This week we will be answering the third question we received in our Ask Bill Anything webinar series, “What are the key attributes that we should not forget while doing the risk mapping of facilities and what factors trigger the probability and consequence of failure?”

Again, my thoughts below represent my answer from the webinar and if you’d also like to listen to the webinar playback you can access it here. 

This is a great question and lines up very nicely with another question that we get asked a lot, “How do I prioritize which needs get included in a capital plan?” 

Through my years of experience, I have known many facilities managers who have been faced with tough decisions about where to allocate limited capital resources. One crucial aspect in the process that helps them decide is risk management – that is, understanding the likelihood/risk and consequence of failure associated with specific needs within their facilities. So, what are the key attributes we should remember while risk mapping facilities, and what factors influence the probability and consequences of failure?

The probability of failure is a critical factor to consider when prioritizing facility maintenance and upgrades. When assessing this probability, facility managers often rely on condition assessments conducted by their own staff or by professional site assessors. These assessments provide the condition ratings for each element within the building, offering a consistent scale for evaluating risk. Each individual element across the portfolio therefore has a specific probability of failure based on the condition rating determined during the Facility Condition Assessment.  

For instance, a building element rated as being in critical condition poses a higher risk of failure than one rated as being in good condition.

To effectively manage this aspect of risk, it’s essential to establish clear definitions for condition ratings and ensure alignment with broader asset management plans. Whether mandated by municipal requirements or part of an organization’s internal strategy, integrating these ratings into asset management plans helps maintain consistency and clarity in decision-making.

Equally important is understanding the consequences of failure. What happens if a specific building element or system fails? To assess this, we often apply the consequence of failure to the Uniformat II element breakdown. Consequence of failure categories are created and applied to each Uniformat code based on severity. For example, a failure resulting in life safety hazard ranks as the most critical, while failures causing mere inconveniences are less urgent.  All elements that share a Uniformat code receive an identical consequence of failure rating. 

By rating Uniformat codes uniformly across a facilities portfolio, we can compare the consequences of failures across different building elements. This standardized approach enables the prioritization of maintenance and upgrades based on the severity of potential outcomes. A failure in critical systems like roofs or fire alarms would thus receive higher priority than failures in less impactful elements like carpets.

In prioritizing facility risks, it’s crucial to consider both the probability and consequences of failure. 

Having said all this, it’s worth noting that risk management is just one aspect of facility prioritization. While probability and consequences of failure play a significant role, other factors such as budget constraints and strategic objectives also influence decision-making. Therefore, it’s essential to strike a balance between risk mitigation and broader organizational priorities when selecting which needs get included in a prioritized capital plan..

By carefully assessing the probability and consequences of failure, facilities managers can prioritize maintenance and upgrades to minimize risks and ensure the safety and functionality of their buildings. Through integrated asset management plans and standardized evaluation methods, they can make informed decisions that maximize the impact of their resources while mitigating potential risks.

We will continue to summarize my responses to questions from our recent Ask Bill Anything webinar next week.