Casualty Actuarial Society (CAS) Practice Exam

Which step is part of the HAZOP process?

1. Identifying and evaluating new markets

2. Reviewing each component to identify risks

3. Conducting a customer satisfaction survey

4. Developing a marketing strategy

The correct answer is: Reviewing each component to identify risks

The HAZOP (Hazard and Operability Study) process is primarily focused on identifying and analyzing potential hazards and operational issues in a system, particularly in chemical processing and engineering contexts. One of the key steps in the HAZOP process is to systematically review each component or section of the system to identify risks associated with deviations from the intended operation. This involves brainstorming sessions where team members assess how various failures could impact safety and efficiency. In this context, reviewing each component to identify risks is essential. It ensures that all potential hazards are recognized and evaluated, allowing for the development of mitigation strategies that enhance safety and reliability. This step is fundamental to the HAZOP methodology and is crucial for maintaining operational integrity. The other options, while pertinent in different contexts, do not align with the specific goals of a HAZOP study. Identifying and evaluating new markets and developing a marketing strategy relate more to business planning and marketing dynamics, while conducting a customer satisfaction survey deals with customer feedback rather than risk assessment. Therefore, the focus on systematically evaluating components for risks solidifies why this step is integral to the HAZOP process.