Context and challenges
The Regulatory Body for Railway Transport and Brussels Airport Operations had the ambition to implement an Enterprise Risk Management (ERM) approach. The public sector has unique characteristics that must be considered when defining the risk framework, the coverage and the approach.
The Regulatory Body has 3 key missions:
- Supervise the market: The Regulatory Body governs the markets of the rail transport in Belgium and the Brussels National Airport
- Protect the interests of the users and the general public
- Advise the government to develop future regulation in the rail and airport sector
The Regulator has identified three expected benefits from the implementation of their Enterprise Risk Management approach:
- Increases in operational efficiency
- Optimisation of the control environment
- Facilitation of operational and strategic decision making
Our challenge was to implement the right approach to reach these expected benefits with tangible measures within 2 years.
We delivered workshops where the team had the opportunity to fully express themselves, allowing them to come up with a more meaningful list of risks and opportunities compared to what happened during regular risk identification workshops. This is an important element for risk management as it gives broader insights on how to mitigate risks and exploit opportunities.
We applied the following 6 steps approach:
The Regulatory Body has not only identified and prioritised key activities where it will need to take some specific actions, but also the activities where the control environment can be relaxed.
Our risk and control self-assessment approach was instrumental in getting participants to appreciate the tangibility of risk management and the benefits arising from having a forward-looking approach to risk in the public services. The link between risk management and the participants’ expertise is of foremost importance for the organisation. Building this link not only made participants engaged during the workshop, but also trained the audience to be receptive to the activities required in the follow up, such as control identification, control assessment and risk treatment definition. In this light, our project laid the groundwork to spread a culture of risk management across the organisation.
"Enterprise Risk Management has become the cornerstone of our organisation. The implemented approach allows us to emphasise the importance of the continuity of our services, the reinforcement of our transparency, and the independence required from an economic regulator". Serge Drugmand, CEO of The Regulatory Body for Railway Transport and Brussels Airport Operations.