Course syllabus

INTRODUCTION TO THE COURSE

In the past, people have applied conventional management techniques to high risk technology. However, in recent years, the management approach to controlling engineering risks has been driven by heightened public awareness, progressive extension of regulatory controls and lessons learnt from major accidents and disasters, and as a consequence become more systems-oriented in terms of identification, assessment and control.

This course is intended to provide you with an overview of engineering risk management techniques. It introduces the concept of the twodimensional nature of risk, and emphasises the need for assessment of both the dimensions (severity and likelihood) for ascribing priorities in directing the risk dollar. Systematic and structured hazard identification techniques will be introduced, with a number of illustrative examples. The focus is on low likelihood–high consequence risk events, as these cannot be assessed by using epidemiological studies or actuarial techniques.

Since engineering risk management is a broad field covering several engineering disciplines, it is not attempted to cover the risk analysis side of various industries in depth. The quantitative aspects of hazard consequence analysis are not specifically emphasised in this course. Instead the underlying concepts will be highlighted, so that each reader can develop these skills in depth in their own discipline. The risk analysis topics show the concepts underlying consequence (severity) assessment of major accident events, and how the likelihood of these events may be quantitatively estimated. While analytical tools will be introduced, they are essentially introductory, and the focus is more on risk management rather than risk analysis. The area of project risk management is also covered, as this is gaining importance in capital investment projects.

The issues of decision making under uncertainty are addressed, with an outline of how risk assessment assists in the process of decision making. Management tools for controlling safety and environmental risks are discussed, with their relationships to quality systems. The use of the risk matrix as a screening tool and for input to decision making is highlighted. Some directions are provided in deciding when to use quantitative techniques, and when a qualitative assessment would suffice. Significant tools for system integrity management are also included.

Emergency planning techniques are described, with a generic framework for preparing an emergency response plan that can be applied in various industries. Finally, the parameters influencing the perception of risk are addressed, together with effective risk communication methods, both at the corporate level, and in the public domain. The distinction between public perception of risk and employee perception of risk is discussed. Both of these perceptions should be addressed by corporate management when developing an effective risk communication strategy.

At the end of this course you should have a solid understanding of the fundamentals of risk, its identification, measurement and control, the advantages and limitations of risk assessment as a decision-making tool, a broad appreciation of managing engineering risk through safety and environmental management systems, and principles of project risk management in capital investment projects.

LEARNING OBJECTIVES After studying this course you should

  • have a solid an understanding of key issues that have a significant impact on the risks associated with engineering activities,
  • be aware of the requirements, usefulness, applicability and limitations of risk studies,
  • understand the use of hazard identification and risk management tools, and be able to construct realistic risk scenarios, analyse the scenarios, and develop risk management strategies,
  • understand and be able to participate in corporate programs in engineering risk management,
  • understand the issues involved in risk perception and risk communication, and be able to develop risk communication skills

Course summary:

Date Details Due