Key issues that have a significant impact on the risk associated with engineering activities
On August 12 a series of explosions occurred that claimed 173 lives. Hundreds of people were injured at the Port of Tianjin. After the investigations, it was found out that the fire was caused by an overheated container of dry nitrocellulose. The damage caused by these explosions was fatal. Assets worth millions of shillings were destroyed; there were buildings that housed different logistics companies that were also destroyed (Turner, 2014). Based on the Tianjin explosion and other related hazards, this writes up aims to address the issue of risk management, risk assessment, and risk mitigation plans. It also includes the necessary communication plans to ensure that accidents and other risks are managed safely and in a controlled manner (Loosemore et al, 2012).
Key issues that have a significant impact on the risk associated with engineering activities
Risks associated with engineering activities can be fatal in case they occur. Uncertainty has often been considered to be a lack of the relevant knowledge that would otherwise introduce risks. Engineering can be considered to be the application of mathematical methods and science. It comprises a broad section of activities such as structures, civil, mechanics, electronics etc. There are certain key aspects that tend to have a significant impact on the risk associated with the engineering activities mentioned above.
One, engineering risks can be determined mathematically. As we have seen above, engineering involves the application of math and science (Fu, Wang & Yan, 2016). It is this fact that actually makes it possible for determination of engineering risks by a mathematical means. It is also important to note that it is not only the determination but also the management of these risks can be done mathematically.
Two, engineering risks need to be predetermined before any engineering project is conducted. The risks of engineering can be very fatal and this, therefore, calls for the need for a predetermination before any engineering project is conducted. Although other risks can present themselves in the course of the engineering project, it is always a recommendation that there be an initial risk determination (Ganoulis, 2013).
Risk identification and risk management tools in regard to risk management strategies
Risk identification is set to determine and reveal with a great degree of certainty what, where, when, why and how something, but in our case an engineering hazard like the one in Tianjin China took place (Phoon, 2014). It also determines the potential effects of the risk on the subjects. It revolves around listing all the potential risks and some of their characteristics.
Risk identification and risk management tools in regard to risk management strategies
Risk identification is followed by documentation (De Bakker, Boonstra, & Wortmann, 2010). A risk registered is used for the documentation and it comprises a list of identified risks matched with their probable causes. Moreover, there are also the risk responses that can be used in case the risk actually occurs. It is this information recorded in the risk register that is used for risk analysis and plays a crucial role in the creation of risk responses.
The identified risks are then put into a risk breakdown structure. A risk breakdown structure is a structure that is hierarchical in nature and is normally used for identification and classification of a potential risk with its likely source (Rejda, 2011). Risk identification is very important and its usually done at the beginning of any project. It is important that risk identification is very wide in scope and covers a wide variety of risks even those that are likely to present themselves after the project is complete or it in the process of completion (Merna & Al-Thani, 2011). The main purpose of risk identification has always been known to be the identification of the potential risk; there are however some other subsidiary reasons for performing risk identification (Lijun, Qi, Keji, Feng, & Qihao, 2011). Some of these reasons are; Minimization of the possible consequences (negative) and the potential threats that are to occur as a result of the risk, to maximize the positive consequences in case of the occurrence of the risk. Risk identification also avails important information for risk analysis and finally, risk identification has an effect of increasing the chances of the success of the project (Merna & Al-Thani, 2013).
Through risk identification, important information is obtained for risk analysis which in turn provides a good means for the development of risk management strategies (Andersen & Piterbarg, 2010). First, let us look at how risk management strategies can be developed from information obtained from risk identification; as mentioned above, risk analysis acts as a link between risk identification and the development of risk management strategies (Haimes, 2015). The information obtained from risk identification is used in risk analysis which is an integral part towards the development of risk management strategies.
- Risk management strategies
Risk management strategies refer to those deliberate efforts that are designed to address the risk that has been identified and evaluated/analyzed. For each risk identified there always exist a number of strategies that can be employed. Some of the commonly used strategies are; Risk avoidance, risk transfer, risk control, risk reduction, spreading of the risk, resource duplication and finally self-retention (Park et al, 2013). Risk avoidance-Over time, risk avoidance has always been considered as the most effective risk management strategy. This is so because by avoiding the actual risk/activity even the minimal chances of a loss as a result of the risk are totally eliminated (Merz, Hall, Disse & Schumann, 2010). However, risk avoidance is not the most appropriate practical choice since any project or operation whatsoever has some level of risk and trying to avoid the risk will mean that the project will not be conducted.
Usefulness, applicability, and limitations of risk assessment as a decision-making tool
Risk transfer-As the name suggests this is considered to be the act of transferring the unwanted risks to another organization from your own organization. There are some common ways of transferring risks and these are; By a means of a contract, which is often a written agreement between the two parties involved. By the law, this can be in the form of joint and several liabilities, the occupier’s liability among other things. The last way of risk transfer by the law is through a conventional insurance policy (Rejda, 2011). Loss Reduction-This is usually considered as a remedy and what is likely to be done in case a loss does occur. It is meant to reduce the amount of loss that is likely to be suffered.
Duplication of resources-Its main purpose is usually to maintain some kind of backup policy or rather having an alternative plan in case a situation that was not expected tends to interrupt the normal flow of operations (Aven & Renn, 2010). Self-Retention-This is a strategy that is employed to risks that are not so certain they would occur, but when they do they cause a lot of loss and destruction.
Usefulness, applicability, and limitations of risk assessment as a decision-making tool
Usefulness of risk assessment as a decision-making tool
First and foremost, it is important to note that risk assessment is a quantitative process. It involves the estimation of the likelihood of something bad happening to an individual or a group of persons. This harm usually befalls these people as a result of them getting exposed to a certain thing or situation. Risk assessment is characterized by decision making (Saunders& Allen, 2010).
Risk assessment has its using some of these users are explained below;
One, risk assessment helps in the recognition and control of hazards at different places. It is the assessment of the risks that actually determines the likelihood of the happening of a certain risk. After the recognition then appropriate action can be taken towards the control of the impending hazard that is likely to occur. As the saying goes, prevention is much better than cure, if a hazard is identified early enough, then the necessary measures can be put in place to make sure that that hazard does not happen.
When we look at the Tianjin-China 2015 explosion, for instance, a lot of people lost their lives. It was recorded that 173 persons lost their lives and many others were injured while 8 people went missing. If a risk assessment was conducted prior to this explosion, then this killer explosion that claimed the innocent lives of hundreds of persons would have been avoided (Wang, Zhang & Chen, 2013).
Two, risk assessment can be a means of saving cost. Risk assessment brings the issue of being proactive instead of reactive. It cuts the un assay cost that would be incurred in the case of an occurrence of a certain hazard occurs (Rejda, 2011).
Through risk assessment, then certain risk management standards can be set. Risk management standards are often set based on the generally accepted practices and legal requirements. This differs depending on the country; each country has different standards as far as risks are concerned.
Once a risk assessment has been conducted, it is important that awareness is created among the persons working around that particular facility and also to the general public. Risk assessment also finds its usefulness since it can be used as a training tool to both the employees and the general public (Hull, 2012).
From the above-mentioned advantages of risk assessment, it can be noted that they all play a great and very crucial role towards decision making (Rejda, 2011).
Applicability of risk assessment as a decision-making tool
The process of decision making takes into account a number of things such as the views and the preferences of the final decision maker. It is a criterion that no assumptions are made as far as a certain risk is concerned, but rather clear and informed decision is made based on facts about the likely hood of the occurrence of a particular risk that is obtained from the risk assessment report.
It has been seen more often that decision making deliberately fails to take into account some of the most crucial institutional responses and also some other political and social influences on the final decision. The actual decision-making process is characterized by a number of things such as bargaining and negotiations (Aven, 2011). Applicability of risk assessment has a number of limitations, but it is still of crucial importance since it has the ability to broaden and widen the focus of engineering (Cardona, 2013).
Limitation of risk assessment as a decision-making tool
First and foremost, it is important to note that risk is not usually regarded as an objective property of a certain situation or an object. It is considered to be more of a mental issue that is often based on beliefs about the likelihood of an occurrence that would be accompanied by specific outcomes. This makes it difficult for different persons to use the assessment report on a certain risk as a decision-making tool for caution since different persons have different perceptions and beliefs about the risk (Jha Bloch & Lamond, 2012). Decision making and the context at which the decisions are made is of great essence in risk assessment. The persons carrying out the risk assessment have an influence on the decision that is likely to be made. This person involved in the decision making can be biased about the likelihood of the occurrence of the risk due to a number of things (Phoon, 2014). The other shortcoming of risk assessment as a decision-making tool is that the decision maker who might not necessarily be the person who conducted the assessment usually tends to include as many dimensions of the risk and its negative consequences as possible. This reduces the credibility of the final decision to be made about that particular risk.
Risk perception, Risk communication and Risk communication plans and skills
Risk perception
Risk perception is often defined as the subjective assessment of the likelihood or the probability of a certain type of accident happening and how the consequences of that particular risk concern the people involved. It is important to note that the consequences here refer to the negative consequences that are likely to occur as a result of that risk-taking place (Aven & Renn, 2010). Furthermore, risk perception has been known to go beyond, it is actually considered as both cultural and social construct depicting the history and at times the ideology of a certain occurrence.
It is important to have an interest in the public perception and how the public feels about the likelihood of the risk. The interest in the public perception was actually brought in because there was believed to be a huge difference the actual decision makers and a section of the general public that had a different outlook on that risk (Aven, 2011). Two, designing risks should be foreordained before any building venture is led. The risks of designing can be exceptionally deadly and this subsequently calls the requirement for a destiny before any building venture is directed. Albeit different risks can introduce themselves over the span of the building venture, it is dependably a suggestion that there be an underlying risk assurance (Ganoulis, 2013). Risk distinguishing proof is set to decide and uncover with an incredible level of assurance what, where, when, why and how something, however for our situation a designing peril like the one in Tianjin China occurred. It additionally decides the potential impacts of the risk regarding the matters (Modarres, 2016). It rotates around posting all the potential risks and a portion of their attributes. Risk recognizable proof is trailed by documentation. A risk enrolled is utilized for the documentation and it contains a rundown of recognized risks coordinated with their likely explanations. Besides, there are likewise the risk reactions that can be utilized as a part of the case the risk really happens (Park et al, 2013). It is this data recorded in the risk enroll that is utilized for risk investigation and assumes an essential part in the production of risk reactions. The distinguished risks are then put into a risk breakdown structure. A risk breakdown structure is a structure that is various leveled in nature and is ordinarily utilized for distinguishing proof and order a potential risk with its presumable source (Rejda, 2011). Risk recognizable proof is essential and its generally done toward the start of any task. It is critical that risk ID is wide in degree and spreads a wide assortment of risks even those that are probably going to introduce themselves after the task is finished or it during the time spent fruition (Aven & Renn, 2010).
Risk communication as the name suggests is known to the act of exchanging important and meaningful information about risk between two or more interested parties. Risk assessment has been known to the core of everything and lies at the center and it is usually greatly associated with risk participation as shown in the diagram below;
Risk communication plays a very important role since it helps in the reduction of future negative social and economic consequences.
Risk communication plans and skills
Both risk communication and risk perception are integral parts and work for hand in hand towards the development of risk communication plans and skills. Risk communication plan is very crucial (Tummala, & Schoenherr, 2011). It is usually involves the development of a risk communication model that, risk communication plan is not, however, a means of resolving certain controversial issues but rather it is used is considered as an effective means for attaining the public’s trust and making them aware that you are in control of things and you know exactly the situation that is at stake in case that particular risk happens and the consequences happens to be severe (Wang et al, 2013). The harm caused by these blasts was deadly. Resources worth a large number of shillings were devastated; there were structures that housed distinctive coordination’s organizations that were additionally obliterated. In light of the Tianjin blast and other related perils, this review means to address the issue of risk administration, risk appraisal, and risk relief designs.
It likewise incorporates the essential correspondence intends to guarantee that mischances and different risks are overseen securely and in a controlled way (Loosemore et al, 2012). Risks related to building exercises can be deadly on the off chance that they happen. Vulnerability has frequently been thought to be an absence of the important information that would somehow or another present risk. Designing can be thought to be the utilization of numerical techniques and science (Jha, Bloch & Lamond, 2012). It includes an expansive area of exercises, for example, structures, common, mechanics, gadgets and so forth. There are sure key viewpoints that have a tendency to significantly affect the risk related to the building exercises specified previously. One, building risks can be resolved numerically. As we have seen above, designing includes the use of math and science. It is this reality that really makes it feasible for assurance of building risks by a numerical means. It is additionally vital to take note of that it isn’t just the assurance, yet additionally the administration of these risks should be possible numerically.
Conclusion
The primary motivation behind risk recognizable proof has dependably been known to be the ID of the potential risk, there are anyway some other backup explanations behind performing risk ID. A portion of these reasons are; Minimization of the conceivable outcomes (negative) and the potential dangers that are to happen because of the risk, to augment the positive results if there should arise an occurrence of the event of the risk. Risk recognizable proof additionally benefits critical data for risk examination lastly; risk ID has an impact of expanding the odds of the activities achievement. Through risk distinguishing proof, vital data is gotten for risk examination which thus gives a decent intends to the advancement of risk administration systems. First, let us take a gander at how risk administration methodologies can be created from data got from risk distinguishing proof; As specified above, risk examination goes about as a connection between risk recognizable proof and the improvement of risk administration procedures. The data acquired from risk distinguishing proof is utilized as a part of risk investigation which is a necessary part towards the advancement of risk administration procedures. Risk administration a procedure refers to those considers endeavors that are intended to address the risk that has been recognized and assessed/broke down. For each risk recognized there dependably exist various systems that can be utilized. A portion of the usually utilized methodologies are; Risk evasion, risk exchange, risk control, risk decrease, spreading of the risk, asset duplication lastly self-maintenance. It is important to develop the risk communication model and to establish the required skill in that. Risk communication plan and skills are very crucial in decision making, it actually enables people to be in a position to involve them and participate in how the risks should be addressed and managed. As we all know, communication goes hand in hand with decision making. Risk communication skills refer to the meaningful and important attributes that aid in risk communication. Risk communication is not just like any form of communication, it should be done in an appropriate manner and certain rules must be adhered to, it is the adherence of these rules that require the appropriate risk communication skills.
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