Abstract
M.Ing.
This dissertation focuses on an industrial risk management case study, which aims to
illustrate how the risks involved in a new project have to be identified, approached
and managed. The aim of this dissertation is therefore to act as an example of modem
risk management theory and implementation in an industrial engineering
environment.
The first part of the dissertation focuses on the theoretical background of risk
management. It starts by giving the history of risk after which a definition of risk is
concluded from a variety of text books. The history of risk shows how risk developed
through the ages and evolved into a way of making sure that the right strategic
decisions are taken.
The following chapters focus on the frameworks that have been developed by
different international parties to structure the risk management process. The financial
environment is also highlighted as an industry in which risk has been developed to
help companies tremendously in making investment decisions. Although there are
fundamental differences between risk management in the industrial and financial
environment, there are however a few similarities. One aspect that can be taken from
the financial environment and be implemented in the industrial environment is the fact
that risk management has to be done according to a fixed structure or framework.
A short literature case study shows how businesses made crucial mistakes in the past,
and how implementing modem risk management techniques can rectify these
mistakes. A big part of risk management is not only the qualitative analysis, but also
in the quantitative analysis, which was ignored in the literature case study. The theory
behind these quantitative techniques is highlighted as the last theoretical background
before the second part of the dissertation focuses on the risk involved in the expansion
project of an oil refinery.
After the theoretical background of the expansion project is given as an introduction
to the case study, the quantitative analysis for the expansion project is done. Through
A Case Study in Industrial Risk Management 2
the quantitative analysis, the high risks involved in the project are highlighted more
clearly and numbers or figures will indicate how realistic the objectives of the project
are. By monitoring and controlling these critical project variables through the project
life cycle, the chances of achieving the project results are greatly increased.