Introduction to Water Infrastructure Asset Management - Global Drinking Water Management and Conservation - page 152

Fig. 7.2 The five matrices of the Australian strategic asset management

way that extracts the highest level of service from them. Economies of scale should
be realized and the rate of return on the investment should be the highest possible.
The plan should lead to appropriate environmental and workplace health and safety
plans. Assets that are unused or not needed should be identi

ed and decommis-
sioned or liquidated. Information should be available as to the current value of
assets at all times. Reserve funds should be utilized in a way that leads to optimum
service. There should be an awareness of all opportunities and risks.
Since the objective of the utility is to serve the community, this service must be
tracked. The best indicator of the performance of the utility and the asset man-
agement plan will be the level of service experienced by the community. Though
individual assets and financial performance are important, the output level of ser-

vice must remain the primary indicator of performance.

7.2 Incorporating Risk in Water Infrastructure
Management

7.2.1 Introduction

This section introduces concepts that are important to the incorporation of risk into
water asset management. The three types of failure that can occur in water distri-
bution are discussed, as well as their inter-relationships. There are different types of