The passenger transport industry is currently navigating a period of profound transformation. This is putting the industry and individuals under immense pressure. The Bus Services Act 2025 is overhauling long established operating models. Leadership focus is rightfully on the day-to-day business demands, whilst grappling with this new legislation. Yet, in the race toward digital transformation and the integration of AI-driven systems, with new operating models starting to be realised, it is essential that we do not lose sight of the need for robust Risk Management and Governance. Without a modern approach to risk the promise of new technology and the resilience it could offer remains an illusion.
Gary Rigler, VP of Passenger Transport at digital transformation business OneAdvanced, examines how senior leaders can transition risk management from a “bureaucratic headache” into a core strategic asset.
The perilous landscape: why compliance is the new cost crisis
The financial and regulatory pressure on bus and coach operators is unrelenting. This is occurring against a backdrop of ageing fleets, volatile fuel costs, rising insurance premiums and the capital-intensive shift to zero-emission technology. The pressure to find operational efficiencies while maintaining service frequency is at an all-time high.
Beyond revenue, the regulatory burden is intensifying. Our own internal research at OneAdvanced across the sectors we serve, shows an eye-watering 272% increase in regulatory compliance requirements. In the passenger transport sector, this is felt acutely through evolving safety standards, the transition to local franchising, environmental targets, adhering to PSVAR standards, and the stringent requirements of the new Economic Crime & Corporate Transparency Act.
The sheer pace of change is creating a crisis of confidence. Around two-thirds of UK firms doubt they are fully compliant with key regulations, and 64% cite keeping pace with regulatory change as a top business challenge. For emerging areas like AI – critical for future capacity savings – 31% of firms have no governance policy in place. This points to a critical failing. Many organisations remain reactive, manual, and fragmented, leaving them under-prepared for the fast-moving expectations of modern regulators.
The ticking time bomb: the risk of legacy tools
In an industry where safety and accountability are paramount, the continued reliance on legacy, manual tools is a significant vulnerability. Astonishingly, 81% of companies across highly regulated sectors are still using multiple spreadsheets to record risks, list mitigations, and monitor compliance. Even in financial services – often a bellwether for compliance maturity – nearly half rely primarily on spreadsheets for risk reporting.
For a Director or a Safety Lead, spreadsheets are a “ticking time bomb”. They are brittle, lack version control, and cannot provide the robust audit trail required to appease regulators and insurers. In the passenger transport sector, where a single failure in governance can lead to unprecedented fines and immense brand damage, a reactive system will never keep pace with modern risk.
The unseen cost: personal strain and stress
While the business impact of governance is tracked on the balance sheet, the human cost is often ignored. The transport industry is currently grappling with a significant skills gap and an ageing workforce, placing immense pressure on existing teams. The balance of trying to “fight fires” with daily operating realities means that vital risk management tasks are often deferred – kicking the issue into the long grass.
The pressure on compliance and safety professionals is immense. Independent surveys consistently reveal that individuals in governance, risk, and compliance roles experience extremely high levels of stress and burnout compared to the general workforce. In the context of our industry, where the weight of passenger safety sits on these individuals’ shoulders, compliance is not just an organisational problem – it is a human one.
Effective risk management is the single most powerful tool for improving industry resilience and controlling costs. By moving from manual methods to an integrated Risk and Governance solution, bus and coach operators can immediately reclaim time and generate savings.
The evidence for this shift is clear. Implementation of a modern, centralised solution can deliver:
- Significant time savings: We have seen organisations achieve savings of up to 41 hours per month, freeing risk management teams to focus on strategic safety opportunities rather than administrative data entry.
- Reduced consultancy spend: A mature, in-house system reduces reliance on external auditors. We have seen instances where external consultant usage was reduced from 63 days to just 12, creating annual savings of over £89,000.
- Lower insurance premiums: A robust, proactive risk programme is the only way to manage significant external costs, as insurers reward modern risk management with better terms.
Positioning for the future
The transition from a reactive, manual mindset to a proactive, governance-led culture requires centralisation and clarity. Today’s industry leaders are moving away from the “version-control nightmares” of the past toward systems that provide a single, intuitive view of risk.
The benefits are clear: centralise and automate to eliminate manual administration; enhance visibility to provide the board with auditable data; and empower teams with intuitive systems that are impossible to accidentally compromise. By adopting a smart risk strategy, passenger transport providers can move past the administrative burden, protect their people and assets, and build the true resilience that a modern organisation demands.
For further information and support on moving your organisation beyond the spreadsheet and towards a strategic Governance and Risk framework, explore our capabilities at www.oneadvanced.com/risk
