A framework for risk-based assessment using loss functions

This paper presents a quantitative risk assessment method using loss function that enables the analysis of operational performance in chemical processes. This method helps to overcome the existing challenges in assessing impacts of deviations of process variables. In this paper, the modified inverted normal loss function (MINLF) is used to incorporate the effects of process deviations on the safety and quality losses. The probability of undesirable event occurrence is continuously updated by considering real-time disturbances in process variables. The use of loss function in combination with probability updating provides continuously revised risk estimation. This framework of assessment helps toward preventing any accident happen in chemical process. To demonstrate the efficiency of proposed framework, it is tested on a simple tank system