This paper presents an approach to develop a risk monitoring tool for oil storage facilities. The suggested approach is derived from the existing dynamic risk analysis (DRA) methods and the digital twin concepts. One of the main challenges in practical applications of DRA methods is insufficient amount of relevant data, and it seems that digital twin models can overcome this challenge by offering increased availability of real-time data. It can be interesting to judge if their combination can provide the intended advantages with a structured and more holistic viewpoint. Therefore, this paper demonstrates how a representative systems engineering (SE) methodology may be used to facilitate the process of developing an improved risk monitoring tool.