Decription:

The aim of this book, a joint publication of the Institution of Professional Engineers New Zealand (IPENZ) and CAE is to provide an overview of the strategy and techniques of engineering-risk management.

There are a large number of books available which deal with engineering risk analysis and the calculation of reliability, but almost none that describe these activities within the wider context of managing risk in technological enterprises. It is hoped that this new book will go some way towards filing that gap.

The focus of the book is on the management of risk within engineering organisations. The original idea arose from discussions at a February 1996 N.Z. Geotechnical Society Conference in Hamilton on Geotechnical Issues in Land Development where several people mentioned a 1983/84 IPENZ publication on Engineering Risk and said that they had found it to be helpful in their professional practice.

CAE then approached both IPENZ and the Consulting Engineers Advancement Society (CEAS) who had supported the original publication, with the proposal of using it as a basis for a new updated publication on engineering risk . Both organisations offered support and financial assistance with this project.

Professor Roger Keey of the University of Canterbury was then approached, and after discussions extending over several months leading to the development of a proposed scope for the project, he agreed to prepare a draft text of such a publication for review. The first draft was produced in September 1998 and the review carried out by both IPENZ and CEAS.

Subsequently it was decided to substantially change the focus of the publication from that of the original 1983/84 IPENZ document, towards a more structured text on the management of engineering risk. Mr Geraint Bermingham was engaged by CAE as principal reviewer. He has provided most valuable assistance in the preparation of the final text and his contribution alongside that of Professor Keey is gratefully acknowledged. Mr Don Houchen provided text for Chapter 10 on Risk Insurance.

The publication of the Australian/New Zealand Standard on Risk Management (AS/NZS 4360: 1995) and its reissue in revised form in 1999 was also an influencing factor in the preparation of this publication, which can be seen as an engineering-related "companion volume" to the Australian/New Zealand Standard, and other standards.

Recent Major Incidents

The February 1997 collapse in a flood during construction of the Opuha Dam in South Canterbury, followed a year later in February 1998 by the Auckland CBD electricity crisis has raised general awareness within the profession in New Zealand of the importance of understanding issues in engineering-risk management. Soon after, there were two major incidents in Australia; quality problems with drinking water in Sydney and an explosion leading to a state-wide disruption to the natural gas supply in Victoria. These again raised awareness and highlighted the importance in all engineering activity of implementing good risk-management procedures

The continued functioning of a modern society has become highly dependent on technology. Such incidents emphasise the importance to professional engineers of implementing appropriate risk-management procedures on projects for which they are responsible; even if the impact and scale of a potential failure is of a much lower order than the incidents described above.

CAE believes that the profession will find this new publication helpful in handling risk-management issues in their everyday working lives.