Risk Analysis Methods (Consequences)

The hazard diamond is used to identify and analyze the different risks associated with hazard sources. The hazard diamond or the so-called fire diamond is defined in the NFPA (704) which is the Standard System for the Identification of the Hazards of Materials for Emergency Response. The four divisions of the diamond are color-coded to represent flammability (red), health hazard (blue), chemical reactivity (yellow) and special hazards (white).The Hazard diamond is normally used to identify the risk associated with hazardous materials and dangerous goods.

Originally, the scenario technique came from the military field, but today it is also frequently used for economic and social issues. Basically, the scenario technique combines quantitative and qualitative forecasting elements. Thus, no pure linear projection is made on the basis of historical data. The aim of the procedure is to prepare companies for future developments in order to improve their ability to act. The complexity is reduced by the calculation and exclusion of inconsistent future developments. The scenario technique provides consistent future projections based on the information collected during the process.

Event Tree Analysis (ETA) is a method that examines the consequences of a particular event. Starting from an initial event, the tree is divided into two branches, whereby the upper one represents a positive and the lower one a negative development (event trees are usually drawn from left to right). Repeated branching of the tree shows possible effects of an initial event on a system. The aim of ETA is the identification of possible damage events. 

The Bow-Tie method can be considered to be a combination of earlier developed fault tree analysis (FTA) and event tree analysis (ETA) methods. A significant milestone in the history of Bow-Tie was the catastrophic incident on the Piper Alpha platform in 1988, which shook the oil and gas industry. In the early 1990s, the Royal Dutch Shell adopted the BowTie method as part of its methodological toolbox for managing risks. Nowadays, the Bow-Tie method is also used for risk management related to different transport modes such as maritime and aviation.