Risk Assessment and Critical Assets - APWA...

Risk Assessment and Critical Assets

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Asset Management as a Process Workshop

2016 APWA Washington Puyallup, Washington

Bryan Chappell, Water Quality Supervisor

Risk

Condition

Assessment

Eight

Elements of Asset

ManagementPe

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Risk Assessment

Risk is the uncertainty

that impacts our

operations. It can take

the shape of Manpower,

Funding, Weather,

Materials, Policies, and

Equipment.

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Risk

What is Risk and what is Our Goal:

Risk

Risk management is the cultures, processes and

structures that are directed towards the effective

management of potential opportunities and threats

• Risk = Function(Threats * Vulnerabilities * Impacts *

Velocity)

Goals

Become More Proactive through Risk-Informed

Processes and Mitigation Plans, Capitalize on

Opportunities

Continue to build public trust3

Risk Assessment

Risk Assessment – the Basics

The risk management process should consist of four important parts:

• Identifying risks that could impact the Operations/Asset Management Plan

• Assessing the likelihood and impact of such variance

• Responding by developing plans for minimizing hazard and maximizing gain

• Managing the execution of those plans

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Responding to Impacts of Risk

Responding to Impacts

After assessment of consequences, next step is an evaluation of

strategies to minimize impacts

• Avoid

• Reduce

• Transfer

• Accept

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Decision Tree

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Types of Risk

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Short Term Risk Examples

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Programmatic -

Project

Seasonal

Long Term Risk Examples

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Funding

Down Stream Effect

Focus on Short Term Risk

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Programmatic -

Project

Seasonal

Short Term Risk – Roadside

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Examples of Risk:

• Fire Danger

• Equipment Breakdown

• Early, Late or Extended Growing Season

Short Term Risk – Roadside

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Examples of Risk:

• Fire Danger

• Equipment Breakdown

• Early, Late or Extended Growing Season

Fire Danger:

Increase Cost

• Water Trucks

• Shorted Work Hours

Increases Time Needed to Complete

Safety

Short Term Risk – Roadside

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Examples of Risk:

• Fire Danger

• Equipment Breakdown

• Early, Late or Extended Growing Season

Down Equipment:

Increase Time

• Less Equipment Available to Perform the Work

• Increases Time Needed to Complete

Safety

Short Term Risk – Roadside

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Examples of Risk:

• Fire Danger

• Equipment Breakdown

• Early, Late or Extended Growing Season

Early, Late or Extended Growing Season:

Variable Cost

• Shorter Season – Can work on other High Priority Work Orders

• Extended Season – Cannot work on other High Priority Work Orders

Safety

Roadside – Risk Treatment

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Examples of Risk:

• Fire Danger

• Equipment Breakdown

• Early, Late or Extended Growing Season

Treatment Prior to 2015:

Added Water Trucks – Accepted

• Increased Cost for the Program

Shortened Working Hours – Accepted

• Stop work by 1pm and be on fire watch

Rented ADDTL Tractors if available – Accepted

• Supplement Down Equipment

� Increased Cost for the Program

• Finish Program more quickly

� Increased Cost for the Program

Roadside – Risk Treatment

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Examples of Risk:

• Fire Danger

• Equipment Breakdown

• Early, Late or Extended Growing Season

Current:

Utilize AGO to create an “Inventory” of where we need to cut and where we have obstructions to the IVM program

• In the winter we put a crew together to remove the obstructions that can be removed – Reduced

� Vegetation crew can now see where the remaining obstructions are so we reduce the risk of damaged equipment

Utility Marker

Fire Hydrant

Roadside – Risk Treatment

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Examples of Risk:

• Fire Danger

• Equipment Breakdown

• Early, Late or Extended Growing Season

Current:

This Dynamic “Inventory” has changed our IVM Program by:

• Slight Initial Increased Cost for the Program – Accepted

• Dramatic decrease in time to complete one cut cycle (months) – Reduced

� Completed two passes in the time it took to complete one pass

• Identify areas for brush cutting vs mowing to maximize equipment – Mitigated

• Show Owner Will Maintain Location to reduce citizen complaints – Mitigated

Short Term Risk – Catch Basin Cleaning

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Examples of Risk:

• Out of Permit Compliance

• Localized Flooding

Short Term Risk – Catch Basin Cleaning

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Examples of Risk:

• Out of Permit Compliance

• Localized Flooding

Out of Permit Compliance:

Requirements

• Catch Basin

� Inspection – Annually

� Cleaning – within 6 month of inspection

• Water Quality Flow Control (Annual and per 10 year event)

� Inspection – Annually

� Cleaning– within 12 month of inspection

Short Term Risk – Catch Basin Cleaning

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Examples of Risk:

• Out of Permit Compliance

• Localized Flooding

Localized Flooding:

Increase Cost

• Fighting water while cleaning

• Potential for additional material to be in catch basin

• Water Over the Roadway

Safety

Catch Basin – Risk Treatment

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Current:

We started out with 4 teams of 2 to inspect catch basin and saw a trend early in the inspection process that we were having to clean a lot of catch basins.

• To lengthen the time line to get them cleaned I reduced the number of inspection teams – Reduced

Last November/December Pierce County had two 10 year event rainfall totals

• Saw an increase in the amount of material in the WQFC features – Accepted

Examples of Risk:

• Out of Permit Compliance

• Localized Flooding

Likelihood vs Impact Scale

Likelihood

• Chance that something happens

Impact

• Outcome of an event

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Blending Critical Assets and Risk

Future Risk Assessments – Criticality Matrix

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Likelihood Stormwater Pipe Characteristics:

• Length

• Diameter

• Material

• Wall Type

• Road Grade

• Soil Type

• Flooding history

Likelihood vs Impact for Assets:

• Reprioritize WO’s

Future Risk Assessments

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Impact Stormwater Pipe Characteristics:

• Land Zone Type

• Sensitive Area

• Road Classification

• Lahar Evacuation Route

• Pipe Type

Likelihood vs Impact for Assets:

• Reprioritize WO’s

Inventory

Other ways to define Critical Assets

• Replacement Value

• Location to other infrastructure

• Lifeline Routes

• Hospitals

• Shelters

• Lahar Evacuation Routes

• Primary Arterials

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Inventory

Thoughts to take away

This is nothing new. Everyone uses Risk Analysis every day, every time

you make a decision.

Our experience with enterprise asset management programs can

identify, summarize risks but lack a comprehensive planning tool for

dynamic assets.

Addressing risk adds realism, credibility to asset management programs

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Questions?

Bryan ChappellPierce County Public Works & Utilities

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