It is the well-known fact that most part of goods transported are moved on the unfavorable ocean and even a small amount of accident on sea is extremely dangerous for human lives, financial losses, and social responsibility. Among the several causes of accidents, those by fire have occurred frequently and their damage has been highly serious. The aim of this paper is to assess the risk of fires due to oil leakage in the machinery space. To define the possible fire scenario, our team has performed the search of casualty database and reviewed the previous and various studies in the field. As a result, it is noted that the quantitative risk of the fire scenario have been evaluated on the ground of the FSA risk model. The expected frequency of a fire amounts to incidents during the life of a ship, and the expected financial damage amounts to 5,654 USD per a ship. By adopting Safety Instrumented System (SIS) introduced in IEC 61508 and IEC 61511, SIS model is designed to prevent oil leakage fire as a risk reduction method. It is concluded that System Integrity Level (SIL) 1 seems to be appropriate level of SIS.