Quantifying reputation loss of pipeline operator from various stakeholders' perspectives – Part 2: Reputation loss model

• Published in: Journal of loss prevention in the process industries Vol. 62; p. 103978
• Main Authors: Zardasti, Libriati, Yahaya, Nordin, Noor, Norhazilan Md, Valipour, Alireza
• Format: Journal Article
• Language: English
• Published: Elsevier Ltd 01.11.2019
• Subjects: Consequence; Onshore pipelines; Reputation loss; Model; Consequence; Onshore pipelines; Reputation loss
• ISSN: 0950-4230
• DOI: 10.1016/j.jlp.2019.103978

Quantifying reputation loss (RL) due to pipeline damage is commonly generalized based on the owner's definition. This one-way perspective of portraying RL is unfair and unrealistic and consequently miscalculates the impact assessment of pipeline damage; hence, unexpected risk is predicted. It is crucial to develop a model to quantify qualitative RL to avoid unpredicted risk. Thus, this article provides a framework for a procedure to calculate RL by utilizing the factors identified in a previous study. In the preceding paper (Part 1), the prioritizations of factors based on the stakeholders' perspectives were presented. The factors were grouped into stakeholder-influenced categories and prioritized by a fuzzy analytic hierarchy process based on the feedback gained from the stakeholders, i.e., investors, customers, employees and the public. The result shows that factor D3, “Accident severity”, was ranked highest by the stakeholders involved in the surveys. The priority vector for each factor obtained was assigned as a weight of the factor. The pipeline owner's reputation loss model (RLM) is developed by applying the obtained priority vectors presented in this paper (Part 2). The developed RLM was verified by experts as a comprehensive, clear, objective, practical and moderately reliable model. The RLM was applied to a case study and eventually produced a lower risk value when compared with the currently used model. It is proven that RL factors can be quantitatively measured and can simultaneously improve pipeline damage impact assessment. Thus, a risk-based inspection schedule can be managed comprehensively. •Reputation loss model specific for onshore pipeline accident developed based on different stakeholders' perspectives.•Severity level of each reputation loss factor designed based on 30 major onshore pipeline accident.•Reputation loss index developed to indicate the level of reputation loss impact to be borne by a pipeline operator.