Linking engineering knowledge and practical experience to investment planning by means of condition based risk management

Condition based risk management (CBRM) is a process developed by EA Technology in conjunction with several major electricity companies to assist with the tasks of defining, justifying and subsequently targeting spending to achieve defined levels of performance. The process has delivered major benefits. If fully embraced, CBRM can provide the basis for effective asset management programmes that address the critical issues of network renewal and reliability within the increasingly stringent regulatory environments faced by many electricity companies around the world. This paper describes the methodology for quantifying risk and its use in investment planning.