New Book Reveals Proactive Methods for Measuring and Managing Corporate Exposure to Risk

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The Maintenance Scorecard, ISBN 0831131810 (Published by Industrial Press), reveals methods for proactive measurement of the likelihood of safety, environmental or operational incidents, through failures of physical assets.

In the wake of the Hatfield disaster court case in the UK, the passage of bill C-45 into applicable law in Canada, rafts of legislation in the USA senate regarding the reliability of the energy industry, and the recent lawsuit against Disneyland following an incident there, risk has never been more at the forefront of the those who own and manage physical assets. Particularly given trends towards individual accountability as well as corporate accountability.

The new book The Maintenance Scorecard, ISBN 0831131810, looks at the area of asset management in layman’s terms as a center for the mitigation of corporate risk exposure.

In particular it looks at the risk of safety, environmental and operational failures of physical assets.

Aimed at assisting asset-centric organizations to extract greater economic value from their physical asset base, this book details several aspects of risk measurement, and recognizes the unique responsibilities that physical asset managers have with respect to managing risk of a safety incident, or of a breach of environmental standards or legislation.

It starts with an overview of what risk is, and how organizations can manage risk in a cost effective manner, taking care to discuss various asset-centric business sectors. Form this point it goes on to discuss how to build the asset management structure to manage this risk, the impact of daily maintenance and operations activities (normally overlooked or seen as efficiency areas only) and then goes on to detail a new approach to measuring risk in a proactive, rather than reactive sense.

Today, many industrial organizations use only measures such as incident rate metrics, frequency of near misses and other such measures. However, as the book points out, these measures are after the event. By the time it shows up on the management dashboard it is far too late.

For this reason measurement of risk is associated with the asset management interventions that are put into place to ensure that risk is managed to a controllable level. Via this method asset managers can ensure that their physical assets are being managed in a way that supports the tolerable risk envelope that they have decided to work within. Furthermore, they are able to see when they are currently facing higher levels of risk based upon the day-to-day activities that normally go unnoticed.

When properly applied The Maintenance Scorecard is a revolutionary way for a company to view its physical asset base and its management. It changes the focus on the area from one of neccesity, to an approach that develops it as a centre for generating strategic advantages. .

Daryl Mather is a specialist in asset management, risk and reliability.

This article is based on his new book “The Maintenance Scorecard” ISBN: 0831131810. He currently assists selected companies to achieve strategic advantages.

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Daryl Mather

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