Question

what is the risk management strategy of the procurement of Italian GSM-R technical equipment, In order to help RFI Procurement Department in better anticipating unpleasant and dangerous circumstances that a GSM-R procurement initiative may face, specify 4 risks that are seen highly relevant in the procurement scenario of GMS-R technical equipment. For each of them, provide (in a tabular format): • Likelihood rating (1-5 scale) • Impact rating (1-5 scale) • One possible mitigation measure

Answer 1

The risk management strategy of the procurement of Italian GSM-R technical equipment are-

• Considering all the different train types which travel intercity, suburban, goods transportation or freight etc.
• Checking out language capability as it is essential for all business communications- meetings, presentations, visits, etc.
• Monitoring the design and construction of the technical equipment.
• Operations and maintenance of such technical equipment is to be determined as well.
• The railway must define its radio system before such procurement. Radio settings of all the trains and necessary back-up plans in case of radio problems.
• Checking the reasons behind cancelled trains. Majorly it is seen that such problem happens due to network problem, accidents, etc.
• Speed of the train- There should be reduced speed (up to 60 meter per hour) for safety.

4 risks that are seen highly relevant in the procurement scenario of GMS-R technical equipment are:

• Increased procurement cost
• Misuse of resources
• Impractical Timeframe
• Insufficient funding

	Likelihood rating	Likelihood rating	Likelihood rating	Likelihood rating
Risk	Increased procurement cost	Misuse of resources	Impractical timeframe	Insufficient funding
	High- High cost of less useful product	Medium- Resources being mis -utilised	High- Inadequate response from tenderers, delivery schedule not met, less competition	Medium- Re-tender requirement for additional cost, delay in purchase of the equipment
Impact Rating	Medium- Could result in significant financial loss	High- Could result in delay in procurement	High- Could result in major damage in terms of loss to the mission	High- Could result in major significant loss to operations and procurement of the equipment