The Concept of Risk Management

Abstract

Risk management is a key element of all Organizations’ strategic management. Proper risk management increases the likelihood of success and helps Organizations achieve their overall goals. The alternative to risk management is risky management. An overview of the current frameworks for risk management around the world are presented: in the Civil Aviation Sector, the Enterprise Risk Management, the Project Management Institute (PMI), the Intergovernmental Organization for International Carriage by Rail (OTIF) and the risk management framework in different countries: the UK, the European Union, the USA, Japan, Canada and Australia/New Zealand. A comparison of those risk management frameworks is provided. Finally, managing changes, the “change management process” aimed at ensuring that changes are implemented in a safe manner and ensuring that the Infrastructure Managers or Train Operating Companies (Railway Undertakings) continue to comply with the legal framework as also their certification conditions and restrictions will be discussed. By reading this chapter, you will understand why we need risk management and recognize that there are different approaches on how to manage risks and how an effective “change management process” will assist Infrastructure Managers or Train Operating Companies (Railway Undertakings) in the decision-making process.