ENTERPRISE RISK MANAGEMENT DEVELOPMENT
An enterprise risk management (ERM) system development comprises a series of processes and linkages that must encompass the present risk management framework and fit within the overall corporate and asset management system and developed safety culture. Dynamic Risk leverages previous risk management studies and models, integrity assessment results and inspection datasets in application with appropriate elements of the consensus industry standards to address the three key elements of pipeline safety: process safety, safety culture and asset management
The development of an ERM system as proposed by Dynamic Risk is fact-based and method driven, relying for guidance on appropriate and selected elements of industry recognized asset management and certification programs such as Publicly Available Specification 55 (PAS 55) “Standard for Optimized Management of Physical Infrastructure Assets”, International Standard of Operation (ISO) 55000 “Standard For Asset Management” and ISO 31000 “Standard for Risk management – Principles and Guidelines.”
An ERM development includes the following elements:
- Operational Risk
- Risk management framework – An initial core system element; Asset management plan; Identification of threats; Assessment of risk.
- Risk register – Asset family risks are quantified within a risk matrix.
- Mitigation plan – Programs are designed to address the identified threats.
- Enterprise Risk
- Risk register integration – Corporate Risks are aligned with significant asset family risks.
- Dashboard – Summary presentation to identify for stakeholders the top integrated risks across all lines of business.
- Performance measuring – a means of measuring and quantifying levels of performance gaps.
- Continuous improvement – a means of incorporating “lessons learned”
- Auditing – A means of menu driven reporting for purposes of compliance auditing.
- Investment planning – A consistent risk-based prioritization across all asset families to drive funding and investment.
- Emergency work – Allows for conditional changes within asset families that may drive the requirement for immediate mitigation response.
By assessing, managing and integrating risks from both Operational and Enterprise points of view, a pipeline operator can better manage risk and mitigation interdependencies and drive for consistency among all lines of business.
A fully developed ERM model that considers all lines of business, is driven by available information, knowledge, and analytics, and produces an overview of the enterprise risk through a dynamic dashboard presentation.
View our Enterprise Risk Management Software suite here.