Risk management and ICS
In the context of risk management, Jungfrau Railways deals with possible events that could jeopardise the achievement of strategic and financial objectives. Both opportunities and risks are identified. These are discussed regularly as part of the update of the SWOT analysis (see in the management report: "Message from the company management / Opportunities and risks").
Jungfrau Railways has an internal control system (ICS) that meets legal requirements. This tool is used in the particularly sensitive area of finance to ensure the correctness and reliability of the reporting.
The IT security policy of Jungfrau Railways pursues a best-practice approach. The rules are defined in the IT security policy, the IT security guidelines for employees, and the IT password guidelines / user authorisation concept. In addition, special service levels are defined for all business-relevant applications and the change process is monitored by a specialist group in a risk-based manner.
The risk management process is embedded in the existing process landscape. Process organisation regulates responsibilities and ensures that the relevant measures are planned and implemented. The risk index (risk catalogue) forms the central basis for the formal risk process.
The risks are assessed according to financial impact and probability of occurrence and positioned based on their importance for the company (risk profile). The risk catalogue of Jungfrau Railways provides an overview of the operational risks and is revised annually. The Board discusses and supplements the strategic risks when necessary, but at least once a year. The external and internal audit activities are closely linked to risk management. In addition to internal audits, which are used by the Executive Board to check certain areas, Jungfrau Railways is regularly externally audited by the Swiss Federal Office of Transport, SUVA and the certification body for the ISO 9001/2015 quality management certificate.
While climate change makes the Jungfrau Railway's offer, especially the ascent into a world of ice and snow, ever more exclusive, the challenges arising from the dynamic weather conditions and thawing of the permafrost are increasing. To counter this, Jungfrau Railways has a long and proven tradition. Experiences are correspondingly vast and the precautions taken extensive. A constant assessment and documentation of the current risk situation by responsible and trained staff forms the basis of our safety arrangements. In the context of a paper in July 2017 by Dr Matthias Huss from the Research Institute for Hydraulic Engineering, Hydrology and Glaciology, ETH Zurich, and Daniel Tobler, from Geotest, the Management Board received a report on the latest research, ice measurements, climate and glacier models. The Management Board wanted to know what lessons can be drawn from these general research results, measurements and calculations for Jungfraujoch ski resorts and the Jungfraujoch ski area. The two experts were able to confirm the symptoms of long-term climate change. Furthermore, rock stability, snow cover, ice thickness in maintaining the facilities and the planning of longer-term investments will require the utmost attention. On the other hand, the specialists were also able to calm fears, especially for the Jungfraujoch. The speed of upheavals in nature is not comparable to the feverish nature of economic cycles. The models also show in the most pessimistic scenarios that ice cover will still be found on the Jungfraujoch in the year 2100. In the slowness of change, however, there is the risk of overlooking and ignoring the problem. In order to align the orientation of the company with the circumstances of nature, the experts recommend that protective measures be continued and developed as required. When planning renewal of facilities, for example, the permafrost development must always be taken into account as a long-term framework for the entire service life. Critical situations at trouble spots can occur unexpectedly, so that the willingness to intervene in a quick and situation-appropriate way must be upheld. This requirement must be taken into account in the provision of resources (emergency power, intervention vehicles etc.), training and during organisation. The experts place special emphasis on the documentation of the change by means of measuring points, photogrammetric methods and the daily monitoring with automatic cameras, hot water drilling in the glacier, detailed modelling of exposed areas. The recommendations of the experts encouraged the Management Board in its previous approach. The latest findings on local climatic and glaciological developments were incorporated into the specific risk portfolio.
An entirely different important topic was the challenges of digitisation. The Management Board discussed these with the internal specialists. These showed that due to digitisation, a whole series of projects are already in progress and many innovations have already been introduced. One focus is on digitising the processing of the markets that are particularly relevant to Jungfrau Railways. In addition to the "normal" online booking, developments in B2B partner management as well as the provision of flexible reservation and boarding systems are particularly in focus here. For the new V-Cableway, which brings together different customer segments with different requirements in one terminal in Grindelwald Grund, the boarding and the customer guidance must be based entirely on digitised or digitisable processes. In the development of new business models, computer science is integrated into an iterative process with feedback in order to tap the benefits of technological developments. In the intensive exchange between those responsible for the development of business strategies and the IT specialists lies the key to the gateway to the digital world. In this sense, digitisation is not just a matter of IT. Jungfrau Railways is tackling the challenges of digitisation with organisational IT upgrading (into its own department) and the integration of IT in innovation and marketing processes.