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Step 6 Rate Consequences of Failure (Civil)
  • 09 Aug 2024
  • 3 Minutes to read
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Step 6 Rate Consequences of Failure (Civil)

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Article summary

As part of the Civil RBI Analysis determine the Consequence of the Component failing.

Methodology

The consequences resulting from the failure are rated in accordance with the consequences scale of the Shell Risk Assessment Matrix (RAM). The consequences are evaluated in terms of health & safety, environment and monetary units. If reputation consequences are more significant than one of these categories, the appropriate rating should be described in one of the other categories. Relevant scale is indicated in the tables below.

Actual consequence should be lower than the estimated consequence in about 80% of the cases.Each Failure Mode can have a range of possible consequences. The aim is to select a high but still credible consequence. As a rule of thumb, the actual consequence should be lower than the estimated consequence in about 80% of the cases. This means that if five failures would occur, for one failure the consequences should turn out to be worse than expected and for the other four failures the consequences are equal to or less than expected.

Consequence Ratings:

Rating
Description

Economic

Negligible

Low

Medium

High

Extreme

Slight damage, < 10 kUSD. No disruption to operation.

Minor damage, 10-100 kUSD. Brief disruption.

Local damage, 0.1-1 MUSD. Partial shutdown that can be restarted.

Major damage, 1-10 MUSD. Partial operation loss (2 weeks shutdown).

Extensive damage, > 10 MUSD. Substantial or total loss of operation.


Health & Safety

No/Slight injury

Minor injury

Major injury

Single fatality

Multiple fatalities

Negligible environmental damage, within fence and systems. Negligible financial consequences.

Contamination: damage sufficiently large to attack the environment, but no permanent effect. Single breach of statutory or prescribed limit, or single complaint.

Limited loss of discharges of known toxicity, affecting the neighborhood and damaging the environment beyond fence. Repeated breaches of statutory/prescribed limit, many complaints.

Severe environmental damage. The company is required to take extensive measures to restore the environment. Extended breaches of statutory or prescribed limits, or widespread nuisance.

Persistent severe environmental damage or severe nuisance extending over a large area. Constant high exceedance of statutory or prescribed limits. In terms of commercial, recreational use or nature conservancy, a major loss for the Company.


Reputation

Slight impact

Minor impact

Moderate impact

Major impact

Massive impact

Local public awareness but no discernible concern. No media coverage.

Local public concern. Local media coverage.

Significant impact in region or country. Regional public concern. Local stakeholders, e.g. community, NGO, industry and government, are aware. Extensive attention in local media. Some regional or national media coverage.

Likely to escalate and affect Group reputation. National public concern. Impact on local and national stakeholder relations. Extensive attention national media, some international coverage.

Severe impact on Group reputation. International public concern. High level of concern amongst governments and action by international NGOs. International media attention.

The health & safety and environmental consequences are monetized using the logarithmic average of the corresponding economic consequence class to determine a representative total consequence cost in terms of money. Note that clean-up costs due to a spill or fines from authorities should be included in the economic consequences and that the direct environmental consequences are ranked separately.

Software

Consequences Age-Related Failures

For AR DMs, the selection of the consequence score is done along the horizontal axis of the Criticality Matrix.

  • Select the Component – DM combination that you want to analyze.
  • Select the Criticality Assessment tab.
  • Determine the consequences by answering the following questionnaires: Economic, Health & Safety, and Environment. Direct, Simple or Detail questionnaires can be chosen.

 Determine the consequences by answering the questionnaires: Economic, Health & Safety, and Environment. 

  • Alternatively, click the Consequence category along the horizontal axis (to see the matrix, Overview must be selected).
  • Note: For a consequence to be considered, its box should be ticked.
  • Add Notes of how the susceptibility and consequences were determined for later reference (selecting Scenario and then Edit).
Select Scenario and Edit to add notes on Susceptibility and Consequences.  Note: When direct is being used for economic consequence, a 1/3 of the selected range is used in calculations.

Consequences Non-Age-Related Failures

For NAR DMs, the selection of the consequence score is done along the horizontal axis of the Risk Matrix.

  • Select the Component – NAR DM combination that you want to analyze.
  • Select the Risk tab.
  • Determine the consequences by answering the questionnaires: Economic, Health & Safety, and Environment. Direct, Simple or Detail questionnaires can be chosen.
Determine the consequences by answering the questionnaires: Economic, Health & Safety, and Environment. 
  • Alternatively click the Consequence category along the horizontal axis (to see the matrix, Overview must be selected).
  • Add Notes of how the Likelihood and consequences were determined for later reference (select Scenario and then Edit).
Select Scenario and then Edit to add notes Likelihood.

 


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