifiable, observable, and auditable?
• arresting controls

  • controls that minimise exposure to a threat
  • controls that detect and deflect threats
  • last chance intervention controls
• mitigating controls

  • controls that provide instantaneous protection
  • isolation/containment controls
  • recovery/restoration controls