Italian Risk Awards 2024, the award dedicated to excellence in risk management

In the setting of Milano Verticale, the prestigious Italian Risk Awards took place on December 12^th 2024.

Now in its second edition, the ANRA-signed recognition saw three categories in competition this year: Risk Manager of the Year, Rising Star of the Year, and Innovation of the Year.

Well represented in all categories, the FS Group climbed the podium of Innovation with Italferr. Risk Officer Guido Mastrobuono presented the "Dynamic Risk Management and Advanced Mitigation Actions Research Method."

Particularly interesting for its impact on risk management, the methodological approach presented is proving to be a multiplier in terms of efficiency and effectiveness in the conception, evaluation, and implementation of mitigation actions.

More specifically, the innovative methodology proposed measures the impact of mitigation actions in complex projects, focusing on risk management. The core of this innovation is the use of System Thinking and the creation of the Interaction Register to represent and analyse the complex dynamics of risks.

In managing a complex project, such as building a railway, everything is interconnected: people, materials, deadlines, external conditions. Every decision made can influence other parts of the project, often in unexpected ways. This is what we call a complex system.

The problem:

In trying to solve a problem or prevent a risk (e.g., a delay), it is difficult to understand if the chosen solution will really work or if, on the contrary, it will create other problems elsewhere.

The solution:

The proposed method is based on two main tools:

1. Risk decomposition: risks are "disassembled" into small pieces, called base events (Seed Event), to better understand what causes them and how they spread. Each Seed Event is further broken down into interactions between only two factors that populate the project context.
2. Interaction Register: it is like a "map" that shows all the connections between the causes of risk, project vulnerabilities, and interactions between factors (such as suppliers or economic conditions).

How it works:

• Connections are analyzed, and key points are identified where to intervene to stop or reduce the risk.
• An effectiveness index is calculated for each action you can take, based on how well this action can reduce negative effects and strengthen positive interactions.

In practice, you choose the solutions that offer the maximum benefit with the minimum cost.

Why it is useful:

• Helps make more informed decisions.
• Reduces risks in a more targeted way, avoiding creating problems in other areas.
• Allows for better planning, knowing that you are addressing not only the immediate problem but also its root causes.

In essence, this method allows you to "see the big picture" and act more intelligently and strategically in a world full of uncertainties.

Main potentials:

1. Deeper understanding of the context:

• The method allows mapping interactions between risks, factors, and stakeholders, revealing root causes and hidden connections.
• It allows anticipating unforeseen effects and identifying opportunities for proactive intervention.

2. Simulation and strategic management:

• Simulates complex scenarios to evaluate in advance the effectiveness of mitigation actions.
• Integrates the analysis of systemic dynamics, improving the decision-making capacity of Project Managers.

3. Evaluation of the effectiveness of mitigation actions:

• Introduces an effectiveness index based on the impact of actions on critical interactions in the context.
• Improves the selection and efficiency of mitigation actions in terms of cost-effectiveness ratio.

4. Holistic risk management:

• Moves from managing isolated risks to mitigating interactions that amplify overall risk.
• Allows reducing the probability of negative events and their impact by reducing "negative" energy in the context.

5. Creation of strategic value:

• Extends the concept of mitigation action to all strategic decisions, increasing the overall effectiveness of project management.
• Promotes more informed decisions aimed at transforming threats into opportunities of value for the project.

In short, this approach does not just prevent isolated problems but offers a strategic framework to understand and influence the behavior of complex systems, improving both the resilience and sustainability of infrastructure projects.

Furthermore, demonstrating Italferr's growing attention to innovation applied to conscious risk management, three other pioneering innovations implemented by the company in 2024 can also be considered interesting:

• "Fluid" Risk Office Management: a flexible management model that maximizes self-organization and the pursuit of opportunities, improving the organization's adaptability and speeding up the maturation of the resources involved.
• Free Risk Academy: the creation of a low-cost training platform that, through the contribution of experts and the involvement of interns, spreads Risk-Based Thinking, contributing to the growth of the risk management culture within the organization and among stakeholders.
• Introduction of Artificial Intelligence among the tools for Project Risk Identification: the introduction of artificial intelligence models to automate and enrich the risk identification process, improving effectiveness and reducing the time needed for identification.

All these initiatives have led to more systematic, conscious, and effective risk management, reducing the chances of unidentified threats and contributing to the creation of value for the entire organization.