Consequences of Failure

Consequences of Failure are the full range of effects that occur when an asset fails. Possible effects include the direct cost to repair the asset, replacement of the asset (if appropriate), customer interruptions and customer minutes, as well as possible safety or environmental costs. All consequences must be expressed in equivalent terms – dollars in our case. Consequences of failure should capture the following information:

Total Consequence Cost = Direct Cost + Emergency Repair Costs + Customer Interruption Costs + Other Costs (Safety, etc)

A sample consequence cost calculation is shown in the figure below.

Consequences of failure are often described using multiple failure modes or scenarios.

Continue to customer outage costs.


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