|We can rank the risk of a pipeline failing and causing a fatality on a scale of 1 to 10, where 10 is high.
- We have an old pipeline (P1) transporting natural gas in a heavily populated area. We estimate the risk of causing a fatality, if the pipeline was to fail, as 8.
- We also have a new pipeline (P2) carrying crude oil, in a desert. We estimate risk is 2.
- Similarly, we have a new gas pipeline (P3) in a rural area. Risk is estimated at 4.
- We can now rank our pipelines (low to high risk) as P2, P3 and P1.
- Probability (P) of a plane crash/flight = 1 x 10-6.
- Consequences (C) of a crash is 100 fatalities.
- Risk = P x C = 1 x 10-4 fatalities/flight.