Selection and design of cost-effective risk reduction systems
Version of Record online: 16 APR 2004
Copyright © 2001 American Institute of Chemical Engineers (AIChE)
Process Safety Progress
Volume 20, Issue 3, pages 197–203, September 2001
How to Cite
Antes, M. K., Miri, M. F. and Flamberg, S. A. (2001), Selection and design of cost-effective risk reduction systems. Proc. Safety Prog., 20: 197–203. doi: 10.1002/prs.680200308
- Issue online: 16 APR 2004
- Version of Record online: 16 APR 2004
With the need to juggle design requirements, recommendations, personal opinions, and company preferences, how does one determine a safe, cost-effective risk reduction design? A quick solution may be to incorporate all potential safeguards, but that is neither practical nor cost-effective. Companies have turned to various methods to evaluate their mitigation options for fire, explosion, and reactivity hazards. Most methods simply identify the high-risk issues; they do not determine the most cost-effective risk reduction options.
Whether it is for a capital project, regulatory compliance, or to define standards, cost-benefit analysis (CBA) is a proven method for cost-effective risk management. Three case studies are presented in this paper to illustrate the flexibility and benefits of this approach.