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FREE RISK MANAGEMENT BOOK Risk management is ultimately about creating a culture that would facilitate risk discussion when performing business activities or making any strategic, investment or project decision. In this free book, Alex Sidorenko and Elena Demidenko talk about practical steps risk managers can take to integrate risk management into decision making and core business processes. Based on our research and the interviews, we have summarised fifteen practical ideas on how to improve the integration of risk management into the daily life of the organisation. These were grouped into three high level objectives: drive risk culture, help integrate risk management into business and become a trusted advisor. This document is designed to be a practical implementation guide. Each section is accompanied by checklists, video references, useful links and templates. This guide isn't about "classical" risk management with its useless risk maps, risk registers, risk owners or risk mitigation plans. This guide is about implementing the most current risk analysis research into the business processes, decision making and the overall culture of the organization.
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... Even though risk handling strategies are used in project planning by building contractors, yet their application is at a lower level in the Tanzanian construction industry and hence there must be an increase in their degree of usage [16,17]. Other studies have been in SSA for example, a study by Kanoglu and Gulen [16], other developed and developing countries, Alex and Elena [18]; Adams [19], and in Sri Lankan [20]. Equally, the Tanzanian context have highlighted the types, challenges and management strategies, causes and effects of risks in construction projects, Phoya et al. [21] focused on risk management strategies in the informal sector and Sospeter et al. [2] focused on risk factors in construction projects. ...
... During the road construction projects and their total undertakings, a number of risks are encountered and, if not mitigated/eliminated, may hinder the performance of the project. The risks in road projects are classified mainly basing on managerial, economic, financial and political, technical and contractual, as well as external and site conditions [18,19]. A risk of faulty planning and altering of the scope of work may accelerate to poor performance of the project, which may lead to over budget. ...
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Risk handling is one of the elements and essential parts of risk management when properly incorporated into a project. However, there is inadequate knowledge amongst the contractual parties on risk handling responsibilities in road projects, particularly in Sub-Saharan African developing countries. This study is aimed at bridging that knowledge gap by investigating the perceptions of contractors and consultants on the risk handling responsibilities in road projects in Tanzania. The primary data were collected from 80 registered foreign and local civil contractors and engineering consultants based in Dar es Salaam. Descriptive statistics and inferential statistics were used for the data analysis. The results show that both contractors and consultants ranked safety project provision and ensuring quality provision in terms of construction as shared risk responsibilities among contractual parties. The findings further show that consultant-related risk responsibilities are: safety provision, the use of historical cost deviation, ensuring quality provision, and review of knowledge on budgeting. On the other hand, contractor-related risk responsibilities include: safety provision and ensuring quality provision. The findings of this study can be used by the practitioners and stakeholders as important lessons useful for controlling risks and making decisions when they intend to participate in such projects during the construction stage.
... Generally integrating risk management into core business processes, decision making and the overall culture of the organisation is no small task (Sidorenko and Demidenko, 2016). According to McDermott and Surminski, (2018), existing approaches for integrating risk into decision making offer little insights on the interplay of PCRA and present fundamental challenges that appear to hamper the translation of PCRA information into action during the decision making process. ...
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Climate change can be an important additional risk for the financial sector. For (large) investments in real estate, it is becoming increasingly important to take climate related risks into account. Yet, generating tailored physical climate risk information to make meaningful decisions about investment portfolios remains difficult. Using literature review, semi-structured interviews and reflection on four case studies implemented in the Netherlands, this paper presents lessons learned and recommendations for improving Physical Climate Risk Assessments (PCRA) for the financial sector. Results from the literature review show that simply selecting a PCRA methodology does not guarantee uptake of information by end-users, because there is no single approach that is suitable for all contexts. From the case interviews, we conclude that effective PCRA information is helpful for the financial sector in several ways; first, it supports investors to pinpoint which assets need attention and how much money is required to mitigate the impacts. Second, they serve as a template upon which clients make purchasing decisions. Third, they serve as a tool for determining the choice of building materials and the structure of properties. Fourth, they assist firms in the development of plausible adaptation strategies. Furthermore, we identified five cardinal points (that incorporate the perspectives of both providers and end-users) to improve the PCRA process: 1) Engagement and co-production, 2) Needs identification, 3) Data availability and quality, 4) Internal integration, and 5) Communication. These recommendation points will serve as a valuable reference to guide the selection and implementation of the most appropriate PCRA method for a given situation.
... At present there are various standard software development methodologies [1], [2] as well as quality standard [3], [4] that are considered to be technological boon for every project development team. One of the techniques to ensure an effective software development practices is to ensure higher degree of risk control measures that calls for an effective risk management [5]. Basically, a risk management in software development industry is all about considering all sorts of possible factors that could degrade the product quality or invite some unfortunate challenges in near future during the development period that could possible cost some tangible resources [6], [7]. ...
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Irrespective of different research-based approaches toward risk management, developing a precise model towards risk management is found to be a computationally challenging task owing to critical and vague definition of the origination of the problems. This research work introduces a model called as PROM i.e. Predictive Optimization of Risk Management with the perspective of software engineering. The significant contribution of PORM is to offer a reliable computation of risk analysis by considering generalized practical scenario of software development practices in Information Technology (IT) industry. The proposed PORM system is also designed and equipped with better risk factor assessment with an aid of machine learning approach without having more involvement of iteration. The study outcome shows that PORM system offers computationally cost effective analysis of risk factor as assessed with respect to different quality standards of object oriented system involved in every software projects.
Every choice made in the pursuit of objectives has its risks. From day-to-day operational decisions to the fundamental trade-offs in the boardroom, dealing with uncertainty in these choices is a part of the organizational lives. A strategy is nothing more than a commitment to a set of coherent, mutually reinforcing policies or behaviours aimed at achieving a specific competitive goal. In order to ensure the implementation of efforts and the allocation of resources to achieve strategic goals, top management should conduct integrated risk management practices to all activities/initiatives of the organization’s management, both individually and collectively. Risk management is an intrinsic part of business planning and decision making. No direction is taken without looking at the potential risks and comparing them against the organization’s risk appetite. This paper aims to research in general the practice of enterprise risk management within Institut Teknologi Bandung (ITB) as a well-known and public-state-owned university in Indonesia. This research concludes that the enterprise risk management implementation is not fully implemented yet within ITB as an enterprise. Almost all respondents agree that the implementation of enterprise risk management has a positive and significant influence on the organization’s objectives achievement. Improving university performance overall will require an effective enterprise risk management practice. Author highly recommends ITB to adopt risk management practice based on ISO-31000 standard, and it can be combined with other risk management standards available nowadays if necessary. ITB needs to start the implementation at the soonest as possible, in order to maintain its strategic position as a top university in Indonesia, increase its competitive advantages to compete in the global scale, and at the same time achieving its vision and mission in a long-term and sustainable manner.
This chapter takes you step-by-step through the ERM process. It presents practical challenges using concrete examples. Robust risk scenarios form the basis to challenge management intuition. They offer more rational information on risky decisions. Risk identification and risk assessment are important ERM steps. Yet, risk managers add value with risk-relevant information in decision-making processes. Also, meaningful risk reporting can support decision-making. We complete the chapter with some tips on continuous ERM improvement.
This chapter takes you step by step through the ERM process and presents practical challenges using concrete examples. Robustly developed risk scenarios can challenge management intuition with more rational information on risky decisions. In addition to risk identification and risk assessment, the integration of risk-relevant information into decision-making processes is a key element of value-creating risk management. Level-appropriate, integrated risk reporting suggestions and concepts for continuous improvement of ERM quality complete this chapter.
Das Enterprise Risk Management (ERM) unterstützt das Unternehmen beim Umgang mit Risiken und dadurch bei der Erreichung von Unternehmenszielen. Das interne Audit kann zum effektiven und effizienten ERM auf vielfältige Weise mit Assuranceund Beratungsdienstleistungen beitragen. Das ERM bietet wiederum Input für die Tätigkeiten des internen Audits.
Basic concepts -- The structure of economic organisations -- Public policy and economic organisation
Purpose The purpose of this paper is twofold: first, to add to the debate on governance and, second, to describe a value set theory of the firm. Design/methodology/approach The methodology has centred on good governance amongst employees – management and workers alike. Findings It is noted that committees are appointed in firms to ensure that good governance is practised across a range of issues to do with audit, remuneration and appointment. However, the debate on governance has largely overlooked the importance of good governance amongst all employees. It was found that governance at the employee level requires a code of ethics that is not just about right and wrong, but emphasises a contractual sense of duty to fellow employees as stakeholders in the firm. This defines the essence of obligation and duty within the stakeholder firm, the s‐firm. Practical implications/limitations One practical implication of the paper is that the practice of good governance at the employee level should begin by asking whether the employees as rational individuals in a state of nature would freely have agreed to the contract or work arrangement within the firm that obligates them to do X. A value set theory of the firm could assist employees by allocating responsibilities among all employees in such a way as to maximise joint effort. Originality/value The paper proffers a new approach to understanding governance and it concludes that every rational being is in the state of being an end in itself – a firm should teach people morality. An s‐firm teaches people morality. This is the quintessence of employee governance. The paper should be of value to shareholders, workers, management, trade unions and commentators on the theory of the firm.
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