Qualitative and Quantitative Risk Assessments

The risk assessment process typically follows five key steps: recognizing hazards, assessing the risks involved, comparing the risks against defined benchmarks, setting up control, and reviewing the effectiveness of the control (The CPD Certification Service, 2020).

There are two primary types of risk assessments: qualitative and quantitative.

Quantitative risk assessments are primarily concerned with rating risks in terms of their nature, including magnitude and frequency. Techniques like hazard and operability (HAZOP) studies or failure mode and effects analysis (FMEA) are commonly used. These are most suitable when risks are rather simple or few in quantity. However, a quantitative risk assessment should be used for gross risk assessment, especially during complex operations. It is more accurate than other risk evaluation methodologies because it quantifies and assesses the risks using mathematical and statistical tools and adds probability and magnitude to these threats. Techniques such as fault tree analysis (FTA) and event tree analysis (ETA)  elaborately provide information concerning the frequency and likelihood of the occurrence of various hazards (SynergenOG, 2023).

Through periodical qualitative and quantitative risk analysis, a company can prevent possible risks and put into force all the required safety measures before emergencies happen. Having carried out the research, it has been observed that this style of working has greatly helped in minimizing the loss of lives, the destruction of the environment, and the loss of money, hence making the planned safe working techniques crucial in the protection of the human resource working in the oil and gas company.