REAL contractor risk mangement

Ive just seen the system that e-VERIFILE has implemented for Union Pacific Railroad in the US. The system is called e-RAILSAFE and it is used to control how Union Pac deals with its contractors. What e-VERIFILE have done here is THE future of operational risk management, and closer examination of what they've done is very instructive.

e-RAILSAFE requires all prospective Union Pac contractors to log on and register at the e-RAILSAFE website. Here, contractors upload company and employee information. e-VERIFILE then undertake background checks on the company and its employees. Where unacceptable risk is identified, Union Pac, the contractor and the employee are notified - and given the oppertunity to 'appeal'. If accepted, the contractor is then required to remain compliant with Union Pac requirements while ever they remain contracted.

How valuable is this for Union Pacific! Weeding out the problem contractors BEFORE they become a problem significantly reduces the organisations "risk footprint".

The only limitation here is that e-RAILSAFE doesnt extend the verification capability beyond e-VERIFILE to other industry experts. This small proprietary element is actually very limiting. As good as e-RAILSAFE sounds, it would be better if the qualitative process could be extended outside of e-VERIFILE's internal capabilities.

This of course is what Misedio.com is all about - taking this concept and extending it, without limitation, throughout the entire construction industry. Good on e-VERIFILE though! They are way in front in terms of bringing real risk management to the market via the internet channel.

Steve
http://www.misedio.com/

Links
Article at SecuritySolutions.com: http://securitysolutions.com/access_control/security_screening_safety/
e-railsafe website: http://erailsafe.com/
e-verifile website: http://www.e-verifile.com/