A method for optimizing the operations of an industrial plant, the industrial plant comprising components including one or more of a gas turbine engine, a steam turbine engine, a heat recovery steam generator, a condenser, a gasifier, and a generator (48, 54), the method comprising: receiving a plurality of data from sensors disposed in the industrial plant; transforming the plurality of data into a degradation contributor model via a component level transfer function; wherein the degradation contributor model models how a degradation of a particular component (34, 50, 52, 56, 16, 48, 54) affects the overall industrial plant, wherein the degradation contributor model comprises a parametric model having at least one coefficient configured to reflect the weight or importance of the degradation of a particular component on the overall industrial plant and wherein the degradation contributor model comprises a combination of conventional degradation contributions, which are models related to degradation of the components of the industrial plant, and non-conventional degradation contributions, which include direct or indirect observations of behavior of related systems and components; and wherein the component level transfer function models the relationship between the input and output, or system response of a component; determining an operational advisory in the industrial plant, wherein the operational advisory is determined based upon the degradation contributor model and one or more optimization objectives, wherein the degradation contributor model is configured to derive a difference between a rated value of a parameter of a component and a current value of the respective parameter observed via the sensors, wherein the rated value of a parameter comprises at least one of a temperature, a flow rate, a pressure, or a combination thereof; outputting the operational advisory, wherein the operational advisory comprises at least one of a maintenance schedule, an alert, message control action, or a combination thereof; deriving a level of risk of equipment malfunction associated with operations of the industrial plant based on failure mode analysis and risk data, operational models, and physical properties and algorithms; displaying, via a graphical user interface comprising a visual display, the level of risk; and controlling the industrial plant based on the operational advisory. receiving a plurality of data from sensors disposed in the industrial plant; transforming the plurality of data into a degradation contributor model via a component level transfer function; wherein the degradation contributor model models how a degradation of a particular component (34, 50, 52, 56, 16, 48, 54) affects the overall industrial plant, wherein the degradation contributor model comprises a parametric model having at least one coefficient configured to reflect the weight or importance of the degradation of a particular component on the overall industrial plant and wherein the degradation contributor model comprises a combination of conventional degradation contributions, which are models related to degradation of the components of the industrial plant, and non-conventional degradation contributions, which include direct or indirect observations of behavior of related systems and components; and wherein the component level transfer function models the relationship between the input and output, or system response of a component; determining an operational advisory in the industrial plant, wherein the operational advisory is determined based upon the degradation contributor model and one or more optimization objectives, wherein the degradation contributor model is configured to derive a difference between a rated value of a parameter of a component and a current value of the respective parameter observed via the sensors, wherein the rated value of a parameter comprises at least one of a temperature, a flow rate, a pressure, or a combination thereof; outputting the operational advisory, wherein the operational advisory comprises at least one of a maintenance schedule, an alert, message control action, or a combination thereof; deriving a level of risk of equipment malfunction associated with operations of the industrial plant based on failure mode analysis and risk data, operational models, and physical properties and algorithms; displaying, via a graphical user interface comprising a visual display, the level of risk; and controlling the industrial plant based on the operational advisory.