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Integrated Bulk Power System Risk Assessment Concepts NERC Whitepaper
Integrated Bulk Power System
Risk Assessment Concepts
Executive Summary
In developing methods to measure acceptable levels of reliability, it has become
clear to the Reliability Metrics Working Group that any such measurement of
reliability must include consideration of the risks present within the bulk power
system in order for us to appropriately prioritize and manage these system risks. This document
identifies several categories of system risks against which industry must optimize and, with a focus
on the subcategory of risk events, details a conceptual model depicting these risks. Significant
efforts have been undertaken to determine and quantify the impacts of various historical events for
which metrics may exist; this quantification helps to establish the foundation for measuring system
performance and for considering risk mitigation prioritization. With this model it is expected that
the industry will be better positioned to establish methods for quantifying the various risks within
the system, prioritizing each of those risks and developing methods to optimize impacts against
costs. This work relies heavily upon risk assessment methodologies.
Risk assessment is an essential tool for achieving the alignment between organizations, people and
technology in quantifying inherent risks, identifying where potential high risks exist, and evaluating
where the most significant lowering of risks can be achieved. Being learning organizations, the
Electric Reliability Organization (ERO) along with the Regional Entities and the Registered Entities
can use these tools to focus on the areas of highest risk to reliability and provide a sound basis for
develo
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