0.2.10 RISK MANAGEMENT 3: ASSIGNMENT 2 [100] QUESTIONS ONE AND TWO ARE BASED ON THE FOLLOWING CASE STUDY: Hazard and Operability Studies A Hazard and Operability (HAZOP) study is a structured and systematic examination of a planned or existing process or operation in order to identify and evaluate problems that may represent risks to personnel or equipment, or prevent efficient operation. The HAZOP technique was initially developed to analyse chemical process systems, but has later been extended to other types of systems and also to complex operations and to software systems. A HAZOP is a qualitative technique based on guide-words and is carried out by a multidisciplinary team (HAZOP team) during a set of meetings. The HAZOP study should preferably be carried out as early in the design phase as possible to have influence on the design. On the other hand; to carry out a HAZOP we need a rather complete design. As a compromise, the HAZOP is usually carried out as a final check when the detailed design has been completed. A HAZOP study may also be conducted on an existing facility to identify modifications that should be implemented to reduce risk and operability problems. HAZOP studies may also be used more extensively, including: At the initial concept stage when design drawings are available; When the final piping and instrumentation diagrams (P&ID) are available; During construction and installation to ensure that recommendations are implemented; During commissioning; and During operation to ensure that plant emergency and operating procedures are regularly reviewed and updated as required QUESTION THREE [25] 3.1 Distinguish between the human and engineering approaches to loss prevention. (12) 3.2 Describe risk retention as a risk management tool. (13)