Risk management is being carried out for a project involving the installation of a transformer. The transformer
Question:
Risk management is being carried out for a project involving the installation of a transformer. The transformer is to be installed on a platform four meters (4m) above the ground. Risk events that have been identified are:
Risk Event | Likelihood | Potential Consequence |
Late delivery of transformer | unlikely | Delay costing S.R. 33,000 |
Non-functioning transformer | rare | Delay costing S.R. 66,000 |
Mildly incorrect wiring | moderate | Delay costing S.R. 62,000 |
Major mistake in wiring | rare | Delay costing S.R. 6,000 |
Crane unavailable when required | moderate | Disablement of worker |
Worker falling from platform | likely | Delay costing S.R. 6,000 |
Bad weather during installation | unlikely | Repainting costing S.R. 1500 |
Transformer is wrong color | unlikely | Delay costing S.R. 33,000 |
Consequences less than S.R. 3,000 are considered insignificant, between S.R.3,000 and S.R. 30,000 are considered minor, between S.R. 30,000 and S.R. 60,000 are considered moderate, and over S.R. 60,000 are considered major. A death is a catastrophe; and disablement is a major consequence. The company uses the following table to analyze its risks:
Potential Consequence | |||||
Likelihood of Consequences | Insignificant 1 | Minor 2 | Moderate 3 | Major 4 | Catastrophic 5 |
A (almost certain) | Significant | Significant | High | High | High |
B (likely) | Moderate | Significant | Significant | High | High |
C (moderate) | Low | Moderate | Significant | High | High |
D (unlikely) | Low | Low | Moderate | Significant | High |
E (rare) | Low | Low | Moderate | Significant | Significant |
Based on the all the information provided, assess these risks, and determine their order of priority from highest to lowest.
Manufacturing Processes for Engineering Materials
ISBN: 978-0132272711
5th edition
Authors: Serope Kalpakjian, Steven Schmid