Assignment on What is the risk assessment in the oil and gas industry?

Risk assessment is done for some reasons, such as for the health and safety measures that are placed at a certain point. There are millions of people who are being injured and harmed by the production industry as there is lack of risk assessment and they didn’t pay attention to the risk assessment. Every business organization dealing with the manufacturing are machinery work, there are most chances and need of the risk management department. Risk assessment is process which is used to explain the overall process in which you can:

Identification of risk- which could recognize the potential, which could cause harm in the result if it is ignored in any case.

Analysis of risk- refers to the term, which means that risk associated with the hazard could be reduced or how to treat with that risk.

Elimination of risk- means to overcome the hazard to control the situation, which could be eliminated from the situation (A. L. Robinson, 2004).

A risk assessment is taking an overlook about the workplace and work to identify the risk or the situation which could be harmful to the people who are working in the job. It is a dynamic approach that allows the organization to implement the policies to manage the protection of the workers at the workplace.  When the risk is identified, you enable enough to decide what is effective resource used in the situation. Risk assessment is used different terms in its concept which are used in whole process. Risk assessment is the whole process of risk identification, hazard identification, risk analysis, and risk control, which explained above to deal the situation of the risk (O. V. Şafakli, 2007).

1. Risk assessment in the oil and gas industry

The oil and gas industry is highly risky work for the workers to perform the task, which is connected with the work with machinery. As there is more risk in this industry, therefore, it required more attention to risk management department. Companies engage in the oil and gas industry are supposed to be more efficient towards the risk assessment as if there is damage to workers company has to pay the cost of loss, which will be extra cost of the organization. The oil and gas industry is engaged in working with heavy machinery, which could be difficult to maintain without examining the risk, which could harm the workers who are engaged in working with machines. To make sure that the work of the project is in process with due care it is necessary to implement the risk assessment as this industry required potential care for this department. Risk analysis is most likely based on the hazard analysis which shows the chances of loss in different operations, installation and constructing events (A. Srivastava & Gupta, 2010).

Risk assessment could be qualitative or quantitative, which could be categorized according to the different approaches in the decision making in the risk associated factors of the manufacturing industry. Risk assessment activities are used to learn about the activities which could be harmful to the person who is going to engage with it. In oil and gas industry, quantitative risk assessment is used to apply in the safety measures of the workers. It is processed in the organization to take review the condition of the factors which could be harmful to the business. It is helpful for the decision and policymakers to make the decisions according to the given condition. There are chances to be low risk and higher risk which could be decided after the assessment of nature of the risk. Sometimes, if the risk prediction goes fail there would be heavy loss which has to bear by the organization. There may be different techniques used in the risk assessment in different industries, but in oil and gas organization the most commonly used technique of risk assessment is probabilistic risk assessment (PRA) which is an advanced technique used to reduce the disadvantages of the risk in the industry (X. B.Zheng & Chen, 2005).

Response to 1

As the above discussion shows the importance of risk assessment in any industry, which is compulsory to implement in any industry to detect the risk factor and to adopt the safety measures according to the risk nature. People working in different industries such as oil and gas, constructions, or any medical field where they have to work with heavy machinery they have to adopt some safety measures according to the risk related to the work. Risk identification is a complete process in which they detect the risk and classify it according to the nature of the severity. As I am working on a plant, I would prefer to cover with the safety measures which are necessary to adapt to cover the body for the safety purpose. Any person who is going to work with these machines is required to follow the instructions of risk assessment department as they are well-aware of the damage which could be faced by the worker if there are any miss-happenings. Workers ensure the health and safety measures which are adoptable by the workers in the working circumstances. When the policies of risk assessment are applied in the company it should be followed by the workers to get the satisfaction of safety. When the safety measures are implemented the workers feel comfort to work with these policies and procedures. This will be beneficial for both workers as well as the industry (J. Bonta, 1996).

Response to 2

The above summary shows a brief description of the implementation of risk assessment in oil and gas industry. As oil and gas industry is notorious in the society that the people working in that industry are most likely to face the damage to their physical appearance of the worker. As the Companies are engage in the oil and gas industry which are supposed to be more efficient towards the risk assessment as if there is damage to workers company have to pay the cost of loss which will be extra cost of the organization so it would be costly for the organization which could be bear by the company in alternative of the loss which would occur in result of negligence. Oil and gas industry is engaged in working with the heavy machinery which could be difficult to maintain without examining the risk which could harm the workers who are engaged in the working with machines, therefore it should be a system which could identify the risk in that industry and could be evaluated the cost which could be payable against the loss if any occur. The risk is most likely in quantitative nature in the oil and gas industry, which could be prevented by PRA risk assessment approach in the oil and gas industry (Z. G. Zhao, Yao, Li, & Li, 2008).

REFERENCES of the What is the risk assessment in the oil and gas industry

A. L. Robinson. (2004). A Process and Outcome Evaluation. Domestic Violence MARACs (Multi-Agency Risk Assesment Conferences) for Very High-risk Victims in Cardiff, Wales:

A. Srivastava & Gupta, J. P. (2010). New methodologies for security risk assessment of the oil and gas industry. Process Safety and Environmental Protection, 88(6), 407-412.

J. Bonta. (1996). Risk-needs assessment and treatment.

O. V. Şafakli. (2007). Credit Risk Assesment for the Banking Sector of Northern Cyprus. Journal of Yasar University, 615-630.

X. B.Zheng, & Chen, G. M. (2005). Research on fuzzy comprehensive evaluation method for oil & gas pipeline failure based on fault tree analysis. Systems Engineering-theory & Practice, 2, 139-144.

Z. G. Zhao, Yao, A. L., Li, Y. L. & Li, D. Q. (2008). Defining acceptable risk standard values of the oil and gas pipeline. J. Southwest Petrol. Univ, 2, 039.