Ageing of underground storage tanks (USTs) in petrol stations have come with risks whereby failure due to loss of containment can potentially cause catastrophic damage to humans and environment. The failure due to the loss of containments such as fuel and gas may trigger a domino effect of fire. This study aims to introduce an alternative approach of risk assessment by adopting Risk Based Assessment (RBA), Structural Health Monitoring (SHM) and Area Location of Hazards Atmospheric (ALOHA: Loss of Containment: LOC) to assess the fitness of the underground storage tank for operational purposes and the possibility of the risk engulfing petrol station. The RBA is a process that involves in collecting all the primary and secondary data such as policy, technical and maintenance data. These data will be the input to the SHM. SHM is a process of using unique acoustic emission and guided wave gadget Long Range Ultra Thickness (LRUTG) in capturing the thickness of the wall of UST, type material, temperature, level of pressure of the material, stress and strain. Both data from RBA and SHM will be the input to the Area Location of Hazards Atmospheric (ALOHA) by adopting the consequences model such as Loss of Containment (LOC). This tool will simulate and predict the magnitude and severity effect of the fire risk to the on-set and off-set of the petrol station and its vicinity. The result of the combination and holistic of the above approach will provide a novel way of monitoring and supervising the underground storage tank’s integrity and prediction of an early information and detection of the fire risk at petrol station. This approach can be implemented and replicated to other petrol stations.