The Conquest Risk Module provides a framework to assess the risk associated with Assets and use that to assist in the management of Assets.

The Risk Module is based around Risk Events associated with Assets, for which Consequences of Failure can be scored. Along with a probability of occurrence, a Consequence of Failure is used to calculate the criticality, risk cost and risk summary for each Risk Event. The set of Risk Events associated with an Asset contribute to the Asset’s criticality, risk cost and risk summary.

The components that make up the Risk Module include:

•      Consequences of Failure

•      Standard Risk Events (which provide a template for Risk Events)

•      Risk Events

Consequence

One or more outcomes of a Risk Event, expressed either qualitatively or quantitatively, being a:

•      Loss

•      Injury

•      Disadvantage

•      Gain

Consequence Cost

Consequence expressed in monetary terms representing the cost to the organisation of a Risk Event.

Criticality

The importance of an Asset in providing a level of service.  In other words, if an Asset fails to deliver an expected level of service due to the occurrence of a Risk Event, how critical is the function without the asset availability.

Criticality Score

The calculated total of the Consequence Ratings in an Asset Risk Analysis.

Probability of Failure

A quantitative definition of probability or frequency of a particular event.  It is represented as a statistical probability for use in a Risk Analysis.

Risk Event

An incident or situation, which occurs in a particular place during a particular time interval.

Risk Factor

A variable that can be applied to a Risk Analysis for an individual Risk Event.  The Risk Factor may be less than one (1), where the risk is reduced by, for example, redundancy of Assets or a risk management mitigation strategy.  Conversely, the Risk Factor may be more than one (1), where the individual Asset risk is increased due to issues such as:

•      The environment the Asset operates in

•      Performance of the Asset compared to others in the same class

•      Political or environmental sensitivity

Risk Score

The product of:

•      The Criticality Score

•      The Probability of Failure

•      The Risk Factor

Risk Summary

A rating (or ranking) of Calculated Risk, relevant to all Assets, based on a simplified definition of the determined Risk of an Asset for reporting and use throughout Conquest.