Complete Risk Setup

Once you have completed the Likelihood of Failure (LoF) and Consequence of Failure (CoF) setup, you next need to define the overall weighting of these in your risk model and define the risk grades. This is done in the Risk Setup tab.

1. Choose between Added (LoF+CoF) or Multiplied (LoF*CoF).
2. Choose the weight for LoF and CoF for your risk model.

   For example, if your system has very old pipes installed over 100 years ago and you have comprehensive inspection data, you might want to give the LoF portion more weight.

   On the other hand, if your system is in a busy city with many historical landmarks, high population, or where tourism has high economic importance, you might give more weight to the CoF portion.

   See Risk Calculations for an explanation of how this weighting impacts scores.

   Alternatively, you can choose to use 100% of both LoF and CoF by marking the '100% LoF / 100% CoF' option. See Risk Calculations with 100% LoF and 100% CoF.

3. Choose which Risk Method you want to use to define the Risk Grades.
   • Linear (default): Risk Grades are based on the overall risk score.
   • 5x5 Matrix: Risk Grades are based on the LoF and CoF scores.
4. If you have selected the Linear method, you can also choose to Normalize Risk Scores. Mark the checkbox and select a value. This will adjust the risk scores according to the value you select.

   For example, if you set 100 as the normalization value, the scores will be on a scale of 0 to 100.

   The formula used is: (Pipe risk score / Highest calculated risk score) * Normalization value

5. Define the Risk Grades:
   • Linear (default): Adjust the Score Ranges to determine which risk scores will fall into which risk grade (Negligible to Extreme).
   • 5x5 Matrix: Click on the cells in the 5x5 Matrix to adjust the risk grade (Negligible to Extreme) assigned to each combination of LoF and CoF scores.

     The matrix shows a preview of how many assets fall into each bucket.

     You can also use the Edit Ranges button below to adjust the score ranges.

     Note: If you adjust the ranges, scroll up and click the Preview button at the top to see the new asset count preview.

There is also a summary of the category and component weightings on the left side of the Risk Setup page. In the table, category weight = weight the category has in the CoF or LoF setup; component weight = weight the component has in the category.

See Risk Calculations for an explanation of scoring calculations.