Quantifying reputation loss of pipeline operator from various stakeholders perspectives, part 1: prioritization

Abstract

Quantifying reputation loss (RL) due to pipeline damage is commonly generalized based on the owner's definition. This one-way perspective of portraying RL is unfair and unrealistic and consequently miscalculates the impact assessment of pipeline damage; hence, inaccurate risk prediction. It is crucial to develop a model to quantify qualitative RL to avoid unpredicted risk. Thus, this article provides a framework for a procedure to calculate RL by utilizing the factors identified in a previous study. In this paper (Part 1), the prioritization of factors based on the stakeholders' perspectives is presented. The factors were grouped into stakeholder-influenced categories and prioritized by a fuzzy analytic hierarchy process based on the feedback gained from the stakeholders, i.e., investors, customers, employees and the public. The result shows that factor D3, “Accident severity”, was ranked highest by all stakeholders. The priority vector for each factor obtained was assigned as a weight of the factor. The pipeline owner's reputation loss model (RLM) is developed by applying the obtained priority vectors in the subsequent paper (Part 2). The developed model was verified by experts as a comprehensive, clear, objective, practical and moderately reliable model. The model was applied to a case study and eventually produced a lower risk value when compared with the currently used model. It is proven that RL factors can be quantitatively measured and can simultaneously improve pipeline damage impact assessment. Thus, a risk-based inspection schedule can be managed comprehensively.