Johan Hansen S ITIE TUN Risk Manager

Johan Hansen S ITIE TUN Risk Manager • Risk Management • Internal Management and Control SKS RI POR OP & johan. hansen@ trafikverket. se The Swedish Transport Administration

Dare to think ahead

RISK Insecurity effect on goal Humans Bad things can happen. attitude: Conservation Static view Nature diseases war accidents landslide floods 3 3/19/2018 Maybe good things not happening. attitude: Development Dynamic vision Idea market Development policy Implementation performance management performance

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 4 3/19/2018

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. 5 3/19/2018

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 and risk management activities Establishes and instructions framework for risk assessment and follow-up Testing and validation of effectiveness of risk management and control Internal control; safety, emergency and security, Information, etc. Internal audit; external audit The line organization, Support functions Common concepts and definitions Common methods and tools Joint monitoring and reporting structure Common support schemes 6 3/19/2018

The Transport Administration’s business analysis AND strategy 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 7 3/19/2018

Business analysis – Manage and control – Board of Directors’ assurance Transport Adm. Business analysis Risks and opportunities for internal control Transport Adm. strategy and governing criteria Board of Directors’ Transport Adm. process work for internal control and risk management Follow up Assurance of internal management and Control Transport Adm. Guideline for risk management May: DG June: passed Whole year: In connection with approval by the Board SRA implements measures the annual report 8 3/19/2018

Content in the Transport Adm. strategy and 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 9 3/19/2018

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 10 3/19/2018

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 11 3/19/2018

Consolidated opportunities matrix and profile 12 3/19/2018

Risk Treatment Logic 13 3/19/2018

Guideline based on ISO 31000 – Framework and Process Risk Management process Establishing the context Risk identification Risk analysis Risk evaluation Risk treatment Framework based on PDCA creates conditions for integration with continuous improvement. 14 3/19/2018 Monitoring and review Communication and consultation Risk assessment

Guideline Risk Management in Transport Administration INTEGRATED RISK MANAGEMENT Risk Management Continuity Management Incident Management Crisis management Information security 15 3/19/2018 Traffic and electric power safety Working environment Internal control Environment Security

Overall Scenario Methodology for Risk Analysis 16 3/19/2018

The Scenario Analysis - Step By Step 17 3/19/2018

Swedish Road Administ Normal Condition / Serious Condition / Crisis Transport Adm. strategy and governing criteria Risk Management in: • Balanced Scorecard • Project • Working processes • Safety • Crisis • Management (IT-security, Working, Environmental, Offices etc. ) Transport Adm. Business analysis Risks and opportunities for internal control 18 3/19/2018

Risk management - Balanced Scorecard - Government Focus • Critical Goals • • • Customer Focus VISION • Critical Goals • • • Plan for Action Work approaches focus Co-worker Focus • Critical Goals • • • 19 3/19/2018 • Critical Goals • • • Risk Analysis Financial Focus • Critical goals • • •

Crisis Management – Main Scenarios • Hazard within the transport system • Hazard from surroundings • Hazard from the transport system 20 3/19/2018

Risk Management in Network Management / Infrastructure Project Strategic Planning Deliveries Physical Planning Construction Deliveries Roads in use (maintenance) Deliveries Riskprofile deliveries to risk owners (contractor, consultant, municipality, project sponsor, etc. ) and demands for supplier’s own risk management. 21 3/19/2018

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 22 3/19/2018

The Southern Link in Stockholm 23 3/19/2018

What Happened in the Project Southern Link • • • 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 3/19/2018 • • 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

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 25 3/19/2018

• 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. 26 3/19/2018 Road Using Phase – One Possible Approach

A summary of the work procedure 27 3/19/2018

28 3/19/2018