Risk-based inspection is a procedure for ranking or prioritizing equipment for inspection purposes, based upon risk.
Risk is the combination of probability and consequence.
Probability is the likelihood of an event occurring, in this case an equipment failure. Consequence is a measure, both in lives and property, of the damage that would occur if an equipment item failed. Risk based inspection procedures can be based on either qualitative or quantitative methodologies. Qualitative procedures provide a ranking of equipment, based largely on experience and engineering judgement. Quantitative risk-based methods use several engineering disciplines to set priorities and develop programs for equipment inspection.