Bowen EHS Risk Management PDF
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Jazan University
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Summary
This document contains a question and solution related to risk calculation for a manufacturing plant. The question focuses on the annual cost of risk due to process malfunction. The solution involves calculating the risk as a product of probability and severity.
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Bowen EHS Main C A S PC S PResources Home / My courses / ASP CSP Resources / Study Question Vault / ASP-CSP Study Question Vault / View single ASP-CSP Study Question Vault View list 08/24/2017 - Risk Management Risk Management Question Amanufacturing plant cost $2 billion to build. There is a one in...
Bowen EHS Main C A S PC S PResources Home / My courses / ASP CSP Resources / Study Question Vault / ASP-CSP Study Question Vault / View single ASP-CSP Study Question Vault View list 08/24/2017 - Risk Management Risk Management Question Amanufacturing plant cost $2 billion to build. There is a one in a million chance each year of the plant being catastrophically destroyed without loss of life or injury through a process malfunction. What is the annual cost of the risk to the plant due to the process malfunction? а.. A. $2 B. $20 C. $200 D. $2,000 Solution Risk =probability xseverity The probability is 1 in a million or 0.000001. The severity is $2 bilion or $2,000,000,000. 0.000001 x $2,000,000,000 = $2,000. The correct solution is D. Scroll down to see solution ©Copyright 2003-2018 Bowen Learning Network, Inc. 52 53 54 5 56 57. 648
