Risk based asset management - a success story

The industry best practice guideline PAS 55-1 advocates risk based asset management to be a key success factor for asset-heavy systems. Risk based approach does not mean taking on more risk, but use risk to balance cost, performance, safety, customer service, investment and social responsibilities. Within the MTR corporation, asset management is a controllable factor of business through understanding asset and value criticalities and taking a forward view. Expenditure on assets is rationalized using risk based asset management supplemented by a value based system. Expenditure balance is struck to optimize total costs to the railway operator while at the same time performance is improved and safety assurance strengthened.