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TM_E_2506_
_15
Designation:E250615Standard Guide forDeveloping a Cost-Effective Risk Mitigation Plan for Newand Existing Constructed Facilities1This standard is issued under the fixed designation E2506;the number immediately following the designation indicates the year oforiginal adoption or,in the case of revision,the year of last revision.A number in parentheses indicates the year of last reapproval.Asuperscript epsilon()indicates an editorial change since the last revision or reapproval.INTRODUCTIONProtecting constructed facilities from damages from natural and man-made hazards in a cost-effective manner is a challenging task.Several measures of economic performance are available forevaluating building-related investments.These measures include,but are not limited to,life-cycle cost,present value net savings,savings-to-investment ratio,and adjusted internal rate of return.This guideprovides a generic framework for assessing the risks associated with natural and man-made hazards,formulating combinations of risk mitigation strategies for constructed facilities exposed to thosehazards,and using measures of economic performance to identify the most cost-effective combinationof strategies.1.Scope1.1 This guide describes a generic framework for develop-ing a cost-effective risk mitigation plan for new and existingconstructed facilitiesbuildings,industrial facilities,and othercritical infrastructure.This guide provides owners and manag-ers of constructed facilities,architects,engineers,constructors,other providers of professional services for constructedfacilities,and researchers an approach for formulating andevaluating combinations of risk mitigation strategies.1.2 This guide insures that the combinations of mitigationstrategies are formulated so that they can be rigorouslyanalyzed with economic tools.Economic tools include evalu-ation methods,standards that support and guide the applicationof those methods,and software for implementing the evalua-tion methods.1.3 The generic framework described in this guide helpsdecision makers assess the likelihood that their facility and itscontents will be damaged from natural and man-made hazards;identify engineering,management,and financial strategies forabating the risk of damages;and use standardized economicevaluation methods to select the most cost-effective combina-tion of risk mitigation strategies to protect their facility.1.4 The purpose of the risk mitigation plan is to provide themost cost-effective reduction in personal injuries,financiallosses,and damages to new and existing constructed facilities.Thus,the risk mitigation plan incorporates perspectives frommultiple stakeholdersowners and managers,occupants andusers,and other affected partiesin addressing natural andman-made hazards.1.5 This standard does not purport to address all of thesafety concerns,if any,associated with its use.It is theresponsibility of the user of this standard to establish appro-priate safety and health practices and determine the applica-bility of regulatory limitations prior to use.2.Referenced Documents2.1 ASTM Standards:2E631 Terminology of Building ConstructionsE833 Terminology of Building EconomicsE917 Practice for Measuring Life-Cycle Costs of Buildingsand Building SystemsE964 Practice for Measuring Benefit-to-Cost and Savings-to-Investment Ratios for Buildings and Building SystemsE1057 Practice for Measuring Internal Rate of Return andAdjusted Internal Rate of Return for Investments inBuildings and Building SystemsE1074 Practice for Measuring Net Benefits and Net Savingsfor Investments in Buildings and Building SystemsE1121 Practice for Measuring Payback for Investments inBuildings and Building Systems1This guide is under the jurisdiction of ASTM Committee E06 on Performanceof Buildings and is the direct responsibility of Subcommittee E06.81 on BuildingEconomics.Current edition approved Aug.1,2015.Published August 2015.Originallyapproved in 2006.Last previous edition approved in 2011 as E250611.DOI:10.1520/E2506-15.2For referenced ASTM standards,visit the ASTM website,www.astm.org,orcontact ASTM Customer Service at serviceastm.org.For Annual Book of ASTMStandards volume information,refer to the standards Document Summary page onthe ASTM website.Copyright ASTM International,100 Barr Harbor Drive,PO Box C700,West Conshohocken,PA 19428-2959.United States1 E1185 Guide for Selecting Economic Methods for Evaluat-ing Investments in Buildings and Building SystemsE1369 Guide for Selecting Techniques for Treating Uncer-tainty and Risk in the Economic Evaluation of Buildingsand Building SystemsE1557 Classification for Building Elements and RelatedSiteworkUNIFORMAT IIE1699 Practice for Performing Value Engineering(VE)/Value Analysis(VA)of Projects,Products and ProcessesE1765 Practice for Applying Analytical Hierarchy Process(AHP)to Multiattribute Decision Analysis of InvestmentsRelated to Buildings and Building SystemsE1946 Practice for Measuring Cost Risk of Buildings andBuilding Systems and Other Co