1. HU151: Industrial Safety Prof. Abdelsamie Moet Fall 2012/13 Pharos University in Alexandria Faculty of Engineering Lecture 3: Risk Acceptance

2. HU151_Lect3_RiskAcceptance2 "Safety" is the control of hazards to attain an acceptable level of risk

3. HU151_Lect3_RiskAcceptance3 Generic Risk Response Plan

4. HU151_Lect3_RiskAcceptance4 Risk Acceptance “The systematic process by which relevant stakeholders agree that risk may be accepted.”

5. HU151_Lect3_RiskAcceptance5 Approaches to Risk Acceptance Active Acceptance –to establish a contingency reserve, including amounts of time, money, or resources to handle the threat. (Contingency Plan) Passive Acceptance –Requires no action leaving the project team to deal with the threats as they occur. (Workaround)

6. HU151_Lect3_RiskAcceptance6 Risk Acceptance Criteria Risk Acceptance must be reviewed at appropriate management level (and the aggregated risk for the system). Risk Acceptance may be justified only when there are positive answers the questions: 1.“Have we done all that is Reasonably Practicable to reduce the level of Risk?” 2.“Are they now Broadly Acceptable or Tolerable and A s L ow A s R easonably P racticable?”

7. HU151_Lect3_RiskAcceptance7 The ALARP principle No industrial activity is entirely free from risk and so many companies and regulators around the world require that safety risks are reduced to levels that are As Low As Reasonably Practicable, or "ALARP". The "ALARP region" lies between unacceptably high and negligible risk levels. Even if a level of risk for a "baseline case" has been judged to be in this ALARP region it is still necessary to consider introducing further risk reduction measures to drive the remaining, or "residual", risk downwards. The ALARP level is reached when the cost of further reduction measures become unreasonably disproportionate to the additional risk reduction obtained.

8. HU151_Lect3_RiskAcceptance8 ALARP

9. 9 Control measures must be introduced for risk in this region to drive residual risk towards the broadly acceptable region. If the residual risk remains in this region, and society desires the benefit of this activity the residual risk is tolerable only if further risk reduction is impracticable or requires action that is grossly disproportionate in time, trouble and effort to the reduction in risk achieved. Risk Evaluation - ALARP Tolerability Principles ALARP Region Increasing Individual Risk and Societal Concerns Risks cannot be justified Intolerable Region X Negligible Risk Broadly Tolerable Region Level of residual risk is not regarded as significant and further effort to reduce risk is not likely to be required as the resources to reduce the risks are likely to be grossly disproportionate to the risk reduction achieved. X Risk Level $

10. HU151_Lect3_RiskAcceptance10 Risk Utility

11. HU151_Lect3_RiskAcceptance11 Risk Utility Function

12. HU151_Lect3_RiskAcceptance12 Optimized Value

13. HU151_Lect3_RiskAcceptance13