What is Risk-based Maintenance (RbM)?

Picture this. A machine in your facility suddenly breaks down, bringing operations to a halt. Fixing it takes time, costs money, and delays production. Now, imagine if you had known in advance which machines were more likely to fail and could have taken action before the problem even started. This would have saved time, reduced costs, and prevented unexpected disruptions.

This is exactly what risk-based maintenance helps with. Instead of maintaining all equipment the same way, it allows you to focus on the ones that carry the most risk. In this blog, we will take a closer look at what risk-based maintenance is and how it works. Without waiting further, let’s get started.

What is Risk-Based Maintenance?

Risk-based maintenance (RbM) focuses on maintaining equipment based on how much risk is involved if something fails. Instead of following a fixed maintenance schedule for every asset, this approach ensures that more attention is given to equipment that could cause bigger problems if it stops working. This helps in using maintenance resources wisely while reducing the chances of unexpected breakdowns.

The process of risk-based maintenance happens in two main steps.

1. Assessing Risk – Each piece of equipment is evaluated based on how likely it is to fail and how much damage or downtime it would cause if it did. Equipment that is essential to operations or safety gets a higher risk rating, while less critical assets are marked as lower risk.
2. Planning Maintenance Based on Risk – Once the risks are identified, maintenance schedules are created accordingly. High-risk equipment is checked and serviced more often to prevent failures. Lower-risk equipment gets a less frequent maintenance schedule to avoid wasting resources where they are not needed.

By following this approach, the overall risk of failure across a facility is kept as low as possible while making sure maintenance efforts are not wasted on equipment that does not need constant attention.

Who Should Consider Risk-Based Maintenance?

Risk-based maintenance is useful for many businesses, but some benefit from it more than others. If your company relies on machines for daily operations, avoiding unexpected breakdowns is important. Here are four types of businesses that should seriously consider using this approach.

1. Companies with a Small but High-Use Machine Setup

   If your business depends on a few machines that run constantly, any downtime can cause major problems. For example, an oil processing company that relies on a single machine to refine oil needs that machine running at full capacity at all times. Risk-based maintenance helps prevent sudden failures, making sure that these machines stay in good condition and avoid costly repairs.

2. Businesses Using Expensive Equipment

   If your company uses machinery worth hundreds of thousands of dollars, protecting those assets should be a priority. Repairs and replacements for high-cost equipment can be a major financial burden. With risk-based maintenance, potential problems can be identified before they lead to expensive failures, helping companies avoid unnecessary losses and keeping machines performing well for a longer time.

3. Companies Without a Maintenance Plan

   Running operations without a maintenance plan means reacting to problems only when they happen. This can lead to unnecessary costs and delays. Risk-based maintenance is one of the easiest strategies to put in place. It does not require major changes to your operations and can be integrated with existing processes. Even if your company has no formal maintenance structure, starting with a risk-based approach can provide immediate benefits.

4. Businesses with Limited Repair Resources

   Some companies do not have the budget or manpower for frequent repairs. When maintenance resources are tight, it is important to make the best use of them. Risk-based maintenance focuses on addressing the most critical issues first, ensuring that time and money are spent where they are needed most. This allows businesses to minimize equipment failures while keeping repair costs under control.

   If your company falls into any of these categories, risk-based maintenance is worth considering. It helps extend the life of machines, reduces repair costs, and keeps operations running smoothly.

Benefits of Risk-Based Assessment

Implementing risk-based assessment in your organization brings in benefits such as:

1. Better Equipment Life and Reliability

   Taking care of high-risk assets first helps prevent breakdowns and keeps machines running for a longer time. When equipment is well-maintained, it performs better and doesn’t need to be replaced as often.

2. Lower Maintenance Costs

   Instead of spending time and money on unnecessary maintenance, businesses can focus on what truly matters. This approach helps reduce waste, cut costs, and keep maintenance budgets under control.

3. Safer Work Environment

   Equipment that is regularly checked and maintained is less likely to fail unexpectedly. This lowers the chances of workplace accidents and creates a safer environment for everyone.

4. Fewer Disruptions and Better Productivity

   When machines break down unexpectedly, work slows down or stops completely. Risk-based maintenance helps avoid such disruptions, keeping operations running smoothly and improving overall productivity.

5. Smarter Use of Maintenance Resources

   Identifying and prioritizing high-risk equipment ensures that maintenance efforts are directed where they are needed the most. This makes better use of available resources and prevents time from being wasted on less critical assets.

6. Meeting Industry Standards and Regulations

   Regular and well-planned maintenance helps businesses stay compliant with industry rules. This reduces the risk of penalties and ensures that all equipment meets required safety and performance standards.

How to Implement Risk-Based Maintenance? Step-by-Step Guide

Now that you know how risk-based maintenance works, it’s time to put it into action. Take a look at the steps below to get started:

1. Collect Maintenance Data

   Start by gathering important details about each asset. This includes its name, identification number, and purchase cost. Check its age and review past maintenance records, including how often it has broken down ( Mean Time Between Failure – MTBF ) and how long it takes to fix ( Mean Time to Repair – MTTR ). Look at the cost of unplanned downtime and how frequently maintenance is performed. The more accurate the data, the better the maintenance plan will be.

2. Assess the Risk of Each Asset

   Once the data is collected, determine how risky each asset is. Some equipment failures cause major disruptions, while others have a smaller impact. Assess the likelihood of failure and the possible consequences. Tools like Failure Modes and Effects Analysis (FMEA) or a criticality matrix can help measure how severe a failure would be and how often it might happen.

3. Rank the Risks

   Not all risks are the same, so they need to be ranked based on their impact. Identify which machines are the biggest concern if they fail and which ones would cause the least trouble. Sorting assets this way helps prioritize maintenance efforts where they are most needed.

4. Create a Maintenance Plan Based on Risk

   Now that the risks are ranked, decide the best maintenance approach for each asset. Some may need preventive maintenance at set intervals, while others may require condition-based maintenance to track performance in real-time. For less critical assets, a run-to-failure approach might be more practical. The goal is to match the right maintenance strategy with the level of risk.

5. Assign Resources and Organize Inventory

   A good maintenance plan needs the right people and tools. Assign maintenance teams, schedule work, and make sure spare parts are available. Managing inventory properly prevents delays and avoids unnecessary expenses.

6. Schedule and Carry Out Maintenance Work

   Use a Computerized Maintenance Management System (CMMS) software to organize maintenance schedules and track work orders. This ensures that tasks are completed on time and by the right people. A structured system helps keep maintenance efforts on track and prevents last-minute scrambling.

7. Monitor, Review, and Improve Continuously

   Risk-based maintenance is not a one-time process. Track key performance indicators like MTBF, MTTR, and downtime to measure how well the strategy is working. Regularly review maintenance actions, adjust risk assessments, and update the maintenance plan as needed. Keeping an eye on performance helps refine the process over time and ensures equipment stays in the best possible condition.

Risk-Based Maintenance and CMMS

Risk-based maintenance becomes much more manageable when everything is handled through a single platform. A centralized system helps organize the entire process by setting clear workflows and automating routine tasks. By looking at past inspection records and completed work orders, you can spot patterns and assess risks more accurately. This allows you to catch potential issues early and put preventive maintenance measures in place before they turn into bigger problems.

With this approach, meeting regulatory requirements also becomes easier. Instead of spending extra time and resources on self-assessments, the system ensures everything stays compliant without additional effort. It also keeps a detailed record of asset failures and the actions taken, making it simple to track maintenance history and plan for the future.

Manage Maintenance Risks with NEXGEN’s CMMS Software

Handling maintenance risks without a proper system can leave important equipment exposed to unexpected failures. With NEXGEN’s CMMS, you get a clear view of asset conditions in real time. The system calculates how likely an asset is to fail and what the impact would be, helping you focus on the most critical issues first. This way, maintenance teams can plan repairs before problems escalate, use resources wisely, and avoid expensive breakdowns. With NEXGEN, equipment stays reliable, and operations run smoothly without unexpected disruptions.