210
14 Risk Assessment for the Twenty-First Century
Fig. 14.5 Same data of
Fig. 14.4, but very different
graphic display and
readability in terms of dams’
risk-prioritization and
mitigation roadmap
14.5.2 Using Risk Dashboards
Risk dashboards make it possible to communicate with management and the public. An example of possible selected instruments for such a dashboard is shown in
Fig. 14.6a–d for the same portfolio depicted in Figs. 14.4 and 14.5. Figure 14.6a
shows the dams sorted by decreasing total risk.
When corporate tolerance is added in the analyses (Fig. 14.6b) then it is possible to perform more sophisticated and useful prioritizations. It become possible to
understand at first sight which dams represent an operational, tactical, i.e. intolerable
but manageable, or strategic, i.e. intolerable and unmanageable risk (see Sect. 14.2;
Fig. 14.1).
For example, as shown in Fig. 14.6c it is possible to show the tolerable (blue) and
intolerable portion (orange) of risks for each dam in the portfolio.
Finally, as shown in Fig. 14.6d ranking of the dams by decreasing corporate
intolerable risk can be performed. As we will show in Chap. 15, impacts on human
life (societal tolerance, see Sect. 13.3.2) can be brought into the ranking and thus
allow to deliver multi-objective optimization of risk mitigation road-maps.
This type of approach is scalable and drillable and can accommodate increasing
level of information (during the corporate/project life). This is particularly interesting
when initial (actuarial) data are scarce or non-existent and ample use of probabilities
has to be made. ORE allows us to focus attention on the elements that generate the
highest risks even in complex systems with hundreds or more components.
It becomes apparent that this type of approach makes it possible to compare alternatives and update “at any necessary” rate. It is the only risk management approach
that can start static and then go all the way to real-time if the need exists and the
resources are available.
14 Risk Assessment for the Twenty-First Century
Fig. 14.5 Same data of
Fig. 14.4, but very different
graphic display and
readability in terms of dams’
risk-prioritization and
mitigation roadmap
14.5.2 Using Risk Dashboards
Risk dashboards make it possible to communicate with management and the public. An example of possible selected instruments for such a dashboard is shown in
Fig. 14.6a–d for the same portfolio depicted in Figs. 14.4 and 14.5. Figure 14.6a
shows the dams sorted by decreasing total risk.
When corporate tolerance is added in the analyses (Fig. 14.6b) then it is possible to perform more sophisticated and useful prioritizations. It become possible to
understand at first sight which dams represent an operational, tactical, i.e. intolerable
but manageable, or strategic, i.e. intolerable and unmanageable risk (see Sect. 14.2;
Fig. 14.1).
For example, as shown in Fig. 14.6c it is possible to show the tolerable (blue) and
intolerable portion (orange) of risks for each dam in the portfolio.
Finally, as shown in Fig. 14.6d ranking of the dams by decreasing corporate
intolerable risk can be performed. As we will show in Chap. 15, impacts on human
life (societal tolerance, see Sect. 13.3.2) can be brought into the ranking and thus
allow to deliver multi-objective optimization of risk mitigation road-maps.
This type of approach is scalable and drillable and can accommodate increasing
level of information (during the corporate/project life). This is particularly interesting
when initial (actuarial) data are scarce or non-existent and ample use of probabilities
has to be made. ORE allows us to focus attention on the elements that generate the
highest risks even in complex systems with hundreds or more components.
It becomes apparent that this type of approach makes it possible to compare alternatives and update “at any necessary” rate. It is the only risk management approach
that can start static and then go all the way to real-time if the need exists and the
resources are available.