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1/10 Risk: Theory and Application
          from  some  commercially  available  existing  models,  cus-   V.  Data collection
          tomized  from  existing  models,  or  created  “from  scratch”
          depending  on  your  requirements.  Multiple  models  can  be   Data and information  are essential  to good risk assessment.
          run against the same set of data for comparisons  and model   Appendix G shows some typical information-gathering efforts
          evaluations.                               that are routinely performed by pipeline operators. After sev-
                                                     eral years of operation, some large databases will have devel-
          Step 2: Data collection and preparation    oped. Will these pieces of data predict pipeline failures? Only
                                                     in extreme cases. Will they, in aggregate, tell us where risk hot
          Data collection entails the gathering of everything that can be   spots are? Certainly. We ohviously feel that all of this informa-
          known about the pipeline, including all inspection data, origi-   tion is important-we  collect it, base standards on it, base regu-
          nal construction information, environmental conditions, oper-   lations on it, etc. It just needs to be placed into a risk context so
          ating and maintenance history, past failures, and so on. Data   that a picture of the risk emerges and better resource allocation
          preparation is an exercise that results in data sets that are ready   decisions can be made based on that picture. The risk model
          to be read into and used directly by the risk assessment model.   transforms the data into risk knowledge.
          A collection of tools enables users to smooth or enhance data   Given the importance of data to risk assessment, it is impor-
          points into zones of influence, categories, or bands to convert   tant to have a clear understanding of the data collection process.
          certain data sets into risk information. Data collection is dis-   There exists a discipline to measuring. Before the data gather-
          cussed  later  in this  chapter  and data preparation  issues  are   ing effort is started, four questions should be addressed
          detailed in Chapter 8.
                                                     1. What will the data represent?
          Step 3: Segmentation                       2.  How will the values be obtained?
                                                     3.  What sources ofvariation exist?
          Because risks are rarely constant along a pipeline, it is advan-   4. Why are the data being collected?
          tageous  to  segment  the  line  into  sections  with  constant
          risk  characteristics  (dynamic  segmentation)  or  otherwise
          divide  the  pipeline  into  manageable  pieces.  Segmentation   What will the data represent?
          strategies and techniques are discussed in Chapters 2 and 8,
          respectively.                              The data are the sum of our knowledge about the pipeline sec-
                                                     tion: everything we know, think, and feel about it-when  it was
          Step 4:Assessing risks                     built, how it was built, how it is operated, how often it has failed
                                                     or come close, what condition it is in now, what threats exist,
          Now  the previously  selected  risk  assessment  model  can be   what its surroundings are, and so on-all  in great detail. Using
          applied to each segment to get a unique risk “score” for that   the risk model, this compilation of information will be trans-
          segment.  These  relative  risk  numbers  can  later  be  con-   formed into a representation of risk associated with that sec-
          verted into absolute risk numbers. Working with results of risk   tion. Inherent in the risk numbers will be a complete evaluation
          assessments is discussed in Chapters 8,14,  and 15.   of the section’s environment and operation.
          Step 5: Managing risks                     How will the values be obtained?
          Having  performed  a  risk  assessment  for  the  segmented   Some rules for data acquisition will often be necessary. Issues
          pipeline, we now face the critical step of managing the risks. In   requiring early standardization might include the following:
          this area, the emphasis is on decision support-providing  the
          tools needed to best optimize resource allocation.   Who will be performing the evaluations? The data can be
            This process generally involves steps such as the following:   obtained by a single evaluator or team of evaluators who will
                                                       visit the pipeline operations offices personally to gather the
            Analyzing  data  (graphically  and  with  tables  and  simple   information required to make the assessment. Alternatively,
            statistics)                                each portion of a pipeline system can be evaluated by those
            Calculating cumulative risks and trends    directly involved in  its operations  and maintenance.  This
            Creating an overall risk management strategy   becomes a self-evaluation in some respects. Each approach
            Identifying mitigation projects            has advantages. In the former, it is easier to ensure consis-
            Performing what-if’s                       tency; in the latter, acceptance by  the workforce might be
                                                       greater.
            These are fully discussed in subsequent chapters, especially   What manuals or procedures will be used? Steps should
          Chapter 15.                                  be taken to ensure consistency in the evaluations.
            The first two  steps in the overall process,  (1)  risk model   How  often will  evaluations be  repeated? Reevaluations
          and (2) data collection, are sometimes done in reverse order.   should be scheduled periodically or the operators should be
          An  experienced  risk  modeler  might  begin  with  an  exam-   required to update the records periodically.
          ination of the types and quantity  of data available and from   Will “hard proof” or documentation be a requirement in
          that  select  a  modeling  approach.  In  light  of  this,  the  dis-   all cases? Or can the evaluator accept “opinion” data in some
          cussion of data collection issues precedes the model-selection   circumstances? An evaluator will usually interview pipeline
          discussion.                                  operators to help assign risk scores. Possibly the most com-
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