Paper Study on Risk Tolerance

The purpose of this project is to provide an overview of risk tolerance practices used by relevant industries to serve as a basis for comparison and discussion for the pipeline industry to use in their risk management programs. Studying how others have approached risk-based decision making provides valuable perspective to those attempting to define their own risk tolerance criteria. This project does not intend to propose or recommend specific criteria for the pipeline industry. Instead, the content of this report is to inform pipeline organizations on how others have developed the basis for their risk tolerance criteria so that similar thought processes can be understood by others. There are a number of approaches for defining risk tolerance criteria and the degree of risk tolerance varies from government agency to government agency and from company to company depending on the concerns of each organization. Moreover, the formulation of risk tolerance criteria cannot be done in a vacuum and must be accomplished within the context of a variety of considerations (e.g., societal, environmental, legal, business, and perhaps, regulatory) that are unique to each organization. The authors' approach to this program is to conduct a literature search to understand what other regulatory bodies and industries have done to define risk tolerance criteria (Task 1). This information will be supplemented with data gathered from a survey of pipeline industry members about their risk management decision-making process (Task 2). Together, these activities will identify methods for defining risk tolerability criteria and highlighting practices used across the pipeline industry (Task 3 - final report). The overall program is guided by a Technical Advisory Committee comprised of pipeline operators.

Language

  • English

Media Info

  • Media Type: Digital/other
  • Edition: Final Report
  • Features: Appendices; Figures; Glossary; References; Tables;
  • Pagination: 160p

Subject/Index Terms

Filing Info

  • Accession Number: 01638921
  • Record Type: Publication
  • Report/Paper Numbers: Report No. 16-092
  • Files: TRIS, ATRI, USDOT
  • Created Date: Jun 5 2017 1:56PM