Corporate Risk Management

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Corporate Risk Management

• The Tube Lines Experience

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What is Tube Lines?

• On 31 December 2002, Tube Lines assumed
  responsibility for the maintenance and upgrade of
  all the infrastructure on the Jubilee, Northern
  and Piccadilly lines as part of the largest
  improvement programme the Tube has ever seen.
  Tube Lines has a 30 year Public Private
  Partnership (PPP) contract with London
  Underground. The contract is output based,
  meaning Tube Lines is rewarded for good
  performance and penalised for poor performance.

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Risk Management

• During bid process
• Forced by regulation
• Forced by corporate governance rules
• Ad Hoc on projects

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Islands of Excellence
Safety Risk
Health Safety
Operational Response
Strategic Risk
Project Risk
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So What Was the Problem?

• Different Approaches
• How do you compare risk mitigations arrived at
  and expressed in completely different ways and
  come to a spending decision?

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Why Does This Matter?

• Allocation of restricted funds
• Ultimately making a profit SURVIVAL

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So What is the Solution?

• To try to look at all risks in the same way.
• How?
• Use a single overarching process
• Use a single tool for the management of all risks

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Active Risk Manager

• Enterprise-wide risk management software solution
  which claims to be scalable and is web based
  
• Built from a project management risk tool but now
  claiming to provide a complete enterprise
  solution
  

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Status

• Starting to Implement the Process
• Pilot departments
• Training
• Awareness
• Culture Change

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Potential Problems?

• Safety Critical Risk Management
• Marrying top down to bottom up
• IT
• Universal buy in

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Comparison With The Military

• Operational reaction
• Stovepipes
• Top down meets bottom up
• Change in large hierarchical organisations

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Questions?

• Ian Fish
• Steelhenge Consulting Limited
• Queen Annes Chambers
• Broadway
• London SW1H 9JS
• Email if_at_steelhenge.co.uk