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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