Remediation Risk Management: A Comprehensive Approach for Reducing Remediation Uncertainties
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1 1 Welcome Remediation Risk Management: A Comprehensive Approach for Reducing Remediation Uncertainties Environment, Energy & Sustainability Symposium & Exhibition May 6, 2009 Denver, CO Mr. Ning-Wu Chang, Department of Toxic Substances Control, Cal-EPA Mr. Tom O Neill, New Jersey Department of Environmental Protection Mr. Sriram Madabhushi, Booz Allen Hamilton
2 2 Purpose of Presentation To present an overview of the Remediation Risk Management (RRM) Process based the upcoming RRM Team s Technical and Regulatory Guidance Document: Remediation Risk Management : An Approach to Effective Remedial Decisions and More Protective Cleanups (2009)
3 3 Connecting RRM to PBEM Evolution of Better Management Principles Remediation Process Optimization Performance Based Environmental Management Remediation Risk Management
4 4 Components of PBEM PBC Exit Strategy ARARs Problem Statement & Objectives PBEM Expert Team RPO RP O Land Use Risk Strategy CSM Decision Logic
5 5 RRM - Definition Remediation risk management (RRM) is a process through which all risks related to the remediation process remedy selection, implementation and close out are holistically addressed in order to minimize decision uncertainties in the cleanup process.
6 6 Why Remediation Risk Management? Risk is inherent in remediation programs Manage the project to control/mitigate risks Management of risks is forward looking Alternative to risk management is crisis control Resource intensive Constrained options
7 7 What is Remediation Risk Management About? RRM addresses the risks that the remediation project will not achieve the cleanup objectives RRM is about assessing overall risk to remediation Think of RRM as defending your project against Murphy s Law!
8 8 RRM Elements Identifying and Managing Remediation Risks 6. Verify and Review 1. Identify the RRM Hazards 5. Implement Risk Controls 2. Select Site- Specific Risks 4. Mitigate Risk with Appropriate Actions 3. Quantify Remedy Related Risks
9 9 What Are Remediation Project Risks? Risk: The potential inability to achieve objectives within cost, schedule, or technical performance objectives The components of risk are Probability or likelihood Consequences or impacts Risk Event: Things that could go wrong Typically measured as: Likelihood x Consequences
10 10 Identify Hazards/Risks Remedy Selection Risks Implementation Performance Risks New Sources are discovered Risks over time Site-specific risks identified Remediation is too slow New, more effective technologies become available New Areas Regulated Political Risks
11 11 Common Performance Risks Changing Requirements Design Issues Innovative or Emerging Technologies Technology Performance Site Conditions Weather Site Accessibility Site Logistics Equipment/Material SupplyContractor Capability Public Relations Management
12 12 Quantify the Related Risks Risk Analysis and Prioritization Probability (likelihood) of occurrence remote to near certainty Consequence of occurrence Cost: minimal to unacceptable Schedule: minimal to not achieve milestone Quality: good to unacceptable
13 13 Prioritizing Risk Risk Analysis and Prioritization Combine likelihood and consequence Determine level of each site-specific risk: Low Medium, High e M M H H H d L M M H H Likelihood c L L M M H b L L L M M a L L L L M a b c d e Consequence Prioritize the risks and create a Watch List Define risk indicators (metrics)
14 14 Risk Identification Process Techniques Individual What If analysis Risk Identification Questionnaire Brainstorming Nominal Group Method Delphi Method Consider the synergy between risk events
15 15 Other Risk Identification/Quantification Tools SRT LLNL Risk Worksheet Uncertainty Tool Five Step Process
16 16 Approaches for Mitigating Risk Reject If the risk outweighs the benefit Don t do it Avoid Go around the risk find an alternative way Delay Transfer May be a future technology will help From one area to another contract out
17 17 Approaches for Mitigating Risk Spread Reduce exposure to individual units by distributing Compensate Build redundancy Reduce A systematic analysis to select the best option
18 18 How Are Performance Risks Managed? Risk Planning: Develop a written Risk Management Plan Note that a risk management plan alone is not enough Risk Identification Compile a list of the project s risk events Examine each risk event for potential consequences Risk Handling CAAT: Control, Avoidance, Assumption, Transfer
19 19 Example of Risk Management Table Risk Category Type of Risk Probability of Occurrence Risk of Implementability Issue Performance Cost Escalation beyond Funding Political and Social Schedule Limited Recovery Rate Rate of degradation Impact of the Risk Managing the Risk Accept: Avoid: Transfer: Control: Mitigate: Accept: Avoid: Transfer: Control: Mitigate: Accept: Avoid: Transfer: Control: Mitigate: Accept: Avoid: Transfer: Control: Mitigate:
20 20 Verify and Review Risk Management Risk Monitoring Risk Monitoring Techniques Program metrics is program achieving objectives Documenting Risk Management Prepare written documentation
21 21 Risk Decision from Remediation Remediation Worker Hazards Financial Risk Green House Gas Emission Remedy Performance Risk Remedial Decision Energy Consumption Professional Liability Geopolitical Effects Transportation Hazards
22 22 Summary and Conclusions RRM will reduce risk in remediation RRM will reduce uncertainties in remediation decision making RRM will help to minimize remediation derived wastes Waste destruction not transfer is achieved through RRM RRM will achieve protection of human health and the environment by considering alternative approaches to reduce risk of active remediation while meeting the cleanup goals RRM will benefit the environment through successful remediation of contaminated sites
23 23 Where do we go from here? Finalize the ITRC guidance document - Remediation Risk Management : An Approach to Effective Remedial Decisions and More Protective Cleanups Path forward to Green & Sustainable Remediation ITRC GSR Team Links to RRM, PBEM, RPO Ongoing effort to identify and communicate best practices
24 24 Contacts Ning-Wu Chang DTSC/Cal EPA Tom O Neill NJDEP tom.o neill@dep.state.nj.us Sriram Madabhushi Booz Allen Hamilton madabhushi_sriram@bah.com
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