Abstract
In this study, aspects of pipeline risk management are researched. The research is exploratory in nature and the focus is on discovering a trend between pipeline failure causes and the consequential cost of property damage. The study aims to identify causes of hazardous pipeline failures in the United States of America (USA) and to predict the cost impact of these failures so as to get a better risk picture on this element of operational risk.
This study proposes that a systems engineering approach be adopted in applying risk management not only to the project lifecycle but also to the entire product lifecycle. An extensive literature research on systems engineering, risk management, risk analysis and pipeline risk management is conducted.
The study then proceeds with the collection and analysis of hazardous pipeline failure data from the United States Department of Transport (US DOT). This data is analysed using descriptive and inferential statistics with the aim of building a multilinear regression model.
The research findings which are supported by the data analysis show that the causes of pipeline failure explain a small amount of the variation in the cost of pipeline failure.
M.Ing. (Engineering Management)