Evaluating Industrial Fire Risks – The FRisk Model

A major aluminium manufacturer was in need of fire frequency information to fully characterize the probability and gravity of fires of any kind on their industrial properties globally. In spite of the availability of fire descriptions and loss magnitudes, the company was not in a position to efficiently determine fire likelihood by occupancy and hence ensure that their fire improvement plans were based on complete risk-based information.

Armed with an extensive fire occurrence database and insurer loss estimates, Acuratek and its partner set out to develop the FRisk model - a fire improvement planning tool. The fire incident database was extensively mined to provide look-up tables for fire frequencies by occupancy and exposure area.  The loss estimates were also examined statistically to produce expected losses and combined with the fire frequency information, FRisk was conceived to enable business unit managers to plan their fire risk treatment options.

FRisk was made available online by the corporate risk and insurance department to assist in meeting the company’s global fire risk management objectives. The final deliverable enables true risk-benefit decision making, providing value-added information to more generic loss based data originally provided by the insurer.