The Crossing Company, in conjunction with the University of Alberta's Centre for Excellence in Trenchless Technology (CETT), will be presenting the second paper in a series of five at this year's NASTT No-Dig Technical Conference in Sacramento, California. Manley Osbak, Vice President of Engineering & Estimating will present "The Economics of Risk Absorption and Risk Transfer Strategies in Horizontal Directional Drilling".
This series of papers, and the research that they are based on, is a first for the North American horizontal directional drilling industry. The Crossing Company is proud to be a part of such an important and valuable iniative.
The Economics of Risk Absorption and Risk Transfer Strategies in Horizontal Directional Drilling
Manley Osbak ¹, Alireza Bayat, PhD, PEng ², Carrie Murray, MEng, PEng ³
¹ Vice President Engineering, The Crossing Company Incorporated, Nisku, AB
² Assistant Professor, Department of Civil and Environmental Engineering, University of Alberta, Edmonton, AB
³ PhD Student, Department of Civil and Environmental Engineering, University of Alberta, Edmonton, AB
ABSTRACT: The process of risk management involves the identification, assessment and prioritization of risk events, followed by the development of a risk management strategy whereby risk is managed by either avoiding, transferring, absorbing or mitigating risk. The economy and effectiveness of each risk management strategy is an important consideration in the selection of which risk management strategy to use. In 2011, the authors initiated a study into the construction risks associated with Horizontal Directional Drilling (HDD). The results of the initial phase of research (Osbak et al, 2012) identified the risk events that occurred on 100 medium to large HDD projects, as well as the frequency of occurrence, average impact, and the relative importance or priority of each risk event as given by a Risk Index. These results satisfy the identification, assessment and prioritization steps that come in advance of, and feed into, the development of a risk management strategy. In this paper, the authors use the dataset created in the initial study to model the economic impact of risk, and simulate the economics of risk absorption and risk transfer strategies as applied to the 100 projects that were included in the study.
For more informaiton on the NASTT No-Dig Show 2013 please visit the link below: