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Sunday, 1 January 2012

RELATIVE RISK VS. ABSOLUTE RISK

The complexity of risk calculations is a function of the number of factors that can affect the risk. Calculating absolute risk can be very time and cost consuming and often, due to having too many uncertainties, is impossible. Many variables are involved with loss of containment in hydrocarbon and chemical facilities and the determination of absolute risk numbers is often not cost effective. RBI is focused on a systematic determination of relative risks. In this way, facilities, units, systems, equipment or components can be ranked based on relative risk. This serves to focus the risk management efforts on the higher ranked risks.

It is considered, however, that if a Quantitative RBI study is conducted rigorously that the resultant risk number is a fair approximation of the actual risk of loss of containment due to deterioration. Numeric risk values determined in qualitative and semi-quantitative assessments using appropriate sensitivity analysis methods also may be used to evaluate risk acceptance. (API RP 580)

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