API 580 Risk Based Inspection Practice Test

Which of the following is NOT considered a risk management technique for unacceptable risks?

1. Inspection

2. Consequence mitigation

3. Risk transfer

4. Decommission

The correct answer is: Risk transfer

In risk management, there are several techniques used to address unacceptable risks, and understanding each technique's purpose is essential. Inspection is a proactive measure that aims to identify potential issues before they manifest, thereby reducing the risk of failure. Consequence mitigation involves implementing strategies to lessen the impact of a risk that has materialized, such as putting safety protocols in place to prevent harm. Decommissioning is a definitive approach that involves removing an asset from service when it poses an unacceptable risk, effectively eliminating the potential for associated failures. Risk transfer, however, involves shifting the financial consequences or liabilities of a risk to another party—such as purchasing insurance or outsourcing certain risks but does not eliminate the risk itself. Therefore, it is not primarily a management technique for addressing unacceptable risks in the same way the other methods are, as it focuses on the financial implications rather than on managing or reducing the risk directly.