A comprehensive methodology for economic consequence analysis with appropriate models for risk analysis of process systems is proposed. This methodology uses loss functions to relate process deviations in a given scenario to economic losses. It consists of four steps: definition of a scenario, identification of losses, quantification of losses, and integration of losses. In this methodology, the process deviations that contribute to a given accident scenario are identified and mapped to assess potential consequences. Losses are assessed with an appropriate loss function (revised Taguchi, modified inverted normal) for each type of loss. The total loss is quantified by integrating different loss functions. The proposed methodology has been examined on two industrial case studies. Implementation of this new economic consequence methodology in quantitative risk assessment will provide better understanding and quantification of risk. This will improve design, decision making, and risk management strategies.

Item Type:	Refereed Article
Keywords:	chemical process, consequence analysis, loss function, risk assessment, chemical analysis, decision making, economic analysis, economic and social effects, losses, risk analysis, risk management, appropriate models, chemical process, loss functions
Research Division:	Engineering
Research Group:	Engineering practice and education
Research Field:	Risk engineering
Objective Division:	Economic Framework
Objective Group:	Microeconomics
Objective Field:	Industry costs and structure
UTAS Author:	Khan, FI (Professor Faisal Khan)
ID Code:	120638
Year Published:	2015
Web of Science® Times Cited:	17
Deposited By:	NC Maritime Engineering and Hydrodynamics
Deposited On:	2017-08-29
Last Modified:	2018-03-20
Downloads:	0