SMRT wins award for “risk management”, whatever that means
Is the the first thing that comes into your mind when we say SMRT?
And that mental image is completely appropriate. But for once, SMRT has made the news for something other than a train breakdown.
Everyone’s favourite SMRT Corporation has won an international award for its enterprise risk management programme. This is the first
(and probably last) time that SMRT has won the award is which acknowledges the “highest standards of excellence in risk management” which is given out by the Institute of Risk Management (IRM).
What you’re thinking now:
FYI: In business, risk management means “the forecasting and evaluation of financial risks together with the identification of procedures to avoid or minimise their impact.” In layman terms: you predict a bad event happening and take steps to prevent it from happening.
But we promise we’re perfectly serious. Here’s proof:
“The rigorous judging process reaffirms that SMRT’s enterprise risk management programme is truly world-class, and delivers superior value for our stakeholders.”
President and Group CEO
Analysing how SMRT could have won
There were a few criteria that needed to be satisfied before SMRT could have won the award. We analyse what SMRT did to hit those criteria.
1. Evidence of sustained revenue enhancement
2. Evidence of cost savings
Oh, so that’s why they replaced our old fare gates with these swanky new ones.
3. Reduced error rates
Our prediction is that SMRT foresaw that the North-South Line would be hit by multiple other disruptions and hence caused their own disruption first to minimise the error rates. Also, providing shuttle services are probably cheaper than running trains that are not at full capacity.
4. Acknowledge that risk management is a value-added function
SMRT saw that oil prices were falling, but transport fares still increased due to the carry over from the previous fare increase. In the end, their profit margins remained fine and dandy.
Despite all the inconveniences that SMRT has caused us (a train that I was on stayed at the City Hall MRT station for a full ten minutes), MustShareNews would still like to congratulate SMRT on winning the award.
The judges for the award complimented SMRT for their “forensic focus on how risk management could be used to support corporate strategy”. Of course, we all hope SMRT will be more “Moving People, Enhancing Lives” than focusing on profits.