Browsing by Author "MacGillivray, Brian H."
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Item Open Access Benchmarking risk management practice within the water utility sector(Cranfield University, 2006-12) MacGillivray, Brian H.; Pollard, Simon; Strutt, J. E.Explicit approaches to risk analysis within the water utility sector, traditionally applied to occupational health and safety and public health protection, are now seeing broader application in contexts including corporate level decision making, asset management, watershed protection and network reliability. Our research suggested that neither the development of novel risk analysis techniques nor the refinement of existing ones was of paramount importance in improving the capabilities of water utilities to manage risk. It was thought that a more fruitful approach would be to focus on the implementation of risk management rather than the techniques employed per se. Thus, we developed a prescriptive capability maturity model for benchmarking the maturity of implementation of water utility risk management practice, and applied it to the sector via case study and benchmarking survey. We observed risk management practices ranging from the application of hazard and operability studies, to the use of scenario planning in guiding organisational restructuring programmes. We observed methods for their institutionalisation, including the use of initiation criteria for applying risk analysis techniques; the adoption of formalised procedures to guide their application; and auditing and peer reviews to ensure procedural compliance and provide quality assurance. We then built upon this research to develop a descriptive1 capability maturity model of utility risk analysis and risk based decision making practice, and described its case study application. The contribution to knowledge of this stage of the research was three-fold, we: synthesized empirical observations with behavioral and normative theories to codify the processes of risk analysis and risk based decision making; placed these processes within a maturity framework which distinguishes their relative maturity of implementation from ad hoc to adaptive; and provided a comparative analysis of risk analysis and risk based decision making practices, and their maturity of implementation, across a range of utility functions. The research provides utility managers, technical staff, project managers and chief finance officers with a practical and systematic understanding of how to implement and improve risk management, and offers preliminary guidance to regulators concerning how improved water utility governance can be made real.Item Open Access Benchmarking risk management within the international water utility sector. Part I: Design of a capability maturity methodology.(Taylor & Francis, 2007-01-31T00:00:00Z) MacGillivray, Brian H.; Sharp, J. V.; Strutt, J. E.; Hamilton, Paul D.; Pollard, Simon J. T.Risk management in the water utility sector is becoming increasingly explicit. However, due to the novelty and complexity of the discipline, utilities are encountering difficulties in defining and institutionalising their risk management processes. In response, the authors have developed a sector specific capability maturity methodology for benchmarking and improving risk management. The research, conducted in consultation with water utility practitioners, has distilled risk management into a coherent, process-based framework. We identified eleven risk management processes, and eight key attributes with characterise the extent to which these processes are defined, controlled and institutionalised. Implementation of the model should enable utilities to more effectively employ their portfolio of risk analysis techniques for optimal, credible and defensible decision making.Item Open Access Benchmarking risk management within the international water utility sector. Part II: A survey of eight water utilities.(Taylor & Francis, 2007-01-31T00:00:00Z) MacGillivray, Brian H.; Sharp, J. V.; Strutt, J. E.; Hamilton, Paul D.; Pollard, Simon J. T.Risk management in the water utility sector is fast becoming explicit. Here, we describe application of a capability model to benchmark the risk management maturity of eight water utilities from the UK, Australia and the USA. Our analysis codifies risk management practice and offers practical guidance as to how utilities may more effectively employ their portfolio of risk analysis techniques for optimal, credible, and defensible decision making. For risk analysis, observed good practices include the use of initiation criteria for applying risk assessment techniques; the adoption of formalised procedures to guide their application; and auditing and peer reviews to ensure procedural compliance and provide quality assurance. Additionally, we have identified common weaknesses likely to be representative of the sector as a whole, in particular a need for improved risk knowledge management and education and training in the discipline.Item Open Access Risk analysis and management in the water utility sector - a review of drivers, tools and techniques(Institute of Chemical Engineers, 2004-03-01T00:00:00Z) Pollard, Simon J. T.; Strutt, J. E.; MacGillivray, Brian H.; Hamilton, Paul D.; Hrudey, Steve E.The provision of wholesome, affordable and safe drinking water that has the trust of customers is the goal of the international water utility sector. Risk management, in terms of protecting the public health from pathogenic and chemical hazards has driven and continues to drive developments within the sector. In common with much of industry, the water sector is formalizing and making explicit approaches to risk management and decision-making that have formerly been implicit. Here, we review the risk management frameworks and risk analysis tools and techniques used within the water sector, considering their application at the strategic, programme and operational levels of decision- making. Our analysis extends the application beyond that of public health to issues of financial risk management, reliability and risk-based maintenance and the application of business risk maturity models.Item Open Access Risk analysis strategies in the water utility sector: an inventory of applications for better and more credible decision-making(Taylor & Francis, 2006-03-01T00:00:00Z) MacGillivray, Brian H.; Hamilton, Paul D.; Strutt, J. E.; Pollard, Simon J. T.Financial pressures, regulatory reform, and sectoral restructuring are requiring water utilities to move from technically inclined, risk-averse management approaches toward more commercial, business-oriented practices. Risk analysis strategies and techniques traditionally applied to public health protection are now seeing broader application for asset management, assessing competition risks, and potential threats to the security of supplies. Water utility managers have to consider these risks alongside one another, employ a range of techniques, and devise business plans that prioritize resources on the basis of risk. We present a comprehensive review of risk analysis and management strategies for application in the water utility sector at the strategic, program, and operational levels of decision making.Item Open Access Risk management capabilities - Towards 'mindfulness' for the international water utility sector(2006-12-31T00:00:00Z) Pollard, Simon J. T.; Strutt, J. E.; MacGillivray, Brian H.; Sharp, J. V.; Hrudey, Steve E.; Hamilton, Paul D.; Clive Thompson and John GrayPublic health protection must be the primary goal of a drinking water utility; delivered through supplying safe drinking water. For complex multi-utilities, this goal may come under pressure from the need to manage a plethora of business risks. We describe a risk management maturity model for assessing the capacity of utilities to manage business risks and comment on the importance of ‘mindfulness' as a prerequisite for effective risk managemenItem Open Access Tools and techniques - what we need or what people think we want?(2005-04-06T00:00:00Z) Hamilton, Paul D.; MacGillivray, Brian H.; Bradshaw, R.; Strutt, J. E.; Pollard, Simon J. T.INTRODUCTION: Traditionally, water utilities have carried out risk assessments in a relatively small number of fields, addressing specific safety, health and environmental (SHE) risk concerns. In the last few years, however, the use of risk techniques has been extended as these companies increasingly seek to establish sound risk governance throughout all levels of their business to safeguard the interests of their customers and investors. Many new techniques have been imported from other process industries (offshore, energy supply, nuclear) and other businesses and financial institutions. In many respects, risk management is a practitioner led discipline and as such, its development and implementation within water utilities can vary significantly according to their size, operations, ownership and leadership, as well as the political, economic, legislative and regulatory frameworks in which they operate. As part of the ongoing AwwaRF Project 2939 ‘Risk analysis strategies for more credible and defensible decisions, studies have been undertaken in order to better understand the current level of application of risk analysis within the sector and to identify sector-specific views on key implementation issues. This research has realised the development of a maturity model for assessing capabilities in risk management and has also included a series of structured interviews with utility risk managers and industry spokespeople. Between 13th May, 2004 and 25th January, a total of sixteen interviews were conducted with specialists from five different countries (Australia, Canada, New Zealand, the United Kingdom and the United States). Fifteen work primarily within the water sector; the sixteenth works for an energy company. A full summary of this research and its findings will be published in the AwwaRF Project Report. With regard to the topic of risk analysis tools and techniques in the sector, the following key issues emerged: Does anyone use the risk management frameworks in practice? Are they useful and practical? What are the practical limits of, and people views of quantitative risk analysis techniques? Should we and how do we make consistent the various tools and techniques for risk management across utility companies?Item Open Access What can water utilities do to improve risk management within their business functions? An improved tool and application of process benchmarking.(Elsevier Science B.V., Amsterdam., 2008-11-01T00:00:00Z) MacGillivray, Brian H.; Pollard, Simon J. T.We present a model for benchmarking risk analysis and risk based decision making practice within organisations. It draws on behavioural and normative risk research, the principles of capability maturity modelling and our empirical observations. It codifies the processes of risk analysis and risk based decision making within a framework that distinguishes between different levels of maturity. Application of the model is detailed within the selected business functions of a water and wastewater utility. Observed risk analysis and risk based decision making practices are discussed, together with their maturity of implementation. The findings provide academics, utility professionals, and regulators a deeper understanding of the practical and theoretical underpinnings of risk management, and how distinctions can be made between organisational capabilities in this essential business process.