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Poland’s A2 MotorwayOperational Risks
Team 2: Yusuf Akkoca
Tom Bloom Karen Delton Shweta Hire Eric Johnson
David Mahzonni
Operational RisksDefined:• “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 MapConsequence
1 2 3 4 5
Likelihood
1
2 2
3 3 1 4
4 6 5
5
1 OC Managing/Operating Motorway - Lack of Experience
2 Toll Revenue - Affected by alternative routes
3 Toll revenue impacted by national economy
4 Poznan bypass not completed
5 Can operational income fund maintenance and debt
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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