A Networked Approach for Assessing Risks to the Electric Grid
Year: 2020
Editor: Harold (Mike) Stowe; Tyson R. Browning; Steven D. Eppinger; Jakob Trauer
Author: O’Connor, Patrick; Gest, Johnny; Dister, Carl; Browning, Tyson
Series: DSM
Institution: ReliabilityFirst Corporation, United States of America; Neeley School of Business, Texas Christian University
Section: Project Management
Page(s): 10
DOI number: 10.35199/dsm2020.13
ISBN: 978-1-912254-12-5
Abstract
This paper examines the interrelatedness of risks in the context of risk analysis with the goal of providing valuable outcomes for regulators, specifically the example of ReliabilityFirst as a regulator of the bulk power system (BPS). A focus on the novel concept of the “time lag” associated with network risks demonstrates the importance of accurate risk ranking. Using a design structure matrix (DSM) to model relationships, the possibility of causal relationships between risks to the BPS was assessed by industry experts. The assessment asked the experts to identify the probability and impact of each risk in isolation, as well as a smaller subset of the experts weighting the interrelatedness of the identified risks. The outcomes show that applying a networked approach to risk analysis provides a more comprehensive understanding of risk relationships, which results in greater opportunities for addressing risks in the most effective order.
Keywords: risk management, risk dependencies, risk propagation, risk network, risk time lag