Enterprise risk management
Risk management overkill
There is an ancient Chinese saying "may you live in interesting times". While purporting to be a blessing, this proverb was originally used as a curse. A high proportion of industrial, commercial and financial sectors across the globe would probably agree.
Thinking power: avoiding mental traps in risk-based decision making
In his international bestseller Thinking, Fast and Slow, Daniel Kahneman (winner of the Nobel Prize in Economics in 2002) describes mental life by the metaphor of two agents, called System 1 and System 2.
The Olympic dream: integrated railways for 2012
On 27th July 2012, London will play host to the world's largest sporting event - the Olympic Games - which will bring an estimated 9.7 million spectators to London over 16 days. Transport for London (TfL) has been tasked with providing a public transport system that will not only deliver games-specific projects and services but which will also maximise and enhance the use of the existing transport network [see Table 1].
Enterprise risk management – how to prevent losses and create value
Organisations create value by taking risks and lose value by failing to manage them. Effective Enterprise Risk Management (ERM) is about ensuring that the organisation knows what risks it is taking, that these are the right ones and that they are appropriately managed. ERM provides the processes to help organisations protect and enhance value.
De-risking offshore wind energy
Europe has seen exponential growth in offshore wind energy over the last decade with the UK at the forefront. New licences recently awarded by the UK government, for example, will see offshore generating capacity increase from about 2 GW to around 33 GW by 2020 [Ref. 1], which is equivalent to the output of about 30 modern nuclear reactors.
Closed-loop risk management
The concept underpinning enterprise risk management (ERM), namely a portfolio view of risk, has been around a long time. Today, many companies have done a great deal of work to assess enterprise risks. But traditionally these assessments have been fragmented and resulted in compartmentalising risks into "silos". Much less has been done to embed an effective ERM framework into an organisation, from the executive through the managerial levels to operations.
All change – the implications of train operator transfers
Like so many of the former public services, today's rail industry has seen years of change, and it seems unlikely that the pace of change will slow down. One notable aspect is the ongoing ownership transfers of the franchises that operate the trains. These bring many challenges to the new franchisees and to the regulators including:
Applying QRA more widely
In recent years, there has been increasing interest in extending the scope of quantitative risk assessment (QRA) beyond the risk to people to look at areas such as environmental damage, economic impact and the effect on reputation. High profile accidents with widespread consequences, such as Deepwater Horizon, Buncefield and Fukushima, have left many organisations with a desire to understand better their exposure across the whole spectrum of potential risks. But how easy in practice is it to apply QRA more widely?
An introduction to modern asset integrity management
The recent Deepwater Horizon incident in the Gulf of Mexico reinforces the fact that every operator of high-hazard physical assets is exposed to low-frequency high-impact risks. Every operator has a corporate goal of preventing major incidents by managing the governance and integrity of its assets. A robust corporate asset management framework, within which an integrity management regime can operate, is one way of achieving this aim.