Risk Evaluation and Financial analysis for Road Maintenance on Urban Expressway Based on H-BMS

Hanshin Expressway Public Corporation had been privatized in 2005 and has responsibility for maintaining service level of civil structures at sound condition and completely paying off its debt within 45 years after privatization. Therefore, it is an important issue to establish maintenance and rehabilitation plan considering the payment of the debt. This study addresses on Hanshin Expressway asset management system considering internal control and risk management system. Concretely, first of all, business process of Hanshin Expressway is constructed in terms of internal control and risk management. On the other hand, uncertainty of deterioration process is treated as risk, and the relationship between this deterioration risk and maintenance/rehabilitation cost is verified. Based on the risk evaluation result, this study tries to calculate financial information which can be used to making debt payment plan. Finally, for continuous improvement of the business process, extraction of the high priority monitored structures is discussed based on relative evaluation method of deterioration rate of each structure using benchmarking analysis. and estimate future maintenance and rehabilitation costs. This BMS must be improved to evaluate deterioration risk by introducing stochastic deterioration model(Sakai et al. 2009). The 2 activity is to replace or improve parts intensively in order to get better service level. This activity should be the overriding priority for Highway company. For 2 work, Hanshin Expressway has also developed Logic Model for continuous evaluations of Hanshin Express way maintenance management along with H-BMS development (Sakai et al. 2007). Highway companies must secure efficiency and transparency of their maintenance management because of their high public responsibilities for maintaining road network systems. Therefore, they should adopt internal control system to maintenance management. The Internal Control system is one of the methods to control business risk. Maintenance management directly affects on the service level of highway assets. Therefore, Highway companies need to develop business process system for evaluating and managing business risk on maintenance management. This study proposes practical business process system which enable to implement risk management for maintenance and rehabilitation costs and better service level. In the framework of proposed business process system, this study tries to get financial information for debt repayment plan, along with relationship between deterioration risk and maintenance and rehabilitation costs. This study also tries to develop methodology that overriding priority problem is able to pick up by benchmarking analysis. 2 BUSINESS PROCESS SYSTEM 2.1 Assumptions for developing Business process system 2.1.1 hierarchical structure Figure 2 shows the hierarchical structure of three level in enterprise risk management (Study Group on Risk Management and Internal Control. 2003). Top rank level is defined as “Management Level”, middle rank level is defined as ”Manager Level”, third rank is defined as ”Staff Level”. Hanshin Expressway has same structure as Figure 2 in their maintenance management business process, they have “Management Level” who decide maintenance policy, they have planning group in which maintenance and rehabilitation plan is planned and annual budget allocation is implemented, and also they have maintenance management department in which mainManagement level