The Swedish Transport Administration
Johan Hansen
Coordinating Risk Manager
2 2010-05-19
2
• Sweden is a country in the north of Europe
• Population of 9 million• Land area 450,000 square metre• The climate consists of four seasons.
Every season has its special condition for managing roads.
• The Swedish Transport Administration has approximately 6,500 employees
• Responsible for the long-term planning of the transport system for road, rail, maritime and air traffic.
• Responsible for the construction, operation and maintenance of public roads and railways.
• Manage approx. 100,000 km road network
4 2010-05-19
Integrated Risk Management
The line organization,Support functions
Risk Ownership
Own risk andrisk management activities
Internal control;safety, emergency and security,
Information, etc.
Risk Management functions
Establishes and instructionsframework for risk assessment
and follow-up
Internal audit;quality audit,Audit activities
Audit functions
Testing and validation ofeffectiveness of risk management
and control
Common concepts and definitions
Common methods and tools
Joint monitoring and reporting structure
Common support schemes
First line responsibility Second line of responsibility Third line of responsibility
5 2010-05-19
Bad things can happen.
attitude: Conservation
Static viewNaturediseaseswaraccidentslandslidefloods
Maybe good thingsnot happening.
attitude: Development
Dynamic visionIdeamarketDevelopmentpolicyImplementationperformance managementperformance
Humans
RISKInsecurity effect on goal
6 2010-05-19
Risk Management Process
Global risk assess
Define the context
Analyse Risks
Evaluate risk
Treat Risks
Identify Risks Monitor and review
C
omm
unic
ate
and
cons
ult
7 2010-05-19
Risk management process integrated into the organization
Risk Monitoring and Communications
Risk Monitoring and Communications
Risk assessment
Risk identification Riskanalysis Risk Evaluation Risk
treatment
Documentation / Risk Register
Risk Monitoring and Communications
Mission Reporting
Inputvalues
Risk Profiler / Basis for risk reports
Project, management and ongoing operations
Society Traffic Major projects Profit centers
Top Management
Mission Reporting
Investment Key functions
8 2010-05-19
Risk Management Sub Areas
Guidelines for Risk Management
Risk Management in:• Balanced Scorecard• Project • Network Management• Internal Safety (IT-security, Working
Environmental, Offices)
Normal Condition / Serious Condition / Crisis
•Crisis Management
RM - Top Management
9 2010-05-19
Consolidated risk matrix and profile
Very high 4Investigation Action Action Action
High 3Investigation Investigation Action Action
Medium 2Acceptance Investigation Investigation Action
Low 1Acceptance Acceptance Acceptance Investigation
1 2 3 4Negative media coverage and attention
Single column Local Regional National
Management time and effort/ negative attention
Unit Unit management
Executive top management
Board/ investors /ministry
Property Damage
Infrastructure/Equipment/ Buildings etc.
≤ 1 million US Dollar
≤ 50 million US Dollar
≤ 200 million US Dollar
> 200 million US Dollar
Road users
Employees
Operations Dow ntime
Short dow n-time Single unit dow n for short period
Single unit dow n more than 50% for more than 1 day
Single governing unit dow n more than 50% for more than 1 day
Environ- ment
Impairment Single occur-rence/gradual
Temporary minor
Temporary serious
Permanent minor
Permanent serious
Minor Moderate Major Critical
Main road shut dow n for several hrs or secondary road for > 24 hrs or one area for > 12 hrs
Main road shut dow n for > 24 hrs or one area for > 48 hrs
Minor injuries Multiple injuries Single death or multiple serious
injuries
Multiple deaths and serious
injuries
Aspect
Risk response
Increased accident rate
Reduced transport capacity
Impact
Transport capacity
Secondary road shut dow n for a few hours or one area shut dow n
Main road shut dow n or secondary road shut dow n for > 12 hrs or one area for a few hrs
Like
lihoo
d/fre
quen
cy
Event occurs several times per year w ithin the realm of the organisationEvent has occurred w ithin the realm of the organisation
Event has occurred in the country
Event never occurred in the country
Intangibles Confidence /reputation
Type
of a
sset
Personal
Finance
• Each level in the organization, or project, must decide thereown evaluation support. Project should add Time as qonsequence class.
• Preferably from a organizational top evaluationsupport.
• The top evaluation support are used as an aid to decide if risks and serious incidents that occur should be escalated to higher organizational level
10 2010-05-19
RM, Balanced Scorecard-
Government Focus
• Critical Goals•••
Internal/Financial Focus
• Critical goals•••
Co-worker Focus
• Critical Goals•••
We make the good journeypossible.
Development focus
• Critical Goals•••
Customer Focus
• Critical Goals•••
VISION
Risk Analysis
Plan for Action
11 2010-05-19
• Hazard within the Road Transport System
• Hazard from Surroundings
• Hazard from the Road Transport System
Crisis Management – Main Scenarios
12 2010-05-19
RM in Network Management / Infrastructural Project
StrategicPlanning
PhysicalPlanning Construction
Roads in use(Maintenance)
Riskprofile deliveries to risk owners (contractor, consultant, municipality, project sponsor, etc.) and demands for supplier’sown Risk Management.
Deliveries DeliveriesDeliveries Deliveries
13 2010-05-19
The Southern Link in Stockholm – Successful ”Mega Project”
• 6.5 km road length in total
• 4.5 km mining tunnel in each direction
• Total tunnel length 17 km
• Opened October 2004
• Traffic volume 75,000 vehicles per day
• Cost 1100 million US Dollar
15 2010-05-19
What Happened in the Project Southern Link
• Strikes• Burglaries• Damage• Sheet piling penetrating gas conduit• Settling of houses and pipes• Sheet piling penetrating water-pipe• Collapse of footbridge• Building crane falling down• Rock nail missing in the sheet piling• Settling after freezing activity
• Rockslide• Flooding• Ceiling-fire• Sunk water level in a lake• Explosion accidents• Need of extra cable culvert• Mould in the evacuating tunnel /
equipment• Epoxi would not harden• Dispute with contractors
16 2010-05-19
Short Checklist for Project RM
• Decide on a plan for the project’s Risk Management• For larger projects appoint a coordinator for Risk Management • Best qualified to deal with the risk should undertake it• Project´s top 10 ranking risks delivered to the next phase with
suggestions for measures• Requirements in the contract for the contractor’s own RM• Perform the risk analysis based on the two perspectives
- Contractor phase- Road using phase
• During construction always prioritize safety, working environmentand environment along with Time-Cost-Function
• Keep the analysis up to date
17 2010-05-19
Road Using Phase –One PossibleApproach
• The map shows prioritization of the links based on the road userperspective, which causes most public economy damage if not operational (has high traffic volume and long reservealternative road).
• Investigate probability for hazards (e.g. snowstorms, windstorms, landslides, fog, accidents) for the highest prioritizedlinks.
• Complete with e.g. source of water supply, dangerous goods transportation, hospitals.
• Evaluate, rank the risks and carry outrisk reduction measures.
18 2010-05-19
5
4
3
2
1
PROBABILITY
CONSEQUENCES
Risk class 3 Risk class 2 Risk class 1
1 2 3 4 5
Which ASSETS/OBJECT can be damaged?
· within VTS · in the surroundings
Person Property Environment Finance Intangible
1
Which DANGERS can cause damage? · from VTS · from the surroudings
RISK FACTORS Which causes?
Which DAMAGE- EXTENT?
· min · type · max
RISK LEVEL
How urgent is the action?
PROBABILITY How probable?
CONSEQUENCE total damage value
POSSIBLE RISK REDUCING
ACTION · costs? · Effect on risk
6
4
4 2
3
5
×
3
A summary of thework procedure
INSTRUCTIONS – RISK ANALYSIS CHOSEN ROAD STRETCH
19 2010-05-19
Risk Management Must Have Active Support From the Management – Otherwise It Will Not be Successful.
It will not always be as it’s meant to be….things do happen!
20 2010-05-19
Risk Treatment Logic
risk treatment
carry avoid
control
reduce / eliminate
residual risk
accept / retain
Despite control action exposures that are not avoided or eliminated still exists
transfer / share
risk evaluation domain
the strategic choice
Risk treatment options
risk treatment
carry avoid
control
reduce / eliminate
residual risk
accept / retain
Despite control action exposures that are not avoided or eliminated still exists
transfer / share
risk evaluation domain
the strategic choice
Risk treatment options
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