Risk Bearer

Report
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

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