SKI has undertaken a multi-year research project to establish a comprehensive passive component failure database, validate failure rate parameter estimates and establish a model framework for integrating passive component failures in existing PSAs. Phase 1 of the project produced a relational database on worldwide piping system failure events in the nuclear and chemical industries. This phase 2 report gives a graphical presentation of piping system operating experience, and compares key failure mechanisms in commercial nuclear power plants and chemical process industry. Inadequacies of traditional PSA methodology are addressed, with directions for PSA methodology enhancements. A data-driven-and-systems-oriented analysis approach is proposed to enable assignment of unique identities to risk-significant piping system component failures. Sufficient operating experience does exist to generate quality data on piping failures. Passive component failures should be addressed by today`s PSAs to allow for aging analysis and effective, on-line risk management. 111 refs, 36 figs, 20 tabs.