Simplify climate risk for asset management using actionable storylines that integrate directly into your existing processes.
CHALLENGE
Climate change is a material risk
Asset managers face a critical challenge: integrating the complex, uncertain nature of climate change into established, performance-driven asset management systems. Traditional risk processes often struggle with the long-term, probabilistic nature of climate data, leading to inaction. The result is unmanaged risk, vulnerable assets, and potential financial exposure.
SOLUTION
A practical, streamlined integration
Ricardo has developed a streamlined approach that makes climate change risk manageable. We simplify the complex climate data at the front end, allowing you to assess and treat these risks using your existing ISO 31000 and ISO 55001 processes. We don’t reinvent your system; we make it climate-resilient.
We enable you to seamlessly integrate climate risk into your ISO 31000/55001 systems. Starting with simple qualitative assessments, our approach matures with you, optimizing decisions by blending climate risk with capital planning. This ensures you can move from theory to practice and fund concrete, actionable resilience measures.
We adapt the proven ISO 31000 risk assessment process with two key innovations to demystify climate risk:
1. Understand the system & create storylines
We move from overwhelming climate projections to actionable "storylines." These are plausible, narrative scenarios of future climate impacts (e.g., "Sea levels rise by 0.5m by 2050," or "Extreme heat days >40°C double by 2040"). Storylines provide a clear, communicable basis for assessing impacts and planning adaptation.
2. Time-dependent risk evaluation
We incorporate a time-dependent likelihood scale into your risk matrix. This allows you to see how risk levels evolve over an asset's lifecycle, transforming a future uncertainty into a manageable timeline for action.
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ISO31000 Step |
Ricardo Step |
What Has Changed?
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Risk Identification |
Understand the System |
Need to understand how the ‘system’ works using existing observations to identify vulnerabilities, important thresholds and system priorities and the climate characteristics that drive the system. |
|
Create Storylines |
Storylines helps to decide how best to use future climate projections for the risk-based assessment. |
|
|
Risk Analysis |
Climate Change Risk Analysis |
Climate change risk is a function of climate hazard (the storyline), the degree to which assets are exposed and their vulnerability (pre-disposition) |
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Risk Evaluation |
Risk Evaluation |
Use existing risk assessment matrix Use existing Consequence (or CoF) axis Add time scale to Likelihood (or PoF) axis |
A 70km pipeline was exposed to increased flooding and vegetation growth. Using our approach, the client identified a cost-effective adaptation path: enhanced patrols, targeted vegetation management, plinth refurbishment, and a robust repair plan, integrating climate resilience into their AMP.
Programmable Logic Contactors (PLCs) were failing in extreme heat. By mapping asset exposure against future climate scenarios, we created a prioritized plan from simple sun shields to hardware replacement, ensuring continuous operation.
Learn more about our streamlined process for managing climate risk.
