According to the Asset Management principles in the water and wastewater industry risk is defined as the multiplication of the consequence of failure and the likelihood of failure.
RISK = CONSEQUENCE OF FAILURE x LIKELIHOOD OF FAILURE
Typically, the consequence of failure and the likelihood of failure are rated on a scale from low severity to high severity. The multiplication of the two values for both categories yields the risk value. Those items that have the highest risk in your system are the items that should be on your Capital Improvement Plan.
In the development of Capital Improvement Plans for its clients, SDG Engineering focuses on risk-based decision-making utilizing Asset Management Principles.
DO YOU KNOW…
YOU ARE SPENDING THE RIGHT AMOUNT OF MONEY ON THE RIGHT THING?
For your Capital Improvement Plan, do you know that you are spending the right amount of money on the right thing at the right time? This is a fundamental rule in Assessment Management.
Why is that important?
If you wish to keep your rates just for your system users, you need to be spending
- The right amount of money,
- On the right thing,
- At the right time.
If you do that, then you will have the right rate for your system users.