chapter  4
34 Pages

Statistical Risk Monitoring

In order to manage risk it is of key importance to be able to monitor the safety level of the operation. Key risk parameters are accident frequency and expected consequences in terms of human suffering, environmental damage or economic loss. It is clear that accidents are the result of complex interactions within the system, in relation to the operators and to the environment. This means that both the occurrence and outcome of accidents are to some degree stochastic in nature. It is therefore important that the risk manager has a good understanding of how statistics can be used in the monitoring of accident phenomena. The following presentation will highlight some key topics from statistical theory with strong emphasis on the practical application in risk management.