Risk assessment can be used in many ways. In oil and gas construction activity focus about the safety risk assessment , which in geberal is qualitative. The other view of the risk assemment is to do for business or the projects in general. For business it can be used in Economic study. For the project management it can be used in cost estimation to define the contingency value and in probabilistic schedule plan which is discussed in many text book as PERT method which depends on the probability of activity duration.
There are many methods can be used to calculate the probability of occurence but the most traditional method and can be used practicaly is Monte-Carlo simulation technque. This method can be used also in calculating the structure probability of failure or structrure reliability as per the discussion in How to predict the structure failure?
There are many softwares that are based on Monte-Carlo simulation, the best one is the Crystal-ball software.
The idea of Monte-Carlo is very easy, but it needs more knowledge and care in defining the probability of the input data as presented in the above video which is discussed in detail in project management for oil and gas elearning.
This video presents the economic study for oil and gas development project and how to calculate the net present value (NPV) to evaluate the project risk and to assist in take decision on the project Go/No Go.
Please follow and like us:
Some times its a pain in the ass to read what people wrote but this web site is real user genial! .
Hello There. I found your weblog using msn. This is a really
well written article. I’ll be sure to bookmark
it and come back to learn extra of your helpful info. Thank you for the post.
I will certainly return.