ABSTRACT
The recent collapse of Transmilenio, the public transport system of Colombia 's capital - Bogota, raises the question of how risk is managed in public transportation systems. This paper presents three case studies of companies in countries with advanced, emerging, and fast emerging economies, UK, Colombia and Brazil respectively. It aims to classify them according to the maturity level of their risk management processes. Hillson 's integrated risk management model will be used for this analysis, as it will allow an insight to how these organizations integrate the management of opportunities to the management of risk.
INTRODUCTION
Public transport organizations as any other type of organization need to put in place a risk management …show more content…
1987). Population growth in cities will, without a shadow of a doubt, challenge the effectiveness and capacity of public transport organizations (Transport committee 2011). In some cases, when the demand for transport exceeds the offer, the transport systems collapse, therefore, the organization responsible for providing the service fails to meet its objectives. Such has been the case of Transmilenio (Publicaciones Semana, 2014).
Transmilenio is the public organization responsible for managing, planning and providing public transport to Bogota, the capital of Colombia. Transmilenio provides bus rapid transit services and regular bus services. It started its operation in the year 2000 and it was estimated that by 2016, Transmilenio would count with 388 kilometres of roads exclusive to the bus system (Departamento Nacional de Planeacion, 2000). However, by March 2014, only 109 kilometres had been built (Publicaciones Semana, …show more content…
The importance of a proactive approach (Larson et al., 2014) towards risk management has been studied by different authors and scholars (Buehler et al.,2008; Beasley et al.,2005; Miller, 2007), all of whom agree that risk is inherent to every business activity. Consequently, management processes have to be deployed to identify, assess, plan, develop responses, monitor and review the risks, as a mean to improve business performance, and increase organizational benefits. (Hillson, 2011; Chapman, 2011; ISO 31000:2009).
Risks faced by organizations are usually classified, according to their extent and nature (M_o_R, 2010; Hillson, 2011), into perspectives or specialisms such as strategic, financial, reputational, incident and crisis, contractual, amongst others. The concept of Integrated Risk Management or Enterprise Risk Management as described by Chapman (2011), arises as a result of risk diversity and the need for the organizations to implement a broader approach towards managing risks. Integrated Risk Management is suggested as a more adequate tool to manage risks, identifying and understanding it’s interdependencies across different areas and levels of an organization instead of dividing risks into ‘mutually
The recent collapse of Transmilenio, the public transport system of Colombia 's capital - Bogota, raises the question of how risk is managed in public transportation systems. This paper presents three case studies of companies in countries with advanced, emerging, and fast emerging economies, UK, Colombia and Brazil respectively. It aims to classify them according to the maturity level of their risk management processes. Hillson 's integrated risk management model will be used for this analysis, as it will allow an insight to how these organizations integrate the management of opportunities to the management of risk.
INTRODUCTION
Public transport organizations as any other type of organization need to put in place a risk management …show more content…
1987). Population growth in cities will, without a shadow of a doubt, challenge the effectiveness and capacity of public transport organizations (Transport committee 2011). In some cases, when the demand for transport exceeds the offer, the transport systems collapse, therefore, the organization responsible for providing the service fails to meet its objectives. Such has been the case of Transmilenio (Publicaciones Semana, 2014).
Transmilenio is the public organization responsible for managing, planning and providing public transport to Bogota, the capital of Colombia. Transmilenio provides bus rapid transit services and regular bus services. It started its operation in the year 2000 and it was estimated that by 2016, Transmilenio would count with 388 kilometres of roads exclusive to the bus system (Departamento Nacional de Planeacion, 2000). However, by March 2014, only 109 kilometres had been built (Publicaciones Semana, …show more content…
The importance of a proactive approach (Larson et al., 2014) towards risk management has been studied by different authors and scholars (Buehler et al.,2008; Beasley et al.,2005; Miller, 2007), all of whom agree that risk is inherent to every business activity. Consequently, management processes have to be deployed to identify, assess, plan, develop responses, monitor and review the risks, as a mean to improve business performance, and increase organizational benefits. (Hillson, 2011; Chapman, 2011; ISO 31000:2009).
Risks faced by organizations are usually classified, according to their extent and nature (M_o_R, 2010; Hillson, 2011), into perspectives or specialisms such as strategic, financial, reputational, incident and crisis, contractual, amongst others. The concept of Integrated Risk Management or Enterprise Risk Management as described by Chapman (2011), arises as a result of risk diversity and the need for the organizations to implement a broader approach towards managing risks. Integrated Risk Management is suggested as a more adequate tool to manage risks, identifying and understanding it’s interdependencies across different areas and levels of an organization instead of dividing risks into ‘mutually