Risk Modelling & Benchmarking
Risk Modelling is a core capability of apm. We have been developing risk-based models since 1999 to assess asset failure, condition and performance and their impacts on organisations via contractual performance-penalty regimes.
When involved in a Private Finance Initiative or Public Private Partnership tender process, we have supported clients in determining the correct performance benchmarks, based upon the potential risks of operating the entire infrastructure base over the full term of a contract, even up to 30 years in duration.
Benchmarking Supports Uncertainty
On occasion, apm has demonstrated that average performance has been financially acceptable against performance benchmarks. However, once uncertaintly of assset failure, condition and performance is considered, benchmarks have to be adjusted to account for additional potential financial risk or an appropriate risk fund must be set-aside in case such risks are realised.
As projects move from the tender to the operational phase, apm has continued to support its clients by re-modelling risks to account for additional asset data (as it comes available) and also to measure the impact of both Maintenance Operations and Major Capital Works projects.