Call to Actions


Principles of Asset Management & Why Risk Matters

Feb 06, 2023
30E, Upper Level
Utility University




Effective Asset Management seeks to balance the competing factors of performance, cost, and risk, in assuring optimal choices in operating and maintaining critical assets. Although these factors have always been present in our quest to provide safe and reliable service to our customers, they have often been viewed as separate issues to be prioritized, in contrast to being three perspectives to be balanced and integrated.  This course will cover the key principles of using risk to drive asset decisions and optimize asset lifecycle cost. 


  • Purpose: To teach attendees the key principles of asset risk management. 
  • Objectives: 
    • Asset Decisions – Balance Cost, Performance & Risk 
    • Asset Criticality – Understand cost or reliability consequences 
    • Asset Health – Understand asset health, degradation, and failure prediction 
    • Asset Performance - Define and measure asset performance 
    • Asset Investment – Determine optimal level and timing of investments 
    • Asset Risk – Understand risk identification & analysis, risk tolerance, and mitigation 

Attendees should acquire:

  • High-level overview of Asset Management - Terms, standards, history, and the IAM (Institute of Asset Management)  
  • Why Asset Management - Benefits and the value case for adopting Asset Management 
  • Asset Risk Management – Principles of risk measurement and mitigation 
  • Asset Management Maturity assessment – Scales, application, typical results, resources, and free tools 
  • Asset Risk Management – Key processes within effective Risk Management 
  • Context for Risk Management – Scope & methodologies for Business Value Framework, Risk Matrices, Risk Tolerance, Economic Lifecycle Modeling, Risk Identification, and Risk Analysis 
  • Best practices in Risk Management - Asset health indices, failure probability & consequence, estimating remaining economic life, and Integrating Asset Risk and Criticality into Decision-Making 
  • Risk Register – Methodologies for building a detailed Asset Risk Register   

Who should attend:

  • Organization Type(s) (Gas, Electric, Water, or combination utilities and consultants to all of the above) 
  • Level(s) Within Organization - executives, managers, engineers, and analysts  
  • Functional Units – Transmission or Distribution Asset Management, Planning, Engineering/Design, and Operations,  

Prerequisite skills, knowledge, and certifications:

General knowledge of the utility industry and the assets, equipment, and systems normally utilized. 

Jack Shearman, CEO - UMS Group
Richard Wernsing, President & CEO - Wernsing Consulting
Andrew McQuillan, Director - UMS Group