Asset Risk Management (ARM) is described as the systematic and co-ordinated activities undertaken by a network company to manage its assets and their associated risks in an optimum manner. This is so the company can achieve its strategic and regulatory objectives.
ARM refers to the policies, strategies, information, plans and resources, which integrate to deliver efficient and sustainable networks. The outcome of competent ARM is assets that are fit for their purpose and whose risk of failure is managed to meet an appropriate standard of performance.
Poor asset risk management may lead to failing assets and substandard performance in respect of safety, environment and quality of supply. ARM also addresses both short term performance and long term asset stewardship.