William Fine Method of Risk Assignment
William Fine Method of Risk Assignment
Problem #1:
There is a pipeline for transport of a solvent throughout an industrial plant. The pipeline does leak a small amount. The company is contemplating replacing the pipeline. The company has the following data about the change: if the pipe bursts, there will be multiple fatalities and more than $500,000 in damage. The leaks occur about twice per week. There is a small chance (coincidence) that the leaks could actually lead to a pipe bursting. The cost to correct the hazard is $19,500. The correction will reduce the hazard by 80%. (There is never zero risk with pipeline). Use the William Fine method to determine:
- Risk score and a recommended time frame to correct the hazard
- If the cost to correct the hazard is justified.
Show your calculations
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Category: Sample Questions
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