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Risk and compliance dashboard

Risk and compliance dashboard

Owned by Effie Abbsar
Feb 23, 2025
2 min read

Executive summary

This report presents an analysis of the risks associated with governance, compliance, and the organisational structure within the Federal Railroad Administration (FRA). It aims to identify potential vulnerabilities and provide actionable recommendations to enhance risk management and ensure regulatory compliance. The focus areas include governance processes, adherence to regulatory frameworks, and structural risks that could impact the FRA's ability to meet its strategic goals.

Risk overview

The FRA faces several risk categories related to governance, compliance, and organisational structure:

  • Governance risks: Challenges in policy enforcement, strategic alignment, and operational transparency.

  • Compliance risks: Issues with meeting federal safety standards, environmental regulations, and industry best practices.

  • Organisational structure risks: Inefficiencies in operational hierarchies, resource distribution, and stakeholder coordination.

Compliance framework

The FRA operates within a robust regulatory environment governed by several frameworks, including:

  • 49 CFR Parts 200-299: Ensures adherence to federal railroad safety regulations.

  • Environmental Protection Regulations: Compliance with national sustainability objectives.

  • Operational Risk Management Standards: Enforces industry best practices for operational safety and reporting.

The current compliance strategy focuses on proactive monitoring, regular audits, and adherence to federal and state regulations.

Organisational structure risks

The following risks have been identified within the FRA's organisational framework:

  • Lack of AI-driven compliance monitoring: Limits the ability to proactively manage safety risks.

  • Regulatory and funding challenges: Impede infrastructure modernisation projects, including high-speed rail and electrification.

  • Skill shortages in emerging technologies: Gaps in workforce readiness, particularly in AI, automation, and sustainable energy.

  • Policy gaps for environmental initiatives: Insufficient incentives for adopting green technologies.

Identified gaps and risk assessment

Risk Area

Identified Issue

Severity

Mitigation Strategy

Risk Area

Identified Issue

Severity

Mitigation Strategy

Safety Compliance

Lack of real-time AI risk detection

High

Implement AI-driven monitoring systems

Infrastructure Modernisation

Regulatory barriers and limited state funding

High

Create federal-state funding coordination

Workforce Readiness

Absence of long-term skills development

Medium

Expand technical training for new tech

Environmental Sustainability

Lack of adoption incentives for green technologies

High

Introduce policy-driven financial incentives

Recommendations

  1. Implement AI-driven risk detection: Integrate AI-powered monitoring systems for real-time compliance checks.

  2. Streamline regulatory processes: Establish a dedicated task force to facilitate quicker state and federal approvals.

  3. Enhance workforce development: Initiate programs focusing on AI, automation, and sustainable energy technologies.

  4. Strengthen environmental policies: Develop incentive structures to encourage industry-wide adoption of green technologies.

Conclusions

This dashboard identifies key risks within the FRA's governance, compliance, and organisational structure. Addressing these areas through AI integration, regulatory improvements, workforce upskilling, and enhanced environmental incentives will strengthen the FRA’s capacity to meet its strategic goals. This proactive approach will ensure safer, more sustainable, and efficient rail operations in the United States.

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