API 580 Risk Based Inspection Practice Test

Which type of risk does relative risk focus on in an RBI program?

1. Quantitative analysis

2. Absolute risk

3. Dynamic risk

4. Relative risk

The correct answer is: Relative risk

Relative risk is a critical concept in a Risk-Based Inspection (RBI) program as it specifically concentrates on the comparison of risks between different assets or scenarios. In an RBI context, relative risk helps to prioritize inspection resources by assessing how the risk of one component or system relates to the risks of others. This comparative approach allows organizations to identify which assets pose a higher risk in relation to others, enabling more focused and effective inspection strategies. While absolute risk looks at the inherent risk of an individual component without comparison to others, relative risk provides meaningful insights that inform decision-making. For instance, an asset with a lower absolute risk may still be prioritized for inspection if it has a significantly higher relative risk compared to others due to factors like operational conditions or historical performance. Dynamic risk refers to variations in risk over time due to changing conditions, which is also important but does not capture the comparative element that relative risk emphasizes. Quantitative analysis provides numerical measures that can quantify risk but does not specifically focus on relative comparisons among different entities. Therefore, relative risk is fundamental in guiding inspection efforts effectively within an RBI program.