Over the past decades, our people have prepared various organizations for tomorrow. Let's be honest: 'the proof of the pudding is in the eating'. That is why Ed Bouwman, co-founder, looks back on a special project for the former Inspectorate for Traffic and Water Management (IVW) in 2004 – now the Inspectorate for the Environment and Transport (ILT).
Ed Bouwman was instrumental in the founding of Delta Pi, has a particular passion for flood defences, and continues to make a valuable contribution to our organization as an external advisor. He teaches us this lesson every day: “Keep thinking along. We rely on technology, but do you believe in and understand the results of an analysis?” Risk analyses are being carried out increasingly often and in an increasing number of areas. That is why this case remains so relevant.
Validation of IVW risk model
The Inspectorate for Transport, Public Works and Water Management (IVW), aviation division, is responsible for supervising a large number of aviation-related companies, including aircraft manufacturers, airlines, maintenance companies, and training institutes. To implement risk-based supervision, the IVW has developed its own risk model. This model is used to determine the "risk ranking" for a number of specified parameters. This risk ranking serves as the basis for efficient allocation of supervisory capacity. Delta Pi was commissioned in 2004 to validate the model so that the IVW can provide a well-founded assessment of the intensity and content of its supervision. Ed: "This validation was performed in two steps. During the first step, the model's outcomes were validated by comparing them with the outcomes of a commonly used model, the Multi-Criteria Analysis (MCA). The second step examined the extent to which the rankings differed. The companies to be audited—from the aviation industry—were ranked according to the desired audit intensity using both methods. The analysis showed that, with a few exceptions, the rankings were consistent. The discrepancies found were easily explained by the different approaches used by the two methodologies. Therefore, the IVW model could be considered valid."
Delta Pi validates: correctness & completeness of parameters
An investigation was conducted into the accuracy and completeness of the impact parameters used. A total of approximately 25 parameters were defined, these parameters impacting a company's risks. During the analysis, it was recommended to add one new impact parameter to the existing list and make some minor adjustments to the selected assessment criteria.
Ed explains this with an example: "One parameter was: 'The number of locations.' Why is the number of locations a parameter for assessing a company?
Negative influencing factors can include:
- lots of mutual traffic;
- poor cooperation; poor communication;
- much mutual rivalry;
- clashes between different cultures;
- many unnecessary costs;
- a lot of overhead.
Some of these factors are only indirectly relevant to an IVW assessment. For example, "unnecessary costs" will only have an impact if they lead to savings in the wrong place. The factors "poor communication," "poor cooperation," and "high levels of internal rivalry" are directly related to quality and are directly relevant to an IVW assessment. Therefore, "the number of locations" is a legitimate influence parameter
Risk management is more relevant than ever
Delta Pi supports companies in strategic, project, program, and/or portfolio risk management. We have been doing so since 2004 and continue to do so in 2021. We have in-depth knowledge of the technical aspects of risk management. By validating a risk model, you can properly justify why an organization does or doesn't do something. This is the ideal way to mitigate risks.
Delta Pi through the years
At Delta Pi, we believe you can stay on top of change by looking ahead, thinking ahead, and taking action in a timely manner. It's still incredibly rewarding to look back with Ed Bouwman. Want to learn more about our services? On this page, we'll take you through some of our projects.
