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Examples of scoring algorithms 2/39
                   All failure modes are considered.      Optimize spending
                   All risk elements are considered and the most critical   Strengthen project evaluation
                   ones are included.                     Determine project prioritization
                   Failure modes are considered independently as well as   Determine resource allocation
                   in aggregate.                          Ensure regulatory compliance
                   All available information is being appropriately utilized.
                   Provisions  exist  for  regular  updates  of  information.   VI.  Examples of scoring algorithms
                   including new types of data.
                   Consequence  factors  are  separable  from  probability   Sample relative risk model
                   factors.
                   Weightings,  or  other  methods  to  recognize  relative   The  relative  risk  assessment  model  outlined  in  Chapters  3
                   importance of factors, are established.   through  7  is  designed  to  be  a  simple  and  straightforward
                   The  rationale behind  weightings is well  documented   pipeline risk assessment model that focuses on potential conse-
                   and consistent.                       quences to public safety and environment preservation. It pro-
                   A sensitivity analysis has been performed.   vides  a  framework to ensure  that  all  critical  aspects  of  risk
                   The model reacts appropriately to failures ofany type.   are  captured.  Figure  2.4  shows  a  flowchart  of  this  model.
                   Risk elements are combined appropriately (“and” ver-   This framework is flexible enough to accommodate any level
                   sus “or” combinations).               of  detail  and data  availability. For  most  variables. a  sample
                   Steps are taken to ensure consistency of evaluation.   point-scoring  scheme is presented. In many cases, alternative
                   Risk  assessment  results  form  a reasonable  statistical   scoring  schemes are also shown. Additional  risk assessment
                   distribution (outliers?).             examples can be found in the case studies of Chapter 14 and in
                   There  is  adequate  discrimination  in  the  measured   Appendix E.
                   results (signal-to-noise ratio).       The pipeline risk picture is examined in two general parts.
                   Comparisons  can  be  made  against  fixed  or  floating   The first part is a detailed itemization and relative weighting of
                   standards  or benchmarks.             all reasonably foreseeable events that may lead to the failure of
              V11.  Project completion:                  a pipeline: “What can go wrong?” and “How likely is it to go
                 Pipeline:  Finalize  manuals,  complete  training,  ensure   wrong?.  This highlights  operational and design options that
                   maintenance  protocols  are in place,  and turn system   can change the probability of failure (Chapters 3 through 6).
                   over to operations.                   The second part  is an analysis of potential consequences if a
                 Risk assessment: Carefully  document  the  risk assess-   failure should occur. This addresses the potential consequences
                   ment  process  and  all  subprocesses.  especially  the   should failure occur (Chapter 7). The two general parts corre-
                   detailed workings of the algorithm or central model.   spond to the two factors used in the most commonly accepted
                   Set up administrative processes to support an ongoing   definition of risk:
                   program  Ensure  that  control  documents  cover  the
                   details of all aspects of a good administrative program,   Risk = (event likelihood) x (event consequence)
                   including:
                   Defining roles and responsibilities   The  failure  potential  component  is  further  broken  into  four
                   Performance monitoring and feedback   indexes (see Figure 2.4). The  indexes roughly correspond  to
                   Process procedures                    categories of reported pipeline accident failures. That is, each
                   Management of change                  index reflects  a general  area to which, historically, pipeline
                   Communication protocols               accidents have been attributed. By considering each variable in
                                                         each index, the evaluator arrives at a numerical value for that
              Study the results                          index. The four index values are then summed to a total value
                                                         (called the index sum) representing the overall failure probabil-
              This might seem obvious, but it is surprising how many own-   ity (or survival probability) for the segment evaluated. The indi-
              ers really  do not  appreciate what  they  have  available  after   vidual  variable  values,  not  just  the  total  index  score,  are
              completing a thorough risk assessment. Remember that your   preserved however, for detailed analysis later.
              final  risk  numbers  should  be  completely meaningful  in  a   The primary focus ofthe probability part ofthe assessment is
              practical. real-world sense. They should represent everything   the potential  for a particular  failure mechanism to be active.
              you  know about that piece of pipe (or other system compo-   This  is  subtly  different  from  the  likelihood  of  failure.
              nent)-all  of the collective years of experience of your organ-   Especially in the case of a time-dependent mechanism such as
              ization,  all  the  statistical  data you  can  gather,  all  your  gut   corrosion. fatigue, or slow earth movements, the time to failure
              feelings, all your  sophisticated engineering calculations. If   is related to factors beyond the presence  of a failure mecha-
              you can’t really believe  your  numbers.  something is wrong   nism. These  include the resistance  of the pipe  material,  the
              with the model. When, through careful evaluation and much   aggressiveness  of  the  failure  mechanism,  and  the  time  of
              experience, you can really believe the numbers, you will find   exposure. These, in turn, can be furtherexamined. For instance.
              many ways to use them that you perhaps did not foresee. They   the  material  resistance  is  a  function  of  material  strength;
              can be used to                             dimensions, most notably pipe wall thickness;  and the stress
                                                         level. The additional aspects leading to a time-to-fail estimate
              0  Design an operating discipline          are usually more appropriately considered  in  specific inves-
              0  Assist in route selection               tigations.
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