CHEMICAL ENGINEERING TRANSACTIONS VOL. 39, 2014 A publication of The Italian Association of Chemical Engineering www.aidic.it/cet Guest Editors: Petar Sabev Varbanov, Jiří Jaromír Klemeš, Peng Yen Liew, Jun Yow Yong Copyright © 2014, AIDIC Servizi S.r.l., ISBN 978-88-95608-30-3; ISSN 2283-9216 DOI: 10.3303/CET1439075 Please cite this article as: Mitkowski P.T., Zenka-Podlaszewska D., 2014, HAZOP method in identification of risks in a CPFR supply chain, Chemical Engineering Transactions, 39, 445-450 DOI:10.3303/CET1439075 445 HAZOP Method in Identification of Risks in a CPFR Supply Chain Piotr T. Mitkowski* a , Dominika Zenka-Podlaszewska b a Poznan University of Technology, Faculty of Chemical Technology, Department of Chemical Engineering and Equipment, pl. M. Sklodowskiej-Curie 2, PL 60-965 Poznan, Poland. b Poznan University of Economics, Faculty of International Business, Department of International Logistics, al. Niepodleglosci 10, PL 61-875, Poznan, Poland. piotr.mitkowski@put.poznan.pl This paper presents the successful transfer of hazard and operability studies (HAZOP) method from the process industry to the area of supply chain management (SCM), more specifically to supply chain risk management (SCRM), with objective on identification of risks in organizations modelled with the Collaborative Planning, Forecasting and Replenishment (CPFR) model. The specific findings are the possible combinations of guide words and parameters characteristic for supply chain. Therefore the structural identification of feasible risks in CPFR is feasible. As a result of this work various events (e.g. deviations, possible causes and consequences of the deviations) are suggested for specific part of supply chain (SC) with the participants determining whether and how the event could occur and whether the event creates any form of risk in case of implemented CPFR business model. In doing so, the research is creating a benchmark for whole supply chains, especially for these organisations which are using CPFR. The paper could also be used as a roadmap of how to use HAZOP in a supply chain risk identification and management. The details of risk identification will be presented only for the first process, out of eight, in CPFR model, namely collaboration arrangement. The research is continued, however, the research implication is showing, that the method like HAZOP, designed to identify hazards in other fields (i.e. chemical engineering) can be successfully used in SCRM. 1. A short background on hazard and operability studies and supply chain risk management In science hazard and risk differ significantly from each other. Hazard is defined as a physical situation with a potential for human injury, damage to property, damage to the environment or some combination of these. Such definition is actually in contradiction with concept of risk, which is the likelihood of a specified undesired event occurring within a specified period or in specified circumstances. Due to above presented differentiation, in this work we are dealing with risk identification. Although the HAZOP method is intended to hazards identification in process industries, in field of SC it will deal with risks. In 1960s, it has become evident that accident prevention basing on learning from historical accidents in booming process industries was insufficient in terms of costs related to accident compensations, process delays and reengineering (Swann and Preston, 1995). With this background HAZOP was developed at that times (Elliott and Owen, 1968). Since then advantages of HAZOP have been recognized and now HAZOP is widely accepted in chemical and process industry (Crowl and Louvar, 2011). In process industry applications of HAZOP and its modifications are subjected to intensive studies (Gilardi and Gotti, 2013). The majority of studies in the field of supply chain management (SCM) have basically suggested how to manage a logistic network once it has built up, so that planning methodologies, performances indices are assessed along with its modelling and optimisation (Cigolini and Rossi, 2006). Complementary to the SCM, the area of Supply Chain Risk Management (SCRM) focused mainly on risk management tools and its uncertainties is developing (Waters, 2011). Although, there are successful attempts of utilizing ontology