Battelle Hybrid Risk-Management Methodology using HYPRMAPP™

Like other important parts of the nation's industrial infrastructure, pipelines are subject to a number of risks - accidents, natural disasters, vandalism, and terrorism among them. Battelle researchers have developed a hybrid risk model, HYPRMAPP™, which bridges the gap between previous models and helps the pipeline industry manage risk more effectively than ever before. The risk index model has previously been the most popular form of risk management because of its low cost and ease of implementation. The model, which derives its results from industry normalized accident data and limits of tolerable risk, is generalized and provides its user only a relative measure for identifying pipeline locations at greater or lower risk relative to one another. The less frequently used scenario based model effectively identifies pipeline risks, but requires significantly more company resources and time to implement. A consultant who has expertise in facilitating scenario-based risk management techniques may be needed.

Both forms of risk management are acceptable to the U.S. Department of Transportation (DOT), Office of Pipeline Safety (OPS), but have disadvantages that Battelle's HYPRMAPP™ transcends by incorporating the advantages of each. The new methodology allows a company to make informed decisions for reducing risk that includes an understanding of the client-specific financial implications of various alternatives. This hybrid risk model provides the pipeline operator with information on the dollar costs per year if a potential risk should occur, as well as the benefit in dollars per year of reducing that risk. These results, when combined, provide a decision-making tool that helps a pipeline company weigh risk reduction alternatives that are based entirely on client-personalized business values. Using an economic benefit-to-cost basis, a company can focus its resources at those pipeline locations where risk reduction is needed most and the benefits received from risk reduction activities would be the highest.

HYPRMAPP™ 's capacity to link the relative results of a risk index model with a company's specific operating incident history and operating philosophies can transform relative risk numbers into measurable ones. The hybrid model can also be linked directly with a scenario based risk assessment specific to a pipeline location. Or, when linked with a risk index model, it can be personalized for a company by using some of the same techniques deployed by scenario-based risk management. HYPRMAPP™ is a sophisticated new model that offers pipeline companies more effective ways of managing risk.

For additional information, please contact Tom Thomas at (614) 424-5632, thomast@battelle.org or Dr. Tom Bubenik at (614) 424-5331, bubenikt@battelle.org.