What is your risk management plan?

Today the safest, most profitable businesses are run by those who have their finger on the pulse, who have asset and system stability and can identify issues before their business is negatively impacted.  

Risks can be unfortunate for any business and not something you should ignore. When critical equipment failure occurs, it can significantly impact any business. It can bring unexpected costs, loss of revenue-generating activities, significantly impact production, compromise employee safety, increase exposure to litigation and negatively impact brand. In today’s environment, businesses should not only maintain their working environment, but additionally should understand the impact and health of their systems and the effect this could have on their business if not up-to-date.

 A Risk Assessment identifies potential risks to the health of systems and includes an implementation plan to mitigate these risks. The Assessment involves conducting a complete inventory of assets, for example on Electrical Distribution Infrastructure, Data Centre Infrastructure, Mechanical Systems and Security Technology and then develops a road map for the types of risks associated. The road map rates the risks based on multiple impact levels such as the effect on production and the probability of occurrence.

Next, is to develop a performance improvement plan based on budgets, criteria and timelines. The plan must meet regulatory requirements of employee safety, while fully evaluating compliance with key sections industry standards like ASHRAE or AS3000.  Within each of the four risk focus areas, here are some of the potential benefits:

Electrical Distribution Infrastructure:

Identify issues including:

  • Condition of equipment;
  • Code violations;
  • Ageing infrastructure;
  • Environmental conditions that could cause premature asset malfunction and compromise power system reliability;

With potential benefits such as:

  • Efficiencies which could contribute to OPEX savings and;
  • More effective ways of expansion

Data Centre Infrastructure:

Identify problems like:

  • Excessive load conditions;
  • Ineffective backup power;
  • Single points of failure that can compromise uptime;
  • Cooling distribution to ensure standards are met and potential hot spots are avoided;

While providing best practice recommendations such as:

  • How to achieve high availability, manage capacity, and maximise energy efficiency.

Mechanical Systems:

Determine and assess:

  • Risks and associated criticality in mechanical systems/building automation controls;
  • The condition of equipment in terms of age, maintenance practices, and the overall suitability of the application;

Generate:

  • Risk mitigation strategies and;
  • Effective ways of synchronising plant and cooling units.

Security Technology:

Evaluate:

  • Current security infrastructure;
  • Networking environment utilising life cycle analysis and;
  • Manufacturer recommendations to determine critical deficiencies when compared against industry standards, new technology, and/or societal changes while improving safety.

Schneider Electric’s risk assessment, allows Customers to develop a schedule of priorities and create a performance improvement plan to optimise future capital and operational expenditures. The result is a safer and more profitable facility, while fully protecting people and prolonging the stability and life of your assets.

Four Steps for a Successful Risk Assessment:

Step 1: Evaluate — Assess Risks

  • Review the condition of equipment, priorities issues and define the probably of risk

Step 2: Plan — Determine Course of Action

  • Outline policies and provide step by step procedures. Align corrective roadmap with budget

Step 3: Execute — Mitigate Risks

Perform maintenance and testing services

Step 4: Measure — Review the Results and Findings

  • Review the results and continuously improve

For more information download a free white paper providing guidance for improving equipment reliability and for extending electrical equipment operational life span.

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