Risk & FCI
How AssetLab scores asset risk (consequence × likelihood) and computes the Facility Condition Index at every level of the portfolio.
Two numbers summarize an asset base for decision-makers: risk (which failures would hurt, and how soon) and FCI (how much catch-up investment the portfolio carries). AssetLab computes both continuously from data you're already keeping.
Risk: consequence × likelihood
Each asset's risk score is the product of two factors.
Consequence of failure (CoF)
What happens if this thing fails? Scored across impact categories - service disruption, health & safety, environment, cost, reputation - and summarized per asset. A sump pump protecting an electrical vault and an identical pump in a landscape pond have very different CoF.
Likelihood of failure (LoF)
How likely is failure in the planning horizon? Driven primarily by condition and age against useful life - an asset in poor condition past its expected life scores high even before anyone writes a memo about it.
The risk matrix
CoF × LoF places each asset in a risk band (from minimal to critical). The score updates as new assessments land and as assets age, and risk history is retained so you can show the trajectory, not just today's heat map. History entries are recorded only when a score actually changes (risk score, condition, CoF, LoF, or risk factor) - re-saving a record without a change adds no noise.
Risk profiles
Scoring CoF one asset at a time doesn't scale, so AssetLab supports named risk profiles: a profile carries a consequence-of-failure setup, and applying one to a selection of assets stamps that CoF onto every asset in the selection and records when the profile was applied. Assets whose consequence was set by hand are skipped, so a bulk profile never silently overwrites deliberate judgment - the confirmation reports how many were applied and how many skipped.
FCI: the portfolio health number
The Facility Condition Index is the standard capital-planning ratio:
FCI = cost of current deficiencies / current replacement valueLower is better. Common interpretation bands: under 0.05 good, 0.05–0.10 fair, 0.10–0.30 poor, above 0.30 critical - thresholds your organization can calibrate to its own standards.
Multi-level computation
AssetLab computes FCI at every roll-up level:
- Portfolio - the number for the annual report
- Site and building - where to focus reinvestment
- System class within a building - the diagnosis ("Building A: envelope fine, mechanical failing")
FCI history is captured over time, so you can demonstrate the effect of funding levels - or the cost of deferral - with your own data.
How AssetLab computes it
The deficiency cost (numerator) is age-based: it sums the current replacement value of every asset at or beyond 100% of its expected lifecycle. An asset past its useful life counts its full replacement value as deferred; assets still within their life contribute nothing. It is not derived from condition-assessment remediation estimates.
The current replacement value (both numerator and denominator) is the purchase cost escalated for inflation from the purchase year, using your organization's calculation mode, global multiplier, and any per-system multiplier; assets without a purchase cost fall back to their entered replacement value.
| Input | Source |
|---|---|
| Purchase cost and date | Asset records (import or entry) |
| Useful life & age | Asset lifecycle fields - these decide what counts as deferred |
| Inflation rate & multipliers | Organization settings |
Garbage in, garbage out: FCI is only as good as purchase costs and lifecycle fields. Sanity-check totals on the dashboard after any bulk load.
Where risk and FCI surface
- Dashboards - risk concentration heat maps, FCI trend, top-risk asset lists
- Replacement planner - candidates ranked by risk, not just age
- Reporting - board-ready exports
- Infrastructure - the same math runs for linear features, rolled up three ways: by network, by service category, and by feature class. Each tier appears only when it has more than one group to compare - a tier with a single group would restate the total under a second heading. When all three collapse to one group, the network tier is the one you see.
The operating loop
- Assess condition (rides along with PMs).
- Risk and FCI update automatically.
- High-risk assets feed the replacement planner.
- The planner seeds projects and budgets.
- Completed projects improve condition - and the numbers show it.
Cost data flows in the same loop: when a work order is completed with a non-zero total, AssetLab automatically creates asset cost entries from its actual cost, parts cost, and computed labour cost, split evenly across all linked assets. The entry's category comes from the work order's type or work category name, and a duplicate guard keeps a re-save from double-posting. That is how maintenance spend reaches the cost roll-ups without anyone keying it twice.