Risk Assessment is defined as the qualitative or quantitative determination of the degree of hazard (or threat) posed by a system, process, or any other entity. While
risk assessment is a generic term which may apply to almost anything like the risk of an individual dying immediately after being insured to the probability of a car meeting with an accident while going on a highway, it means different things in the process industry. In the process industry, which can mean a wide variety of industrial sectors right from oil and gas, chemical processing to mining, risk assessment is the quantification or subjective assessment of the degree of hazards that could turn into accidents such as explosions, fire, leakages & spills and so on.
As you can imagine there are several different ways and methods of risk assessment in these industries and there are both quantitative as well as qualitative methods. Quantitative methods of risk assessments are known as QRA or Quantitative Risk Analysis. The subjective ways are many and they comprise of techniques such as HAZOP, HAZID, what if analysis and
LOPA (which is also known as semi quantitative). Thus HAZOP is a kind of subjective risk assessment technique used mainly in the process industry (although reportedly some variants are also used in the software and allied sectors).
Among all these techniques, the most popular one today is HAZOP.
For example, consider the gas storage tanks (spheres) above. There is obviously a risk associated with this storage which is the risk of explosion and or fire or gas leak. Now to assess this risk we can use a variety of risk assessment techniques, the main one being HAZOP. We will break down the unit into logical nodes and each node will then be analyzed using the HAZOP technique to provide an estimate of the risk associated with the storage.
