AWWA JTMGT61361

This paper introduces a conceptual framework for risk management and demonstrates its application through three case studies. As the paper demonstrates, the quantification of risk and the inclusion of risk costs in traditional asset analysis can greatly improve the quality of such decisions. Topics covered include: basic concepts; two-dimensional nature of risk; quantification of risk in dollar terms; a simple case study: replacing a water supply pipeline; a more complex case study: planning for a pump replacement; and, a "reasonableness test" case study: duplicate a water main or not? Includes figures.