1. Poland’s A2 Motorway Operational Risks Team 2: Yusuf Akkoca Tom Bloom Karen Delton Shweta Hire Eric Johnson David Mahzonni

2. Operational Risks Defined: “The risk of loss resulting from inadequate or failed internal processes, people and systems, or from external events” - Basel Committee “A form of risk that summarizes the risks a company or firm undertakes when it attempts to operate within a given field or industry. Operational risk is the risk that is not inherent in financial, systematic or market-wide risk. It is the risk remaining after determining financing and systematic risk, and includes risks resulting from breakdowns in internal procedures, people and systems”. - Investopedia

3. Heat Map Consequence 12345 Likelihood 1 2 2 3 314 4 65 5 1OC Managing/Operating Motorway - Lack of Experience 2Toll Revenue - Affected by alternative routes 3Toll revenue impacted by national economy 4Poznan bypass not completed 5Can operational income fund maintenance and debt 6Toll charge too high or too low

4. Operational Risk # 1 Risk: -Operation Company (OC) managing and operating the motorway poorly. ID & Assessment - No, not considered Risk Bearer - Autostrada Wielkopolska, S.A. (AWSA). Mitigation - Closely monitor management of operations

5. Operational Risk # 2 Risk: -Toll route negatively affected by alternate transportation routes. ID & Assessment - Identified & Assessed Risk Bearer - AWSA Mitigation - Government concession agreement to not build or improve competing roadways.

6. Operational Risk # 3 Risk: -Toll route negatively affected by the national economy. ID & Assessment - Yes, identified & assessed. Risk Bearer - AWSA, Government & Banks. Mitigation - Insurance

7. Operational Risk # 4 Risk: -POZNAN bypass not completed by the government. ID & Assessment - Identified and assessed Risk Bearer - AWSA Mitigation - Concession agreement with government

8. Operational Risk # 5 Risk: -Will operational income fund maintenance and debt services? ID & Assessment - Identified, but do not understand full ramifications. Risk Bearer - AWSA, banks, shareholders & citizens. Mitigation - Close monitoring and management of toll prices.

9. Operational Risk # 6 Risk: -Toll charge priced too high or too low. ID & Assessment - Identified & assessed, but not accurately. Risk Bearer - AWSA, banks & government. Mitigation - Reiterative evaluation and flexibility of toll rates.

10. Cash Leakage OC income from a fee not from tolls, so tolls may not be gathered. Lost tolls, or more expensive maintenance will reduce debt service. Toll booth operators pocketing tolls money.

11. Thank you! Team 2: Yusuf Akkoca Tom Bloom Karen Delton Shweta Hire Eric Johnson David Mahzonni