Potential risks from major industrial hazards to on-site or off-site workers, the general public, property and the environment can result from causes such as mechanical failures, human error or other forms of accidents. Industrial accident risk assessment is the structured process that identifies both the likelihood and potential extent of adverse consequences arising from given activities, facilities or systems. Adverse consequences typically of concern are physical harm to people, property, or the environment.

Potential risks can be defined as a combination of the frequency (or probability) and the consequence of a specified hazardous event. For example, risk is present if:

• the occurrence of an event is certain, but the result (when the event occurs) is uncertain;
• the occurrence of an event is uncertain, but its outcome (should it occur) is known; or
• both the occurrence of an event and the outcome are uncertain.

Industrial risk can include assessment of:

• fixed facilities,
• transportation risks and
• post accident evaluations.