This is the fourth in a series of articles that will comprise a mock-version of a Risk Management Policy for a Commuter Railroad Company (CRC). This article covers risks and transfer mechanisms.
Previous articles covered the scope, purpose, Mission/Vision, customer satisfaction attributes, objectives and goals, typical risks, philosophies for managing risks, and risks and accepted impacts.
Future articles will cover other policy topics for risks and avoid mechanisms, and managing project risks.
Risks and Transfer Mechanisms
Risks not accepted by the CRC can be categorized as Transfer. Below is a description on managing these type risks:
Transferring a risk indicates that regardless of probability and impacts, the impacts of the risk will be managed by an outside entity. CRC will assure its business processes describe the mechanism for the transfer of risk responsibility and liability to an outside entity, such as a contractor, consultant, vendor, or an insurance company. The decision to transfer the risk initiates preventive action that will be implemented to ensure the defined risk, its liability, management and control is transferred via contractual agreement with an outside entity.
• RISK/MECHANISM: Operating Environment Deteriorates. Not applicable.
• RISK/MECHANISM: Infrastructure Problems Occur. The transfer mechanism includes service contract, on-call contracts and insurance policies.
• RISK/MECHNAISM: Customer Disputes Occur. Not applicable.
• RISK/MECHANISM: Medical Emergencies Occur. The transfer mechanism includes insurance policies.
• RISK/MECHANISM: Assisted Passenger Loading Increases. Not applicable.
• RISK/MECHANISM: Train Cleanliness Decreases. Not applicable.
• RISK/MECHANISM: Train HVAC Performance Decreases. Not applicable.
• RISK/MECHANISM: Outside Entity Fouls Right of Way. The transfer mechanism includes Contract Work Requirements, Contract Insurance/Bond Requirements and Contract Performance Requirements.
• RISK/MECHANISM: MTA Priorities or Goals Change. Not applicable.
• RISK/MECHANISM: Corporate Policies and Procedures Change. Not applicable.
• RISK/MECHANISM: Union Agreements Change or Disputes Occur. Not applicable.
• RISK/MECHANISM: Political Influence Creates Changes. Not applicable. Saving Changes...