Transcript Risk Bearer
Poland’s A2 Motorway Operational Risks Team 2: Yusuf Akkoca Tom Bloom Karen Delton Shweta Hire Eric Johnson David Mahzonni 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 Heat Map Consequence 1 2 3 4 5 Likelihood 1 1 OC Managing/Operating Motorway - Lack of Experience 2 Toll Revenue - Affected by alternative routes 3 Toll revenue impacted by national economy 2 2 3 3 4 Poznan bypass not completed 5 Can operational income fund maintenance and debt 4 5 1 4 6 5 6 Toll charge too high or too low 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 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. Operational Risk # 3 • Risk: - Toll route negatively affected by the national economy. • ID & Assessment - Yes, identified & assessed. • Risk Bearer - AWSA, Government & Banks. • Mitigation - Insurance Operational Risk # 4 • Risk: - POZNAN bypass not completed by the government. • ID & Assessment - Identified and assessed • Risk Bearer - AWSA • Mitigation - Concession agreement with government 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. 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. 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. Thank you! Team 2: Yusuf Akkoca Tom Bloom Karen Delton Shweta Hire Eric Johnson David Mahzonni