At all levels, the understanding of uncertainty associated with risk of major chemical industrial hazards should be enhanced. In this study, a quantitative risk assessment (QRA) was performed for a knockout drum in the distillation unit of a refinery process and then probabilistic uncertainty analysis was applied for this QRA. A fault tree was developed to analyze the probability distribution of flammable liquid released from the overfilling of a knockout drum. Bayesian theory was used to update failure rates of the equipment so that generic information from databases and plant equipment real life data are combined to gain all available knowledge on component reliability. Using Monte Carlo simulation, the distribution of top event probability was obtained to characterize the uncertainty of the result. It was found that the uncertainty of basic event probabilities has a significant impact on the top event probability distribution. The top event probability prediction uncertainty profile showed that the risk estimation is improved by reducing uncertainty through Bayesian updating on the basic event probability distributions. The whole distribution of top event probability replaces point value in a risk matrix to guide decisions employing all of the available information rather than only point mean values as in the conventional approach. The resulting uncertainty guides where more information or uncertainty reduction is needed to avoid overlap with intolerable risk levels. (C) 2009 Elsevier Ltd. All rights reserved.