Page 7 - SIM Guide to annual assessment_v2.0_Dec 2021

Introduction

CATEGORIZATIONS OF OBSERVATIONS

Step 1

• Assess the Likelihood for Failure (LFF) of the finding by using the rating criteria
defined (see Rating Criteria - CONCRETE and Rating Criteria - Steel).

LFF Is the probability of that an engineered system or element fails.

Step 2

• Classify the potential consequence in case of a structural failure (Hazard
Consequence).

Hazard Consequence is the potential to harm or to have an adverse situation that
may affect the safety, the health, the environment, the financial or the company
reputation.

• Obtain the final risk rating in the Risk Matrix:

LH Risk Matrix

NOTE. Risks categorized as Level 1 must be validated by senior inspector and/or Unit
manager. If applicable, Expert Assessment must be triggered and temporary mitigation
controls implemented.

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