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Risk-Based Inspection

API ICP Self Study Notes

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Traditionally, organizations have focused solely on the consequences or the<br />

POF without systematic efforts tying the two together. They have not<br />

considered how likely it is that an undesirable incident will occur in<br />

combination with the consequence. Only by considering both factors can<br />

effective risk-based decision-making take place. Typically, risk acceptability<br />

criteria are defined, recognizing that not every failure will lead to an<br />

undesirable incident with serious consequence (e.g. water leaks) and that<br />

some serious consequence incidents have very low probabilities (e.g.<br />

rupture of a clean propane vessel).<br />

<strong>Risk</strong> = Probability × Consequence<br />

API 580<br />

Charlie Chong/ Fion Zhang

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