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Hazard Studies & Risk Assessment

ALARP Demonstration Studies

A defensible reasonably practicable argument that we engineer to withstand HSE, COMAH and CSB style scrutiny

What this study delivers

ALARP Demonstration
Studies

ALARP, the principle of reducing risk as low as is reasonably practicable, comes from the UK case Edwards versus National Coal Board in 1949 and is set out in the HSE guidance Reducing Risks Protecting People, and it has become the dominant Western risk acceptance test. The principle is asymmetric, so as risk climbs toward the intolerable region, around one in a thousand per year for a worker and one in ten thousand for the public, the disproportion factor needed to reject further mitigation rises sharply, and the HSE applies a gross disproportion factor of three to ten for high hazard cases. ALARP is not a single calculation but a documented argument that combines adherence to codes and standards, good practice benchmarking, cost benefit analysis for genuinely novel decisions and design that builds ALARP in at FEED. The regulatory environment after Buncefield, Macondo and Texas City has tightened scrutiny, so an argument must now address Bow Tie barrier escalation, low frequency and high consequence cases and the cliff edge where modest investment crosses from intolerable to tolerable, and we engineer it to do exactly that. ALARP increasingly applies in Indian process safety contexts through PESO Schedule 7 and MoEFCC environmental impact assessment and across the Australian, Canadian and Brazilian safety case regimes.

ALARP Demonstration Studies Overview
Study execution

How the study is executed

A structured, facilitated process that runs from scope definition through close out and produces defensible, actionable outputs.

Tolerability Framework & Risk Baseline

Establish applicable tolerability criteria (HSE R2P2 / CCPS / NORSOK / MoEFCC framework), overlay QRA risk contours (LSIR / IRPA / F N) against broadly acceptable, tolerable if ALARP, and intolerable bands, identify scenarios in the ALARP region requiring structured justification.

Risk Reduction Option Register

Compile all technically feasible risk reduction measures from engineering, operational, and administrative domains, categorise as codes and standards, good practice benchmarking, ISD (FEED stage Substitute / Minimise / Moderate / Simplify), or novel engineering measures, document status (implemented / under consideration / rejected).

Codes & Standards Compliance Defence

Demonstrate ALARP by compliance where well established codes (OSHA PSM, IEC 61511, API RP 752, NFPA) are fully met, document gap analysis against current code editions, identify code exceedance Good Engineering Practices (GEP) adopted voluntarily as ALARP credit.

Cost Benefit Analysis (CBA)

Perform CBA for genuinely novel or disproportionately costly risk reduction options using HSE VPF (£2.36m / fatality, 2024) or national equivalent, calculate Net Present Value of risk reduction (ΔPLL × VPF × NPV factor) versus implementation cost, document CBA inputs and uncertainty ±50% sensitivity.

Gross Disproportion Assessment

Select Gross Disproportion Factor (GDF) from HSE 1× to 10× sliding scale based on risk tolerability proximity and hazard nature, reject measures where cost > GDF × benefit, document disproportion narrative per option with engineer of record attribution, map against Bow Tie barrier upgrade options.

Decision Record & ALARP Archive

Issue ALARP demonstration report with risk tolerability framework, option register, CBA worksheets, GDF selection rationale, BAT benchmarking dossier, and residual risk acceptance statement signed at appropriate corporate authority, build ALARP archive reusable for MOC, 5 year safety case, and post incident review.

ALARP Demonstration Studies Scope
Study scope

What the study covers in full

A tolerability framework that sorts risk into broadly acceptable, tolerable if ALARP and intolerable across the HSE risk triangle
A good practice defence built on codes and standards, which is adequate where the practice is well established
ALARP built in at FEED through substitute, minimise, moderate and simplify under the CCPS inherent safer design hierarchy
Cost benefit analysis using the HSE value of preventing a fatality, around 2.36 million pounds per fatality, and the net present value of the risk reduction
Selection of the gross disproportion factor on the HSE sliding scale from one to three to ten as risk nears intolerability
Sensitivity and uncertainty analysis where we vary the cost benefit inputs by about fifty percent to test robustness
Bow Tie integration where we score each barrier upgrade option against the ALARP cost benefit analysis
Disproportion documentation through an engineer narrative that justifies the options you reject
A reasonable practicability defence under sections 2 and 3 of the UK Health and Safety at Work Act or its equivalent in your jurisdiction
An archive of the demonstration that you can reuse across management of change, periodic safety case and post incident review
Why it matters

Outcomes of ALARP Demonstration Studies

Risk Reduction Option Rigour
  • We test every credible barrier upgrade option against a quantitative cost benefit analysis
  • We anchor residual risk acceptance with engineer of record traceability
  • We drive inherent safer design upstream where building ALARP in is cheaper
  • Your argument holds up under post incident litigation and CSB style scrutiny
R2P2 and COMAH ALARP Defence
  • Your demonstration holds up under UK COMAH, HSE R2P2 and the Inspection Manual
  • It withstands an ALARP challenge from the HSE, the Environment Agency, the OSHA national emphasis programme or MoEFCC
  • It provides decision record evidence for a post incident litigation defence
  • It supports director and corporate officer due diligence
Decision Record and MOC Governance
  • We capture the collective engineering judgement at the right moment
  • We prevent the re litigation of risk decisions through documented disproportion
  • We give your management of change reviewers a defensible ALARP baseline
  • We build organisational ALARP literacy for your future safety cases
Gross Disproportion Investment Logic
  • We defend not implementing grossly disproportionate measures that the cost benefit analysis rejects at three to ten times
  • We sequence risk reduction capital against a quantified benefit
  • We avoid the gold plating that a compliance only approach drives
  • We sharpen your dialogue with insurers on residual loss expectancy
Standards & references

Codes & standards we work to

HSE R2P2 Reducing Risks Protecting PeopleUK COMAH Regulations 2015HSE SPC and Permissioning Inspection ManualEnergy Institute ALARP GuidanceCCPS Tolerable Risk CriteriaISO 31000NORSOK Z 013 offshoreMSIHC Rules 1989 IndiaFactories Act 1948 Section 41B IndiaUK HSE R2P2 ALARPHSE Cost Benefit Analysis Checklist
When to engage

Triggers that signal the need

Preparing or revalidating a safety case under COMAH, NORSOK or the Australian regimeClosing out a major project at FEED with a built in ALARP demonstrationA post incident risk review and a corrective action ALARP defenceA regulatory ALARP challenge or finding closureA major management of change that affects the major accident hazard inventoryAn HSE or equivalent permissioning inspection
Industries served

Where ALARP Demonstration Studies applies

Oil & Gas, Upstream

Wellheads, separators, gas compression, FPSO topsides, produced water systems.

UpstreamOffshoreFPSO
Refineries & Petrochemicals

Distillation columns, reactors, heat exchangers, storage spheres, LPG handling.

RefiningPetrochemical
LNG & Gas Processing

Cryogenic exchangers, liquefaction trains, BOG compressors, storage and sendout.

LNGCryogenic
Specialty Chemicals

Reactive systems, batch reactors, solvent handling, runaway reaction scenarios.

ReactiveBatch
Power Generation

Boilers, HRSGs, steam headers, hydrogen systems, ammonia SCR units.

PowerHydrogen
Pharma & Food

Sterile vessels, CIP/SIP, pressure fermenters, solvent recovery, spray dryers.

PharmaFood & Bev
What we deliver

Tangible deliverables

  • A demonstration report with the risk tolerability framework
  • A risk reduction option register that records each option as implemented, rejected or deferred
  • Cost benefit worksheets for each option with the value of preventing a fatality, net present value and sensitivity
  • The rationale for the gross disproportion factor we selected
  • A best available technique and good practice benchmarking dossier
  • Bow Tie barrier upgrade integration
  • A decision record and engineer of record audit trail
  • A residual risk acceptance statement signed at the appropriate authority
Get Started

Ready to start your project?

Speak with our team to scope an engagement tailored to your facility, regulatory context, and lifecycle stage.