The Reliability Risk Management Process Andy Rodriquez Director
The Reliability Risk Management Process Andy Rodriquez, Director Reliability Risk Analysis Reliability Issues Steering Committee March 19, 2014
Conceptual Information Flow RISC Recommendations Risk Profiles ERO 3 -Year Strategic Plan Standing Committee Work Plans Regional Business Plans and Budgets ERO Budget NERC Business Plan and Budget Regional Metrics ERO Metrics NERC Metrics ERO Top Priority Reliability Risks Regional Department Performance Goals 2 NERC Department Performance Goals RELIABILITY | ACCOUNTABILITY
Process Implementation Overview 2014 2015 2016 2017 Beyond STRATEGIC PLANNING ANALYSI S SOLUTION DESIGN BUSINESS PLANNING AND BUDGETING PREP EXECUTION MAINTENA NCE • Strategic Planning – Full RISC, with input from industry, committees, and others • Analysis – Technical Committee RISC Members from OC, PC, CIPC • Solution Design – Technical and Process Committee RISC Members from OC, PC, CIPC, CCC, SC • Business Planning and Budgeting – NERC Staff, Industry • Preparation – NERC Staff, Standing Committees, 3 rd Parties • Execution – NERC Staff, Standing Committees, 3 rd Parties • Maintenance – NERC Staff , Standing Committees, 3 rd Parties 3 RELIABILITY | ACCOUNTABILITY
Primary Deliverables 2014 2015 2016 2017 Beyond STRATEGIC PLANNING RISC Report ANALYSI S SOLUTION DESIGN Top Priority R-Risks BUSINESS PLANNING AND BUDGETING PREP BP&B RSDP and Work Plans EXECUTION MAINTENA NCE Metrics, CMEP IP, Etc… • RISC Report – Broad Areas of Reliability Risk recommended for deeper analysis • Top Priority Reliability Risks – Specific Reliability Risks that the ERO is planning to manage • Business Plan and Budget – Specific Reliability Risk Management activities for which the ERO has allocated resources • Reliability Standards Development Plan, Committee Work Plans – Planned activities for the respective group, including those that support the Reliability Risk Management activities described in the BP&B • Metrics – Ongoing data analysis that determines BPS performance relative to identified Reliability Risks • 4 Compliance Monitoring and Enforcement Program Implementation plan – planned RELIABILITY | ACCOUNTABILITY Compliance activities that include support for the Reliability Risk Management activities
Ongoing and Cyclical 2014 2015 STRATEGIC PLANNING for 2017 ANALYSI S for 2016 SOLUTION DESIGN for 2016 BP&B for 2015 PREP for 2015 EXECUTION for 2014 2016 STRATEGIC PLANNING for 2018 ANALYSI S for 2017 STRATEGIC PLANNING for 2019 ANALYSI S for 2018 Beyond STRATEGIC PLANNING for 2020 ANALYSI S for 2019 SP for 2021 ANALYSI S for 2020 SOLUTION DESIGN for 2017 BUSINESS PLANNING AND BUDGETING for 2016 PREP for 2016 SOLUTION DESIGN for 2018 BUSINESS PLANNING AND BUDGETING for 2017 PREP for 2017 SOLUTION DESIGN for 2019 BUSINESS PLANNING AND BUDGETING for 2018 PREP for 2018 BP&B 2019 EXECUTION for 2015 EXECUTION for 2016 EXECUTION for 2017 EXECUTION for 2018 MAINTENANCE • Overlapping tasks each year • Ensures careful, deliberate consideration of reliability risks and their solutions • Structured, but not rigid – allows for influence across years • Timeline flexibility accommodates addressing immediate concerns should they arise 5 RELIABILITY | ACCOUNTABILITY
Yearly Tasks Support Coordination 2015 J F M A M J J A S O N D REGULAR ONGOING TRIAGE SP 2017 To Board STRATEGIC PLANNING for 2018 RISC Report 2016 ANALYSIS for 2017 Top SOLUTION DESIGN for 2017 BUSINESS PLANNING AND BUDGETING for 2016 Priority R-Risks 20162019 2016 BP&B PREP for 2016 EXECUTION for 2015 MAINTENANCE 6 RSDP and Work Plans 2016. . CMEP IP 2015 New items from Nominations, SARs, and Committees are triaged. Triage activities can influence at all steps in the process • New items identified in Triage that do not require immediate action are considered by the RISC during Strategic Planning • More urgent issues can be inserted into the Analysis or Solution Design Phases, the Business Plan and Budget, Committee Work Plans or the Reliability Standards Development Plan, Execution as a new project, Or even as a modification to the current Compliance and Enforcement approach. RELIABILITY | ACCOUNTABILITY
Triage Process TRIAGE Issue Identified SAR Received Technical Committee Actions Technical Committee Analysis and Recommendation No Clear Strategic Alignment? No Sufficient Analysis? Yes SC Preparation and Execution Standards Committee Actions 7 RISC Decision Making Consider in Strategic Planning Nomination Received Reliability Issues Steering Committee Actions Consider for Immediate Action Refer or Reject; No Further Action RELIABILITY | ACCOUNTABILITY
Strategic Planning Key Activities in 2015 2016 2015 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb ONGOING TRIAGE OF NOMINATIONS, SARS, AND COMMITTEE-IDENTIFIED ISSUES STRATEGIC PLANNING BOT Reviews and Approves RISC Develops New 2015 RISC Recommendations Report Revie w of 2014 LTRA RISC Report 2015 Outline Revie w of 2015 SOR 2015 Leadershi p Summit RISC Report 2015 Draft 1 RISC Report 2015 Draft 2 Revie w of 2015 LTRA 8 Review of Top Priority R-Risks RISC Report 2015 Board Appd. Input Coordination Check Point RISC Report 2015 Final ANALYS IS for 2017 RELIABILITY | ACCOUNTABILITY
Analysis and Solution Design Key Activities in 2015 2016 2015 Jan Feb Mar Apr May Jun Aug ANALYSIS AND SOLUTION DESIGN Inpu t Committee RISC Members use Previous Year RISC Recommendations to develop Risk Profiles (i. e. , Gap Analysis and Suggestions to address) Prioritize d List of Top Risks for each High Priority Risk Area* Problem Stateme nt, Gaps, and Measure s for each Top Risk* Draft Risk Mgmt Strategy for each Top Risk* Implementation of Measurement approach begins 9 Sep Primarily Tools and Process Work Primarily Technical Work Supported by Committees RISC Report 2014 Jul * Worksheets, templates, and facilitation aids developed to assist in producing these deliverables consistently across all Committees Oct Nov Dec Jan Coordination Check Point Review of Top Priority R-Risks Feb Staff assembles profiles with other information and develops ERO Top Priority Reliability Risks for 2015 -2018 Propose d Risk Profiles Assembl ed* ERO Top Priority R-Risks Inpu t Coordination Check Point Verify 2016 ERO Goal Alignment Business Planning and Budgeting for 2017 RELIABILITY | ACCOUNTABILITY
Business Planning and Budgeting Key Activities in 2015 2014 Nov 2015 Dec Jan Feb Mar Apr May ERO Jun Industry Comment Top SOLUTIO Priority N DESIGN R-Risks Jul Aug Sep t Develop NERC Dept Goal Alignment BUSINESS PLANNING AND BUDGETING for 2016 Business Plan and Budget Draft 1 Nov Dec Industry Comment Inpu ERO Strategic Plan 20142017 Oct Final Draft 2016 Business Plan and Budget Coordination Check Point 2016 Business Plan and Budget Filing Inpu t PREPARATION for 2016 Implementation of Measurement approach continues; Collection of Baseline Data begins 10 RELIABILITY | ACCOUNTABILITY
Preparation Key Activities in 2015 2016 2015 Aug Sep Oct Nov Dec 20162018 Planning Committ ee Strategic Plan BUSINESS PLANNING AND BUDGETING 2016 Business Plan and Budget Filing Jan Feb 20162018 Reliability Standards Developm ent Plan Filing Verify NERC Dept Goal Alignment PREPARATION for 2016 Coordination Check Point Inpu t (collaborative planning with RISC, staff, Committees, and 3 rd parties) 20162018 Creation of Drafting Teams, Task Forces, Working Groups, and other similar groups as needed – including 3 rd party coordination Critical Infrastruct ure Protection Committe e Strategic Plan 20162018 Operatin g Committ ee Strategic Plan EXECUTION for 2016 Implementation of Measurement approach continues; Collection of Baseline Data begins 11 RELIABILITY | ACCOUNTABILITY
Execution Key Activities in 2015 2014 Nov 2015 Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec PREPARATION for 2016 Work Plans, Charters, Scope Docume nts, etc… Inpu EXECUTION (may persist beyond single year) t Quarterly Update to Board Collection of Baseline Data and Observed Change Data 12 RELIABILITY | ACCOUNTABILITY
Questions and Answers 13 RELIABILITY | ACCOUNTABILITY
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