|Best Advice for Commuter Rail Risk Policy - Part 6
This is the sixth 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 managing project risks.
Previous articles covered the scope, purpose, Mission/Vision, customer satisfaction attributes, objectives and goals, typical risks, philosophies for managing risks, risks and accepted impacts, risks and transfer mechanisms, and risks and avoid mechanisms.
Identification and Management of Project Risks
The management of risks for maintenance and operation activities performed across business functions. The most significant risks affecting the performance indicators involves the daily operation and maintenance activities supporting the movement of trains and customers throughout the CRC’s system of stations, rail, interlockings, employee facilities, transport vehicles, and shops and yards. The main departments responsible for managing the performance indicators and overall health of the organization include:
• Transportation/Maintenance of Equipment/Engineering
• Office of Management and Budget (OMB)/Fiscal Control.
Risks directly impacting the performance indicators and external customer satisfaction attributes will be identified, presented by the responsible departments to CRC’s president and senior staff with solutions for implementation in accordance with the Corporate Quality Management System. The requirements for the risk management process is described in Risk Escalation Protocol.
Risks affecting the performance indicators and directly impacting internal customer satisfaction attributes will be presented by the responsible departments to the CRC’s president and senior staff in accordance with the Corporate Quality Management System.
Infrastructure Problems Occur and Outside Entity Fouls Right of Way are most frequently associated with work performed under the CRC’s Capital Program, which is a cyclical program involving major construction or fleet procurement funded by non-operating and government sources.
The identification and management of project risks will occur during the initiation, planning, execution, monitoring and controlling and closeout phases of each project. The requirements for the risk management process is described in the Project Management Guidelines titled “Risk Identification and Risk Management.”
Risk Escalation Protocol
Accepted, Transferred and Avoided risks for all business functions will be managed in accordance with established risk management policies, procedures and best practices.
Accepted, Transferred and Avoided risks on Capital Projects will be managed by the Project Manager with support from project participants throughout the project life cycle. The requirements are described in the Project Management Guideline titled “Risk Identification and Risk Management.”
Triggered risks on projects will be escalated through established Senior Project Management Oversight meeting, which are managed by Strategic Investments. The content, format and language will comply with established documentation and at a minimum identify the triggered risk in terms of scope, schedule, budget, quality or safety. The Project Manager will assure the risk is described, monitoring and mitigation activities are summarized and a statement on implementing the response action stipulated in the Risk Management Worksheet.