Monetized Risk

Quantifying potential consequences with a common scale can be challenging. Using a measure such as cost—the monetized loss associated with the damages—forces some difficult judgments to be made among various receptor damages. For example, not only must a value be assigned to a statistical human life, but also to various injury types, environmental damage, damage […]

Where is the Risk Control Strategy?

In an earlier article, we noted that risk management is, in effect, often unintentionally delegated to decision-makers occupying the lower portions of the corporate org chart.  In many companies, the field personnel are essentially setting corporate risk levels via their choices in day-to-day activities and their perceptions of priorities. While we noted some advantages of […]

Pipeline Risk Assessment–The Trouble with Weightings

Tackling specifics of pipeline risk in bite-sized portions to make this challenging subject more approachable. Troubles with Weightings There is currently great disparity in approaches and level of rigor applied to risk assessment by pipeline operators.  This is largely due to the absence of complete standards or guidelines covering this complex topic.  The disparity leads […]

Formal Risk Assessment—Is it helping me?

Ever consider that true risk management sometimes occurs only at the lower levels of some pipeline organizations?  That is, personnel performing field activities are in effect setting risk levels for the company.  Their choices of day-to-day activities are essentially driving risk management and thereby establishing corporate risk levels.  This is not just theoretical—real choices are […]

The economics of acceptable risk

While avoiding the many nuances of ‘acceptable’ vs ‘tolerable’ risk and ‘How safe is safe enough?’ issues, let’s scratch the surface of setting, moving towards, or sustaining a target risk level. We begin with a premise that risk reduction is sought for some asset or collection of assets. We explore the risk reduction opportunities with […]

Due Diligence—Risk Costs of Asset Ownership

In this column, we occasionally highlight applications of risk assessment that are perhaps less apparent to some.  Since risk permeates almost all industrial endeavors, it is not surprising that risk understanding is or should be an essential part of many types of decision-making.  We have already covered risk assessment in incident investigation and as a […]

A bunch of info is being generated by this process. How does someone digest and make use of it all?

Many statistical investigation techniques, used for decades in numerous applications, will also help us understand pipeline risk. Financial market analyses tools are a good example. The same types of charts, summary statistics, and other analytical tools used there will be appropriate for our data sets.

Risk Management Resources

Articles <!– Where is the Risk Control Strategy? –> Is formal risk assessment helping me? Pipeline risk assessment as a tool for resolving conflict Pipeline risk assessment: risk profiling Full understanding of pipeline risk generates numerous opportunities to reduce that risk. So previous chapters have already identified risk mitigation opportunities. Reducing exposure, increasing mitigation or […]

Risk Assessment is an investigative journey

Formal risk management has become an essential part of pipelining. As an engineered structure placed in a constantly changing natural environment, a pipeline can be a complex thing. Good risk assessment is an investigation into that complexity; providing an approachable, understandable, manageable incorporation of the physical processes potentially acting on a pipeline: external forces, corrosion, […]