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151352 Risk Management
The following sections or independent documents could fall 1.3.1.2 Interpretation ofResults
under this portion of the program. 1.3.2 Risk Management Strategy
1.3.3 Project Prioritization
Preliminary risk management 1.3.4 Risk Management in Design Process
1.3.5 Performance Tracking
Until a preliminary risk assessment has been performed on all
sections of the system, more attention will be directed toward
sections that XII. Risk communications
Have higher incident frequency As with the concept of “acceptable risks,” the multifaceted
Carry more product topic of risk communications is not fully explored in this text.
Are in higher population areas. Many fascinating reports and psychological, sociological, and
anthropological studies dealing with risk perceptions, behav-
Use OfRiskAssessment Results ior, and communications can be found. The intent here is to
Action points equip the practicing risk manager with some basic concepts
Identification of risk drivers underlying this issue so that he or she might be more effective.
Prioritized ranking of system components
Project cost estimation Communications benefits
Project evaluation
0 Rate of spending. Some risk assessments are done for the express purpose of
communicating risks to very specific audiences. A common
Performance monitoring and feedback example is a regulatory approval process involving public hear-
ings. Beyond such special applications, having effective com-
Through this program, improvements are expected in decision munications abilities in an organization could result in the
consistency, overall risk levels, and control of spending. following benefits to a company:
Verification of these expected improvements is achieved
through tracking of Improved community perception and understanding of
potential risks
0 Pipeline leaksibreaks Improved community understanding and support of emer-
System outages gency preparation activities
Other failures Improved ability of the community to act on requests for
Incident reports emergency actions (shelter-in-place, evacuation)
Riskscores Reduced impact in the event of an emergency or disaster
Repair costs Decreased potential for legal action by the community to
Spending levels. protest what it may consider to be an inequitable risk bal-
ance.
Related procedures
seems reasonable that, if a risk to the community exists. the
The following are possible procedure titles that should he community deserves to be informed and consulted. This might
developed in support of the overall risk management program. involve presenting a fair and balanced assessment-informing
These procedures would address the specifics of items noted in only. It might also involve informing with a specific objective
the more general, high-level procedures for which samples are in mind such as to alert, that is, to prepare an audience to take
shown above. action; or to reassure, that is, to reduce anxiety about very
unlikely events. A fundamental distinction in risk communica-
1.1 Data Collection and Maintenance Procedure Set tion is deciding whether people are likely to be more concerned
1.1.1 Management of Change (triggers, roles, responsibil- than is considered appropriate (over-react) or be less concerned
ities, processes, etc.) than is considered appropriate (under-react). Generally, the
1.1.2 Repairs (including documentation and data collec- public will tend to overreact, especially to unfamiliar threats.
tion) A company’s communications objectives will change
1.1.3 Leaksibreaks (investigation and data collection) depending on the stage of the event. These stages are listed in
1.1.4 Claims (data collection and feedback loops) Table 15.8.
1.1.5 Corrosion Control Data
1.2 Risk Assessments Procedure Set The communicator
1.2.1 Pipeline
1.2.2 Pump stations Before the issue of public communication can be explored, it is
1.2.3 Tank Farms important that the true nature of the risk analysis be very clear
1.2.4 Processing plants in the communicator’s mind. In the construction and applica-
1.2.5 Other tion of models to estimate risk, it is easy to lose sight of the
1.3 Risk Management Procedure Set inherent uncertainties involved. Particularly when results are
1.3.1 Analyses of Risk Assessment Results expressed in numbers that appear to be “scientific” (e.g., 3.42
1.3.1.1 Tests for Model Bias (histogram analyses) x10@ fatalities per mile-year for permanent residents within

