ASSET & RISK MANAGEMENT


Managing risk A


s the rail industry faces a number of key challenges - including climate change and a dramatic shift in its funding structure - risk management is going to become even more important than before.


However, whilst it is incredibly important, people can mean different things when they talk about risk management.


According to Caroline Wake, deputy director of the Railway Safety Directorate at the Office of Rail Regulation, what risk management means really depends on who you ask.


She said: “If you ask a health and safety professional about risk management, they will tell you about health and safety risk management – but broadly, risk management covers everything which might threaten an organisation’s ability to carry out its work.”


A key part of mitigating the risks to an organisation – such as a train operator – is the idea of business continuity, which involves planning an organisation’s response to various ‘worst case scenarios’.


This means that should something major – natural disaster or a terrorist attack – take place, the organisation has plans in place to begin to deal with the problem at large. Obviously, the first step is to ensure the safety of employees.


Caroline said: “It is very hard to disentangle health and safety risks from any other kind of risks, because they all require an effective management strategy and it follows that if you’re good at doing one then you’re likely to


50 | rail technology magazine Dec/Jan 11


Risk management plays a crucial role in both keeping people safe and services running, reports Richard Mackillican


be good at doing the other. The two are inextricably linked.


“The ORR has recently published a new management maturity model which reinforces our approach to managing health and safety risk in the industry but is equally valid for analysing how well all other kinds of risks are being managed. It focuses on the basic management principles of setting a clear policy for your organisation – this involves asking yourself what your principles and beliefs are.


“It also means ensuring your organisation is set up to deliver, and that people within the organisation have clear responsibilities and accountabilities - along with the skills they need to deliver those responsibilities and accountabilities.


“There also need to be good communications systems


in place and good control mechanisms in place for managing the areas of risk.


“You then need people to implement those policies, procedures and control mechanisms - whilst also monitoring them to ensure the outcomes which were anticipated occur, along with reviewing their performance regularly.


Caroline Wake


“This involves auditing what you are doing from time to time so you are learning and continuously improving.


“It is our job to gain assurance that all railway employers are delivering health and safety compliance and the results they aspire to achieve in terms of safety.”


“This is the fundamental model we use for analysing the management performance of managing health and safety risk.”


Whilst overall safety in the rail industry is relatively good in Britain, there have still been cases where workers have either been hurt or killed in recent times. Does this then mean that some people in the industry are


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