API 580 Risk Based Inspection Practice Test

Which of the following contributes to the 'consequence dominated risks' that may not be adequately managed by inspection?

1. Risks with low likelihood but high impact consequences

2. Risks that are frequently monitored

3. Risks with established mitigation strategies

4. Routine equipment failures

The correct answer is: Risks with low likelihood but high impact consequences

The focus on risks with low likelihood but high impact consequences aligns well with the concept of 'consequence dominated risks.' In risk-based inspection, these types of risks may not receive adequate attention through regular inspection practices because their low likelihood often leads to complacency in management. Since these risks are rare, they might be perceived as manageable due to their infrequency. However, when they do occur, their consequences can be severe, potentially leading to significant accidents, environmental damage, or financial losses. Therefore, reliance solely on inspection routines that focus on frequency could result in gaps in risk management for these rare yet impactful events. Options discussing risks that are frequently monitored, have established mitigation strategies, or are characterized as routine failures do not highlight the unique nature of consequence dominated risks. Frequent monitoring, for example, indicates a level of vigilance that is intended to manage risks effectively. Likewise, established mitigation strategies imply that actions are already in place to handle potential issues, which is contrary to the challenge posed by consequence dominated risks.