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2/24 Risk Assessment Process
          includes  the  perception  that  underlying  assumptions  and   of places where risks are relatively lower (fewer “bad” factors
          input data can easily be  adjusted to achieve some predeter-   present) and where  they  are relatively  higher  (more “bad”
          mined result. Of course, this latter criticism can be applied to   factors are present).
          any  process  involving  much  uncertainty and  the  need  for   An indexing approach to risk assessment is the emphasis of
          assumptions.                               much ofthis book.
           PRA-type techniques are required in order to obtain esti-
          mates of absolute risk values, expressed in fatalities, injuries,   Further discussion on scoring-type risk assessments
          property damages, etc., per specific time period. This is the
          subject of Chapter 14. Some guidance on evaluating the quality   Scoring-type techniques are in common use in many applica-
          of a PRA-type technique is also offered in Chapter 14.   tions. They range from judging sports and beauty contests to
                                                     medical diagnosis and credit card fraud detection, as are dis-
          Indexing models                            cussed later. Any time we need to consider many factors simul-
                                                     taneously and our knowledge is incomplete, a scoring system
          Perhaps the most popular pipeline risk assessment technique in   becomes practical. Done properly, it combines the best of all
          current use is the index model or some similar scoring tech-   other approaches because critical variables are identified from
          nique. In this approach, numerical values (scores) are assigned   scenario-based  approaches and  weightings  are  established
          to important conditions and activities on the pipeline system   from probabilistic concepts when possible.
          that  contribute to  the risk  picture. This includes both  risk-   The genesis of scoring-type approaches is readily illustrated
          reducing and risk-increasing items, or variables. Weightings   by the following example. As operators of motor vehicles, we
          are assigned to each risk variable. The relative weight reflects   generally know the hazards associated with driving as well as
          the importance of the item in the risk assessment and is based   the consequences of vehicle accidents. At one time or another,
          on  statistics where  available  and  on  engineering judgment   most drivers have been exposed to driving accident statistics as
          where data are not available. Each pipeline section is scored   well as pictures or graphic commentary of the consequences  of
          based on all of its attributes. The various pipe segments may   accidents. Were  we to perform a  scientific quantitative risk
          then be ranked according to their relative risk scores in order to   analysis, we might begin by investigating the accident statistics
          prioritize repairs, inspections, and other risk mitigating efforts.   of the particular make and model of the vehicle we operate. We
          Among pipeline operators today, this technique is widely used   would also want to know something about the crash survivabil-
          and ranges from a simple one- or two-factor model (where only   ity  of the vehicle. Vehicle condition would  also have to be
          factors such as leak history and population density are consid-   included in our analysis. We might then analyze various road-
          ered) to models with hundreds of factors considering virtually   ways for accident history including the accident severity. We
          every item that impacts risk.              would naturally have to compensate for newer roads that have
            Although each risk assessment method discussed has its own   had less opportunity to accumulate an accident frequency base.
          strengths and weaknesses, the indexing approach is especially   To be complete, we would have to analyze driver condition as it
          appealing for several reasons:             contributes to accident frequency or severity, as well as weather
                                                     and road conditions. Some of these variables would he quite
            Provides immediate answers               difficult to quantify scientifically.
            Is a low-cost analysis (an intuitive approach using available   After a great deal of research and using a number of critical
            information)                             assumptions, we may be able to build a system model to give  us
            Is comprehensive (allows for incomplete knowledge and is   an accident probability number for each combination of vari-
            easily modified as new information becomes available)   ables. For instance, we may conclude that, for vehicle type A,
           Acts  as  a  decision  support tool  for  resource  allocation   driven  by  driver  B,  in  condition C, on roadway  D,  during
            modeling                                 weather and road conditions E, the accident frequency for an
            Identifies and places values on risk mitigation opportunities   accident of severity F is once for every 200,000 miles driven.
                                                     This system could take the form of a scenario approach or a
            An indexing-type model for pipeline risk assessment is a rec-   scoring system.
          ommended feature of a pipeline risk management program and   Does this now mean that until 200,000 miles are driven, no
          is hlly described in this book. It is a hybrid of several of the   accidents should be expected? Does 600,000 miles driven guar-
          methods listed previously. The great advantage of this tech-   antee three accidents? Of course not. What we do believe from
          nique is that a much broader spectrum of information can he   our study of statistics is that, given a large enough data set, the
          included; for example, near misses as well as actual failures   accident frequency for this set of variables should tend to move
          are considered. A drawback is the possible subjectivity of the   toward once every 200,000 miles on average, if our underlying
          scoring. Extra efforts must be employed to ensure consistency   frequencies are representative of fume frequencies. This may
          in the scoring and the use of weightings that fairly represent   mean an accident every 10,000 miles for the first 100,000 miles
          real-world risks.                          followed by  no accidents for the next  1,900,000 miles-the
            It is reasonable to assume that not all variable weightings will   average is still once every 200,000 miles.
          prove to be correct in any risk model. Actual research and fail-   What we are perhaps most interested in, however, is the rela-
          ure data will doubtlessly demonstrate that some were initially   tive amount  of risk to which we are exposing ourselves during a
          set too high and some too low. This is the result of modelers   single drive. Our study has told us little ahout the risk of this
          misjudging the relative importance of some of the variables.   drive until we compare this drive with other drives. Suppose we
          However, even if the quantification of the risk factors  is imper-   change weather and road conditions to state G from state F and
          fect, the results nonetheless will usually give a reliable picture   find that the accident frequency is now once every  190,000
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