Selection and design of cost-effective risk reduction systems

With the need to juggle design requirements. recommendations. personal opin ions, and company preferences, how, does one determine a safe, cost-effecti ve risk reduction design? A quick solution may be to incorporate all potent ial safeguards, but that is neither practical nor cost-effective, Companies have turned to various methods to evaluate their mitigation options for fi re, explosion, and reactivity, hazards. Most methods simply, identify the h igh-risk issues,. they do riot determine the most cost-effective risk reduc tion options. Whether it is for a capital project, regulatory compliance, or to define st andards, cost-benefit analysis (CBA) is a proven method for cost-effective risk management. Three case studies are presented in this paper to illustra te the flexibility and benefits of this approach.