Risk Matrix

Chapter

1

Overview

Topics:

•

Overview of the Risk Matrix

Module

 

 

 

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Overview of the Risk Matrix Module

The Risk Matrix, which can be accessed in various places throughout the GE Digital APM application, is

used to evaluate mitigated and unmitigated risk in various contexts.

 

 

 

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Chapter

2

Risk and Risk Assessment

Topics:

•

About Risk and Risk

Assessment

•

Specify Risk Values to

Determine an Overall Risk Rank

•

Specify That a Risk Category

Does Not Apply to the Current

Risk

 

 

 

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About Risk and Risk Assessment

In GE Digital APM, risk is the combination of a harmful event or condition and its negative outcome. In

addition to identifying risks, in GE Digital APM, you can also perform a risk assessment, which assesses:

• The probability that the negative outcome will have an impact on safety, the environment, operations,

or finances.

• The severity of the safety, environmental, operational, or financial impact.

In some GE Digital APM modules, you will assess risk using the Risk Matrix. In other modules, you will

assess risk using datasheets or other forms. Keep in mind that the type of impact that each module

allows you to assess might differ. For example, Asset Strategy Optimization (ASO) allows you to assess

safety, environmental, and operational impact. Asset Strategy Management (ASM), on the other hand,

allows you to assess safety, environmental, operational, and financial impact.

More About Risk

In any company, equipment and locations can fail. In some cases, these failures do not cause any

immediate problems. For instance, consider a clothes dryer with a switch that shuts off the dryer

automatically if the temperature inside the drum reaches 180 degrees Fahrenheit (F). If the switch stops

working but the temperature never reaches 180 degrees F, meaning that the switch is never activated, the

switch failure would not present any problems.

In other cases, however, a failure can cause not only problematic but catastrophic consequences.

Consider the same clothes dryer and safety switch. If the safety switch stops working and the

temperature inside the drum does reach 180 degrees F, the switch will not perform its intended function:

shutting off the dryer. Instead, the dryer would continue to run, allowing the temperature to potentially

rise even further, which could ultimately cause the dryer to catch on fire.

From this example, you can see that the safety switch failure is problematic because it could cause a fire,

which would have safety, financial, and operational impacts.

In GE Digital APM, a risk is the combination of a harmful event or condition and the negative outcome of

that event or condition. In the example described above:

• The switch failure is the harmful event.

• A fire is the negative outcome.

So, the risk in this example is the combination of the switch failure and the negative outcome. In other

words, the risk is that the switch stops working and the dryer overheats, eventually causing a fire.

To perform a risk assessment of this situation, you would consider:

• The probability that the fire will have a safety, environmental, operational, or financial impact. For

example, you might determine that an operational impact is inevitable, while an environmental impact

is possible but not likely.

• The severity of the safety, environmental, operational, or financial impact. For example, you might

determine that the severity of a safety impact is very high (homeowners could be killed), but the

severity of an environmental impact is low (damage only to immediate, surrounding landscaping).

 

 

 

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