Pinch Analysis For Environmental Risk Management

Chemical companies face many environmental risk problems in their production processes.To conduct a business environmental risk analysis is to ensure the normal production operation of a chemical company.Implementing environmental risk mitigation countermeasures in the context of a business environment requires balancing costs and profits of projects to be implemented.Systematic environmental risk analysis methods are thus needed to aid decision-making.This thesis proposes an integrated framework of environmental risk reduction and cost-benefit analysis.This work consists of two parts: segmented pinch analysis and game theory.This thesis proposes an integrated framework for environmental risk management,which includes risk identification,pinch analysis,and risk management.A fault tree analysis is used to identify and quantify risk points that affect safety production of the entire facility.A segmented pinch analysis method that considering revising the relationship between environmental risk prevention and control countermeasure costs,while also considering the criticality of environmental risk prevention.In this method,the countermeasure costs are divided into low-,medium-,and high-cost intervals.This method is illustrated using a chemical company case study to demonstrate how risk countermeasures can be identified under different levels of a firm?s “willingness to pay”.The final optimal mix of countermeasures can then be determined from candidate solutions,according to the source composite curve profile.It makes a company to reach best resources allocation to the risk points to ensure the normal production operation of a chemical company.Demands of safer production processes and stricter environmental regulation drive companies to balance capital planning problems with risk minimization.Environmental pollution liability insurance(EPLI)could be a useful tool to mitigate these risks.Manufacturing companies generally prefer to spend less money on investments for risk minimization;on the other hand,the insurance providers prefer to provide more alternatives to satisfy the needs of manufacturing companies and obtain as much benefit as possible.Based on this purpose,the idea of game theory is applied to environmental risk management.The interaction between a manufacturing company and a company providing EPLI may be modeled as a game between two players.This paper proposes a game theory approach for corporate environmental risk mitigation via EPLI.Parameters of the game theoretic model can be calibrated to achieve a desirable equilibrium.A same pharmaceutical company case study is used to demonstrate the application of the proposed approach.Pinch analysis combined with game theory considers the safety production and capital allocation of enterprises from both inside and outside.Achieve the expected risk reduction and optimize the purpose of resource allocation.