An analysis of risk in utility management

Risk Analysis Techniques 1.

An analysis of risk in utility management

Where relevant good practice is a good fit to the circumstances, then decisions on risk reduction action are straightforward. In circumstances where established good practice does not exist, is out of date or the situation is complex and the relevance of individual good practices is questionable e.

CBA aids the decision making process by giving monetary values to the costs and benefits and to enable a comparison of like quantities.

The analysis can help make an informed choice between risk reduction options. Where major health and safety issues are being considered, a more rigorous CBA may be of value. What is a CBA? In a CBA, all costs and benefits are expressed in a common currency, usually money, so that a comparison can be made between different options.

It is a defined methodology for valuing costs and benefits that enables broad comparisons to be made between health and safety risk reduction measures on a consistent basis, giving a measure of transparency to the decision making process.

Inputs are defined as any additional human, physical and financial resources that are used to undertake an intervention. Likewise, all relevant health and safety and non-health and safety benefits arising from the intervention must be identified and expressed in monetary terms.

Health and safety benefits include the avoidance of actions that would be taken after an incident such as evacuation, food bans, land use restrictions, etc.

Gross disproportion What is Gross Disproportion? The concept of gross disproportion requires duty-holders to weigh the costs of a proposed control measure against its risk reduction benefits.

Specifically, it states that a proposed control measure must be implemented if the 'sacrifice' or costs are not grossly disproportionate to the benefits achieved by the measure.

Why do we use Gross Disproportion? The Courts notably in Edwards v.

An analysis of risk in utility management

National Coal Board Other Issues; there is no authoritative guidance from the Courts as to what factors should be taken into account in determining whether cost is grossly disproportionate; the duty-holder needs to take account of both the level of individual risk and the extent and severity of the consequences of major accidents; for a given benefit, the higher these risks, the higher the degree of disproportion i.

When undertaking a CBA duty holders are likely to have limited information about some of the key inputs such as the frequency of events and the number of potential fatalities involved. Sensitivity analysis is a way to deal with these uncertainties. A sensitivity analysis highlights whether suitably cautious assumptions have been made and allows the duty holder and HSE to assess the robustness of the outcomes of the CBA.

Annualisation What is annualisation? Annualisation is a procedure through which the average cost and the average benefit per year are worked out. This is simply done by summing up all discounted costs and all discounted benefits over the appraisal period and by dividing the outcomes by the length of the appraisal period.

Why do we use annualisation? Usually the costs of a health and safety intervention are not constant over time. There will often be initial costs occurring in the first year and then possibly lower recurring costs in each subsequent year.

Benefits could also vary from year to year, though they are more likely to be fairly constant [ 2 ].Sigma Risk Management Inc. is a leading Canadian risk management consulting firm. Sigma Risk has earned a solid track record for our services and the high quality of our risk analysis and management .

Introduction to Risk Analysis Thomas R. Peltier. 1. Overview Risk management is a process that provides management with the balance of meeting business objectives or missions and the need to protect the assets of the organization cost effectively.

Using Risk Scores, Stratification for Population Health Management Risk scores and risk stratification techniques are foundational for any successful population health management program.

Methods. The nine most commonly used violence risk assessment instruments used in psychiatric hospitals were examined. A systematic search of five databases (CINAHL, Embase, Global Health, PsycINFO and PubMed) was conducted to identify studies examining the predictive accuracy of these tools in forensic psychiatric inpatient settings.

Keywords: risk analysis tools, risk management tools, risk tools. MITRE SE Roles and Expectations: MITRE systems engineers (SEs) working on government programs are expected to use risk analysis and management tools to support risk management efforts.

MITRE SEs also are expected to understand the purpose, outputs, strengths, and limitations of the risk tool being used.

Undertaking risk management activity opens up the possibility of meeting the original deadline of maintenance works and avoiding the € 5M loss.

Risk Analysis and Risk Management - Decision Making from