Swedish Risk Management System

Internal management and control Aiming to Transport Administration with reasonable certainty to meet regulatory requirements of the regulation on the business: Conducted efficiently; Conducted in accordance with applicable law and obligations; Reported in a reliable and accurate manner; Be economical well with state funds Means that: Clearly delegate responsibility and authority, and establish procedures and rules for the operation. In order to secure ongoing work, the following must be integrated into business management: -Implement a proven business analysis (risk analysis) -Take control measures to manage the risks -Systematically and regularly monitor and assess ISK

Common management philosophy Common governance common work common working common tools Financial management Rule Control Objectives and results Shared values Project Manage ment areas ongoing operations Process-oriented approach, risk management etc. Models, systems, etc. Overall control and management framework Internal Governance and Control Transport Administration Rules

Lines of responsibilities for Internal management and control / Risk Management The line organization, Support functions Risk Ownership Own risk and risk management activities Internal control; safety, emergency and security, Information, etc. Risk Management functions Establishes and instructions framework for risk assessment and follow-up Internal audit; quality audit, Audit activities Audit functions Testing and validation of effectiveness of risk management and control Common concepts and definitions Common methods and tools Joint monitoring and reporting structure Common support schemes First line of responsibility Second line of responsibilityThird line of responsibility

Business analysis – Manage and control – Board of Directors’ assurance Transport Adm. process work Follow up Board of Directors’ Assurance of internal control Transport Adm. Business analysis Risks and opportunities for internal control Transport Adm. strategy and governing criteria for internal control and risk management May: DG approval June: passed by the Board Whole year: STA implements measures In connection with the annual report Transport Adm. Guideline for risk management Internal and external audit based on operational analysis and review system

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

Consolidated risk matrix and profile 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 Issued by executive management as the basic premises for the risk and opportunities assessments.

Consolidated opportunities matrix and profile

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

consequence Very serious Minor Probability Low Very high 5MåttligAllvarlig Mycket allvarlig 4Måttlig Allvarlig Mycket allvarlig 3LågMåttlig Allvarlig 2LågMåttlig Allvarlig 1Låg Måttlig Examples of presentation of the risks No. Board Risk Management Risks 12N 12G Change of risk New risk

Risk management process integrated into the planning and follow up Risk Monitoring and Communications Risk assessment Risk identification Risk analysis Risk Evaluation Risk treatment Documentation / Risk Register Risk Monitoring and Communications MissionReporting Input values Risk Profiler / Basis for risk reports Project, management and ongoing operations SocietyTrafficMajor projectsProfit centers Top Management Mission Reporting Investment Key functions

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

Risk Management - Balanced Scorecard - Government Focus Critical Goals Financial Focus Critical goals Co-worker Focus Critical Goals Work approaches focus Critical Goals Customer Focus Critical Goals VISION Risk Analysis Plan for Action

Infrastructural project Strategic Planning Physical Planning Construction Roads in use (maintenance) Riskprofile deliveries to risk owners (contractor, consultant, municipality, project sponsor, etc.) and demands for supplier’s own risk management. Deliveries

Working method risk management of the organization's processes Step 4 Establish requirements for the process Step 4 Establish requirements for the process Step 2 Identify stakeholders and their interests Step 2 Identify stakeholders and their interests Step 1 identify process Step 1 identify process Step 6 Analyze / identify improvement needs Step 6 Analyze / identify improvement needs Step 5 Goals and metrics to measure process Step 5 Goals and metrics to measure process Step 3 Mapping Process Step 3 Mapping Process Determining input values Risk Assess (identify, analyze, evaluate)) Risk treat and follow up Process Analysis - problem analysis - Analysis of the contact surfaces with customer - Value Analysis - Liability Analysis Process Analysis - problem analysis - Analysis of the contact surfaces with customer - Value Analysis - Liability Analysis Risk, threat and vulnerability analyzes Goals and Results, Projects, Management, Operating activities Process

Road Using Phase – One Possible Approach 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.

Known knowns… and unknown unknowns known unknowns… The world – as we knows it… ACCIDENTS

Unexpected or not?

Hazard within the transport system Hazard from surroundings Hazard from the transport system Crisis Management – Main Scenarios