1

Welcome

Remediation Risk Management:

A Comprehensive Approach for
Reducing Remediation Uncertainties

Environment, Energy & Sustainability

Symposium & Exhibition
May 6, 2009
Denver, CO

Mr. Ning-Wu Chang, Department of Toxic Substances Control, Cal-EPA

Mr. Tom O’Neill, New Jersey Department of Environmental Protection
Mr. Sriram Madabhushi, Booz Allen Hamilton
2
Purpose of Presentation

To present an overview of the Remediation Risk

Management (RRM) Process based the upcoming
RRM Team’s Technical and Regulatory Guidance
Document: Remediation Risk Management : An
Approach to Effective Remedial Decisions
and More Protective Cleanups (2009)
3
Connecting RRM to PBEM

X Evolution of Better Management Principles

X Remediation Process Optimization
X Performance Based Environmental
Management
X Remediation Risk Management
4
Components of PBEM

Problem
Statement &
Objectives Land Use
PBC
Risk
RP Strategy
O

Exit PBEM
CSM
Strategy Expert
Team
ARARs Decision
Logic
RPO
5
RRM - Definition

Remediation risk management (RRM) is a

process through which all risks related to
the remediation process – remedy
selection, implementation and close out –
are holistically addressed in order to
minimize decision uncertainties in the
cleanup process.
6
Why Remediation Risk Management?

X Risk is inherent in remediation

programs
• Manage the project to control/mitigate
risks
• Management of risks is forward looking

X Alternative to risk management is

crisis control
• Resource intensive
• Constrained options
7
What is Remediation Risk
Management About?

X RRM addresses the risks that the

remediation project will not achieve the
cleanup objectives

X RRM is about assessing overall risk to

remediation

X Think of RRM as defending your project

against Murphy’s Law!
8
RRM Elements – Identifying and
Managing Remediation Risks

6. Verify and 1. Identify the

Review RRM Hazards

2. Select Site-
5. Implement Specific Risks
Risk Controls

4. Mitigate 3. Quantify Remedy

Risk with Related Risks
Appropriate
Actions
9
What Are Remediation Project Risks?

X Risk: The potential inability to achieve

objectives within cost, schedule, or technical
performance objectives
• The components of risk are
ƒ Probability or likelihood
ƒ Consequences or impacts

X Risk Event: Things that could go wrong

• Typically measured as: Likelihood x
Consequences
10
Identify Hazards/Risks

X Remedy Selection Risks

X Implementation Performance Risks
X New Sources are discovered
X Risks over time
X Site-specific risks identified
X Remediation is too slow
X New, more effective technologies become
available
X New Areas Regulated
X Political Risks
11
Common Performance Risks

X Changing Requirements
X Design Issues
X Innovative or Emerging Technologies
X Technology Performance
X Site Conditions
X Weather
X Site Accessibility
X Site Logistics
X Equipment/Material SupplyContractor Capability
X Public Relations
X Management
12
Quantify the Related Risks

Risk Analysis and Prioritization

X Probability (likelihood) of occurrence
• remote – to – near certainty

X Consequence of occurrence
• Cost: minimal – to – unacceptable
• Schedule: minimal–to–not achieve milestone
• Quality: good – to – unacceptable
13
Prioritizing Risk

Risk Analysis and Prioritization

X Combine likelihood and consequence
• Determine level of each site-specific risk:
Low Medium, High
e M M H H H

d L M M H H

Likelihood c L L M M H

b L L L M M

a L L L L M

a b c d e
Consequence

X Prioritize the risks and create a Watch List

X Define risk indicators (metrics)
14
Risk Identification Process
Techniques

X Individual “What If” analysis

X Risk Identification Questionnaire

X Brainstorming

X Nominal Group Method

X Delphi Method

X Consider the synergy between risk events

15
Other Risk
Identification/Quantification Tools

X SRT

X LLNL Risk Worksheet

X Uncertainty Tool

X Five Step Process

16
Approaches for Mitigating Risk

X Reject
If the risk outweighs the benefit – Don’t do it

X Avoid
Go around the risk – find an alternative way

X Delay
May be a future technology will help

X Transfer
From one area to another – contract out
17
Approaches for Mitigating Risk

X Spread
Reduce exposure to individual units by distributing

X Compensate
Build redundancy

X Reduce
A systematic analysis to select the best option
18
How Are Performance Risks
Managed?

Risk Planning:
X Develop a written Risk Management Plan

X Note that a risk management plan alone is

not enough

Risk Identification
X Compile a list of the project’s risk events

X Examine each risk event for potential

consequences

Risk Handling
X CAAT: Control, Avoidance, Assumption,
Transfer
19
Example of Risk Management Table

Risk Category Type of Risk Probability of Impact of the Risk Managing the Risk
Occurrence
Risk of Implementability Issue
Performance Limited Recovery Accept:
Rate Avoid:
Rate of degradation Transfer:
Control:
Mitigate:
Cost Escalation Accept:
beyond Avoid:
Funding Transfer:
Control:
Mitigate:
Political and Social Accept:
Avoid:
Transfer:
Control:
Mitigate:
Schedule Accept:
Avoid:
Transfer:
Control:
Mitigate:
20
Verify and Review Risk Management

Risk Monitoring
X Risk Monitoring Techniques
• Program metrics – is program achieving
objectives
Documenting Risk Management
X Prepare written documentation
21
Risk Decision from Remediation

Financial
Risk
Remediation
Worker Green House
Hazards Gas Emission

Remedy
Performance Remedial Energy
Risk Decision Consumption

Professional Geopolitical
Liability Effects

Transportation
Hazards
22
Summary and Conclusions

X RRM will reduce risk in remediation

X RRM will reduce uncertainties in remediation
decision making
X RRM will help to minimize remediation derived
wastes
X Waste destruction – not transfer is achieved
through RRM
X RRM will achieve protection of human health
and the environment by considering alternative
approaches to reduce risk of active remediation
while meeting the cleanup goals
X RRM will benefit the environment through
successful remediation of contaminated sites
23
Where do we go from here?

X Finalize the ITRC guidance document - Remediation

Risk Management : An Approach to Effective
Remedial Decisions and More Protective Cleanups
X Path forward to Green & Sustainable Remediation
• ITRC GSR Team
X Links to RRM, PBEM, RPO
X Ongoing effort to identify and communicate best practices
24
Contacts

Ning-Wu Chang
DTSC/Cal EPA
714-484-5485
nchang@dtsc.ca.gov

Tom O’Neill
NJDEP
609-292-2150
tom.o’neill@dep.state.nj.us

Sriram Madabhushi
Booz Allen Hamilton
210-487-2611
madabhushi_sriram@bah.com