The Swedish Transport Administration

1. Johan Hansen • Risk Manager • Risk Management • Internal Management and Control • johan.hansen@ • trafikverket.se RISKS & OPPORTUNITIES The Swedish Transport Administration

2. Dare to think ahead

3. RISK Insecurity effect on goal Humans Maybe good thingsnot happening. attitude: Development Dynamic vision IdeamarketDevelopmentpolicyImplementationperformance managementperformance Bad things can happen. attitude: Conservation Static view Naturediseaseswaraccidentslandslidefloods

4. Why manage risk….in the Swedish transport system To achieve the Swedish transport policy targets goals: • The functional objective of transport policy: Availability • The considerative objectives of transport policy: Health, safety and the environment

5. Internal management and control process designed to provide reasonable assurance regarding the achievement of objectives in the following categories: effectiveness and efficiency of operations; reliability of financial reporting; compliance with laws and regulations; economize (keep house) with state resources. Our view on the process is that it shall be developmental, which means exercising foresight.

6. Lines of responsibilities for Internal Management and Control / Risk Management First line of responsibility Second line of responsibility Third line of responsibility Risk Ownership Risk Management functions Audit functions Own risk andrisk management activities Establishes and instructionsframework for risk assessmentand follow-up Testing and validation ofeffectiveness of risk managementand control The line organization,Support functions Internal control; safety, emergency and security,Information, etc. • Internal audit;external audit Common concepts and definitions Common methods and tools Joint monitoring and reporting structure Common support schemes

7. The Transport Administration’s business analysis ANDstrategy and governing criteria Intended to meet the demands placed on analysis of business and operations in compliance with the Ordinance on Internal Management and Control (SFS 2007:603) The authority shall: • carry out a documented top management business analysis; • undertake control measures; • ensure that the internal control is systematically and regularly monitored and assessed

8. Transport Adm. Business analysis Risks and opportunities for internal control Board of Directors’ Assurance of internal management and Control Transport Adm. process work Follow up Transport Adm. strategy and governing criteria for internal control and risk management Business analysis – Manage and control – Board of Directors’ assurance Transport Adm. Guideline for risk management June: passed by the Board May: DG approval Whole year: SRA implements measures In connection with the annual report

9. Content in the Transport Adm. strategyand governing criteria • Risk strategy • Formalities Transport Adm. Business analysis • Executive management’s acceptance criteria in the form of a risk assessment matrix and opportunities matrix covering the entire operations • Criteria for escalation • Event, incident and crisis management

10. Content in the Transport Adm. Business analysis • The overall working process for Internal management & control • Highly prioritised risks and opportunities, aggregated from the entire organization

11. Consolidated risk matrix and profile Issued by executive management as the basic premises for the risk and opportunities assessments. • The top evaluation support are used as an aid to: • evaluate and rank • decide if risks and serious incidents that occur should be escalated to higher organizational level

12. Consolidated opportunitiesmatrix and profile

13. Risk Treatment Logic

14. Guideline based on ISO 31000 – Framework and Process Risk Management process RAMVERKET Establishing the context Åtagande och förankring Risk assessment Risk identification Risk analysis Planering/design av ramverket för hantering av risk Communication and consultation Monitoring and review Risk evaluation Implementering av ramverk & processer etc. Ständiga förbättringar av ramverket Risk treatment Kontroll och granskning av ramverket Framework based on PDCA creates conditions for integration with continuous improvement.

15. Guideline Risk Management in Transport Administration INTEGRATED RISK MANAGEMENT Risk Management Continuity Management Incident Management Crisis management Environ-ment Informa-tion security Internal control Traffic and electric power safety Working environ-ment Security

16. Overall Scenario Methodology for Risk Analysis

17. The Scenario Analysis - Step By Step

18. Swedish Road Administration 18 Normal Condition / Serious Condition / Crisis • Transport Adm. strategy and governing criteria • Risk Management in: • Balanced Scorecard • Project • Working processes • Safety • (IT-security, Working, • Environmental, Offices etc.) • Crisis • Management Transport Adm. Business analysis Risks and opportunities for internal control

19. - • Government • Focus • Critical Goals • Customer Focus • Critical Goals • Work approaches • focus • Critical Goals • Co-worker Focus • Critical Goals • Financial Focus • Critical goals Risk management - Balanced Scorecard VISION Risk Analysis Plan for Action

20. Crisis Management – Main Scenarios • Hazard within the transport system • Hazard from surroundings • Hazard from the transport system

21. Risk Management in Network Management / Infrastructure Project Strategic Planning Construction Physical Planning Roads in use (maintenance) Deliveries Deliveries Deliveries Deliveries Riskprofile deliveries to risk owners (contractor, consultant, municipality, project sponsor, etc.) and demands for supplier’s own risk management.

22. 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 1,100 million US Dollar

23. The Southern Link in Stockholm

24. 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 What Happened in the Project Southern Link

25. 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 environment and environment along with Time-Cost-Function • Keep the analysis up to date

26. The map shows prioritization of the links based on the road user perspective, which causes most public economy damage if not operational (has high traffic volume and long reserve alternative road). • Investigate probability for hazards (e.g. snowstorms, windstorms, landslides, fog, accidents) for the highest prioritized links. • Complete with e.g. source of water supply, dangerous goods transportation, hospitals. • Evaluate, rank the risks and carry out risk reduction measures. Road Using Phase –One Possible Approach

27. A summary of the work procedure