Risk Modeling and Analysis for Sustainable Asset Management

Abstract

Sustainability has become a key driver in defining how companies are expected to operate. To adapt to this new industrial setting, companies are now broadening their focus from emphasis on economical gains to include environmental and societal issues. Within the field of asset management, the application of sustainable practices, in a way, can imply adopting a total lifecycle approach; i.e. managing the activities of assets in pre-manufacturing, manufacturing, use and post-use stages. To ensure a competitive approach, this requires risk modeling and analysis to support decision making processes to maximize return and to avoid negative environmental and societal impacts. Though some considerable work has been done in the field of risk modeling involving developments within information management, much work is still needed to develop models that can provide effective comprehensive overview for decision makers. Such information is especially important when dealing with hidden risks. This requires risk management tools that capture, the factors that affect asset performance, the interdependence of these factors, their likelihood, and their possible impacts. This paper briefly presents a framework for sustainable asset management. This framework is guided by sustainability principles to improve the triple bottom line (economy, society and environment) perspective following a total lifecycle approach.