ORGANIZATIONAL RISK PROPOSAL

PREPARED BY
MEHRDAD SARAFRAZI- STUDENT ID 1187847
AKASH AKILAN– 1053876
JILU GEORGE – 1101635
EFRAIN ANDRES RODRIGUEZ LOPEZ - STUDENT ID – 1152128

Lawrence Kinlin School of Business, Fanshawe College

Supply Chain Management & Logistics Program

PRESENTED ON- FEBRUARY 11, 2023

SUBMITTED TO- PROFESSOR ANDREW MOOSER

Table of Contents
1. INTRODUCTION .......................................................................................................................... 3
2. COMPLIANCE RISK ................................................................................................................... 3
2.1. Quality Compliance ............................................................................................................... 3
2.2. Liability and Loss ................................................................................................................... 3
3. HAZARD RISKS .......................................................................................................................... 4
3.1. Vehicle Traffic and Transportation Equipment Risk..................................................... 4
3.2. Working Conditions............................................................................................................... 4
3.3. Ergonomic Risks .................................................................................................................... 5
4. OPPORTUNITY (SPECULATIVE) RISK ................................................................................. 5
4.1. Digitalizing traditional means of transport like bus and rail ...................................... 5
4.2. Real-time tracking .................................................................................................................. 5
5. CONTROL RISK .......................................................................................................................... 6
5.1. Cyber Attacks.......................................................................................................................... 6
5.2. Driver Shortages .................................................................................................................... 6
5.3. Deteriorating Infrastructure................................................................................................. 6
5.4. Changing Government Legislations ................................................................................. 7
6. CONCLUSION .............................................................................................................................. 7
7. RESPONSIBILITY MATRIX ....................................................................................................... 8
8. REFERENCES ............................................................................................................................. 9

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 1. INTRODUCTION
FlixBus is a European-based transportation company that provides low-cost
transportation services around the world. Since its establishment in 2013, this
company has been a strong competitor in the transportation industry, ensuring that
passengers travel in safety and comfort. (“Flix: Long Distance Bus and Train
Operator.”) There is usually plenty of risks associated with running an international
business. In this study, we would be examining and identifying the potential risks
involved. This risk assessment would cover all the major risks such as Hazard,
Compliance, opportunity, and control risks.

2. COMPLIANCE RISK
If a company does not follow or comply with certain law imposed by a legal
body such as max capacity or fall below certain quality standards they can be exposed
to compliance risks. Compliance risk refers to the possibility of being exposed to a
legal or financial risk that could harm the company's reputation.
In this case, we have chosen Flix bus, and here are some of the potential Compliance
risks the company could face.

2.1. Quality Compliance

In Ontario, there are certain Health and safety standards the commercial
transportation industry should follow, failure to do will cause legal or even termination
of the firm. All transportation vehicles like buses and trucks need to run a quality check
by a safety inspector. The inspector would inspect the vehicle thoroughly and produce
a certificate or clearance to further operate. (“Commercial Vehicle Safety
Requirements | Ontario.Ca”). They also need to be monitored and inspected annually
or semi-annually based on the weight of the vehicle. The inspection usually covers
thoroughly the break system, tires, and steering to the entire body of the vehicle.
This ensures the vehicle is safe to be operated in a commercial space. Flix bus should
be aware of these quality measures to avoid this risk.

2.2. Liability and Loss

The major risk Flix bus or any major company would face is the risk of accidents
or unforeseen incidents. If major accidents occur by the negligence of the driver the
company should bare the entire liability of affected passengers. They should bear all
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the expenses and face legal consequences which might affect the company’s
reputation. The compensation amount if someone loses their life depends on the
national law, The max amount is not below 220,000 EUR per person. (“FlixBus -
General Conditions of Carriage”).
The same applies to the loss, if they encounter an accident and if a passenger
loses their personal belongings in that incident the company would be liable for that.
These are some of the potential legal Compliance risks Flix Bus could face.

3. HAZARD RISKS
These are linked to a source of possible harm or a circumstance that might
negatively compromise goals. Hazard risks are typically accepted by organizations,
but they must be controlled to acceptable levels. Hazard risks are the most frequent
hazards connected to operational risk management, including workplace health and
safety programs.

3.1. Vehicle Traffic and Transportation Equipment Risk

Serious collisions involving drivers might have tragic results. Drivers who are
attending to incidents or sites where there is heavy traffic from vehicles may also be
injured if they are struck by or come into touch with moving vehicles.
The vehicle that drivers use for transportation is a workplace. Employers should keep
promoting a safety culture that emphasizes safe driving.
Flixbus is also responsible for making sure that the buses that drivers use are
safe to drive and well-maintained.

3.2. Working Conditions

Drivers for FlixBus' partners have allegedly been made to work long hours for
meagre pay. Most of the drivers have long working hours that go from 12 to 14 hours
a day, some even doing 16 hours of work a day. These long hours condition the way
in which their family and social life are organized. In addition to the possible accidents
due to fatigue that they can produce. On the other hand, a large part of drivers spends
their rest time maintaining the vehicle, that is, then they do not rest properly.

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3.3. Ergonomic Risks
The main injuries that a driver can suffer are low back pain and musculoskeletal
disorders due to disc disease, twisting, and flexion of the spine due to the sitting
position in which his work is carried out. The joints and legs can suffer for the same
reason, turning, twisting, and repetitive extensions for too many hours. They can also
suffer muscle contractures that are produced by the combination of repetitive exercise and
sudden changes in temperature. The problem with these lesions is that they present many
relapses, accentuating with age.

4. OPPORTUNITY (SPECULATIVE) RISK

Organizations take some risks voluntarily to accomplish their goals or achieving
positive returns. They are in relation to taking risks and returns. The desire is to
increase the possibility that investments in business prospects will produce a major
positive consequence. They are called risks as their consequences are not always
bring the expected results and may result in failure for companies. About the Flixbus
Company, this risk can be identified through.

4.1. Digitalizing traditional means of transport like bus and rail

From the starting point of this company, it has always developed the idea of
smart, sustainable mobility (Flixbus website, 2023). This has always motivated the
company to develop and implement new brands of buses in operation. The initial
investment for these changes has always been a great deal, but for Flexibus it was
worth it to invest in brand-new buses, which are more comfortable, eco-friendly, and
safer. Now, as a result of this decision, it operates in over 30 European countries as
well as South America and the USA.

4.2. Real-time tracking

This property is a visual tracking of all buses in the network, working through
SMS, Email, and application. (Flixbus website, 2023) Although it might be a risk to
Flixbus Company, as it needed initial investment regarding IT infrastructures and
informing customers how to use it, it was an impressive accomplishment because it
increased customer satisfaction when it guarantees their security of them, and also it
decreased the number of customers who left their buses.

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 5. CONTROL RISK
Control risk can be described as the risk associated with an organization that
has a control method and is most tangible. Flixbus is operating with the lowest possible
fares to the customer and has bigger risks in the transportation sector.
Most of the control risks found in the transportation industry which Flixbus has
identified are listed below:

5.1. Cyber Attacks

Most transportation companies do have a customer login section to book
consignments or tickets. Flixbus has a website, which deals with customer ticketing
sections. All the payments and offers are undergoing on the same website. These can
be hacked by IT professionals who are frauds, which may result in loss of money to
the organization or customers. Both the losses contribute to the dreading damage to
the reputation of the Transporting Company and may create the company to end up
with huge losses.

5.2. Driver Shortages

Driver shortages are happening in Canada for the past few years. The major
reason behind this is the trend happening in white-collar jobs. Most people in Canada
aim to get educated and be placed in a reputed firm to work at a desk from dusk to
dawn. The amazing corporate culture attracts people in getting placed in white-collar
jobs. Also, driver shortages can happen due to the aging population.
These risks further increased the probability of fatigue and stress in drivers for working
increased hours, which end up in accidents and damages.

5.3. Deteriorating Infrastructure

There is a trend happening in the automobile sector, where people are excited
to travel by their own mode of transportation. This trend ultimately increases the
number of vehicles running on roads, although the roads are not expanding. These
create high levels of traffic, which irritates most of the mental state of long-distance
drivers. This pressures the drivers to take shortcuts in driving by breaking traffic rules
and endangering the livelihood of people.

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5.4. Changing Government Legislations
Government is responsible for enforcing the safety of its people. In order to
assure this Government is engaged in updating rules and regulations over a period of
time.For instance, the government has made a rule to install instruments like speed
governors and equipment to measure the road times of each driver on road. These
create extra pressure in allocating drivers for trips and companies like flix bus must
allocate costs for retrofitting these instruments.

6. CONCLUSION
In conclusion, conducting a risk assessment is an essential step in ensuring the
safety and security of an organization or business. By identifying potential risks,
assessing their likelihood and impact, and implementing strategies to mitigate or
prevent those risks, an organization can protect itself and its stakeholders.
The risk assessment proposal presented here provides a systematic and
comprehensive approach to risk management. This proposal outlines a process for
identifying and evaluating risks and recommends strategies to minimize the impact of
those risks.
It is important to note that risk assessment is an ongoing process, and not a
one-time event. The risks and the business environment are constantly changing, and
therefore, it is necessary to regularly review and update the risk assessment.
In conclusion, the risk assessment proposal serves as a valuable tool for organizations
looking to minimize the impact of potential risks and ensure the safety and security of
their operations.

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7. RESPONSIBILITY MATRIX

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 8. REFERENCES

Flixbus.(2023). About Flix. https://www.flixbus.com/company/about-us

“Flix: Long Distance Bus and Train Operator.” FlixBus: Convenient and Affordable Bus
Travel in the US from $4.99, https://global.flixbus.com/company/about-flixbus.
Accessed 8 Feb. 2023.

“Commercial Vehicle Safety Requirements | Ontario.Ca.” Ontario.Ca,

https://www.ontario.ca/page/commercial-vehicle-safety-requirements.
Accessed 7 Feb. 2023.

“FlixBus - General Conditions of Carriage.” FlixBus: Convenient and Affordable Bus

Travel in the US from $4.99, https://global.flixbus.com/terms-and-conditions-of-
carriage. Accessed 7 Feb. 2023.

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