London Underground uses risk consultants Istria Ltd and its software tool IRIS, with @RISK embedded as the engine, to manage diverse risks from investment projects to passenger safety.
When it opened in 1863, London Underground was the world’s first underground railway. Today, this vital metro system, known locally as ‘The Tube’, provides over three million passenger journeys a day to and from 275 stations. The network stretches across 253 miles (408 km) and is operated, maintained and supported by 12 000 staff. London Underground is crucial to the economy of London and, in turn, of the United Kingdom as a whole. The risks inherent in the operation of such a complex and vital system are many.
IRIS and @RISK Central to London Underground Operation
London Underground uses Risk Consultants Istria Ltd and its software tool IRIS to manage its diverse risks. Everything from investment projects to passenger safety must be considered, and IRIS, with the embedded Palisade @RISK engine, are well-suited to the task.
Istria believes that, like quality, risk management should be designed-in to the planning and implementation of all plans and activities throughout an organisation, rather than being an add-on, peripheral ‘chore’ conducted at the behest of Head Office. Istria’s IRIS software (Istria Risk and Issue Support) provides a comprehensive risk solution based on Istria’s Enterprise Risk Management Method. @RISK is employed within IRIS to generate accurate management information using Monte Carlo simulation. This @RISK data analysis process is critical to effective decision-making.
Group Facilities UIP Projects Manager, London Underground
Financial Benefits and Corporate Goals
London Underground’s Tylaar Haran (Group Facilities UIP Projects Manager) is quick to praise the value of using @RISK to augment IRIS. “London Underground has derived significant financial and performance benefits from using IRIS and its excellent @RISK-driven Monte Carlo functionality. The combination of IRIS and @RISK is a powerful tool to support decisions on the feasibility of potential projects and to drive-forward the identification and selection of options in complex, uncertain scenarios.”
Istria’s Risk Method links all risk-related activities directly to the attainment of corporate goals and objectives. As Chief Executive Colin Wheeler observes, “Increasingly, companies and government bodies are realising that risk management can provide tangible benefits in improving the ‘bottom-line’ or enhancing service delivery. All too often, however, the approaches used to introduce and operate risk management have no clear link to the overall strategic aims of the organisations. Istria’s method maintains a clear, auditable link to strategic and operational success criteria; this focuses the risk management effort on supporting the attainment of corporate goals and objectives.”