Section 3: Asset Management 3.9.2 Asset Replacement Programmes Replacement works are forecast and carried out based on the recommendations of Council officers and contractors who are responsible for the inspection of reserve and amenity assets. Priority for asset replacement is given to assets that may affect public or staff safety. New Zealand safety guidelines are used for the replacement of current structures such as playgrounds. Playgrounds are risk-assessed following best practice advice. Replacement forecasts for each year are included in s6 under quantifying demand and in detail for the first three years and summarised thereafter in the Financial Summary. 3.9.3 Renewal and Replacement Asset renewal is major works, which restore, replace or renew existing assets to extend economic life and service potential. The renewal strategy is to replace assets when justified by risk and asset condition, the number of potential beneficiaries, the strength of demand within the community and the funds that are available. Capital works for each financial year are forecast in detail in annual budgets. 3.9.4 Risk Management Health and Safety The MDC Risk Management and Strategy and Tools document is consistent with AS/NZS ISO 31000:2009 – Risk management-Principles and Guidelines. Council has a Risk Manager appointed who is responsible for assisting managers and staff to identify and review risks, which are recorded in the appropriate Risk Profiles and are reviewed annually at minimum. Risk Profiles also record risk analysis and treatment together with action plans. Staff are required to carry out risk reduction practices. The Council maintains a tertiary ACC rating for Health and Safety and has comprehensive policies and systems in place, together with a dedicated management position. From an asset management perspecti e, whch involvespedcting asset lifecyces and te detection of deterioration above the predicted levels for that time, risk is minimised through condition monitoring and appropriate maintenance. Failure Consequences (risks) used to identify Critical Assets and Maintenance Priority Ratings The criticality of an asset is ultimately determined by the consequence of failure in terms of business, financial or service level effects, combined with the probability of failure. As the severity and probability of failure increases a higher maintenance priority rating is allocated, ensuring more regular proactive inspection and maintenance. For example the consequence and probability of failure of a playground structure in Pollard Park is significantly higher given the level of use and potential for injury to users than failure of a park fixture such as seat or sign in the same area. The table below identifies the level of consequence, probability of failure and maintenance priority ratings of the major asset groups along a criticality spectrum. Page 47