Operational risk: the focus for major infrastructure?

Abstract

This paper summarises findings from an Institution of Civil Engineers-funded scoping study into the importance of operational risk, the underlying risk drivers and the factors that influence its effective management. The core of the study comprised a programme of interviews undertaken in 2008 with experienced industry practitioners in four sectors: energy, transport (road and rail), material resources and waste management and water (supply and wastewater). This confirmed the central importance of operational risk, and identified issues affecting its more effective identification and management. An important conclusion is that existing practice needs to be improved substantially, by focusing on managing uncertainty (not just adverse events) with the objective of improving performance. This needs to encompass policy and business-as-usual operations and new-build project development. A wider role for civil engineers is desirable.