A risk assessment approach for water-energy systems

Abstract

Projects aimed at reducing water and/or energy consumption present technical and economic complexity profiles that require the analysis of the many components of investment risk. Risk analysis is essential to express judgements on the economic convenience of projects in the water-energy sectors. It is important to study actions for the mitigation of investment risk, so as to report the residual risk within tolerability limits. The integration of the as low as reasonably practicable (ALARP) logic with the cost-benefit analysis allows to define a protocol for the acceptance of the residual investment risk.