04 Risk Assessment

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    Geoenvironmental EngineeringKaniraj Shenbaga

    University Malaysia Sarawak

    http://www.unimas.my/
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    Risk Assessment

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    Often taken as synonymous with hazard. But

    risk has the additional implication of the

    chanceof a particular hazard occurring.

    Hazardis a potential threat to humans and

    their welfare. Riskis the probability of a specific hazard

    occurrence

    What is Risk?

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    Involuntary risksVoluntary risks

    Risk Types

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    Most of the natural hazards are involuntary risks.

    Risks not willingly undertaken.

    Risks often relatively rare but can have a

    catastrophic impact.

    Risks may be unknown. Risks if perceived are considered uncontrollable.

    Involuntary Risks

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    Manmade hazards are in the category of

    voluntary risks.

    Risks more willingly accepted by people

    through their own actions.

    Have less catastrophic potential. More susceptible to be controlled.

    - Government actions safety regulations, etc.

    Voluntary Risks

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    Risk cannot be completely eliminated. The only

    option is to manage it.

    Risk management is:- Reducing threats to life and property posed by hazards

    - Simultaneously accepting unmanageable hazards

    The first step in risk management is risk

    assessment.

    Risk Management

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    1. Identification of hazards likely to result in disasters

    Determine all hazardous events that may occur (Ei).(e.g.landslide)

    2. Estimation of the risks of such events

    Determine the probability of occurrence of each event (Pi).

    (e.g. probability of occurrence of landslide = 5%)3. Evaluations of the consequences of the derived risks

    Determine the loss created by each event (Li). (e.g. damage

    to property due to landslide = RM200,000)

    Steps in Risk Assessment

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    R= Risk

    p= Probability (varies from 0 to 1)L= Loss (money, death, etc.)

    Risk Analysis

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    The chance of occurrence of a landslide in a region is 5%

    and the estimated damage that it would cause to

    property is RM200,000. What is the risk (R) due to the

    landslide in terms pf property loss?

    p= ?L= ?

    R= ?

    Risk Analysis Example 1

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    The chance of occurrence of a landslide in a region is 5%

    and the estimated damage that it would cause toproperty is RM200,000. The risk (R) due to the

    landslide in terms pf property loss is:

    p= 0.05

    L= RM200,00R= 0.05 x 200,000 = RM10,000

    Example 1 Answer

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    In a region, different events may occur mutually

    exclusively.- For example, in a region prone to several natural hazards,

    flood may occur at some time, cyclone may occur at some

    other time, and volcano may erupt at another time.

    From historical database, estimate all the events (E1

    Ej

    En) likely to occur in a year and their corresponding

    probabilities (p1 pj pn) and losses(L1 Lj Ln).

    Note: The values of p and L are greater then 0.

    Risk Analysis Multiple Events

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    Calculate:

    Calculate:

    p0= probability of events with loss L0= 0

    Risk Analysis Multiple Events

    =

    =

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    Arrange all the events in the order of increasing loss

    (L0< L1

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    Risk Analysis Multiple Events

    Total probable risk, R

    =

    Risk due to event

    i

    robability of risk >

    i

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    A region is prone to earthquake, volcano and tsunami hazards

    every year with respective probabilities of 0.06, 0.08 and 0.025.The corresponding estimated property losses are RM60 million,

    RM15 million and RM45 million. The corresponding estimated

    number of human death are 220, 20 and 350. Estimate:

    Total probable risk in terms of money and lives

    Probability of property loss > RM15 million

    Probability of no loss of human lives

    Risk due to tsunami in terms of money and lives

    Risk Analysis Example 2

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    Event

    Proba-

    bility

    Loss*

    Cumulative probability

    E0

    E1

    E2

    E3

    ?

    ?

    ?

    ?

    ?

    ?

    ?

    ?

    P0=?

    P1= ?

    P2= ?

    P3= ?

    Table for Property Loss

    E1volcano; E2 tsunami; E3- earthquake

    *RM values in million

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    Event

    Proba-

    bility

    Loss*

    Cumulative probability

    E0

    E1

    E2

    E3

    0.835

    0.080

    0.025

    0.060

    0

    15

    45

    60

    P0=0.835 +0.08 +0.025 + 0.06 = 1

    P1= 0.08 +0.025 + 0.06 = 0.165

    P2= 0.025 + 0.06 = 0.085

    P3= 0.06

    Table for Property Loss

    E1volcano; E2 tsunami; E3- earthquake

    *RM values in million

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    Total probable riskRtotal=?

    Probability of property loss > RM15

    million = ?Risk due to tsunami = ?

    Property Loss in Terms of Money

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    Total probable risk

    Rtotal=(0.835 x 0)+(0.08 x 15)+(0.025 x 45)+

    (0.06 x 60) = about RM6 million

    Probability of property loss > RM15 million =

    P1= 0.165 Risk due to tsunami = p2x L2 = 0.025 x 45 =

    RM1.125 million

    Property Loss in Terms of Money

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    Event

    Proba-

    bility

    Loss*

    Cumulative probability

    E0

    E1

    E2

    E3

    0.835

    0.080

    0.060

    0.025

    ?

    ?

    ?

    ?

    P0=?

    P1= ?

    P2= ?

    P3= ?

    Table for Loss of Lives

    E1volcano; E2 earthquake; E3tsunami

    *Number of human lives

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    Event

    Proba-

    bility

    Loss*

    Cumulative probability

    E0

    E1

    E2

    E3

    0.835

    0.080

    0.060

    0.025

    0

    20

    220

    350

    P0=0.835 +0.08 +0.06 + 0.025= 1

    P1= 0.08 +0.06 + 0.025= 0.165

    P2= 0.06 + 0.025 = 0.085

    P3= 0.025

    Table for Loss of Lives

    E1volcano; E2 earthquake; E3tsunami

    *Number of human lives

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    Total probable riskRtotal=about how manylives

    Probability of no loss of human lives, p0

    = ?Risk due to tsunami = how manylives

    Loss of Lives

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    Total probable risk

    Rtotal=(0.835 x 0)+(0.08 x 20)+(0.06 x 220)+

    (0.025 x 350) = about 24 lives

    Probability of no loss of human lives = p0=

    0.835. Risk due to tsunami = p3x L3= 0.025 x 350 = 9

    lives

    Loss of Lives

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    The annual probabilities for earthquake, flood and drought

    hazards in a region are 0.01, 0.075 and 0.04, respectively. Thecorresponding number of human casualties are 2,500; 300;

    and 1,350. The corresponding property losses are RM120

    million, RM350 million and RM245 million. Estimate:

    Total probable risk in terms of money and lives

    Probability of property loss > RM120 million

    Probability of no loss of property

    Risk due to flood in terms of money and lives

    Exercise

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    Risk is the probability of occurrence of a specific

    hazard. Risk cannot be eliminated, but should be managed.

    The first step in risk management is risk assessment.

    The risk assessment is made from the probability and

    loss associated with each hazard.

    Summary

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