One of the questions I’ve been asked the most is “what should my risk target be?” This can be a daunting question, especially when the risk target is what will determine how many inspections are needed, possibly right away, to meet your acceptable risk threshold. The short answer is YOU have to determine your acceptable risk target. Just like investing in the stock market or your 401K, you may have a different level of risk you’re willing to accept compared to someone else. Contractors can provide input and make recommendations, but they are the ones who have to work and and live near your plant, you do. Some companies have corporate risk matrices or documents that provide guidance in this area, but for those who don’t, the onerous can be intimidating.
When determining your risk threshold, the support of contractors or corporate personnel can be helpful to get started but remember, they don’t have to come to work everyday in your refinery. Choose thresholds that you are comfortable with and that allow you to sleep at night.
How did your company determine their risk threshold? Was it a corporate mandate? Did you question where it came from or how it was determined upon?