scope:

This Standard applies to LU and Suppliers, in the consideration of risks to asset performance, condition and safety.

Project risk is addressed through the Project Management Framework (PMF).

Purpose

The purpose of this standard is to specify the structure to ensure that decisions on asset risk are made in a consistent and transparent manner and to demonstrate this is aligned to LU‟s enterprise wide risk management system.

The objectives for asset risk management in LU are that:

a) There is an organisation-wide risk management process to support efficient and effective delivery of Asset Management objectives.

b) Responsibility for ownership and management of asset risk and related activities is clearly defined.

c) All significant risks impacting the organisation have mitigating strategies and owners against which performance can be measured

d) Disclosure of issues or concerns is required to facilitate an accurate understanding of LU‟s asset risk profile so that timely and appropriate action can be agreed and implemented as necessary

e) Accurate risk information is provided to support whole life asset plans, inform and challenge asset maintenance regimes and support development of accurate whole life cost models.

f) The appropriate balance between asset performance, cost and risk is achieved and decisions are made with a clear understanding of the impact of constrained funding on asset risk.

g) The impact of constraints in Capital and/or Operating expenditure on asset risk is understood.