AWWA INF55791

Many utilities desire a more proactive approach to managing their infrastructure, yet they continue to rely largely on processes based in reactive thinking. While most utilities have some aspects of an asset management program in place, a gap exists in defining levels of service and demonstrating the implications of their provision. This paper discusses a new paradigm that focuses on managing risk to help utilities break away from their old patterns and develop proactive utility-wide strategies for managing their assets. In order to manage risk, an organization must first be able to identify what risks they may face and how they might occur. Risk can be categorized into several groups, including operational, natural events, physical failure, health and safety, and financial risk. An analysis process is then conducted to determine the probability and consequences associated with each identified risk. Options are then identified for treating these risks. Using this protocol can help the utility in determining its strategies for maintenance, rehabilitation, and replacement based upon its propensity for risk and its unique service level requirements. Includes figures.