A New Classification of Risk-Reduction Options to Improve the Risk-Reduction Readiness of the Railway Industry
The gap between the selection of risk-reduction options in the railway industry and the task of their effective implementation results in compromised safety and substantial losses. An effective risk management must necessarily integrate the evaluation phases with the implementation phase. This paper proposes an essential categorisation of risk reduction measures that best addresses a standard railway industry portfolio. By categorising the risk reduction options into design, operational, procedural and technical options, it is guaranteed that the efforts of the implementation facilitators (people, processes and supporting systems) are systematically harmonised. The classification is based on an integration of fundamental principles of risk reduction in the railway industry with the systems engineering approach.
This paper argues that the use of a similar classification approach is an attribute of organisations possessing a superior level of risk-reduction readiness. The integration of the proposed rational classification structure provides a solid ground for effective risk reduction.
[1] Van Der Merwe, A.P. (2002). Project Management and business
development: integrating strategy, structure processes and projects.
International Journal of Project Management 20, pp. 401-411. Elsevier
Science Ltd.
[2] Van Der Merwe, A.P. (2002). Multi-project management --
organizational structure and control. International Journal of Project
Management Vol. 15, No. 4, pp. 223-233.
[3] Hobbs, B.; Andersen, B. (2001) .Different alliance relationships for
project design and execution. International Journal of Project
Management 19, pp. 465-469. Elsevier Science Ltd.
[4] Neil, M., Fenton, N. (2005). Tailor M. Using Bayesian networks to
model expected and unexpected operational losses. Risk Analysis, 25,
pp. 963–72.
[5] Williams, T.; Eden, C.; Ackermann, F.; Tait, A.; (1995). The effects of
design changes and delays on project costs. Journal of the Operational
Research Society, pp. 809–18.
[6] Millera, R., Lessard, D. (2001). Understanding and managing risks in
large engineering projects. International Journal of Project Management
19, pp. 437–443. Elsevier Science Ltd.
[7] Love, P.E.D.; Lopez, R.; GOH, Y.M.; TAM, C.M. (2011). What goes up
shouldn’t come down: Learning from construction and engineering
failures. The 12th East Asia-Pacific Conference on Structural
Engineering and Construction. Procedia Engineering 14, pp. 844-850.
Elsevier Ltd.
[8] Holzmann, V.; Spiegler, I. (2011). Developing risk breakdown structure
for information technology organizations. International Journal of
Project Management 29, pp. 537–546.
[9] Gokpinar, B.; Hopp, W.J.; Iravani, S.M.R (2010). The Impact of
Misalignment of Organisational Structure and Product Architecture on
Quality in Complex Product Development. Management Science Vol.
56, No. 3 pp. 468-484.
[10] Hansen, M. T. (2002). Knowledge networks: Explaining effective
knowledge sharing in multi-unit companies. Organ. Sci. 13(3), pp. 232 –
248.
[11] Carlile, P. R. (2002). A pragmatic view of knowledge and boundaries:
Boundary objects in new product development. Organ. Sci. 13(4), pp.
442 – 455.
[12] Contractor, N. S.; Monge, P. R. (2002). Managing knowledge networks.
Management Comm. Quart. 16(2) 249–258.
[13] Nonaka, I.; Takeuchi, H. (1995). The Knowledge-Creating Company:
How Japanese Companies Create the Dynamics of Innovation.Oxford
University Press, New York.
[14] Fang, C.; Marle, F.; Zio, E.; Bocquet, J. (2012). Network theory-based
analysis of risk interactions in large engineering projects. Reliability
Engineering and System Safety 106, pp. 1–10
[15] Corbett, L.M.; Brockelsby, J.; Campbell-Hunt, C. (2002). Tackling
industrial complexity. Cambridge: Institute for Manufacturing.
[16] Schlindwein, S.L.; Ison, R. (2004). Human knowing and perceived
complexity: implications for systems practice. Emergence: Complexity
and Organization 6, pp. 27–32.
[17] Baccarini, D. (1996). The concept of project complexity - a review.
International Journal of Project Management 14, pp. 201–4.
[18] Vidal, L.A.; Marle, F.; Bocquet, J.C. (2011). Using a Delphi process and
the analytic hierarchy process (AHP) to evaluate the complexity of
projects. Expert Systems with Applications, 38 (5), pp. 388 –405.
[19] Wong, V.; Shaw, V.; Sher, P. J. H. (1998). Effective Organization and
Management of Technology Assimilation - The Case of Taiwanese
Information Technology Firms. Industrial Marketing Management 27,
pp. 213–227. Elsevier Science Inc.
[20] Ahonena, J.J.; Savolainena, P. (2010). Software engineering projects
may fail before they are started: Post-mortem analysis of five cancelled
projects. The Journal of Systems and Software 83, pp. 2175–2187.
Elsevier Inc.
[21] McFarlan, F.W. (1992). ‘Multinational CIO challenges for the 199Os’,
in Palvia, S., Palvia, P. and Zigli, R.M. eds., The Global Issues of
Information Technology Management, Idea Group Publishing,
Harrisburg, PA.
[22] Zaltman, G.; Dunca, R.; Holbeck, .J. (1973). Innovations and
Organizations. Wiley, New York, 1973.
[23] Baker, N.R.; Sweeney, D.J. (1978). Toward a conceptual framework of
the process of organized innovation technological within the firm.
Research Policy 7, pp. 150-174.
[24] Remenyi, D.; Heafield, A. (1996). Business process re-engineering:
some aspects of how to evaluate and manage the risk exposure.
International Journal of Project Management Vol. 14, No. 6, pp. 349-
357. Elsevier Science Ltd.
[25] Willcocks, .L.;Margetts, H. (1994). Informatisation in Public and Private
Sector Settings: Distinctive or Common Risks? Informatisation and the
Public Sector.
[26] Bessant, J. (1991). Managing Advanced Manufacturing Technology:
The Challenge of the Fifth Wave, NCC- Blackwell, Manchester.
[27] Patanakul, P.; Milosevic, D. (2009). The effectiveness in managing a
group of multiple projects: Factors of influence and measurement
criteria. International Journal of Project Management 27, pp. 216–233,
Elsevier Ltd.
[28] Seider, R. (2006). Optimizing project portfolios. Research Technology
Management 2006, pp. 49:43.
[29] Hendriks, M.; Voeten, B.; Kroep, L. (1999). Human resource allocation
in a multi-project R&D environment: resource capacity allocation and
project portfolio planning in practice. International Journal Project
Management, 17, pp. 181–8.
[30] Nobeoka, K.;Cusumano, M.A. (1995). Multi-project strategy, design
transfer, and project performance: a survey of automobile development
projects in the US and Japan. IEEE Trans Eng Manage (42), pp. 397–
409.
[31] Taleb, N.N. (2007). The black swan, the impact of the highly
improbable, Penguin books.
[32] Whitty, S.J.; Maylor, H., (2009). And then came complex project
management. International Journal of Project Management 27, pp. 304–
310.
[33] Koppenjana, J.; Veenemanb, W.; Van der Voortb, H.; ten Heuvelhofb,
E.; Leijten, M. (2011). Competing management approaches in large
engineering projects: The Dutch RandstadRail project. International
Journal of Project Management 29, pp. 740–750. Elsevier Ltd.
[34] Todinov M.T.; Weli E. (2013). Optimal risk reduction in the railway
industry by using dynamic programming. International Conference on
Reliability, Safety and Security Engineering, London, UK. World
Academy of Science Engineering and Technology, 79, pp. 220-224.
[35] Marshal, C. (2001). Measuring and Managing Operational Risk in
Financial Institutions. John Wiley & Sons. pp. 3 – 44. ISBN 978-
0471845959.
[36] Bessis, J. (2002). Risk Management in Banking. John Wiley & Sons;
2nd Edition, pp. 51 – 67. ISBN 978-0471499770.
[37] Railways and Other Guided Transport Systems (Safety) Regulations
(ROGS). http://www.rail-reg.gov.uk/server/show/nav.1511. Accessed
29-10-13.
[38] Weli, E.; Todinov, M.T. (2013). A new approach to risk reduction in the
railway industry. Institution of Engineering and Technology Special
Interest Publication - Infrastructure Risk & Resilience: Transportation.
pp. 47 – 52. ISBN 978-1-84919-696-3.
[1] Van Der Merwe, A.P. (2002). Project Management and business
development: integrating strategy, structure processes and projects.
International Journal of Project Management 20, pp. 401-411. Elsevier
Science Ltd.
[2] Van Der Merwe, A.P. (2002). Multi-project management --
organizational structure and control. International Journal of Project
Management Vol. 15, No. 4, pp. 223-233.
[3] Hobbs, B.; Andersen, B. (2001) .Different alliance relationships for
project design and execution. International Journal of Project
Management 19, pp. 465-469. Elsevier Science Ltd.
[4] Neil, M., Fenton, N. (2005). Tailor M. Using Bayesian networks to
model expected and unexpected operational losses. Risk Analysis, 25,
pp. 963–72.
[5] Williams, T.; Eden, C.; Ackermann, F.; Tait, A.; (1995). The effects of
design changes and delays on project costs. Journal of the Operational
Research Society, pp. 809–18.
[6] Millera, R., Lessard, D. (2001). Understanding and managing risks in
large engineering projects. International Journal of Project Management
19, pp. 437–443. Elsevier Science Ltd.
[7] Love, P.E.D.; Lopez, R.; GOH, Y.M.; TAM, C.M. (2011). What goes up
shouldn’t come down: Learning from construction and engineering
failures. The 12th East Asia-Pacific Conference on Structural
Engineering and Construction. Procedia Engineering 14, pp. 844-850.
Elsevier Ltd.
[8] Holzmann, V.; Spiegler, I. (2011). Developing risk breakdown structure
for information technology organizations. International Journal of
Project Management 29, pp. 537–546.
[9] Gokpinar, B.; Hopp, W.J.; Iravani, S.M.R (2010). The Impact of
Misalignment of Organisational Structure and Product Architecture on
Quality in Complex Product Development. Management Science Vol.
56, No. 3 pp. 468-484.
[10] Hansen, M. T. (2002). Knowledge networks: Explaining effective
knowledge sharing in multi-unit companies. Organ. Sci. 13(3), pp. 232 –
248.
[11] Carlile, P. R. (2002). A pragmatic view of knowledge and boundaries:
Boundary objects in new product development. Organ. Sci. 13(4), pp.
442 – 455.
[12] Contractor, N. S.; Monge, P. R. (2002). Managing knowledge networks.
Management Comm. Quart. 16(2) 249–258.
[13] Nonaka, I.; Takeuchi, H. (1995). The Knowledge-Creating Company:
How Japanese Companies Create the Dynamics of Innovation.Oxford
University Press, New York.
[14] Fang, C.; Marle, F.; Zio, E.; Bocquet, J. (2012). Network theory-based
analysis of risk interactions in large engineering projects. Reliability
Engineering and System Safety 106, pp. 1–10
[15] Corbett, L.M.; Brockelsby, J.; Campbell-Hunt, C. (2002). Tackling
industrial complexity. Cambridge: Institute for Manufacturing.
[16] Schlindwein, S.L.; Ison, R. (2004). Human knowing and perceived
complexity: implications for systems practice. Emergence: Complexity
and Organization 6, pp. 27–32.
[17] Baccarini, D. (1996). The concept of project complexity - a review.
International Journal of Project Management 14, pp. 201–4.
[18] Vidal, L.A.; Marle, F.; Bocquet, J.C. (2011). Using a Delphi process and
the analytic hierarchy process (AHP) to evaluate the complexity of
projects. Expert Systems with Applications, 38 (5), pp. 388 –405.
[19] Wong, V.; Shaw, V.; Sher, P. J. H. (1998). Effective Organization and
Management of Technology Assimilation - The Case of Taiwanese
Information Technology Firms. Industrial Marketing Management 27,
pp. 213–227. Elsevier Science Inc.
[20] Ahonena, J.J.; Savolainena, P. (2010). Software engineering projects
may fail before they are started: Post-mortem analysis of five cancelled
projects. The Journal of Systems and Software 83, pp. 2175–2187.
Elsevier Inc.
[21] McFarlan, F.W. (1992). ‘Multinational CIO challenges for the 199Os’,
in Palvia, S., Palvia, P. and Zigli, R.M. eds., The Global Issues of
Information Technology Management, Idea Group Publishing,
Harrisburg, PA.
[22] Zaltman, G.; Dunca, R.; Holbeck, .J. (1973). Innovations and
Organizations. Wiley, New York, 1973.
[23] Baker, N.R.; Sweeney, D.J. (1978). Toward a conceptual framework of
the process of organized innovation technological within the firm.
Research Policy 7, pp. 150-174.
[24] Remenyi, D.; Heafield, A. (1996). Business process re-engineering:
some aspects of how to evaluate and manage the risk exposure.
International Journal of Project Management Vol. 14, No. 6, pp. 349-
357. Elsevier Science Ltd.
[25] Willcocks, .L.;Margetts, H. (1994). Informatisation in Public and Private
Sector Settings: Distinctive or Common Risks? Informatisation and the
Public Sector.
[26] Bessant, J. (1991). Managing Advanced Manufacturing Technology:
The Challenge of the Fifth Wave, NCC- Blackwell, Manchester.
[27] Patanakul, P.; Milosevic, D. (2009). The effectiveness in managing a
group of multiple projects: Factors of influence and measurement
criteria. International Journal of Project Management 27, pp. 216–233,
Elsevier Ltd.
[28] Seider, R. (2006). Optimizing project portfolios. Research Technology
Management 2006, pp. 49:43.
[29] Hendriks, M.; Voeten, B.; Kroep, L. (1999). Human resource allocation
in a multi-project R&D environment: resource capacity allocation and
project portfolio planning in practice. International Journal Project
Management, 17, pp. 181–8.
[30] Nobeoka, K.;Cusumano, M.A. (1995). Multi-project strategy, design
transfer, and project performance: a survey of automobile development
projects in the US and Japan. IEEE Trans Eng Manage (42), pp. 397–
409.
[31] Taleb, N.N. (2007). The black swan, the impact of the highly
improbable, Penguin books.
[32] Whitty, S.J.; Maylor, H., (2009). And then came complex project
management. International Journal of Project Management 27, pp. 304–
310.
[33] Koppenjana, J.; Veenemanb, W.; Van der Voortb, H.; ten Heuvelhofb,
E.; Leijten, M. (2011). Competing management approaches in large
engineering projects: The Dutch RandstadRail project. International
Journal of Project Management 29, pp. 740–750. Elsevier Ltd.
[34] Todinov M.T.; Weli E. (2013). Optimal risk reduction in the railway
industry by using dynamic programming. International Conference on
Reliability, Safety and Security Engineering, London, UK. World
Academy of Science Engineering and Technology, 79, pp. 220-224.
[35] Marshal, C. (2001). Measuring and Managing Operational Risk in
Financial Institutions. John Wiley & Sons. pp. 3 – 44. ISBN 978-
0471845959.
[36] Bessis, J. (2002). Risk Management in Banking. John Wiley & Sons;
2nd Edition, pp. 51 – 67. ISBN 978-0471499770.
[37] Railways and Other Guided Transport Systems (Safety) Regulations
(ROGS). http://www.rail-reg.gov.uk/server/show/nav.1511. Accessed
29-10-13.
[38] Weli, E.; Todinov, M.T. (2013). A new approach to risk reduction in the
railway industry. Institution of Engineering and Technology Special
Interest Publication - Infrastructure Risk & Resilience: Transportation.
pp. 47 – 52. ISBN 978-1-84919-696-3.
@article{"International Journal of Business, Human and Social Sciences:65173", author = "Eberechi Weli and Michael Todinov", title = "A New Classification of Risk-Reduction Options to Improve the Risk-Reduction Readiness of the Railway Industry", abstract = "The gap between the selection of risk-reduction options in the railway industry and the task of their effective implementation results in compromised safety and substantial losses. An effective risk management must necessarily integrate the evaluation phases with the implementation phase. This paper proposes an essential categorisation of risk reduction measures that best addresses a standard railway industry portfolio. By categorising the risk reduction options into design, operational, procedural and technical options, it is guaranteed that the efforts of the implementation facilitators (people, processes and supporting systems) are systematically harmonised. The classification is based on an integration of fundamental principles of risk reduction in the railway industry with the systems engineering approach.
This paper argues that the use of a similar classification approach is an attribute of organisations possessing a superior level of risk-reduction readiness. The integration of the proposed rational classification structure provides a solid ground for effective risk reduction.
", keywords = "Cost effectiveness, organisational readiness, risk reduction, railway, system engineering. ", volume = "7", number = "9", pages = "2609-10", }
