Asset Management Risk-Based Asset Management 1 — Questions and Answers
Question 1: What is the primary goal of risk-based asset management?
- Reduce total asset count
- Prioritize maintenance and investment decisions based on risk and consequence (Correct answer)
- Eliminate all asset failures
- Maximize depreciation tax benefits
Correct answer: Prioritize maintenance and investment decisions based on risk and consequence
Risk-based asset management prioritizes resources toward assets where failure would have the highest risk and consequence.
Question 2: How is risk typically calculated in a risk matrix?
- Risk = Cost ÷ Age
- Risk = Probability of failure × Consequence of failure (Correct answer)
- Risk = Downtime + Repair cost
- Risk = Asset value − depreciation
Correct answer: Risk = Probability of failure × Consequence of failure
Risk is the product of the probability (or likelihood) of a failure event and its consequence (impact) if it occurs.
Question 3: Which failure analysis method uses a tree diagram to trace how top-level failures can be caused by combinations of lower-level events?
- Failure Mode and Effects Analysis (FMEA)
- Fault Tree Analysis (FTA) (Correct answer)
- Root Cause Analysis (RCA)
- Bow-Tie Analysis
Correct answer: Fault Tree Analysis (FTA)
Fault Tree Analysis (FTA) uses a top-down tree diagram to identify all combinations of failures that could lead to a top-level undesired event.
Question 4: What does FMEA stand for in asset risk management?
- Financial Maintenance and Evaluation Audit
- Failure Mode and Effects Analysis (Correct answer)
- Fixed Margin Efficiency Assessment
- Fault Monitoring and Error Audit
Correct answer: Failure Mode and Effects Analysis
FMEA (Failure Mode and Effects Analysis) systematically identifies potential failure modes and evaluates their effects on system performance.
Question 5: In risk-based inspection (RBI), inspection intervals are determined primarily by:
- Asset age alone
- Manufacturer recommendations only
- The assessed probability and consequence of failure (Correct answer)
- Regulatory schedules regardless of condition
Correct answer: The assessed probability and consequence of failure
RBI sets inspection frequency based on a risk assessment that considers both the likelihood of failure and the potential consequences.
Question 6: What is a 'critical asset' in the context of risk-based asset management?
- An asset older than 20 years
- An asset whose failure would cause significant safety, financial, or operational impact (Correct answer)
- An asset with the highest replacement cost
- An asset owned by a regulated utility
Correct answer: An asset whose failure would cause significant safety, financial, or operational impact
Critical assets are those whose failure would result in unacceptable consequences such as safety incidents, major production loss, or regulatory non-compliance.
Asset Management Risk-Based Asset Management 1
What is the primary goal of risk-based asset management?