Risk assessment

Risk assessment requires evaluating both consequence and likelihood of an occurrence or failure. It starts with consequence:

  • If consequence of failure is high:
    • Value of knowing likelihood is high
    • It is worth spending on inspection and assessment to establish this
  • If consequence of failure is low:
    • Knowing likelihood is unlikely to change decisions
    • Therefore value of knowing likelihood is low

Inspection and condition assessment establish likelihood of failure. This is a quantitative calculation of likelihood from audit & inspection data.

  • High likelihood: focus on rehabilitation & replacement
  • Low likelihood: develop intervention plan for fail & fix approach

A proper risk assessment:

  • Enables prioritisation and focus on high-priority and high-risk assets.
  • Drives asset management budgets for maximum cost-effectiveness.
Risk assessment matrix
Risk assessment matrix