Risk Assessment, Failure Modes and Effects Analysis - Assignment Example

Your Name Course Number Tutor’s Name Date Table of Contents Contents Table of Contents 2 Contents 2 Abstract 4 Risk Assessment Drivers 8 The Regulatory Reform (Fire Safety) Order 2005 8 HSR Five steps to Risk Assessment 9 Search for any risks 10 How the harm can take place and the people who might become harmed 10 Risks evaluation and determination of whether the current safety measures are sufficient or they require improvement 10 PAs Fire hazard Assessment 12 Fire Protection Association 13 Failure Modes and Effects Analysis (FMEA) 14 SEVESO 15 Types of Fire Risk Assessment Methods 16 Semi-Quantitative Methods 16 Event Tree 16 Fault Tree 17 LOPA (Layer of Protection Analysis) 17 HAZOP (Hazard and Operability) Methodology 18 The HAZOP Process 19 The Preliminary Hazard Analysis (PHA) 19 Checklists 21 Risk Matrices 22 Quantitative methods of risk analysis 23 Markov Chains 23 Mote Carlo Simulation 24 Decision Analysis in risk Assessment 24 Expected Monetary Value 24 Minimax Regret Principle 25 Insurance and reinsurance 25 Utility Function 25 SEVESO Directive Diagram 28 Works Cited 29 Risk and Hazard Assessment Abstract Risk and Hazard management refers to the practice used in the identification of possible risks and activities that can harm an organization, people, church, governments, as well as the society to establish several mitigation practices that can assist in the reduction or elimination of the impacts caused but the risk to the persons involved (Douglas 234). The purpose of this paper includes discussing different risk and hazard assessment methodologies as well as management approaches. It will also explore various hazard management methods citing examples for each. Some of these methodologies include; the SWOT analysis, HazOp, PHA, FMEA, fault tree, event diagrams. Lastly, the paper will enumerate the merits and demerits of every hazard analyses as well as discuss the funds allocation methodologies utilized in risk and hazard management. Before carrying out any step in hazard and risk management, it is important to consider the formation of a tick list blueprint. Tick list Layout When managing any risk, it is very important to create a list of practices that will happen during an outbreak of a disaster. This will provide a short requirements list that can be utilized during the outbreak of any catastrophe. Below is a tick list example that organizations can apply during hazard management Figure 1: Tick list diagram No Actions Tick 1 Is the required method utilized in the risk management defined s 2 Are the people responsible for the maintenance and keeping of hazard management logs available 3 Is the project team familiar with the practices utilized in risk submission that might delay all activities involved in project completion 4 Do all team members possess the hazard management log 5 Do all project stakeholders have the hazard management logs 6 Is the relevant information sufficient for easier comprehension of the hazard, the possibility, as well as the risk impacts 7 Are all pertinent risk activators defined and are they will recorded 8 Are the risks identified as priorities The various hazard assessment methodologies as well as management practices in organizations will be discussed below; 1) SWOT Analysis For proper hazard management, appropriate scrutinizing and audit citation is very important in an organization to measure its strengths, weaknesses, threats, and opportunities (Taylor and Francis 256). When an organization is internally examines, it provides the management with the opportunities required in preparation of any eventuality that can materialize. i. Strengths The strengths of any organization include its distinctive capabilities that cannot be located in other organizations as well as potential rivals. Examples of strengths include Competent experts that can tackle different risks such as fire outbreaks or landslides. Our company possesses this distinctive ability. Region accessibility such that the organization is located in a spacious setting where consumers from every direction can access Effective risk management equipments and powerful tools Suitable management configuration that is less technical to permit faster and simpler reaction to disasters. It is important for organizations to make their strengths ideal to maximize their income ii. Weaknesses Weaknesses include all shortcomings that affect an organization thus making it incomplete in an industry. Examples of weaknesses include; Outdated requirements Few catastrophe response teams that fail to cover an area An organization should analyze its shortcomings and set safety measures such as frequent machine servicing, repairs to reduce production failures. iii. Threats Threats include all prospective dangers that can affect an organization thus leading to business closure. They include Firm competition from overseas’ rivals Unrefined materials depletion Price wars that makes our organization to lower its prices thus recording lower profits In any case that the business identifies some prospective threats, the administration must move fast in an effort to prevent their happening. To curb new entrant threats, the management should utilize the price wars strategies, which involves lowering the prices thus making the rivals for suffer losses. iv. Opportunities Opportunities refer to unexploited scenes whereby an organization may decide to venture and create profits. They can also be referred to as security modes whereby any business can extend its risks thus minimizing the total impact that the business is getting from hazard occurrence. Examples of opportunities include Cheaper unrefined materials Expansion to foreign markets Extensive unexploited markets that our organization can utilize to develop its consumer base Research indicates that extensive market for any product plays a huge role in risk minimization especially lest sales reduction of products. The organization can choose to extend its market to thwart sales reduction because of demand reduction in a certain market. PESTLE Analysis It is important for the organizations to scan its environment to prove and assist its management in analyzing all the outside forces impacts that are above its control. Such factors include; environmental impacts, legal impacts, technological shifts, social environment, economic environment, and political environment. a) Environmental aspects Organizations that involve themselves in production practices should make sure that they unpolluted the ecology by upholding appropriate disposal practices. b) Legal Aspects An organization should fulfill the legal requirements of the country where it operates. It should also obey the employment contracts, health requirements, as well as ecology regulation regulations. c) Technological Aspects Technology tends to be vibrant and changes every day; therefore an organization should modernize its technology. This ensures effective production as well as cost proficiency in its manufacturing activities. For instance, organizations that manufacture computers must be up to date with constant technological changes otherwise their products can become obsolete. d) Social Aspects Demographic allocation of a population plays a huge role in determining product quality and type. Religious values and customs also tend to play a huge role when considered since they affect the purchasing patterns. Population allocation also affects a product’s performance at the marketplace. Social aspects can create risks to the company especially in markets dominated by the youths since they may be unwilling to adopt pension plans. e) Economic Environment Rated of lending affects the finance and borrowing costs in any nation. Liberal markets that permit market powers to measure prices alone draws many shareholders compared to control markets. Economic aspects play significant roles in business threat analysis. During planning, the management must play part in budget inflation rates. Exchange rates are also important because they mostly cause huge risks to organizations especially in organizations that import their raw materials. Alternatively, the organization must sell its products according to the level of income of the market in order to prevent the risk that can materialize because of elevated prices thus delaying consumer affordability. f) Political Environment Political steadiness and government bylaws affect the business performance in various ways. The impacts of tax directives of an organization and unsound political settings cause huge risks to the organization. However, such risks include elevated taxes that can compel the organization to augment its outlays as the levy rate augments thus resulting into decline in the organizations goods and services demand. Risk Assessment Drivers The Regulatory Reform (Fire Safety) Order 2005 The Regulatory Reform (Fire Safety) Order 2005 necessitates the liable individual to perform an adequate and appropriate assessment of the premises risks. Joseph posits that the assessment form depends on the premises size or type or the responsibility concerned (728). What tends to be appropriate and enough for one premises type may be different for a different premises. The assessment nature varies depending on the premises utilization or nature, the premises user, as well as the risk linked to that utilization. In every situation, the factor to consider would entail whether the fire risks have been recognized, risk alleviation and diminution performed, and outstanding risk suitable safety measures projected or put into action. Assessment of risk must be analyzed often by liable individuals to improve it, keep it applicable, and replicate any important changes, which may have occurred. Risk review should be documented in places with more than five employees. A fire insurance program should be used to record test records on the fire protection system maintenance as well as the required training. In The Regulatory Reform (Fire Safety) Order 2005, all earlier fire laws tend to be revoked and issuance of fire documentations will not be issued. It also states that every private organization must take responsibility of their fire protection such that they must carry out their own fire review in spite of the risk size. The well-known liable individual would thus take complete corporate responsibility. The document also indicates that the absolute scale of contemplation should consist of property protection, site environment, and the safety of the fighter. This indicates that permitting any construction to be forfeited is not acceptable because it will also affect nearby buildings as well as the inferno fighters. The liable person also has the duty of protecting the blaze team. HSR Five steps to Risk Assessment Risk assessment entails careful scrutinizing of the things that can cause destruction to individuals in order to determine whether an organization or a person has take adequate safety measures or must improve to avoid harm. However, some of the steps that will be followed to assess a risk are discussed below; Search for any risks For people who are carrying out the assessment on their own, they should travel around their places of work and search again the things that could cause destruction. They must overlook the trivial and focus on important risks that could lead to severe harm or have an effect on many people. In offices, managers/supervisors should ask their staff members or agents about their thought on this issue. The people could have seen unusual things. Manufacturer’s data leaflets and instructions play a huge role in spotting risks as well as putting them into their actual perspective. How the harm can take place and the people who might become harmed During assessment of risks particularly at the work places, employers should not forget young employees, trainees, fresh, as well as pregnant women who can be at a certain risk (Diamantidis 34). They should also not forget maintenance staff, contractors, guests, and cleaners who most of the time keeps moving from one place to another in the company. Public members as well as employees should not be forgotten because there are chances that they may be hurt in case of a fire incident. Risks evaluation and determination of whether the current safety measures are sufficient or they require improvement According to Hallenbeck, during risk review, an organization must determine the possibility of harm on every hazard (156). This will assist in determining whether the organization require more activities that should assist in risk reduction. Even after the execution of all safety measures, other hazards generally linger. However, these organizations must determine whether the risk is low, medium, or high. First, they must ask themselves whether they have carried out all the lawful stipulations. For instance, there exist legal necessities that prevent people from accessing dangerous machinery parts. Second, they should then ask themselves whether commonly conventional industry principles are ready. After finding that some things requires to be carried out, they the organizations should draft a catalog of actions and offer precedence to the remaining hazards that are lofty or the ones that could have huge effects on many people. Third, when taking the actions, these organizations should ask themselves whether they can eradicate the risks altogether or how they can manage the hazards to avoid harms. Record the findings Organizations with less than five staff members do not require writing down their findings. However, big corporations should record their assessment findings. This indicates recording the important assessment findings as well as the conclusions. Examples include ‘Electrical fitting: earthing and insulation tested and established as sound. The organizations should also inform their employees concerning their findings. Risk review should be adequate and appropriate. The person carrying out the assessment must be able to indicate that a proper test was carried out, the person asked about the people who might become affected, whether he/she tackled the apparent considerable risks considering individuals who would be implicated. The record should also be maintained for prospective usage or reference. Reviewing the assessment and revising it as well if required With time organizations tend to purchase new equipment, substances as well as procedures that can cause new risks. In case of significant changes, the organizations should append to the review to take into account to new risks. They should avoid amending their assessment for all inconsequential changes. However, it is important to assess their appraisals often to ensure that the safety measures work effectively. PAs Fire hazard Assessment In 2005, PAs Fire Risk Assessment_ Guidance and a suggested method was first printed and then another edition occurred in 2007. This publicly accessible specification starts a method used to undertake assessment of fire risks. Although the standard did not originate from Britain, the BSI (British Standard Institution) became the publisher. Its preparation took place through the help of C. S. Todd and Associates LTD as well as the Northern Ireland Fire Safety Panel. PAs Fire Risk Assessment is purposely designed to ensure that every necessary data associated with the assessment of fire hazard and the findings are documented. The manuscript enables organizations to perform an assessment on fire hazard as well as record the important findings originating from the review because they are important to existing fire regulations. PAs Fire Risk Assessment also starts one method of performing an assessment on fire hazard. It is designed to be utilized in the production of effortless qualitative fire risk assessment. It is designed for Service Company’s thus making sure that the person undertaking the assessment on fire hazard follows a well-known methodology as well as make sure that he/she generates a document with all important fire protection aspects. PAs Fire Risk Assessment can be used in premises such as hospitals, public meeting buildings, factories, shops, offices, restaurants, schools, university constructions, and public housing. The strategy strengthening PAs Fire Risk Assessment includes systematic assessment of the aspects, which measure the fire hazard, the possibility of an inferno, and the results. The diagram below illustrates such situation. PAs Fire Risk Assessment outlines nine different steps required to carry out an assessment on fire hazard. They include; i. Obtaining information concerning the premises, the activities that take place on the premise, and the individuals present or who are possible present. ii. Identifying the fire risks and their control or elimination means iii. Assessing the probability of an inferno iv. Determining the fire precautions in the premises v. Obtaining necessary information concerning fire protection management vi. Making review of the possible effects to persons in fire event vii. Making a review of the fire hazard viii. Formulation and documentation of a plan of action ix. Definition of the date where the assessment of fire hazard must be assessed. Fire Protection Association Fire Protection Association is a state fire protection organization located in the United Kingdom. After its establishment in 1946, the company started to recognize and concentrate on fire dangers as well as the means where their prospect for happening and failure is minimized. The association protect both property, environment, and people by improving fire deterrence and fortification techniques. It also pool resources with the fire service, main government, as well as other organizations. The company also influences business and consumer-related management. It also gathers, analyzes, and prints statistics, recognize trends as well as offer research. Lastly, the organization assists in the dissemination of information and advice. Failure Modes and Effects Analysis (FMEA) FMEA (Failure Modes and Effects Analysis) is mostly utilized in various businesses for hazard management, where effortless risk quantification is inadequate, and whereby identification of risk causes origin as well as mitigation means are vital (Carlson 267). FMEA is very important equipment used for services, processes, and designs development. FMEA goal include aligning a hazard with its origin. This allows the measurement of a risk’s original cause and facilitates different ways of detecting the rate of a certain failure as well as providing alternatives to alleviate or prevent a certain failure’s effects. Better FMEA method facilitates documentation and identification of the future failure to measure the actions, which would reduce severity, occurrence, and augment detection. Mario stipulates that throughout FMEA, every step is evaluated for future failure prospects: the ultimate product value/ patient protection effect as well as efficacy because of every prospective failure opportunity are subsequently measured (190). They are then changed based on detecting or mitigating capabilities, to arrive at an absolute assigned risk score. The hazard for very failure is often put in a hazard score template/matrix that guarantees easy priority determination. A sketch of Failure Modes and Effects Analysis is given below Process Failure method Failure consequences severity causes Occurrence R PN Actions Target completion dates and responsibility Action taken S E v O C C Function of every step explain what might go wrong The reason behind the failure Existing controls to prevent failure SEVESO SEVESO is an EU directive required in the premises that handle hazardous substances, to tackle all events necessary in the prevention of key accidents as well as limiting their results for the environment and people. SEVESO 2 contains three control layers namely premises that possess less than the recorded quantity of the recorded substances; premises with less amount or more than in the premises; and locations with a big material quantity. However, the first type of locations is managed through the standard safety and health regulations as well as ecological controls. In addition, the second and third locations must meet every requirement in SEVESO 2 with substances transport, military premises, and nuclear risks exceptions. The last page will show a SEVESO diagram. Types of Fire Risk Assessment Methods Fire hazard assessment methodologies can be categorized into various groups namely indexing, probabilistic methodologies, checklists, and narratives. Semi-Quantitative Methods Event Tree In the assessment of fire risk, both fault tree and event tree have been utilized to quantitatively and qualitatively evaluate fire hazard as well as the entire fire fortification system safety. Although technological advancements have occurred, people and organization still employ these models to assist in performing some prelude or thorough activities such as fire situation selection and estimation of fire safety elements reliability. For instance, in the dispatch department of our organization, there was a machine breakdown that occurred before any activity could take place. However, the source of machine breakdown must be scrutinized first, its causes as well as how it can be solved. Possible reason Failure to service the machines Power scarcity Worn our parts Overworked machines Failure to follow regulations and rules of machine operation Possible Solutions Power backings Machines servicing Replacement of weary parts Placing time limitations on working machines Fault Tree Project supervisors use Fault trees to analyze risks. They just break risks into their contributing elements and then into tree-like presentations. Below is an example The factory suffered from fire leakage on Monday Yes The set rules and regulations govern the factory No Over three individuals are employed in the manufacturing department Yes Generators supply additional power in the organization Yes LOPA (Layer of Protection Analysis) Center for Chemical Process Safety and American Institute of Chemical Engineers stipulate that LOPA (Layer of Protection Analysis) falls under the semi-quantitative risk assessment methodologies (27). The risk assessment methodology tends to be more intensive compared to HAZOP although less time-rigorous compared to QRA (Quantitative Risk Assessment). LOPA assess risks through magnitudes orders of particular accident situations and develops information established in qualitative risk evaluation. The major steps in the LOPA procedure include a) Documentation of every reference records as well as risk analysis reports, pressure reprieve regulator design, assessment documentations, and safety level design reports. b) Documentation of the procedure deviation and risk scenario under team consideration. The team must concentrate on a certain risk scenario like lofty pressure from conduit rupture. c) Identification of every instigating reason for the procedure deviation and determination of every instigating cause frequency. The group must record all instigating origins of the risk event like flow management loss, pressure management loss, and excess response. The frequencies of the instigating cause must be founded on standards-acquiescent and business-acknowledged malfunction rate statistics for every machine, person, or system. d) Determining the result of the risk event. This assessment should consist of a safety test, economic, and environmental failures. Ecological and safety impacts should under mitigation for EPA RMP and US’s OSHA PSM. e) Documentation of independent protection layers (IPLs), which can fully alleviate all programmed instigating causes. The independent protection layers should meet the requirements such as auditability, dependability, specificity, and independence. This indicates that IPLs should be fully autonomous from instigating causes. f) Providing particular implementable proposals. LOPA group recommendations should be considered as implementation options. HAZOP (Hazard and Operability) Methodology Kletz posits that the HAZOP method is founded on the fact that a group strategy to risk assessment will recognize more predicaments compared to when people working independently merge results (234). The HAZOP panel comprise of people with different knowledge and backdrops. The expertise is combined throughout HAZOP meetings as well as through a joint brainstorming undertaking, which encourages resourcefulness and fresh ideas. The HAZOP Process According to Tyler, Crawley, and Preston, the team involved with the HAZOP process concentrates on particular portions of the practice known as “nodes” (245). A parameter of the process is recognized such as flow, while a purpose is built for the nodes under contemplation. Apart from flow, the other definite parameters apart from flow include relief, level, instrumentation, composition, pressure, and temperature. Then, a guidewords sequence is mixed with “flow” to build a divergence. For instance “no” (the guideword), is mixed with the factor “flow” to offer a deviation such as “no flow.” Apart from flow, the other guidewords that can be used during this process include other than, reverse, as well as, less, and more. Then, the group concentrates on documenting all plausible causes of a deviation like “no flow” starting with the cause, which may lead to the worst likely result the group can contemplate on during that moment (Kletz 189). After documentation of the causes is accomplished, the group then records the results, securities, as well as other recommendations believed to be appropriate. This procedure is reiterated for the subsequent deviations until node completion. The panel shifts to the subsequent node at the same time repeating the same process (Tyler et al 278). The Preliminary Hazard Analysis (PHA) The PHA is referred to as a semi-quantitative assessment carried out to recognize every prospective risk and perilous events, which can cause accidents. It also ranks the identified risky actions according to their own severity. In addition, it recognizes necessary risk control and proceeding actions. Numerous PHA variants are utilized under diverse names like HAZID (Hazard identification) and Rapid Risk Ranking. The PHA can be used as a primary hazard study in a premature stage of an undertaking such as of an innovative plant. Energy release mostly causes accidents. PHA recognizes the areas that release the energy and the identifiable hazardous events, which may take place, and provides a rough approximation of very perilous event severity. The results of PHA play a huge role in comparing the major concepts, focusing on significant risk matters, and inputting to further full risk assessments. The PHA can also be utilized as a primary step of any detailed hazard assessment of a structure concept or a current system. Here, PHA identifies the hazardous measures, which must become subject to a more thorough risk assessment. Last but not least, the PHA is also utilized as an inclusive risk assessment of a somewhat uncomplicated system. Th PHA considers hazardous elements, security-associated edges between different system components such as software, ecological constraints such as operating settings. PHA scope also includes security-related tools, protections, and potential alternate strategies. The other scopes include system, software, and subsystems malfunction. Additionally, some of the PHA major steps include; a. PHA fundamentals b. Risk identification c. Frequency and consequence estimation d. Hazard ranking and proceeding actions A PHA spreadsheet is used to provide the preliminary hazard analysis results. An example of such spreadsheet is given below; Ref Hazard/Risk Accidental event Possible causes Preventive actions/Contingencies Probability Severity Comments Checklists In risk assessment, the organization can use a checklist to create a suitable action plan, the responsibility of liable individuals, their name, as well as timeframes that will guarantee that a harmless built setting is upheld for every person despite his or her abilities. Example of a checklist risk assessment Ref Policy Yes No Comments or evident signpost Decision or action Action by What Time 1 Does any emergency assessment strategy based on risk exist? 2 Does that strategy meet the requirements of the existing law or the top practice? 3 Do the premises supervisors know the strategy and implement it fully? 4 Is the strategy accessible in big print, tape, or Braille? 5 Do printed events for disabled people evacuation exist? 6 Do regularly tested events exist? 7 Do the events consider; walking through events, proclaimed drills, and unexpected drills? Risk Matrices Risk matrices can fall under the category of extensive tools for evaluation of risk (Cox 360). The organization can utilize them when determining the risk size as well as whether to sufficiently control the risk or not. However, a risk matrix contains two main dimensions. It focuses on the severity or probability of an unnecessary event. Both dimensions build a matrix. Severity and probability combination provides an event with a position at the risk matrix. Risk matrices possess in any case three fields namely a) The high severity or probability (red shades) that signifies whether an event requires more management measures to bring down the severity or possibility. b) The low severity fields or low probability (green shades), which shows that the risk of the event may not be soaring enough or sufficiently managed. c) The average grouping (yellow shades) occurs between the high and the low areas. Events that fall under this field is mainly judged as a filed, which requires monitoring, although is managed as ALARP (As Low as Reasonably Practicable) (Melchers 207). Quantitative methods of risk analysis Markov Chains According to Tony, Markov Chains are used to answer probability questions during risk assessment; an experiment outcome relies on the result of the prior experiment (189). The series of a test trial can be termed as a Markov Chain when the result of every experiment contain various detached states or the result of an test relies on the existing state rather than the prior states. The equilibrium vector for a Markov Chain states that the matrix P tends to be regular, then a distinctive vector V exists such that vn Pn ∞ V. Vector V tends to be the Markov Chain equilibrium or the fixed vector. Another thing is that Markov Chains become absorbing chains if two conditions occur; the sequence possess one absorbing condition or the possibility of shifting from a non-absorbing condition to any absorbing condition. Mote Carlo Simulation Monte Carlo Simulation is very important in the assessment and modelling of enhanced air transfer operations on security risk (Tony 179). In this methodology, the safety hazard assessment include Determination of the assessment objective including the security context, scope, and the level of assessment detail. The second step include identification of risks linked to the event The third step include creation of scenario The fourth step include identification of severities The fifth step includes assessment of frequency The sixth step include clarification of the protection hazard linked to every security relevant situation The seven step include identification of the major sources causing the risks Decision Analysis in risk Assessment Expected Monetary Value The EMV is a hazard management method, which the organization can utilize to assist in risk quantification and comparison in various phases of a project (Diamantidis 67). It is a quantitative hazard assessment technique because it depends on explicit quantities and statistics to carry out calculations instead of sophisticated estimations such as low, medium, and high. It also depends on two fundamental numbers P: It is the possibility that the hazard will happen I: it is the effect to the project in case of the risk occurrence Minimax Regret Principle The minimax regret criterion takes into account the consequences of choosing the incorrect alternative. For every nature state, the decision-maker locates the diversity between the best compensation and every other option and utilizes these assessments to build a regret/opportunity cost table. Next, that decision-maker recognizes the “maximum regret value” for every option and chooses the option with the “least utmost regret value.” Insurance and reinsurance Insurance and reinsurance are very important during hazard management. In reinsurance, an insurance organization purchases insurance from other companies to assist in hazard management. With insurance, the organization will able to transfer equity of a certain loss from entity to entity to receive compensation after a risk occurrence. Utility Function Utility is a decisive factor during decision analysis in risk assessment. Globally, many trades occur within people as well as nations. It is mainly compelled by endless human requirements. However, the utility function analyzes the human requirements nature. According to the demand law, a commodity demand augments with price decline. A contrary relationship tends to occur between price and demand. When prices declines many individuals can be able to buy a product thus shifting their interest to buy it, but elevated demand leads to short supply thus excess demand that forces high prices. Therefore, it is important to balance supply and demand to balance commodity prices in the marketplace. Alternatively, the supply law indicates that commodities supply augments with price increase thus the relationship between price and supply is direct. However, the risk involved in such a case is that when commodities supply become uncontrolled, then we have excess supply compelling the reduction of prices by suppliers. This will be explained by teh diagram below. Y-axis Demand P Eq Supply Eq: Equilibrium Point Q (X-axis) - Quantity (in units) P (Y-axis) - Prices in dollars ($) Merits and Demerits of various risk and hazard management methodologies SWOT Analysis Merits Providing management the chance of identifying other opportunities Giving organizations a chance to investigate and identify their strengths Easy and simply to carry out Time saving Demerits Failure to provide the scale of the hazard involved Failure to rank hazard in priorities order Failure to predict or offer the risk occurrence frequency PESTLE Analysis Merits Easy and simple to perform Provides the organization management with an opportunity of identifying several outside risks that are above the business control Assists in identification of potential risk prone areas so that the organization can shun such areas Cheap because it entails direct examination Demerits Failure to grade in priorities order Failure to offer risk occurrence frequency Failure to evaluate the business risk magnitude SEVESO Directive Diagram Works Cited Carlson, Carl. Effective FMEAs: Achieving Safe, Reliable, and Economical Products and Processes Using Failure Mode and effects Analysis. New York: John Wiley & Sons, 2012. Print. Cox, L.A. Jr., 'What's Wrong with Risk Matrices?’ Risk Analysis, 28 (2008): 345-378. Print. Center for Chemical Process Safety and American Institute of Chemical Engineers. “Layers of Protection Analysis: Simplified Process Risk Assessment.” New York, 2001. Print. Diamantidis, Michael. Risk Analysis versus Risk Acceptability in Major European Tunnel Projects”, Proceedings 1st Asia Pacific Conference on Risk Management and Safety, Hong Kong, 2005. Print. Douglas Hubbard The Failure of Risk Management: Why It's Broken and How to Fix It. New York: John Wiley & Sons, 2009. Print. Hallenbeck, William. Quantitative Risk Assessment for Environmental and Occupational Health. Chelsea, Mich.: Lewis Publishers, 1986. Print. Jon Maner and Norman Schmidt. The Role of Risk Avoidance in Anxiety. Behavior Therapy, 37(2006): 181-189. Print. Joseph Constans. Worry Propensity and the Perception of Risk. Behavior Research and Therapy, 39(2001): 721-729. Print. Kletz, Trevor. Hazop and Hazan (4th Edition ed.). New York: Taylor & Francis, 2003. Print. Tyler, Brian, Crawley, Frank and Preston, Malcolm. HAZOP: Guide to Best Practice (2nd Edition ed.). IChemE, Rugby, 2008. Print. Kmenta, Steven and Ishii, Koshuke. "Scenario-Based Failure Modes and Effects Analysis Using Expected Cost". Journal of Mechanical Design, 126 (2004): 1027. Print. Lerche, Ian and Glaesser, Walter. Environmental Risk Assessment: Quantitative Measures, Anthropogenic Influences, Human Impact., Berlin: Springer, 2006. Print. Mario Villacourt. “Failure Mode and Effects Analysis (FMEA): A Guide for Continuous Improvement for the Semiconductor Equipment Industry, technology Transfer # 92020963B-ENG, SEMATECH”, 1992. Print. Melchers, Robert. On the ALARP Approach to Risk Management.” Reliability Engineering and System Safety, 71(2000): 201-208. Print. O’Brien, Mary. Making Better Environmental Decisions: An Alternative to Risk Assessment. Cambridge, Massachusetts: MIT Press, 2002. Print. Taylor, R. and Francis, S. PAs Fire Risk Assessment Guidance and a recommended Methodology, 2002. Print. Tony, Graham. The Absolute Basics of risk Assessment. School of Forensic & Investigative Sciences. Read More