Triple Bottom Line Risk Management Enhancing Profit Environmental Performance and Community Benefits_13 ppt

• The extent to which the strategy reduced overall risk was determined.
• The benefits created by implementation of the strategy were demonstrated.
Applying the above approach to any asset management endeavor is likely to
generate a similar set of conclusions, thus using the RISQUE method provides a
useful and cost-effective approach to developing an asset management program.
292 / Asset Management: Water, New Zealand
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G
LOSSARY
This glossary defines the meaning of technical terms as they have been used in this
book. Other literature may use and define these terms in different ways.
acceptable risk: Risk that may be accepted without further treatment because its
likely consequences are negligible, or the risk cannot be avoided or transferred,
or the costs of doing so would be too high.
ALARP (as low as reasonably practicable): The principle that risks should be
evaluated against the costs of reducing them; measures then must be taken to
reduce or eliminate the risks unless the cost of doing so is obviously unreason-
able (grossly disproportionate) compared with the risk and the benefit derived
by treating the risk.
asset: In engineering and commerce terms, usually refers to a capital cost item. In
security, insurance, and loss control, usually refers to an item that if (acciden-
tally) lost would cause a loss.
base cost: The cost of construction, operation, and other committed costs over the
project life. Base cost may be expressed in either current dollars without ac-
count for the time value of money or can be discounted back to current dollars
net present value.
benchmarking: A process improvement tool for comparing and adopting pro-
cesses better performed by another organization.
brainstorming: Generating ideas about a topic without screening, and listing
them without criticism from anyone.
capital estimate: A quantification and presentation of the monetary resources

(investment costs or dollars) required to achieve a business objective.
chance method: An alternative method of calculating risk cost. The chance
method assumes that a risk event occurs according to its probability of occur-
rence. For example, the cost of a risk event with an 80 percent chance of oc-
curring will be included in the risk cost calculation in 80 percent of trial
simulations.
CL 50% or 50th percentile: The 50 percent confidence level for a range or dis-
tribution, or that value which should not be exceeded in 50 percent of occur-
293
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rences. It is the median value. Often considered to be an optimistic estimate
with respect to cost.
CL 80% or 80th percentile: The 80 percent confidence level for a range or dis-
tribution, or that value which should not be exceeded in 80 percent of occur-
rences. Often considered to reflect the corporation’s level of conservatism with
respect to cost. It may be the value used for planning purposes.
CL 95% or 95th percentile: The 95 percent confidence level for a range or dis-
tribution, or that value which should not be exceeded in 95 percent of occur-
rences. Often considered to be a pessimistic estimate with respect to cost.
common mode failure: Refers to the simultaneous failure of multiple compo-
nents or systems due to a single, normally external cause such as an earthquake
or fire. It is used to distinguish discrete failures of individual components or
systems due to defect arising locally within that component or system.
confidence level or limit: The probability that a reported value will not be ex-
ceeded, expressed as a percentage; for example, the 95th percentile confidence
limit would not be exceeded in 95 percent of cases.
consequence: The outcome of a risk event expressed qualitatively or quantita-
tively, being the actual or potential degree of severity of loss, injury, disadvan-
tage, or gain. A range of consequences may be associated with a risk event.
consequence threshold: A financial cost to a project or organization that would

not be material to the organization or could marginally be absorbed by the
usual operational contingency. The consequence threshold for a risk assess-
ment of a business line within an organization may be, for example, $100,000.
In contrast, the consequence threshold for an organization-wide business risk
assessment could be $2 million.
consequential cost: The cost associated with a risk event, assuming it occurs.
Also referred to as the exposure or occurrence cost.
contingency planning: Preparing to handle a given circumstance that may arise
in the future.
core risk: The risk that is considered to form an inherent part of the business en-
vironment, for example, variation in product price.
cost (i): Of activities, both direct and indirect, involving any negative impact, in-
cluding money, time, labor, disruption, goodwill, political, and intangible losses.
cost (ii): Base cost or risk cost reported in current dollars or dollars net present value.
cost distribution: A probability distribution of cost.
critical success factors: Aims, objectives, or outcomes that a stakeholder regards
as critical for project success.
damage control: Procedures designed to minimize severity of loss.
decision tree: A risk analysis technique for describing random processes and
computing the probability of a given occurrence using a tree diagram.
Delphi approach or technique: A technique for obtaining an independent opin-
ion on a topic by consulting with subject matter experts.
294 / Glossary
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dependence: The correlation or linkages between uncertain variables that must be
estimated for accurate quantitative risk analysis.
discount rate: The annual rate (expressed as a percentage) used for discounting
future cash flow that represents the rate of inflation or the interest rate of a com-
peting investment. The discount rate is used to calculate the net present value
of an investment by a series of future payments and income.

environmental hazard: An event or continuing process, which, if it occurred,
will lead to circumstances having a potential to degrade, directly or indirectly,
the quality of the environment in the short or long term.
environmental risk: A measure of potential threats/hazards to the environment
that combines the probability that the events will cause or lead to degradation
of the environment and the severity of that degradation.
event: An incident or situation that occurs in a particular place during a particular
interval of time.
event number: An identifier assigned to a risk event; for example, Corp 1-12,
PCB contaminated oil stockpile leading to tank replacement and remediation.
event tree: A hazard identification and frequency analysis technique that em-
ploys inductive reasoning to describe the potential outcomes that may arise
from an initiating event. The fundamental principle of the event-tree process is
to unravel a relatively complex event to derive a sequence of simpler compo-
nent events, whose probabilities and consequences have a better prospect of
being estimated using available data or judgment.
exposure profile: Shows the financial exposure that would be derived from
occurrence of each risk event.
failure (risk): A cessation of function that has consequences (usually meaning
death, injury, or damage) beyond a component or entity merely becoming un-
available to perform its function.
fault: The inability of an entity to perform its required function, resulting in un-
availability. May be a nonperformance against some defined performance cri-
terion. Can also be referred to as a breakdown failure.
fault tree analysis (FTA): A hazard identification and frequency analysis tech-
nique that starts with the undesired event (failure) and determines all of the
ways in which it could occur. Probability of occurrence is quantified in this
process. Fault trees are presented graphically.
feasibility: The phases of a project when a determination is made as to whether
there is a practical alternative to current operations.

FMEA (fault modes and effects analysis): A procedure by which potential fail-
ure modes in a technical system are analyzed.
FMECA (fault modes, effects, and criticality analysis): An extension of an
FMEA, in which each failure mode identified is ranked according to the com-
bined influence of its likelihood of occurrence and the severity of its conse-
quences.
Glossary / 295
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frequency: The probability of an event occurring, expressed as number of occur-
rences over time (i.e., the project life). For example, a likelihood of occurrence
of 1 in 100 years is equal to a frequency of 0.01 per year, or 0.1 over the pro-
ject life of 10 years.
gap analysis: Analysis of the difference between a defined set of performance
criteria and actual performance.
hazard: A threat or source of potential harm or danger or a situation with a po-
tential to cause loss, an event that might lead to an uncontrolled release of en-
ergy or material, with on-site or off-site consequences for people, buildings,
plant, equipment, material, animals, or the environment.
hazard identification: Process of recognizing that a hazard exists and defining its
characteristics.
HAZOP (hazard and operability study): A structured approach for identifying
hazards, operational problems, or deviations from designed performance in a
process.
heuristics: A risk analysis technique using a rule of thumb.
incident: An unplanned event or situation that occurs in a particular place during
a particular interval of time, which should provide an alert to the risk manage-
ment system. This can be a failure of a control system; or a near miss; or hav-
ing potential for injury, ill health, damage, or other loss.
individual risk: The frequency at which an individual may be expected to sustain
a given level of harm from the occurrence of specified hazards.

insurance: A method of transferring risks by financial means.
likelihood: The probability or frequency of occurrence of a risk event.
log normal distribution: A probability distribution that has no upper limit, all
values are greater than zero, most of the values fall at the lower end of the
range, and the logarithm of the variable is normally distributed.
long-term annual discount rate: Also known as the real rate of return, that is, the
rate at which a chosen measure discounts the future value of a sum or series of
payments. For example, a real rate of return of 4 percent per year may represent
the difference between return on investment and the rate of inflation. (See dis-
count rate).
loss: The embarrassment, harm, financial loss, legal, or other damage that could
occur due to a loss event. Any negative consequence, financial or otherwise, in-
cluding death, injury, damage loss, or breach of statute. It may lead to a claim
and/or court proceedings.
loss control: Any conscious action intended to reduce the frequency or severity of
accidental losses.
management reserve: An estimated sum of money required over the project life
to cover the costs of incidents (risk events). Synonymous with risk cost.
monitor: To check, supervise, observe critically, or record the progress of an ac-
tivity, action, or system on a regular basis in order to identify change.
296 / Glossary
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Monte Carlo simulation: A frequency analysis technique that generates expected
values from a random value for an appropriate probability distribution in a
mathematical model. Monte Carlo simulation calculates numbers not as single
numbers but as cost distributions. The results are expressed as a range of pos-
sible outcomes together with the likelihood of each outcome. (Also known as
simulation by random sampling).
net present value (NPV): Today’s value of an investment over a specified period
of time, using a discount rate and a series of future payments and incomes.

normal distribution: A probability distribution where the values are evenly dis-
tributed on either side of the mean, values are more likely to be in the vicinity
of the mean than far away, and two-thirds of the values lie within one standard
deviation (the average distance of values from the mean) of the mean.
optimistic cost: Normally considered to be the 50 percent confidence level, which
represents an optimistic estimate within a cost distribution.
organization: A company, firm, enterprise or association, or other legal entity or
part thereof, whether incorporated or not, public or private, that has its own
function(s) and administration.
peripheral risk: The risk that is associated with noncore aspects of a business.
pessimistic cost: Usually considered to lie within the 90 to 99 percent range of con-
fidence levels, which represent a pessimistic estimate within a cost distribution.
planning: A management process for determining what steps to execute, assign-
ing who will perform those tasks, and verifying when they must start and stop.
planning cost: Usually considered to lie within the 70 to 85 percent range of con-
fidence levels, which represent a conservative but realistic estimate within a
cost distribution.
probability: The likelihood of an event occurring measured by the ratio of spe-
cific events or outcomes to the total number of possible events or outcomes.
Expressed on a decimal scale from 0 to 1, with 0 indicating an impossible
event or outcome and 1 indicating an event or outcome is certain.
probability distribution: A set of all possible events and their associated proba-
bilities that describes the uncertainty of data within the set.
project manager: Responsible person within an organization for ensuring that the
risk management process is followed and that appropriate information is pro-
vided to decision-makers.
proportional risk profile: Shows how much risk each event, or a group of events,
contributes to the total risk presented by all risk events.
qualitative risk assessment: An analytical process that uses qualitative (descrip-
tive) measures to describe the likelihoods and consequences of risk events,

which usually are brought together as a risk matrix. The qualitative measures
are tailored to meet the needs of the specific application under evaluation. The
qualitative risk matrix differentiates risk on a relative basis (e.g., high, medium,
and low).
Glossary / 297
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quality: Conformance to a set of requirements that, if met, results in an organiza-
tion, service, or product that is fit for its intended purpose.
quantitative or quantified risk assessment (QRA): An analytical process that
attributes values to the full suite of likelihoods and consequences arising from
risk events. Risk is expressed as the product of likelihood and cost. Estimates
of consequence can be made using any consistent measure—dollars, number of
lives lost, and so on—depending on the nature of the application. Quantitative
engineering risk assessments often measure risk in terms of frequency and
number of potential lives lost. Business applications usually use monetary mea-
sures to define risk. Estimates of likelihood are made in terms of event fre-
quency (e.g., annual frequency or frequency over the period of a specified
project) and/or probability of occurrence if the event occurs.
ranked risk profile: Ranked risk profiles clearly indicate relationships such as the
relative magnitude of risk for each event and show which events are the riski-
est and those that are the least risky.
real rate of return: Also known as the long-term annual discount rate, that is, the
rate at which a chosen measure discounts the future value of a sum or series of
payments. For example, a real rate of return of 4 percent per year may represent
the difference between return on investment and the rate of inflation.
reliability: The probability that an item will perform a required function under
stated conditions for a stated period of time.
residual risk: That which remains beyond the identified, managed risks. For ex-
ample, residual risk is the risk that remains after the project managers have ad-
dressed the core risk events that are associated with their project or business

activity.
resources: The human, physical, and financial assets of an organization.
risk: A notion consisting of an intrinsic combination of two components: the like-
lihood of an event occurring in the future and the consequences if the event
occurs.
risk (speculative): Generally, risk deliberately accepted for a perceived benefit.
risk acceptance: An informed decision to accept the consequences and the like-
lihood of a particular risk.
risk analysis: Systematic use of available information to determine how often
specified events may occur and the magnitude of their consequences. Quanti-
tative risk analysis involves quantification and modeling of the probabilities
and consequences for each substantive risk event.
risk analyst: Specialist (usually a consultant) in risk assessment and strategy de-
velopment, employed to develop and facilitate the risk management process.
risk assessment: The study of decisions subject to uncertain consequences; the
overall process of risk analysis and risk evaluation.
risk aversion: Risk management is predicated on the worst-case scenarios while
simultaneously trying to address all risk situations.
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risk avoidance: An informed decision not to become involved in a risk situation.
Decision-makers take action to avoid one or more threats or hazards.
risk control: Identification and implementation of measures, or controls, to treat
(lessen or avoid) the impact of a threat/hazard to a process, asset, resource, or
project.
risk cost: A reasonable estimate of the combined cost that will be incurred over a
specified future time period due to the occurrence of risk events. Risk cost usu-
ally is calculated as the cost of consequences for the riskiest events and ex-
pressed as a distribution or range of cost rather than a single-point cost estimate.
risk cutoff or threshold: A value of risk (the risk quotient) that determines which

of the risk events are to be included in the riskiest issues.
risk engineering: The application of engineering techniques to the risk manage-
ment process.
risk evaluation: The process to determine risk management priorities by com-
paring the level of risk against predetermined standards, target risk levels, or
other criteria.
risk event: An environmental, statutory, engineering, or other event that has been
identified during the risk assessment as having some likelihood of occurrence
and that could have some potential detrimental effect should it occur.
risk exposure: The impact of a threat on a product, system, or project.
risk financing: The methods applied to fund risk treatment and the financial con-
sequences of risk events.
risk identification: Systematic listing of risk events and their causes and deter-
mination of what, how, and why events can happen.
riskiest events: Those (usually relatively few) events that contribute to the bulk
(usually around 90 to 95 percent) of the aggregate risk for each scheme. The
measure of risk of each event that exceeds the “risk threshold.”
risk management: The process of planning, organizing, directing, and controlling
the resources and activities of an organization in order to minimize the adverse
impacts of accidental losses to that organization at least possible cost.
risk map: A graph that shows the probability of a risk event occurring plotted
against the consequences (e.g., financial cost or lives lost).
risk perception: How people perceive threats.
risk profile: An assessment that shows the relationships between risk events and
how the total risk is distributed among the risk events.
risk quotient: The product of occurrence frequency of a risk event and its conse-
quences (cost). While expressed as dollars, this measure is not a real dollar
value as its derivation includes the frequency of occurrence of the risk event.
Also referred to as long-term risk, expected cost, risk factor, risk level.
risk reduction: A selective application of appropriate techniques and manage-

ment principles to reduce either likelihood of occurrence of a risk event or its
consequences, or both.
Glossary / 299
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risk register: Derived from information provided by the expert panel, it is a tab-
ulation of all risk events identified throughout the course of a risk assessment.
The risk register lists risk events (grouped by type); provides a brief description
of each event; indicates the likelihood of occurrence and the potential cost
range (at the mean and 95 percent confidence limit); whether each event has
been included in, or excluded from, the risk model; and a reason for their in-
clusion/exclusion.
risk retention: Intentionally or unintentionally retaining the responsibility for
loss or financial burden of loss within the organization.
risk threshold: The value of the risk quotient that separates the riskiest events
within a risk profile from the remainder. The risk threshold defines which risk
events are to be used in calculation of the risk cost.
risk transfer: Shifting the responsibility or burden for loss to another party
through legislation, contract, insurance, or other means. Risk transfer also can
refer to shifting a physical risk or part thereof elsewhere.
risk treatment: Establishes and implements appropriate management responses
to reduce, transfer, or accept risks.
risk treatment or reduction strategy: A set of actions that, when implemented,
will reduce the overall exposure of a business to risk events. The actions are de-
signed to reduce the likelihood that the risk events will occur and/or the mag-
nitude of the consequences if the event was to occur.
RISQUE method (Risk Identification and Strategy using Quantitative Evalu-
ation): A risk management process that involves assessment of risk and devel-
opment of risk management strategy using predominantly financial measures.
routine decision: Determining action that will have predictable results, based on
some standard operating procedure.

safe: An acceptably low or tolerable level of risk.
scenario analysis: Use of descriptions of how a risk event might arise, potential
controls, responses, and consequences for a broad examination of nonstandard
events or events that are hard to quantify.
semiquantitative risk assessment: Takes the qualitative approach further by at-
tributing values or multipliers to the likelihood and consequence groupings.
Semi-quantitative approaches frequently combine realistic estimates of likeli-
hood with relative estimates of consequence. The values used in relation to
consequences usually reflect the relative magnitude of the consequence and do
not necessarily reflect realistic values. For example, the risk analyst may con-
sider that the consequences of a major injury are twice as great as those derived
from moderate injury. In this case, a multiplier is applied so that the estimated
risk associated with a major injury reflects the degree of difference between the
two consequences.
sensitivity analysis: Examines how the results of a calculation or model vary as
individual assumptions are changed. Can be a form of quantitative analysis in
which the results of a model are examined as one variable at a time is changed.
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serious potential hazard: A hazard that is assessed as have an “extreme” poten-
tial future risk (combined assessment of the probability of occurrence and the
potential consequence).
serious potential incident: An incident that is assessed as having an “extreme”
potential future risk (combined assessment of the probability of recurrence and
the potential consequence).
severity: The measure of the absolute consequences of a loss, hazard, or vulnera-
bility, ignoring likelihood. In insurance terms, the absolute magnitude of the
dollars associated with a single (potential) loss event.
societal risk: The relationship between frequency and the number of people suf-
fering from a specified level of harm in a given population from the occurrence

of specified hazards.
stakeholders: Individuals, groups, or organizations that may affect, be affected
by, or perceive themselves to be affected by a decision or activity, or are af-
fected by aspects of the business/project/activity.
sunny-day failure: Failure of an embankment when the river is not in flood.
threat: An action or event that might prejudice any asset, system, process, or
project.
threshold method: Method predominantly used by the RISQUE method to cal-
culate risk cost. The threshold method differentiates between occurrence of risk
events on the basis of risk (the risk quotient) and assumes that the costs of the
most risky events comprise the risk cost.
tolerable risk: Risk that is not regarded as negligible or something that can be ig-
nored, but must be kept under review and further reduced.
total risk: The sum of the risk if all of the events identified as the riskiest events
were to occur over the life of the project. This is the key measure of risk cost
used in the RISQUE method.
triple bottom line: Extension of the financial “bottom line” concept of economic
prosperity to include environmental quality and social equity.
uncertainty: Unknowns: referring to either whether an event will occur or the
magnitude of consequences of an event. For consequences, uncertainty is rep-
resented by the range or spread of distribution associated with the cost of risk
events, for example, by the difference between the 50th percentile and the 95th
percentile confidence limits for a risk event.
vulnerability: A weakness with regard to a threat or hazard.
vulnerability analysis: A method of “completeness” checking for a defined sce-
nario. Typically assets or critical success factors are established as well as po-
tential threats/hazards. Each success factor is examined for each threat/hazard
to see if it is vulnerable to that threat/hazard.
Glossary / 301
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I
NDEX
@Risk™, 24, 65, 124, 134, 245–265
Aboveground storage tanks (AST), 249
Acceptability criteria, 195, 197, 198, 201,
203, 206, 208, 209
Accident costs, 185
Accidents, 249
Accounting regulations, 246
Accounting tools, 31
Acid conditions, 224, 225, 235, 238
Acid rock drainage (ARD), 24, 152, 229,
237, 249
Acquisition, 3, 110, 130, 163, 175
Active landfilling period, 213
Actuarial information, 13, 38
Aftercare, 211, 227
Agricultural economics, 46
Agricultural loss, 139
Air emissions, 249
Air pollution, 260
Aircraft accidents, 197
Airspace, 211
Alarms, 210
ALARP, 11, 198, 208, 209
Alkimos, 177, 184, 186, 191, 192
Amenity, 29, 30, 192
Amenity loss, 30, 139, 183, 185
American Depository Receipt (ADR), 246

ANCOLD, 198
guidelines, 198, 206, 208, 209
objectives, 206, 208
Annual frequency of events, 197, 249
Annual reports, 10, 248
Aquatic biota, plants, 223, 235
As low as reasonably practical, see
ALARP
Asbestos, 249
Asset maintenance, 111
Asset management, 135, 267–292
Asset valuation or value, 30, 163
Assets, 4, 245, 246
Assets and liabilities, 246
Assumptions, 214, 216
Assurance sums, 211, 212
Audits, 13, 115, 212
Australia, 177–193, 211–223, 247
Australian National Committee on Large
Dams, see ANCOLD
Australian Stock Exchange, 5
Average (cost), see Mean (cost)
Balance sheet, 245, 246, 248, 262, 265
Bank guarantee, 112
Base cost, 28, 130, 131, 142, 145, 146,
157, 164, 165, 167, 173, 174, 188,
234, 243
definition, 28
Beach access, 181, 183, 185, 189
Bedrock, 236

Benefit, 15, 31, 121–127, 284, 291–292
Benefit-cost analysis, 14, 20, 22, 28, 35,
39, 104–106, 122–123, 130, 131, 135,
146, 177–192, 289, 291
Benefit-cost ratio, 28, 29, 137, 146, 147,
190
Bid, 11, 164
Bid price, 163, 164
Bid structure, 164–166, 171
Bond strategy, 229, 243
Bonds, 112, 133, 225, 228, 243, 244
Boral, 211, 222
Boral Western Landfill, 211, 214, 218,
221, 222
303
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Bottom line, 6, 245
Brainstorming, 12, 50
Brent Spar, 30, 31
Buffer zone, 177, 179, 180, 181, 183, 184
Business risk, 3–6, 10, 17, 18, 29–31, 35,
43, 45, 70
Canadian Risk Management Standard, 35
Cap insurance, see Insurance
Capitalization bond, 228, 243
Capitalization sum, 228, 231, 236,
237–240, 243, 244
Cash flow, 5, 7, 13
Catastrophic events or failure, 20, 231,
237, 240

Central business district, 225
Chance method, 80–82, 154, 157
Checklists, 12
Chemical industry, 246
Chlorine, 249
Civil damages, 5
CL50% or 50th percentile confidence
level, 56, 80, 84, 91, 216, 217, 221,
234–237, 240
CL80% or 80th percentile confidence
level, 82, 84, 89, 91, 216, 221, 240,
251
CL95% or 95th percentile confidence
level, 56, 84, 91, 166, 221, 234–237,
240
Clay liner, 236
Clean-up, 5, 212, 214
Closure, 8, 212–215, 221, 227, 229, 231,
239, 243
Closure financial assurance, 213, 214,
222
Closure plan, 231
Codes, best practice, 210
Commercial consequences, 5
Commercial risk, see Risk
Commitment, see Organizational commit-
ment
Community, 11, 225
benefit, 126, 131, 177, 179, 183, 184,
189–192

benefit-cost analysis, 180
consultation, 31, 183, 250
cost, 224
damage, 148
diversity, 131, 184, 189, 192
growth, 184
health, 3, 184
impacts, 30, 179, 192
issues, 46, 180
perceptions, 45, 179
reaction, 6, 30, 31, 35, 179, 184, 271,
279–281
risk, 152, 198
safety, 132, 193–210
values, 30, 177
Community Service Obligation (CSO),
191
Commuting, 183, 185, 189
Compensation, 30, 238
Compliance, 4, 245, 265
Compounding interest, 229
Confidence level or limit, 24, 28, 71–73,
76, 80, 81, 84, 154, 169, 208, 218
optimistic, 28, 169
pessimistic, 28, 169, 215
planning, 28, 169, 174, 216, 221
Consents, 225, 229, 244
Consequence, 4, 12, 13, 17, 18, 20, 21, 23,
49, 51–57, 65, 70, 96, 196, 200, 202,
206, 278–282

estimation, 56–57
primary, 31
secondary, 31
threshold, 51
Consequential cost, 23, 56, 66, 84, 235,
251, 259
Consequential loss, 30, 251, 257
Consolidation, 236, 237
Construction safety studies, 12
Consultation, 111
Contaminant, 20, 235
Contaminated soil, 211
Context, 8–11, 38, 41–46
Contingency planning, 15, 112, 235
Contingent liability, 134, 243, 247, 248,
262, 264, 265
Contracts, 5, 11, 108
Contra-positioning, 107–108
Control measures, 12
Cooling water, 249
Copper, 223
Core business activities, 6, 192
Cornish pump house, 234
304 / Index
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Corporate,
assets, 245
goals, 10, 11
governance, 5, 10, 17
image, 31, 45, 192

management, 245
policy, 10, 11
responsibility, 5
Corporate reporting, 17, 29, 115–116, 124
guidelines, 245, 265
regulations, 30, 245, 246, 265
violations, 247
Corporate reputation, 3, 35, 131, 184
Corrective action, 8, 14, 212, 213, 218, 221
Corrective action financial assurance, 213,
214, 218–221, 222
Cost,
assumptions, 216,
control, 11
distribution, 67–72
effectiveness, 7, 249, 256, 259, 260,
265
estimates or estimation, 28, 218, 221
mean, 166
optimistic, 169, 170, 173, 215
pessimistic, 169, 170, 173
planning, 169, 174, 216
recovery, 179, 190
Credit assessment, 3
Crisis management, 112
Critical success criteria, 12, 13, 161
Crystal Ball™, 24, 65
Cultural significance, 249
Cyanide, 224
Dam break, 45, 46

Dams, 4, 35, 45, 46, 198
Death and/or serious injury, 19–21, 132,
195, 196, 199–201, 203, 206, 208,
209
Decision-making, 15
Decommissioning, 8
Deductibles, 262
Deer Park (Australia), 211
Defensibility, 221
Democratic panel process, 183
Department of Environmental Protection
(Western Australia), 180
Derivatives, 246
Die-back (forest), 139
Disability, 195
Disclosure, 5, 245, 246, 262–264
Discount rate, 73
Discounting, 213, 229, 239, 240
Divestment, 8, 109
Drainage control, 216, 250
Dredging, 140, 145–147, 152, 161, 250
Drill and blast mining technology, 193
Driving, 197
Due diligence, 5, 10, 41, 116, 117, 122, 163
Earthquake, 234,
Earthworks, 214
Ecological risk, 130, 160
Economic issues, 5, 30
Economics, 13, 179
Embankment failure, 237, 238

Employment, 183–185, 189
Employment benefit, 185
Engineering, 110, 183, 185, 188, 230, 248
benefits, 186
costs, 186
design, 214
environmental, 214
risk, 23, 129, 141, 142, 179
works, 234
Environment, 3, 223–225
Environment Court (NZ), 243
Environment health and safety, 181
Environment Protection Act 1970 (Victo-
ria), 212
Environment Protection Agency (US), 238
Environment Protection Authority of
Victoria (EPAV), 211, 212, 218, 222
Environmental,
audits, 247, 248
benefit, 161
cleanup, 212
conservation value, 181
costs, 185
damage or impairment, 45, 133, 134,
148, 164, 211–213, 221, 223–226,
228, 236, 237, 244, 247, 251, 257
impacts, 35, 150, 225, 226, 271, 279
issues, 5, 11, 46, 180, 186, 212
legislation, 225
liability, 163, 164, 245, 246, 248, 255

management system, 231
Index / 305
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Environmental (cont.)
monitoring, 228
obligations, 225
regulations, 212
remediation, 30, 248, 259
responsibility, 125, 126
risk, 30, 31, 35, 129, 132, 141, 142, 163,
164, 171, 211, 212, 225
risk events or issues, 165, 179, 212, 213,
224, 246, 248
risk management strategy, 164, 246
threat, 223
Environmental impairment liability (EIL)
insurance, 134, 257, 259
Erosion, 223
Error bars, 206
Ethical issues, 11
Event risk, 206
Event tree, 29, 46, 51–55, 96, 167, 218
Excavation (rock), 223, 224
Exit strategies, 8
Expected cost, 23, 165
Expected value, 23, 144
Expenditure schedule, 175
Expert judgement, 12, 13
Expert panel, 36–39, 44, 46, 47–50, 96, 97,
130, 137, 144, 145, 148, 154, 165,

167, 182, 183, 185, 187, 199, 200,
203, 206, 209, 214, 215, 218, 230,
231, 235–238, 248–252, 259, 268,
275
Explosion, 4, 20
Exposure profile, 24, 26, 39, 66, 74, 76,
170, 171, 173, 208, 240, 251–255,
257–259
Exposure time, 200
Exposure to risk events, 164, 213, 258
Facilitation, 181
Failure modes, 13
Fatal flaws, 152
Fatality, 195, 197, 199, 206
Feasibility studies, 7
Fertilizer, 214
Fiduciary responsibility, 15, 163
Financial,
accountability, 122–124
assessment, 167
assurance, 112, 124, 132–134, 211, 222,
223
assurance components, 211–213
assurance guidelines, 212
assurance strategy, 211
benefit, 264, 265
budget, 261
consequences, 164
exposure, 23, 31, 45, 221, 251,
258–262, 265

instruments, 225, 226, 256, 257
investment, 10
issues, 5, 10
liability, 17, 30, 131, 164, 170, 246, 262
liability estimates, 246, 259
modeling, 22, 164, 165, 173–175, 188,
189
opportunities, 10
penalties, 10
recoveries, 246, 262, 264, 265
report, 246
reporting period, 261
securities, 225
statements, 30, 246, 262
test, 213
value, 183
Financial reserve, 133, 261, 262
Financial risk, see Risk
Finite risk insurance, see Insurance
Fiordland (NZ), 193, 194
Fiordland Travel Ltd., 194
Fiords, 194
Fire, 4
Fishery loss, 251, 257
Flooding, 46, 139
Fluoride, 249, 260
Fly River (PNG), 137, 144, 150, 157,
Flying, 197, 203, 209
F-N chart, 197, 206
Forecasting techniques, 31

Forecasts (cost), 215
Fraud, 3
Frequency classes, 20
Frequency of occurrence, 20, 23, 54–55,
72, 84, 164, 166, 167, 235
Full disclosure, 246
Fund (financial assurance) amounts, 212,
230
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Funding options, 190, 191
Gap analysis, 31
Generation performance standards, 131,
170, 173
Geochemistry, 231
Geotechnical engineering, 231
Geotechnical investigation, 200, 209
Geotechnical reports, 210
Glacial lakes, 194
Global warming, 131, 170, 173, 174
Gneiss, 193
Gold, 4, 6, 28, 223, 224
Government intrusion, 184
Gradual events, 134, 228, 231, 235, 236,
248, 249, 259
Granite, 193
Greenfield sites, 163, 213
Groundwater, 131, 133, 171, 216, 236,
248–250
contamination, 216, 249

quality, 185
salinity, 184
Groundwater treatment plant (GTP), 177,
179, 184, 185, 188
Guarantee, 213
Gulf of Papua (PNG), 138, 150
Hardstand areas, 214
Hazard and operability (HAZOP) studies,
12
Hazard register, see Risk register
Hazardous waste dump, 249
Hazards, 11, 194, 195
Hedging contracts, 6
Heritage protection, 107–108, 234
Heritage significance, 249
Historical data, 12, 199
Human health and safety, 180, 183, 194,
195, 251
Human life or serious injury, 193
Hydroelectric power station, 193
Hydro-geochemistry, 231
Hydrogeology, 231, 250
Hydrology, 250
In perpetuity, 133, 134
Indemnity, 133, 164, 223, 244
Indemnity agreements, 6, 108
Individual risk, 132, 196, 198, 201–203,
206, 209
Indonesia, 248
Industrial and special risk (ISR) insurance,

134, 228, 234, 237–240, 256, 257,
258
Industry best practice, 13, 225, 227, 231
Inflation, 229, 244
Infrastructure, 4, 28, 45, 46
Infrastructure benefits, 184
Insurable risk event, see Risk event
Insurance, 14, 23, 24, 28, 40, 96, 101–109,
111, 112, 134, 172, 213, 237, 240,
243, 245–265
cap, 258
car, 23, 24
cover, 23, 228, 237, 238, 240, 248, 257,
258
finite risk, 134, 257
first party remediation, 257
household, 23, 24
policy, 258, 259
premium, 6, 14, 23, 228, 237, 239, 240,
243, 257–259, 262
public liability, 240, 243
purchased, 256
strategy, 245, 248, 249, 258, 259, 265
sudden and accidental, 256, 258
third party, 14, 134, 228, 243, 257
Intangibles, 15, 29–31, 35, 52, 131,
177–192
Interest rate, 229
Inventory management, 3
Investment, 3, 5

Issues register, see Risk register
Joondalup (Western Australia), 180
Lake Manapouri (NZ), 193
Land,
acquisition, 188
development, 177–192
management, 228, 243
valuation or value, 29, 30, 182, 183, 186
Landcorp, 177
Landfill, 132, 211, 213, 214
capping, 214
Index / 307
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Landfill (cont.)
closure, 212, 213
fire, 216, 218
gas, 216
gas collection system, 214, 216
leachate, 216, 249
Landslides, 138, 139
Law, 214, 231
Law and order, 184
Leachate, 133, 216, 238
Leaching, 223, 236
Legal,
consequences, 5, 30
counsel, 248
issues, 4, 10, 30
responsibility, 35, 246
statutes, 5

Legislation, 245, 262, 263
Letter of credit, 213
Liability, 6, 246
Liability cut-off, 227
Likelihood estimation, 12, 54–56,
281–282
Likelihood of occurrence, 3, 4, 7, 12–14,
18, 20–23, 31, 39, 49, 51–56, 65, 70,
72, 84, 96, 195–200, 202, 203, 206,
209, 235, 238, 250, 254–256, 259
Likelihood threshold, 51
Lime, 235
Limestone, 238
Litigation, 140
Lives at risk, 200
Lobbying, 14, 110–111
Log normal distribution, 56–57, 71, 72,
166
Log scales, 203
Loss of life, 11, 23, 45, 132, 196
Maintenance obligations, 210
Management and administration, 214, 216
Management issues, 199
Management reserve, see Financial reserve
Management’s Discussion and Analysis
(MD&A), 246, 263
Manapouri Power Station (NZ), 193–195
Manufacturing industry, 134, 248
Market value, 30
Market volatility, 7

Marketing, 3, 13
Martha Mine (NZ), 225
Material effect, 245–247, 262
Material exposure, 251, 262
Materiality, 262, 265
Mean (cost), 214, 217
Measures of consequence, 193
Median (cost), 234, 249, 261
Melbourne (Australia), 211
Mercury emissions, 131, 170, 171, 173
Meridian Energy Ltd. (MEL), 193–196,
198, 200, 203, 209, 210
Metals, 223, 224
heavy, 249
soluble, 224, 225, 235
Microsoft Excel™, 65
Mine, 4, 28
closure, 225, 226
closure plan, 231
extension, 28, 29, 225, 227, 243, 244
pit, 225, 234, 237
pit lake, 228, 229, 234, 235, 240
pit lake outlet, 234
pit wall, 231, 234, 235
pit wall slumping, 234
waste, 139, 143, 240
water, 249
water collection ponds, 235
Mine Waste Management Project
(MWMP), 139–141, 144, 148, 153

Mineral processing, 224, 248
Mineralized rock, 223, 224
Minerals, 223
Mining, 4, 6, 28, 129, 133, 134, 137, 138,
160, 171, 223–244, 248
Ministry for Planning (Western Australia),
180
Mitigation options, 130, 145, 157, 160,
161
Mitigation works, 186, 229
Modeling, 12
Monitoring, 8, 110, 115, 214, 216, 228,
243, 250
bores, 216
system, 209
Monte Carlo simulation, 24, 65, 66–72, 82,
167
Multipliers, 20, 21
308 / Index
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Municipal solid waste landfills (MSWLF),
212
Natural resources, 5
Net present value (NPV), 73, 145, 166,
167, 169, 171, 213, 216, 239, 240
Net revenue, 192
New Zealand (NZ), 193–210, 223–244,
248
Noise, 24, 180, 249
Nonquantifiable risk issues, see Intangi-

bles
Noncompliance, 247
Normal distribution, see Uniform distribu-
tion
Occupational health and safety, 3
Occurrence costs, 24, 218, 239, 240, 249,
250, 257–260
Odor, 180, 183–185, 188
Oil and gas industry, 246
Ok Tedi (PNG), 137–139, 144, 145, 150
Open cut, 225
Operational and management costs, 28,
212, 234
Operational contingencies, 250, 256, 258
Operational risk, see Risk
Operations, 10, 227, 228
Optimistic level of confidence, 24–28, 39,
66, 84, 89–91, 206, 208, 209, 252
Options, 7, 125, 179–181, 183–186, 190,
191, 235, 256, 265
Ore, 224
Organizational commitment, 8, 41, 42,
141, 142, 179, 194
Organizational planning, 12
OTML (Ok Tedi Mining Limited), 137,
140–144, 147, 148, 154, 157, 160,
161
Oxidation, 223, 224, 235
Papua New Guinea (PNG), 137
Parliamentary Commissioner for the Envi-

ronment (NZ), 225
Particulates, 249
Peer review, 148, 234
Pentland Bay Syndicate, 180
Performance,
monitoring, 14, 15
objectives, 10, 11
quality control, 11
Permeability, 236
Perpetuity (indemnity), 223, 244
Perpetuity, payments, 23, 229
Personal injury, 193, 195, 257
Personnel, 4
Perth (Australia), 177
Pessimistic level of confidence, 24–28, 39,
66, 84, 89–91, 206, 208, 251–253,
255, 258, 259
Planning, 3, 12, 183, 186
Planning level of confidence, 24–28, 39,
66, 91, 206, 208, 209, 251, 255,
258–261
Political,
change, 3
issues, 5, 10, 30
pressure, 191
reaction, 30, 271, 281
Pollution, 4, 30, 249
Polychlorinated biphenyl (PCB), 249
Postclosure, 227, 231, 234, 244
bond, 223, 225, 226, 243

care, 212, 213, 221
financial assurance, 213, 216, 217, 222,
243, 244
period, 217, 227, 234
risk events, 231
securities, 225–227
Potentially acid forming (PAF), 236, 237
Power generation, 30, 163
Power generation assets, 130, 163, 164
Power station, 132, 199, 200, 203, 206, 209
Prefeasibility appraisal, 7
Prescribed industrial waste, 212
Prevention cost, 24, 257, 259, 260
Prevention measures, 24, 259, 260
Prioritization, 14, 20, 22, 24, 125, 212
Priority setting, 7, 14
Probabilistic analysis or approach, 181,
211, 212, 214, 221
Probability distribution, 24, 67, 71, 72,
80–82, 203, 215, 216, 239
Probability of occurrence, 23, 54–55, 165,
166, 234
Product liability, 245, 246
Index / 309
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Professional judgement, 199
Profit, 246
Project,
engineering, 180
life, 165

period, term, 28, 218, 239
risk, 167
selection, 129, 137
structure, 175
Property,
damage, 30, 243, 251, 257
development, 182
industry, 246
value, 189
Proportional risk profile, 65, 74, 79, 88,
91
Protective roofing, 201
Public,
access, 210, 243
amenity, 29
corporation, 245, 246
health, 184, 187
pressure, 184
reaction, 20
relations, 135, 183–185, 188, 250
safety, 11, 126, 194, 199
Public liability, see Insurance
Pulp and paper industry, 246
Pumping stations, 135, 267–292
Putrescible waste, 211
Qualitative risk assessment, 17–20
Quantification of consequences, 228
Quantification of likelihood, 228
Quantified environmental risk, 212
Quantified or quantitative risk assessment

(QRA), 15, 17, 18, 22–31, 53, 54,
194, 195, 268
Quantitative risk assessment benefits, 15,
29, 31
Quarry, 132, 211
Questionnaire, 180
Quinns Rock Action Group, 180
Ranked risk profile, 24–25, 65, 74, 78–79,
91, 95, 218, 252, 253
Rapid response, 113
Rate of return, 7, 11, 229, 239
Recreation, 30, 185
Regional beach, 171
Registered issues, 246
Regulators, 225–229, 231, 237, 239, 240,
243–245
Regulatory,
approval, 6, 227
change, 3
issues, 5
liability, 163
penalties, 251
pressure, 245
risk, 130, 163, 164, 171
risk events, 164, 165
Rehabilitation, 133, 211, 212, 216, 218,
225, 231, 235, 237, 238, 250
Rehabilitation bonds, 225, 228
Remedial works, 234, 243
Remediation, 8, 213, 226, 251

Reporting, see Corporate reporting
Reputation, see Corporate reputation
Reserve amounts, 221
Residential land use, 179
Residual risk, 6, 15, 109, 111, 133, 224,
227, 231, 239, 276
Resource,
allocation, 7
processing, 245–265
Resource Management Act (RMA) (NZ),
225
Response plan, 250
Retail sales and rent, 183, 185, 189
Retail trade, 185
Return on investment, 11, 28, 123–124
Revegetation, 214
Revenues, 28, 30, 45
Review, 8, 115
Risk, 23, 35, 188
acceptability criteria, 11, 22, 196, 197,
267–292, 284, 285
acceptance, 6, 8, 10, 14, 15, 17, 46, 82,
107, 111–113, 132, 169, 175, 197,
206, 210, 285
action plan, 14, 114
analysis, 7, 13, 39, 65–92, 76, 145, 154,
167, 188, 200, 214, 239, 248, 250,
267, 282–284
analyst 36, 37, 39,43, 80
assessment, 17, 35, 43, 141, 142, 210,

221, 244, 272–275
310 / Index
3672 P-19[idx] 5/3/01 3:05 PM Page 310
definition, 13
independence, 41
methodologies, 17–32
process, 193, 210, 228
scope, 12, 44
structure, 12, 43, 142, 143, 164, 181,
195
audits, 14
benefits, 131, 173
calculation, 4, 22, 23
class, 18–22
commercial, 4, 5
communication, 14
concept, 5
controls, 12, 14
core, 6
cost, 24, 28, 39, 39, 66, 76–82, 91, 123,
130, 131, 137, 142, 144–146, 154,
157, 164, 165, 167, 169–175, 214,
239, 240, 258
schedule, 174
definition, 28
criteria or targets, 7, 11, 14, 44–45, 95,
193, 218, 251, 267–292
cutoff or threshold, 78–80, 91, 240, 250,
251, 253
evaluation, 7, 13

events, 4, 6, 13, 14, 19, 22, 23, 29, 31,
49,50, 165–167, 169, 174, 175, 183,
188, 199, 200, 203, 206, 208, 209,
212, 214, 218, 229, 231, 235, 239,
247, 249, 250, 258, 262
expenditure, 164
exposure, 17, 42
familiar, 6
financial, 3, 30, 179
identification, 4, 5, 7, 8, 12–13, 39,
47–63, 141, 142, 145, 153, 165, 166,
182, 183, 198, 199, 214, 230, 248,
275–282
involuntary, 198
long-term, 224, 225
map, 74, 76, 90
matrix, 18–22
measures of, 23, 24, 132, 144, 196
minimization, 15
mitigation, see Risk treatment
modeling, 39, 46, 65–92, 142, 145, 154,
157, 165, 167, 169, 172, 201, 203,
206, 208, 210, 214, 239, 240, 250,
251
monitoring, 14, 15
operational, 3, 4, 6
prioritization, 14, 22
profile, 5, 6, 17, 20, 22, 24, 25, 31, 35,
39, 46, 66, 74, 157, 167, 170, 172,
173, 208, 239, 247, 251, 252, 254,

257–259, 283, 284
profile, cumulative, 252, 253, 257,
259
profiling, 163, 164
quantification, 4, 50–63, 145, 153, 165,
166, 183, 199, 275–282
quotient, 13, 23, 24, 29, 39, 46, 72–76,
78, 81, 95, 97–98, 153, 157, 165, 167,
169, 170, 198, 202, 203, 206, 209,
239, 240, 250–254
quotient, definition, 23
reduction, 7, 14, 39, 45, 46, 95, 96, 97,
105–106, 107, 109–111, 114, 123,
165, 171, 172, 206, 243, 259, 272,
285, 287, 288
reduction strategy/actions, 39, 45, 46,
160, 169, 172, 173, 198, 208–210,
256, 260, 261, 263, 267–292, 283,
284–291, 287, 288
reduction strategy implementation,
113–116
reporting, 14, 15
review, 14, 15
residual, see Residual risk
schedules, 164
sharing, see Risk transfer
spreading, 23
strategic, 3, 6
technical, 4, 13, 192
threshold, 76–80, 95, 99

unfamiliar, 6
values, 21, 22, 23
voluntary, 198
weighting, 19
Risk event,
gradual, 239, 240, 249–252, 254, 255,
257, 259, 262
insurable, 238, 239, 250–254, 257, 259
sudden, 239, 249–253, 257, 258, 262
uninsurable, 134, 228, 231, 235–238,
251, 254, 255, 259–262
Index / 311
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Risk management, 5, 6, 42–43, 45, 113,
121–122, 223 272
aims, 42, 43
applications, 7, 8
benefits, 15
criteria, 8, 11, 250
process, 3–16, 17, 24, 35, 39, 137, 245,
285
strategy, 5–7, 12–15, 20, 22, 24, 29, 35,
39, 40, 44, 57, 76, 147, 165, 231, 250,
256, 257, 261, 267–292, 284–291
system, 116–118
Risk register, 12–13, 114–116, 165–167,
186, 187 199, 210, 218, 231, 249
Risk transfer, 14, 28, 40, 107–109, 172,
256, 257
Risk treatment, 7, 8, 10, 11, 14, 15, 17, 30,

39–40, 42–43, 82, 135, 256, 284,
286–287
options, 14, 20, 22
strategy, 7, 8, 13, 14, 31, 39, 40, 82,
93–106, 97, 98, 107–120, 268–292
Riskiest events, 14, 24, 42, 74, 78, 98, 218,
221, 240, 250, 251, 253, 254, 258,
261
RISQUE method, 24, 31, 35–40, 47, 49,
65–66, 72, 74, 78, 81, 97, 119, 130,
131, 133–135, 137, 145, 163, 165,
175, 244, 245, 256, 265, 292
RISQUE method benefits, 121–127,
291–292
Road accident, 203, 206, 208–210
Rockfall, 196, 200, 201, 206, 208, 209,
210
Royal Dutch/Shell corporation, 31
Rugby, 206
Runoff, 235
Sabotage, 4
Safety,
hazards, 8, 198
inspections, 210
issues, 5
measures, 4
protocols, 210
run-off areas, 210
standards, 38, 198
warning devices, 210

Sanctions, 5
Sanitary landfill, 211
Schedule 4 premises, 212
Schedule control, 11
Securities and Exchange Commission
(SEC) (US), 245, 246
Securities regulations, 246
Security, 3
Seed investment, 6
Seepage collection system, 236, 238
Self insurance, 256
Semiquantitative risk assessment, 17,
20–22
Sensitivity analysis, 55, 132, 203, 206,
209, 210
Serious injury or death, see Death and/or
serious injury
Sewage, 135
Sewer, 249
Shareholders, 6, 10, 142, 245
Shire of Wanneroo (Western Australia),
180
Silver, 223, 224
Site code, 167
Slurry, 224
Smoking, 197
Social,
amenity, 181
environment, 150
impacts, 6, 30, 150, 183, 187

issues, 5, 30, 180, 192
responsibility, 126, 127
risk, 30, 31, 35, 129, 130, 141, 142, 153,
160, 192
Societal perception, 11
Societal risk, 132, 179, 193, 196, 197, 198,
201, 203, 206, 208–210
acceptable limit, 198
acceptable objective, 198
criteria, 198
tolerable upper limit, 198
Soil, 223, 224
contamination, 249
remediation, 250
Solvent, 249
South Island (NZ), 193
Southern Alps (NZ), 194
Speed limits, 210
312 / Index
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Staff Accounting Bulletin 92 (SAB 92)
(US), 245–248
Stakeholder,
acceptance, 11
consultation, 31, 180
questionnaire, 180
welfare, 126, 127
Stakeholders, 10–11, 36–38, 42, 131, 141,
161, 179–181, 188–192, 194, 226,
268

external, 181, 188
internal, 181–183, 188, 190–192
Standards, 13, 14, 35, 38, 210
Star Mountains (PNG), 137
Statistical data, 209
Statutory penalties or fines, 30, 257
Statutory planning, 214
Stock loss, 251, 257
Stormwater discharge, 249
Strategic risk, see Risk
Strategy, see Risk management
Subsidence, 234
Sudden and accidental events, 212, 240
Sudden events, 134, 228, 231, 237, 240,
248, 249
Sulfide, 224
Sunny-day failure, 59, 84–91, 99–106
Superfund, 226
Surety bond, 213
Surface water, 229, 249
Surfing reef impacts, 185
Sustainable investment, 6
Tailings, 129, 139, 140, 143, 160, 224,
236, 238
dam, embankment, 224, 225, 235, 236,
249
disposal, 224
liquor, 224, 236, 238
permeability, 236
pond, 237, 238

release, 238, 240
release modes, 143
seepage, 236, 249
storage facilities, 224, 227, 236–238
Taiwan, 248
Taxation, 183, 188
Technical risk, see Risk
Technology, 5
Third-party,
claims, 243, 248, 251, 257, 259
liability, 248, 255
risk, 247
Threat to life, 196
Threshold criteria, 152, 153
Threshold method, 76–80, 145, 154, 157,
203, 214, 239
Time frame, line, 21, 214, 227
Time value of money, 213, 223, 229, 244
Tolerable upper limit risk, 198, 206, 209
Total risk, 84–89, 206, 240, 258
Tourism, 193–210
Toxicity, 223, 224
Trading, suspension, 247
Traffic barriers, 210
Train travel, 206
Training, 109, 110, 210
Travel cost, 184
Treasury, 3
Triple bottom line, 3, 15, 29, 122
Trust, administration, 228

Trust, charitable, 227, 228, 235, 237,
243
Trust fund, 213
Tunnel, 193, 194, 200, 201, 234
U.S. Environmental Protection Agency
(EPA), 132, 212
Uncertainty, 7, 24, 56, 66, 76, 78, 90, 154,
157, 161, 166, 170, 173, 179, 180,
212, 214, 215, 221, 239, 240,
245–247, 252–254, 261
Underground power station, 194, 194
Underground storage tank (UST), 249
Unemployment cost, 185
Uniform distribution, 67
Uninsurable risk event, see Risk event
United States (US), 45, 163–175, 245–265
Unquantifiable events, see Intangibles
Uplift (land value), 29
Urban development, 180, 181
Value for money, 24
Vegetation management, 216
Victoria (Australia), 211, 212
Visual impacts, 180
Index / 313
3672 P-19[idx] 5/3/01 3:05 PM Page 313
Waihi (NZ), 225, 234
Waihi Gold Company (WGC), 225–231,
234, 237–239, 243, 244
Warranty, 6
Waste disposal, 31, 249

Waste management, 140, 211, 222
Waste rock, 139, 224, 236–238
Waste rock disposal, 224, 235
Wastewater, 131, 135, 170, 171, 177
collection system, 238
discharge, 249
Wastewater treatment plant (WTP), 177,
179, 180, 183, 188, 191, 192, 227,
235, 238, 250
Water Corporation of Western Australia,
177, 179–183, 188, 190, 191
Water,
quality, 185, 223, 224, 229, 235, 238, 239
supply, 45, 184, 250
treatment, 171, 230, 231
Western Australia, 177, 184, 191
Works supervision, 214
Workshops, 143, 145, 152–154, 180–182,
185, 198, 199, 203, 210, 231
World best practice, see Industry best
practice
Zinc, 223
314 / Index
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