Purpose
The activities of the oil industry from discovery to distribution of oil products have adverse effects on human and environment. Thus, the companies that are active in this industry should identify and manage their risks. The purpose of this paper is to prioritize the identified risks based on different measures such as cost, occurrence, etc. Then, selecting the most important corrective actions using goal-programming approach is another objective of this study.
Design/methodology/approach
To identify the health, safety and environment (HSE) risks, the Fuzzy Delphi method was used. The failure mode and effects analysis (FMEA) and fuzzy Vlse Kriterijumsk Optimizacija Kompromisno Resenje (VIKOR) methods covering the deficits of FMEA were used to rank the HSE risks. Unlike similar researches, in the proposed FMEA–VIKOR method, the risk priority number was not calculated. In addition to severity, occurrence and detection, the parameters such as time, cost and quality, being considered for ranking the risks, were weighted by the Eigenvector method. Then, a fuzzy goal-programming model was developed for determining the best solutions of risk response.
Findings
The research findings indicated that the most important risks include fire and blast because of tank and pipeline, leakage of connections and pipelines and industrial waste. Also, the most important risk responses include using and strengthening the alarm and fire extinguishing systems, using fiberglass tanks to prevent pipeline corrosion, using modern technology to have more efficient oil refining.
Originality/value
The main contribution of this paper is using hybrid approach of FMEA–VIKOR for risk ranking by considering different measures such as time, cost and quality besides severity, occurrence and detection. Providing a fuzzy goal-programming framework for determining the main risk responses is another value for this research.