Question

PLEASE I NEED CLEAR HANDWRITING

4. (24 pts) Risk Management A Gas Company is extracting natural gas. After risk identification analyses, they have realized the risks listed below. Risk 1: Extremely unlikely to have a joint problem just on the cover of the machinery, where the impact is expected to be not critical. Risk 2: Extremely likely to have a cracking problem on high pressure pumps, which may result in explosion of the machinery and operations to stop. Risk 3: Likely to have a slow oxidation on the outer surfaces of the pipes, which may result in significant cost for maintenance but operations will not be affected. a) (6 pts) Based on the risk identification results listed above, conduct "Risk Assessment”. Place the risks on the "Risk Assessment Table" given below (as Risk 1, Risk 2 and Risk 3) and score the risks based on their probability and impact. b) (12 pts) Which risks are acceptable, which risks are not acceptable? c) (6 pts) What should be the next steps for acceptable risks? (Please provide the names of the risk management process steps). . 1 2 Probability Impact Extremely unlikely Likely 3 Extremely likely 1 Not critical 2 Significant 3 Fundamentals to continuing operations

Answer 1

PART (A)

PROBABILITY IMPACT	1 Extremely Unlikely	2 Likely	3 Extremely Likely
1 Not critical	RISK 1
2 Significant		RISK 3
3 Fundamentals to the continuing operation			RISK 2

PART (B)

ACCEPTABLE RISK AND NOT ACCEPTABLE RISK

Acceptable risks are those which do not pose a significant threat to day to day operations but they either occur slowly or can be eliminated with minor repairing. While risk involving significantly huge costs and a threat to employees are called not an acceptable risk. Not acceptable risk is dangerous to plant/company. RISK 1 and RISK 3 are acceptable risk while RISK 2 is not an acceptable risk.

PART (C)

Now since we know the acceptable risk next step should list the steps needed to eliminate or minimise their impact as much as possible.

STEP 1

Identification of the acceptable risk

STEP 2

Assessing and analysis of the risk

STEP 3

Evaluation

STEP 4

Treatment and review