Max Henrion at #RAW2022 – How to get best return on the risk mitigation budget

Some California utilities have been in the headlines for all the wrong reasons – including the 2010 San Bruno gas pipeline explosion that killed 8 people, the 2015/6 leak from Aliso Canyon gas storage, the 2018 Camp Fire that destroyed the town of Paradise, plus the Dominion Pipeline ransomware cyberattack that cut gasoline supply to the US Northeast.

The California Public Utilities Commission requires utilities to quantify these risks using risk-spend efficiency (RSE) to prioritize mitigations based on how much risk they reduce per dollar invested. It uses a multi-attribute value function to combine outcomes, including fatalities, reliability, and cost. I’ll review how California utilities are using this approach.

Max will discuss how these methods could help other organizations manage and mitigate a wide variety of risks.

Max Henrion, PhD is the founder and CEO of Lumina Decision Systems. He was founding President of the Association of Uncertainty and Artificial Intelligence. He coauthored “Uncertainty” (Cambridge Univ Press), three other books, and over 70 refereed articles. He was lead designer of Analytica, about which PC Week said “All the problems of the common spreadsheet are fixed in Analytica”. He was formerly Professor at Carnegie Mellon. He has a BA from Cambridge University and PhD from Carnegie Mellon. He received the 2018 Frank Ramsey Medal from the Decision Analysis Society.

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Alex Sidorenko is an expert with over 15 years of private equity, sovereign wealth fund risk management experience across Australia, Russia, Poland and Kazakhstan. In 2014 Alex was named the Risk Manager of the Year by the Russian Risk Management Association.

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Alex specializes on integrating risk management into strategic and investment planning and decision making at venture capital, private equity, investment authorities and sovereign funds across the world. Alex worked as a Head of Risk Management at RUSNANO, one of the largest private equity funds in Russia, specializing in technology investment. Alex won an award for best ERM implementation at RUSNANO in 2014.

As a VP at Institute for strategic risk analysis in decision making, Alex is responsible for risk management consulting, training and certification across Russia and CIS. Alex is the co-author of the global PwC risk management methodology, the author of the risk management guidelines for SME (Russian standardization organization), risk management textbook (Russian Ministry of Finance), risk management guide (Australian Stock Exchange) and the award-winning training course on risk management (best risk education program 2013, 2014 and 2015).

In 2012 Alex created RISK-ACADEMY <a href=""></a> a web portal dedicated to risk management training across Russia and CIS. Since then RISK-ACADEMY became a global brand providing risk management services to some of the largest organizations in the world.

Alex recently published his second risk management book called “Effective Risk Management 2.0”. Alex also regularly presents at risk management conferences in the Middle East, Russia and Europe. In November 2012 Alex short a TV series dedicated to risk management in start-ups. Alex teaches risk management at major Russian business schools as well as corporate universities.

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