Financial Risk Optimization
With the upward trend towards deregulation and 
economic competition in the power market, maintenance and inspection decisions for aging equipment are increasingly being made on a financial basis. Now more than ever, economical asset life management is critical to a plant’s successful safe operation and the bottom line.
SI’s Financial Risk Optimization (FRO) services can help you prudently manage the aging of your critical plant components. Combining risk analysis of various options with financial modeling of the costs of each (including the consequential costs of projected failures), FRO analysis can help clarify maintenance options and improve the decision-making process when you are deciding how to spend your limited maintenance budget. SI’s FRO financial analysis techniques and software provide a rigorous, quantitative methodology that not only helps you select the optimum alternative (from as many as 20 different choices), the methodology also determines the optimum time to initiate action that will minimize the risk of failure and associated replacement/repair costs. Considering the high cost of unexpected down-time, lost opportunity costs, capital depreciation, tax effects, and the time value of money, the timing of an action can be just as important as selecting which action to take. SI’s FRO techniques and tools have successfully helped companies from a wide industrial cross-section save millions of dollars, while improving their equipment reliability and safety performance. Risk analysis and asset management are advanced tools that can give your company competitive advantage.
For more information on SI’s FRO financial modeling techniques and software please click on the following links:.
Related Technical Literature
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