Page 358 - Pipeline Risk Management Manual Ideas, Techniques, and Resources
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             111.  Measurement tool                     not to think we can find a 2% change in risk with a tool that is
                                                        only sensitive to *IO%  changes. This is similar to the “accu-
             The risk assessment model described in Chapters 3 through 7   racy” of the model, but involves additional considerations that
             produces relative risk scores by combining the possible failure   surround  the high  level  of  uncertainty  associated  with  risk
             mode  scores  and  dividing this  sum  by  the  potential  conse-   management. However, it would not be reasonable to assume
             quences score:                             that this tool cannot be continuously improved. Improvement
                                                        opportunities should be constantly sought.
                   Relative risk = [index sum]/[le& impact factor]   See also Chapter 8 for a some simple statistical and graphi-
               Index sum = [third party] + [corrosion] +[design] + [incorrect   cal  tools  that  can be used  to further explore  a risk model’s
                             operations]                capabilities.
             Having built a formal risk assessment system, it is useful to step
             back and assess what information is now available. Recall that   IV.  Cumulative risk
             the final risk numbers should be meaningful in a practical, real-
             world sense. They should represent everything that is known   Cumulative risk is a metric used to gauge the risk posed by any
             about a specific piece of pipe-the  collective intelligence of the   length of pipeline. Because risk values are very location spe-
             whole company including all knowledge gained over years of   cific along the pipeline, a method of rolling up all of the risks
             operating experience, all of the statistical data that can be gath-   for a certain stretch ofpipeline is important.
             ered, all intuitive beliefs, and all engineering calculations. Ifthe   As noted in Chapter 2, the pipeline risk scores represent the
             model  has  not  captured  all  of  this,  then  there  is  room  for   relative level of risk that each point along the pipeline presents
             improvement. If any personnel are more knowledgeable in any   to its surroundings. It is insensitive to length. If two pipeline
             risk area than the model is, there is still work to be done. If the   segments,  100 and 2600 ft, respectively, have the same  risk
             risk  assessment  results  are  not  believable,  then  something   score, then each point along the  100-ft segment presents the
             is either wrong with the model or the perceptions of the dis-   same  risk  as  does each  point  along the  26004 length.  Of
             believers. In either case, the disconnect can be identified and   course, the 2600-ft length presents more overall risk than does
             resolved.                                  the  100-ft length, because  it has many more risk-producing
              When, after careful  evaluation  and  much  experience,  the   points. A technique is needed to add the length aspect so that a
             results are believable and trusted, the user will find many ways   100-ft length of pipeline with one risk score can be compared
             to use the numbers that he perhaps did not foresee.   against a 2600-ft length with a different risk score. This issue is
              In creating a risk assessment system, a measurement tool has   also discussed  in  terms  of  individual  and  societal  risks  in
             been created. As with any measurement  tool, it must have a   Chapter 14.
             suitable “signal-to-noise ratio” if it is to provide useful results.   Many pipelines will have short lengths of relatively higher
             This means that the “noise,” the amount of background vari-   risk among long lengths of lower risk. In summarizing the risk
             ability in the measurement (due to numerous causes), must be   for the entire pipelhe, a simple average or median will hide the
             low enough so that the “signal,” the risk value of interest, can   shorter,  higher  risk  sections. A  cumulative  risk-all   of  the
             be read. Every system, especially complex systems such as a   higher and lower portions  with their respective lengths com-
             pipeline existing in a natural environment, will show a great   piled into a summary number-will   produce the most mean-
             deal of variation in many characteristics. Some of this natural   ingful measure.
             variation will  be of  interest-a   signal-since   it changes  our   The cumulative risk characteristic  is measured in order to
             risk perceptions. Some of the variation, however, will only be   track risk changes over time, compare widely different types of
             “background  noise”-not   of  real  risk  interest  and  perhaps   projects, and equate relative risks to absolute risks, if, for exam-
             obscuring the real signals.                ple, we want to compare the risk benefit of clearing 20 miles of
              In the case of pipeline risk, some sources of variation that   pipeline ROW and installing new signs to the value of lowering
             must be filtered for signals include       and recoating  100 feet of pipeline. On one hand, the failure
                                                        potential is being reduced significantly along a short stretch of
              Varying static conditions along a pipeline and between com-   ROW. On the other hand, amore widespread mitigation is being
              pared  pipelinesdifferent  soils, vegetation,  temperatures,   broadcast over a long length. Even with relative risk scores at
              pipe materials, pipe sizes, operating practices, etc.   each location, the comparison is not intuitive unless a method
             0  Varying dynamic conditions-activities  of people, presence   of equivalency is established.
              of people,  weather events, stress conditions,  soil moisture   This measure can be called cumulative risk (CR). With a rel-
              content, etc.                             ative risk scale like the one presented in Chapters 3 through 7, a
             0  The high level ofuncertainty associated with the modeling of   simple formula can be used to calculate cumulative risk:
              phenomena such as dispersion and explosion
             0  Small amounts of statistical data from which to predict event   CR =(]/risk  score) x (length)
              frequencies
              Large  numbers  of  variables  that  can  contribute  to  risk   The reciprocal of risk score is used because the “risk” score is
              changes and which are often confounded with each other.   really a “safety” score-higher  points mean more safety-in
                                                        the model shown in Chapters 3 through 7.
             A highly variable system limits the ability of the risk assess-   Each  pipeline  and  segment  of  pipeline  has  a  CR  value.
             ment tool to distinguish real changes in risk level from changes   Longer  lines  have  higher  CR values,  reflecting  higher  risk.
             that do not necessarily contribute to risk. We should be careful   This is appropriate since a longer line logically has a higher
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