Book

Proactive Risk Management

Authors:
... It involves proactive measures to protect the brand from various risks, such as negative publicity, product recalls, legal issues, and other threats that could harm its image and customer trust (Rust et al., 2021). Previous studies primarily defined the strategic activities in BRM as the brand risk analysis and assessment activities to enable the best preparations and plans if current risks escalate into crises (Lequeux, 2011;Marshall et al., 2019;Smith and Merritt, 2020). ...
... Previous studies have identified four key indicators of good BRM. These indicators are used to measure the quality of BRM in organisations and are considered crucial for successful brand management, including BRM1 -'Clear brand development strategy' (Moeller, 2007); BRM2 -"Brand development strategy linked to the general development strategy" was modified from (Fournier and Srinivasan, 2018); (Smith and Merritt, 2020) emphasised the importance of brand risk assessment in good BRM. Lequeux (2011) also stressed the need for proactive prediction of brand risks to prepare for necessary response plans. ...
... Furthermore, designing a clear brand development strategy that aligns with the overall enterprise brand development plan ensures consistency throughout the brand-building process, creating a stable brand image in the eyes of stakeholders (Fournier and Srinivasan, 2018). Furthermore, the study results confirm that creating forecasts and assessment scales for potential brand risks in order to help enterprises prepare effectively is a critical element of sound BRM that has highly positive impacts on business operations (Smith and Merritt, 2020). Risk assessment has traditionally played a significant role in various domains, including forecasting natural disasters and environmental risks such as floods, climate change, and volcanoes (Arduino et al., 2005;Sparks and Aspinall, 2004); It is also employed in the prediction and evaluation of risks in project management (Raftery, 2003); and aids in forecasting and evaluating financial risks, enabling the assessment of the impact of various risk factors on cash flow (Hwee and Tiong, 2002). ...
... Risk management is identifying, analyzing and prioritizing risks and response planning by applying economic resources to minimize the risks. Smith et al define risk as an undesired outcome of investment [4]. According to Leo et al risk management constitutes risk identification, monitoring, assessment, testing, reporting and oversight [1]. ...
... They postulate that risk management team should anticipate the risks associated with their industry and provide imminent solutions. Smith et al further argues that risk management in the banking industry is achieved through the use quantitative methods of risk management [4]. Banking industry needs more proficiency in the management of risks as it deals with broad economic sectors. ...
... This step mainly involves brainstorming, whereby all employees contribute to identifying risks. The risks are then prioritized as all risks cannot be mitigated simultaneously; hence the more vital ones are solved first [4]. Risk identification is the most vital step, as it ensures that all risks are considered and arranged in order of priority. ...
Article
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Risk management equips a bank with the tools that risk managers can use to detect, analyze and resolve risks. Risk management enlightens a business on the different ways to deal with risks by providing a guideline for sound decision-making. Risk management involves several processes like assessment, communication, monitoring and valuation of risks. A company can ensure the security of their assets and prevent losses through these processes. Also, it enables the business to weigh the options of risks and make a sound decision on investments. This paper explores the impact of risk management in banking by analyzing the risk management process, strategies, types of risks, technologies and quantitative methods in banking.
... In works [10,11] the complex methodology of risk management in any activity, in particular project, which can become a basis for the analysis of risks in scientific projects is resulted. ...
... The next step is to identify personnel risks of the scientific project. The complexity of personnel risk management is due to the fact that many types of personnel risks are not obvious, as they are related to human resources, which are based on the nature and essence of the individual, which is the most complex object of management [5,10]. ...
... Thus, personnel risks are risks associated with the recruitment of project staff, involvement in certain types of work, organization of its work in a team, development, motivation and other areas of personnel work [10,11]. Personnel risk management begins at the stage of project planning and human resource management of the project and covers all stages of the project life cycle [1,5,11]. ...
Article
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The object of research is the processes of conflict and risk management of stakeholders of a scientific project, in particular the project team, the main executors of the project (scientists) and other stakeholders, in a behavioral economy. At the present stage of the country’s development, scientists work in very difficult conditions, in particular: limited resources (material, human, financial, time and others). The complexity of internal and external processes of a scientific project and the relationship between its stakeholders leads to risks and conflicts that may be caused by behavioral factors. Therefore, it is necessary to systematically approach the analysis of scientific project stakeholders, develop a unified approach to integrated risk and conflict management of scientific project stakeholders in a behavioral economy. The paper proposes a model of integrated risk and conflict management of a scientific project in a behavioral economy, which is based on the following stages: – identification of stakeholders and related risks, conflicts and behavioral economics that may arise in the planning and implementation of a scientific project and have an impact on it; – building a model of integrated risk and conflict management of stakeholders of a scientific project in a behavioral economy; – the modeling of integrated risk and conflict management of stakeholders of the scientific project in the conditions of behavioral economy is carried out on the basis of the identified risks, conflicts and factors of behavioral economy. The developed model of integrated risk and conflict management of stakeholders in a behavioral economy will analyze the main factors influencing stakeholders, including risks, conflicts and behavioral economics, on the scientific project. The use of the principles of integrated management of various factors allows to determine the sources and causes of complications that may arise in the scientific project, and the simulation results will be useful to the project manager and its team in the planning and implementation of the project.
... An important earmark in risk management is a proactive approach, which is explained in detail by Smith and Merritt in the book Proactive Risk Management [10]. They suggest various risk analysis and evaluation models (standard, simple, cascade, and Ishikawa risk models) and tools that project stakeholders can use for recording, prioritising, solving and monitoring reactions to project risks. ...
... As evident from Figure 1, the risks related to the entire project are first identified in steps 1 and 2. Various approaches can be used. Smith and Merrit [10] propose four different models for the identification and quantification of risks: standard, simple, cascade, and the Ishikawa models. Each of the proposed models has its advantages and disadvantages. ...
... According to [10], the standard model can be visualised as shown in Figure 2. In the standard model, a risk event is first identified. We can start from a previously prepared WBS/RBS matrix. ...
... On peut réduire l'incertitude grâce à la production d'une quantité importante d'information relative à certaines actions ou situations pour en avoir une connaissance plus précise, mais on ne peut jamais l'annihiler totalement. Quant au risque, il sera géré ou mieux contrôlé à partir de la mise en place de certaines actions appropriées (Smith et Merritt, 2002). ...
... Les probabilités d'occurrence peuvent être déterminées de façon quantitative lorsque les événements évalués se sont déjà réalisés par le passé et que l'entreprise ou l'évaluateur a conservé des données sur ceux-ci. Or, ce genre d'information est rarement existante dans les petites entreprises et, pour déterminer ces probabilités, on aura plutôt recours à un jugement d'expert, à la consultation de personnel clé ou à la méthode Delphi (Smith et Merritt, 2002). ...
... Ce modèle a l'avantage d'être simple, mais il n'est pas toujours facile à utiliser puisqu'il peut parfois être complexe de réfléchir simultanément à un événement et à son impact; les déclencheurs et les probabilités pouvant parfois être différents. Par contre, il appert que les utilisateurs non formés en gestion du risque formulent généralement des énoncés de risque basés sur le modèle simple, où l'événement et son impact sont groupés (Smith et Merritt, 2002). Ce modèle a donc été utilisé dans le cadre de notre expérimentation. ...
Conference Paper
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L’évaluation du risque des PME est un domaine de recherche relativement peu développé alors que le risque est un élément essentiel du financement des entreprises. Dans le contexte d’une demande de financement externe, les PME sont considérées comme des entreprises risquées étant donné leur forte probabilité de faillite présupposée et le contexte d’information asymétrique dans lequel le financement est évalué. Or, on fait abondamment appel aux données financières pour mesurer ce risque alors que leurs limites sont de plus en reconnues dans un tel contexte ce qui implique qu’elles doivent être complétées par des informations plus intangibles. Ces informations sont cependant moins formalisées et sont sensibles au jugement et aux perceptions de l’analyste. Dans ces conditions, il est nécessaire de connaître la position de l’analyste face au risque puisque celle-ci sera directement intégrée à son évaluation. Une façon de réduire cet impact serait de ne pas confier à une seule personne la responsabilité d’identifier et de mesurer le risque d’un projet ou d’une entreprise. C’est afin d’apporter un éclairage sur l’influence de l’attitude des individus engagés dans un processus d’évaluation et aussi sur les effets d’une évaluation collégiale que nous avons conduit une expérience auprès de conseillers en gestion expérimentés et de futurs conseillers. Les résultats montrent que l’objectivité totale est impossible dans une évaluation de risque puisque celle-ci dépend du profil de l’évaluateur. En revanche, les résultats confirment que l’évaluation collégiale peut atténuer l’influence des attitudes individuelles, mais sous certaines conditions. Mots-clés : Financement bancaire, évaluation du risque, attitude face au risque
... Several models and methods are available for risk analysis of project activities (Cappels 2004;Goodpasture 2004;Smith & Merritt 2002;Vargas 2008; Risk management guide for DOD acquisition 2006; Dobie 2007). ...
... Goodpasture (Goodpasture 2004) using Kano model and project balance sheet for managing of risk. Smith and Merritt (Smith & Merritt 2002) propose proactive risk management in five steps: identify risks, analyze risk, prioritize and map risks, resolve risk and monitor risk. Vargas (Vargas 2008) discuses and analyze the model and best practices used in the PMI standards, published in the PMBOK guide (PMBOK Guide 2004). ...
... The project team can select one of the following models for the identification of project risks (Smith & Merritt 2002): ...
Article
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Project management of product/service orders has become a mode of operation in many companies. Although these are mostly cyclically recurring projects, risk management is very important for them. An extended risk-analysis model for new product/service projects is presented in this paper. Emphasis is on a solution developed in the Faculty of Mechanical Engineering in Ljubljana, Slovenia. The usual project activities risk analysis is based on evaluation of the probability that risk events occur and on evaluation of their consequences. A third parameter has been added in our model: an estimate of the incidence of risk events. On the basis of the calculated activity risk level, a project team prepares preventive and corrective measures that should be taken according to the status indicators. An important advantage of the proposed solution is that the project manager and his team members are timely warned of risk events and they can thus activate the envisaged preventive and corrective measures as necessary.
... This structure depicts an alternative approach to managing risk. Smith and Merritt (2002) provide the other process for managing the risk. This process consists of 5 steps for managing the risk. ...
... Based on this method, expected loss for each of the risks could be calculated, and the risks could be prioritized based on the expected loss. (Smith and Merritt, 2002) (Expected loss (L e ) = L t * P e * P i ) ...
... They concluded that proactive detection and reduction of risk measures improve the project's performance by reducing interruptions and expenditure overruns (Islam et al., 2024). The necessity to possess a strong risk management structure was mostly noted since it allows projects to stay on course despite unanticipated problems (Smith & Merritt, 2020). Even so, respondents emphasized that the adoption of risk management strategies is frequently dependent on the project leader's skill and the company's dedication to continual development (Ferreira de Araújo Lima et al., 2021). ...
Article
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Pakistan's construction sector is plagued by challenging endeavor environments that require efficient management strategies for success. The present qualitative research looks at how risk management, communication management, organizational culture, and human resource management affect the success of the Pakistani construction industry. This study uses semi-structured interviews with project managers from diverse construction businesses to explore the industry's particular difficulties and tactics. Thematic analysis showed that thorough risk management measures are demonstrated to reduce project interruptions and postponements while successful communication management is vital in preserving transparency and sorting out disagreements. Furthermore, research has shown that a strong organizational culture emphasizing cooperation and shared values improves creativity and teamwork. In addition, strategic HRM methods, such as focused recruiting and developing competencies, assist in coordinating project teams and improving performance. The study provides significant information for Pakistani construction companies seeking to optimize their management processes, as well as laying the framework for subsequent studies on enhancing project accomplishments within emerging countries.
... Risk management is a structured approach to handling the uncertainties associated with threats [23]. Risks arise from activities undertaken by a company to achieve its strategic objectives. ...
... They concluded that proactive detection and reduction of risk measures improve the project's performance by reducing interruptions and expenditure overruns (Islam et al., 2024). The necessity to possess a strong risk management structure was mostly noted since it allows projects to stay on course despite unanticipated problems (Smith & Merritt, 2020). Even so, respondents emphasized that the adoption of risk management strategies is frequently dependent on the project leader's skill and the company's dedication to continual development (Ferreira de Araújo Lima et al., 2021). ...
Article
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Construction Project Success; Risk Management; Communication Management; Organizational Culture; Human Resource Management; Pakistan Introduction The construction sector contributes significantly to every country's prosperity, making important contributions to labor infrastructure, creating labor opportunities, and the general development of the economy (Alaloul et al., 2021). In emerging economies such as Pakistan, the building industry is essential for fulfilling the rising demand for residences, mass transit systems, and governmental amenities (Anwar et al., 2024). Regardless of their significance, building initiatives in Pakistan frequently confront major hurdles that impede their proper execution (Ullah et al., 2020). Excess expenditures, interruptions, project management deficiencies, and inadequate quality management have all been common complaints in the nation's construction industry (Memon et al., 2023). The notion of construction project success includes more than just finishing a job on schedule and within budgetary constraints (Irfan et al., 2021). It contains numerous factors like satisfied stakeholders, compliance with security requirements, ecological concerns, and over a long period viability of the project (Zaleski & Michalski, 2021). In Pakistan, where fast urbanization and population expansion necessitate strong infrastructure development, accomplishing goals is considered a national priority (Menhas et al., 2019). Even so, the way toward achievement is plagued Pakistan's construction sector is plagued by challenging endeavor environments that require efficient management strategies for success. The present qualitative research looks at how risk management, communication management, organizational culture, and human resource management affect the success of the Pakistani construction industry. This study uses semi-structured interviews with project managers from diverse construction businesses to explore the industry's particular difficulties and tactics. Thematic analysis showed that thorough risk management measures are demonstrated to reduce project interruptions and postponements while successful communication management is vital in preserving transparency and sorting out disagreements. Furthermore, research has shown that a strong organizational culture emphasizing cooperation and shared values improves creativity and teamwork. In addition, strategic HRM methods, such as focused recruiting and developing competencies, assist in coordinating project teams and improving performance. The study provides significant information for Pakistani construction companies seeking to optimize their management processes, as well as laying the framework for subsequent studies on enhancing project accomplishments within emerging countries.
... would have to be deducted, the increase is positive and the impact of the increase base on a higher r value may mean that the bigger the capitalization is, the higher the EBITDA performance (Sathyamoorthi et al., 2020). This shows that together with a well-established risk management practice (Reciprocity, 2021), capital infusion is one of the best ways for firms to survive and thrive during a high-loss event such as the pandemic (Smith and Merritt, 2020 ...
Thesis
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Risk management in the last decade has been an integral part of business management. Companies in the Philippines, just like their counterparts abroad, implement a comprehensive risk management practice to mitigate risks. The recent pandemic was a litmus test if these practices were effective. Indeed, these practices may have varying degrees of effectiveness, but the ultimate measure of a risk management practices is of course its relation to profits. Profits, also known as performance, is usually measured in terms of Earnings Before Interest, Taxes Depreciation and Amortization (EBITDA) and Earnings Per Share (EPS). Hence, the purpose of this study is to analyze select listed publicly traded Philippine companies' risk management practices and performance and conduct relevant data analyses based on the companies' reported data in order to find relationship between risk management practices and performance during an event such as the pandemic. The research questions are: 1) Risk management practices that selected public companies employ in terms of proactive risk management and reactive risk management; 2) Performance in terms specific metrics such as EBITDA and EPS; 3) Difference between performance before and after the pandemic; 4) Relationship between performance and the risk management practices; and 5) Models created to explain the events of the pandemic/pandemic in terms of performance and risk management. The hypotheses tested were: Ho(1)-There is no significant difference between the performance of these companies before and after the pandemic-accepted for EBITDA and EPS; rejected for EBITDA growth; Ho(2)-There is no relationship between the performance and the risk management practices selected companies employed.-rejected. Ten randomly selected PSE listed companies belonging to the financial sectors were analyzed using their public filings and via survey using a researcher-made questionnaire. Descriptive quantitative research method of correlation and causal-comparative design were used to determine the relationship, differences and similarities existed between variables and profiles. The dependent data were statistically analyzed using Spearman's Rank-Order Correlation and Related-Samples Wilcoxon Signed Rank Test. Also, models were created using the linear regression. The study concluded that: firms implement both proactive and reactive risk management practices on a very high level; 2) All performance metrics and indices were affected by the downturn caused by the pandemic specially on the initial year, while the succeeding years showed recovery. Performance metrics specifically, the EBITDA growth has yet to return pre pandemic levels; 3) Pre-pandemic and post pandemic performance in terms of EBITDA and EPS were not significantly different except for EBITDA Growth on the other hand is significant, which could mean that the actual effect on the performance is severe during the initial year of the pandemic and performance has yet to return to pre pandemic levels growth; 4) There is a positive relationship between performance and risk management practices; 5) Linear models were then created to show how the pandemic affected company performance and may potentially be used if such event happened again or continued in the near future. Overall, risk management practices offer an effective tool in countering an event as drastic as the COVID-19 pandemic.
... Risk management is the process of identifying and evaluating potential losses and taking efforts to reduce the financial effect of the risks they present (Smith & Merritt, 2020). Sweeting (2017) defines enterprise risk management (ERM) as a comprehensive strategy that aims to identify, assess, and prepare for potential losses, dangers, hazards, and other potentials of harm that may interfere with an organization's operations and objectives and lead to losses. ...
Article
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The study examined the drivers of Enterprise Risk Management culture in insurance firms in Kenya. The research was conducted using a desktop methodology. This involves the use of qualitative data that is obtained from government publications, public records, historical and statistical documents, and technical and trade journals. This kind of data is commonly preferred since it is easily accessible hence it saves time and cost of field research. Therefore, this study relied on already published studies, public records, and online journals to obtain secondary data that was used to draw the results, conclusion, and recommendations of the study. The results from the empirical review were found to have conceptual and geographical gaps that the current study aimed to fill. Most of the findings from the reviewed studies revealed that the competence of risk assessment strategies, risk treatment strategies, corporate governance frameworks, and risk monitoring frameworks are some of the drivers of ERM culture in Insurance firms. The results also revealed that the implementation of effective ERM culture has a significant impact on the performance of insurance firms. This study will benefit most of the stakeholders in the insurance sector in Kenya. The findings of the study will also enable the risk committee to identify the factors that can help develop and maintain technical models that support the ERM function.
... They lack skills to evaluate information critically and require this training via engaging ways (e.g., journaling, discussion, and reflection and learning through teamwork, debate, problem-solving, and reflection) [70][71][72]. Risk management is widely presented in the literature [54,56,[73][74][75][76][77][78]. Researchers point out that risk management starts with analysing all crucial information. ...
Article
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Gen Z, people born in the Internet age, are entering the labour market and soon will be responsible for public administration. Such a situation creates the need to study their professional motivations and competencies. We aim to determine: (1) What are the motivating factors of Gen Z representatives? (2) What is the factor’s structure of competencies of Gen Z employees? (3) Do Gen Z’s interest in public administration result from their needs to realise the public interest? These questions are fundamental for the strategy of hiring and training newcomers. This original paper’s insights have emerged iteratively based on a systematic literature searching method and data obtained from the surveys (n = 335). Research of Polish representatives of Gen Z showed that their expectations are similar to those found in other countries. However, their responses suggest that ethical issues are not the most important for them. The presence of generation Z on the labour market will generate a paradigm shift in the activity of companies and public institutions that will be the employers of these young people. Reconfiguration of the principles of human resource management is necessary.
... Developed risk management enables to be made the quality decisions , the better planning and optimization of resources available, dealing with priorities and avoiding any problems that may arise in achieving the set goals (Wideman, 1995). For these reasons, when setting goals and making business decisions, it is important to timely consider the key risks and events that may cause difficulties in achieving the goals, and accordingly take action to address the issues Risk can be defined as the possibility of events that may adversely affect the achievement of the set goals, or as a threat to the successful achievement of the goals (Smith & Merrit, 2002). Missed opportunities to achieve goals are also considered a risk. ...
Article
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The opting for the European integration process, the Republic of Serbia is obliged, through pre-accession negotiations, to ensure the construction of an effective financial management and control system. In this way, public administration reform is supported through an innovative approach to governance that implies efficiency, effectiveness, economy and transparency in the use of public funds, the creation of a management culture based on effective risk relief mechanisms and the prerequisites for achieving the set business goals. The aim of the paper is to look at the interaction of proactive risk management as a component of financial management and control, through the prism of setting goals and assessing risks related to those goals, within the categories related to business, reporting and compliance with laws and regulations. The initial phase of the research is the assessment of the current state of internal control mechanisms and the established risk management system based on the SAI audit reports and the Report on the established financial management and control of the Central Harmonization Unit of the Ministry of Finance of the Republic of Serbia. Research problems in empirical research are expressed by a series of questions to which selected respondents from the RS public administration gave answers, which relate to the component of risk assessment in achieving goals in relation to business, reporting and compliance with laws and regulations. To determine the measure of the connection between the formalization of the risk management process and the quality of goal and risk management, Spearman ‘s rank correlation was used as a measure of connection Result of the analysis provide guidance for overcoming key barriers and recommendations for improving the quality of management, through formalizing the risk management process, in order to achieve the set goals.
... The objective for the risk analysis review is to utilize proactive risk management based on the standard risk model and utilize tools discussed in the text, Proactive Risk Management (Smith and Merritt 2002), to examine risks that might be associated with the development and deployment of the leading concept and present several examples of mitigation strategies. ...
Article
Wildfires have increased in frequency, duration, and intensity worldwide. Climate change, drought, and other factors have not only increased susceptibility to wildfires, but have also increased the duration of the season. There are a number of factors affecting wildfires: detection, speed of communication/response time, resources/politics/climate change/infrastructure to fight fires, and prevention education. A wildfire doubles in size and intensity every 3 to 5 minutes and response times tend to be 10 to 15 minutes at best. The goal of the trade analysis is to arrive at a cost‐effective and robust performance system which can be operated at the county level with minimal infrastructure to mitigate the menacing problem of forest wildfires. The approach will be a disciplined systems engineering approach to objectively arrive at the best solution for detection and communication of wildfires, having analyzed the measures of effectiveness (MOEs) for all critical requirements for a technologically diverse set of solutions. Though the analysis is still at a very early stage and the outcome could change as additional details are developed, due diligence was exercised in the evaluation of parameters such as detection time, total operations cost, and operational flexibility, to name a few. Early trade‐off results indicate that the lead concept is a rotor‐wing unmanned aerial vehicle (UAV) concept, utilizing a rotorcraft configuration which could be outfitted with a remote‐sensing payload compliment based on light detection and ranging (LiDAR) technology with associated functional equipment such as global positioning systems (GPS) and inertial measurement units (IMU). The UAV would be semiautonomous, launched from and remotely controlled by an operator in the general area of interest. Upon arriving at this area of interest, the UAV would then fly a flight plan autonomously to collect and communicate data to a base station to be used to direct wildfire mitigation services in the event of a positive detection.
... For certain organizations particular operating mode of one tool may be useless, while on the other hand for another organization this simplicity of operation and display of basic statistical report are exactly what they need. Accordingly as a first step, it is necessary to determine the needs of the organization or team that will manage risks, then specify a group of tools that meet these requirements, and finally choose the appropriate one after performing adequate analysis of tools functionalities [Smith and Merrit 2002]. ...
Preprint
Risk analysis is a stage in the process of managing software projects, which largely affects the success of the project. It represents a complex and demanding process of planning, identification, analysis, response planning risks, monitoring, control, and reporting. Every software project, regardless of size, structure and project team is exposed to various types of risks. Risks can occur in the environment, but we have to accept the fact that they can not be completely eliminated. It is necessary to focus a lot of activities on risk reduction. The two most important features for improving the risk analysis process are: engaging professional resources, procurement and use of adequate software tools for risk analysis and management. This paper presents the results of comparative analysis of the 4 types of different risk management tools. We also proposed some specific measures for the selection and choice of the most appropriate of them in accordance with the requirements and needs of the user. Obtained results can help, not highly experienced software project managers, to select good risk management tool for leading their small and medium size software projects.
... İş rotasyonları, düzenli yapılan gözden geçirme toplantıları, düzenli yapılan müşteri ziyaretleri, sosyal etkileşim ve fiziksel yakınlık, bölümler arası iletişimi artırmaktadır (Trygg, 1993). İyi bir iletişim alt yapısının varlığı, işletmede iyi bir iletişimin gerçekleşmesine yardımcı olacaktır (Smith ve Merritt, 2002). Ekip üyelerinin fiziksel olarak bir arada konumlandırılmaları ile bölümleri ayıran fonksiyonel engeller ortadan kalkmakta, böylece yeni ürün geliştirme faaliyetlerinde sıklıkla ihtiyaç duyulan yakın iletişim artmaktadır (Akgun vd., 2005;Kahn ve McDonough, 1997). ...
... Simon et al. [62] proposed a nine-step plan to address risk management: define, focus, identify, structure, ownership, estimate, evaluate, plan, and manage. Smith and Merritt [63] proposed an abbreviated five-step process: identify, analyze, prioritize and map, resolve, and monitor. An innovative and popular method for risk management analysis is risk diagnosing methodology (RDM) proposed by Keizer et al. [64]. ...
Article
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Modular product design (MPD), as its name implies, subdivides complicated products and systems into components and considers them individually instead of as an amalgamated whole. Because of its merit in reducing complexity, MPD is widely used in engineering fields, especially in design engineering. Over the last decade, increasing concerns about environmental impact have driven manufacturers to reconsider their product design processes from the view of sustainability. The blending of these concepts—modularity and sustainability—has attracted significant attention from both academia and industry. The ways in which sustainability influences MPD are not fully understood, evidencing a gap that needs to be further researched. This review examines more than 100 studies addressing ways MPD is associated with sustainability factors and classifies these studies based on major sustainability themes. The initial review and analysis were conducted using literature summarization tables and a maturity index. Our search emphasized not only the performance of MPD methodologies with respect to sustainability factors, but also the relationship between MPD and sustainability categories. Our review results indicate that from an academic perspective, research over the last 15 years has seen a significant increase in studies involving MPD and product life cycles, MPD and product innovation, and MPD and environmental management. Secondarily, our findings reveal that from an industry perspective, the literature shows modularity has a positive impact on sustainability and identifies several social sustainability-related areas in MPD that could benefit from further investigation.
... The term "risk" has conventionally been used to refer to any sort of unpredictability associated with the outcomes of an organisation (Miller, 1992). Smith and Merritt (2002) and, more recently, Perera et al. (2014) defined the management of risks as a systematic approach to the identification, assessment, evaluation, and ranking of the associated risks followed by the allocation of the necessary resources to monitor, control, and minimise any adverse impacts of undesirable events. Evidence has demonstrated that many successful organisations realise the benefits that risk management has to offer to improve project performance and success (Teller, 2013). ...
Article
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A definition of the effective methods of risk management in R&D projects has remained elusive. Similarly, there have been calls to devise effective risk management methods in R&D projects. To develop this area further, the purpose of this study is twofold. First, it validates the veracity of claims about the urgency of introducing effective methods of risk management to R&D projects in South Australia based on nine unstructured interviews with experts. Second, the study presents the outcomes of two case studies that deployed the extended version of the failure mode and effect analysis, namely, the RFMEA method in a South Australian organisation, to investigate how the method can facilitate the identification of effective contingency plans to mitigate high-priority risks. The findings showed that the RFMEA method would be effective for project managers in dealing with risk management issues in R&D projects. The discussions presented will provide guidelines for practitioners in the industry.
... The risk gap number. Reasonable estimates can often be obtained by investing in the discovery of some evidence in terms of the drivers of the risk event and its impact ( Smith and Merritt 2002 ). Providing a quantitative forecast even for hard-tomeasure risks also enables ongoing, closed-loop improvement of forecasting accuracy ( Hubbard 2009 ). ...
Article
OVERVIEW: New product development projects are highly risky technical undertakings. Organizations frequently seek to manage the risk involved using standard risk management procedures, knowing that a company that better manages risks is less vulnerable. Nevertheless, NPD projects continue to fail to meet expectations for delivery time, budget, and outcomes. In this paper, we explore reasons why, despite employing self-evidently correct risk management procedures, adversities occurred in 19 major information systems projects. Project managers focused on the familiar, the measurable, the favorable, the noncommittal, and the controllable while excluding other risks that significantly affected their project performance. We have characterized this tendency as a series of five lures that leave projects vulnerable to risks.
... Kerzner [17] pod pojmom upravljanja rizicima podrazumijeva aktivnosti za planiranje rizika, procjenu rizika (identifikaciju i analizu), rješavanje i nadzor. Proces upravljanja rizicima, kako ga vide Smith i Merritt [27], sastoji se od pet osnovnih koraka: identifikacija rizika da bismo se mogli suo iti s njihovim posljedicama, analiza rizika kako bi se ustanovili uzroci njihova nastanka, veli ina njihova utjecaja i vjerojatnost pojave svakoga od njih; odre ivanje prioritetnih rizika da bi se prišlo rješavanju najvažnijih rizika, planiranje aktivnosti za suzbijanje negativnih posljedica rizika, nadziranje provo enja plana za upravljanje rizicima, pra enje statusa riješenih rizika i eventualnu pojavu novih. ...
Article
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The system of successful project risk management, with an emphasis on public housing projects, is defined. Individual elements and the structure of the system are described. The system is aimed at reducing the possibility of occurrence of hazardous events, and at curbing the impact such events have on the realization of project objectives. A risk management model suitable for public projects is proposed. The possibility of successful realization of public construction projects will be higher if the model is used in all phases of the project.
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This study investigates the interplay between risk identification, exchange rate exposure, foreign exchange risk response, and financial performance in the airline industry in China. Using data from industry participants and employing structural equation modeling, the analysis reveals that risk identification significantly impacts financial performance by enabling proactive management of exchange rate volatility. Additionally, exchange rate exposure directly affects both foreign exchange risk responses and financial outcomes. The findings emphasize the importance of integrated risk management practices to enhance financial stability and operational efficiency. Implications for industry practices and future research directions are discussed. |
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The future of quality is a topic of paramount importance as we navigate the rapidly evolving landscape of technology, innovation, and societal change. Conference "Quality of the Future -Future of Quality," brings together leading experts, researchers, and practitioners to explore the multifaceted aspects of quality management in the context of the challenges and opportunities that lie ahead. Quality has long been a cornerstone of organizational success, driving efficiency, competitiveness, and customer satisfaction. However, the future demands a more holistic and integrated approach to quality, one that not only addresses operational excellence but also embraces the principles of sustainable development, economic security, and social responsibility. As we look to the future, the conference participants have identified critical success factors for the effective implementation of quality management programs, emphasizing the importance of leadership, organizational culture, and employee engagement. The case studies presented demonstrate the tangible benefits that can be achieved through the adoption of lean management and other quality-focused approaches, serving as inspiration for organizations seeking to enhance their overall excellence. The future of quality is not merely about achieving operational perfection; it is about cultivating a culture of continuous improvement, innovation, and a deep commitment to sustainable development. The insights shared in these proceedings will undoubtedly contribute to the ongoing dialogue and drive the advancement of quality management practices, empowering organizations to navigate the challenges and seize the opportunities that lie ahead
Article
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CubeSats have become an important component of space systems engineering education and research activities across the globe. A variety of universities and government stakeholders have developed educational materials and coursework to train students to follow systems engineering processes in developing these systems, but these materials generally recommend that students follow traditional, industry-derived systems engineering processes without acknowledging the technical and managerial limitations of the workforce in an undergraduate learning environment. This research seeks to develop a more modern model-based systems engineering approach that is tailored to the capabilities, time constraints, and resources typical of undergraduate space systems design and development courses. The considerations for and procedures followed to develop these systems engineering processes are presented here, and the results of implementation of these processes in successive cohorts of undergraduate students performing CubeSat design and development are presented. The results show a significant improvement in instructor and subject matter expert-assessed student learning and student performance. The causes of these results are elucidated with evidence of improved understanding of the systems engineering process, and improved cohort-to-cohort information flow. The Systems Engineering Handbook that is the subject and object of this study is available for other educators and students at https://hdl.handle.net/10217/237534.
Article
Risk management throughout the project life cycle, from the initial phase beginning to the final phase, ended continuously and dynamically, is one of the basic requirements for the success of any project oriented organization. To effectively identify and manage risks at all stages of the project, careful selection must be made at all levels of the organization. In some cases, implementing the response may eliminate the risk but reciprocally create additional risks for the project. Most of the available risk selection methods mainly focus on eliminating the primary risks without understanding the secondary and residual risks that may arise during the project implementation. The occurrence of secondary risk can be a direct result of performing an activity that responds to a primary risk. This study proposes an optimization model to select risk response measures for primary and secondary risks. The difference between our proposed method and Zhao method (2018) will be that the proposed one does not lead to selecting a predetermined strategy. This method examines the two dimensions of time and costs in response to primary and secondary risks. In addition, the genetic metaheuristic algorithm has been used to solve the problem in the dimensions mentioned above.
Article
Risk management throughout the project life cycle, from the initial phase beginning to the final phase, ended continuously and dynamically, is one of the basic requirements for the success of any project-oriented organization. To effectively identify and manage risks at all stages of the project, careful selection must be made at all levels of the organization. In some cases, implementing the response may eliminate the risk but reciprocally create additional risks for the project. Most of the available risk selection methods mainly focus on eliminating the primary risks without understanding the secondary and residual risks that may arise during the project implementation. The occurrence of secondary risk can be a direct result of performing an activity that responds to a primary risk. This study proposes an optimization model to select risk response measures for primary and secondary risks. The difference between our proposed method and Zhao method (2018) will be that the proposed one does not lead to selecting a predetermined strategy. This method examines the two dimensions of time and costs in response to primary and secondary risks. In addition, the genetic metaheuristic algorithm has been used to solve the problem in the dimensions mentioned above.
Chapter
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Managing risk in public sector organisation is not an easy task. Instilling the mindset on the importance of risk management is another hurdle faced by the management. Refusing to accept the reality that risk might occur in any activities conducted is common. It is important to come out with simplified approach to analyse risk to ensure the acceptance of the organization members. Thus, this project has been initiated in Universiti Malaysia Terengganu to simplify the risk management process and indirectly assist the university in monitoring all activities. In the first place, the manual document was created to keep track identify risk in any proposed activities. The risk identification process is usually being developed in private sector organisations. Based on the feedback from the user, the manual approach is too burdensome and they have to deal with so many documents. To tackle this, simplified risk management process called e-Risk system has been developed. Positive feedback has been obtained where this new approach has helped them to bring together the whole department to take part and realise the importance of risk management. As this risk management process relates to not only the activities conducted in the university but also any activities that involve the community, implementing risk analysis before the program may help both parties to be aware of any consequences resulting from the execution of such activities. Besides, identifying risk also can be a tool to safeguard the university in any unfavourable event.
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The purpose of this article is to present the results of the ongoing study of the University digital transformation on the basis of a comprehensive theoretical model. The article describes a conceptual model of the University digital transformation formed based on the comprehensive quantitative and qualitative analysis of potential ecosystem participants in line with the requirements of changing external conditions. The authors list the current results of the transformation and strategic plans considering any achievements adjustment. The National University of Science and Technology “MISiS” (NUST MISiS) has been used as an experimental basis for the research. The key achievement of NUST MISiS such as a digital ecosystem is described in this article. The digital environment of NUST MISiS considers the needs of the University staff and students and contributes to achieving the strategic goals.
Book
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Risk management mastery is a moving target due to the fact that new challenges keep propping up due to the dynamic nature of the construction industry. This book uses the experiences of people from different backgrounds, with unique perspectives on risk, to give the current debate on risk management in the construction industry a rich nuance that cannot be replicated easily without similar intimate experiences such as the extinguished contributors to this book had. The books touches on the appropriate model for risk management in the construction industry, then it acknowledges and talk about different markets, it tackles the evolving issue of managing multi-stakeholders' influences and wraps up by mapping out the future direction of risk management in this sector.
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Project risk is a critical factor in estimating project budget. Previous studies on this topic have only addressed estimation methods that consider project budget reserves against identified risks. As a result, project managers still face the challenge of completing projects within given budgets but without the relevant tools to deal with unidentified risks. This study proposes an approach for estimating reserves for both identified and unidentified risks separately. The study also suggests using the three-point estimation technique and R-value determination for estimating risk costs, which can improve budget accuracy and precision. The construction of residential building projects in South Korea demonstrates the advantages of the proposed approach compared with previous methods.
Thesis
L'étude de la relation entre le projet d'Établissement et le projet managérial se définit à partir de courants de pensée en mesure d'éclairer notre recherche, alliant constructivisme et théorie de Giddens. À la lumière de voies intermédiaires existantes, l'analyse du secteur social et médico-social est généralement menée sous l'approche de contraintes environnementales et principalement dans le choix d'orientations stratégiques à travers l'innovation, la complexité et la gestion de l'incertitude. Notre travail de recherche vise à mesurer le degré de potentialité qui s'exerce entre les projets. Celui-ci repose sur deux visions ; la première vision se donne pour objectif d'identifier les éléments de la structuration humaine et les éléments de la construction de la relation ; la seconde vision tend à déterminer le degré d'influence de la théorie de Giddens sur la proposition d'un modèle d'organisation et de pilotage. Dans un souci de rationaliser notre recherche, elle se concentrera autour de cette théorie. La question est de savoir si les entreprises développent leur stratégie dans une vision disjonctive des projets ou bien dans la définition et la mise en action dialogique de principes managériaux fortement influencés par l'innovation. Compte tenu de l'environnement de proximité, d'une gouvernance où le manager détient la vision stratégique, du recours à des comportements entrepreneuriaux, il apparaît que les entreprises, définies en communauté, sont en mesure d'établir une relation en marge des contraintes imposées par le contexte et lutter contre le statu quo. Afin de mesurer le degré de potentialité de la relation, nous avons fait le choix de conduire notre recherche auprès de cinq cas cliniques. Le sens de cette contribution est de mettre en avant un style de management ainsi qu'une nouvelle perspective de structuration de l'organisation. À la lumière de nos entretiens et à l'exploitation quantitative et qualitative, il en ressort que les projections de mise en relation des projets constituent un élément applicable voire incontournable de survie des organisations. Si la liberté d'y recourir demeure entière, il n'en reste pas moins que les entreprises qui y renoncent, s'exposent à des choix stratégiques douloureux en regard de l'intensité de l'environnement.
Conference Paper
This paper addresses a problem to identify risks in project plan documents written by project managers. Because some project managers express risks without negative words, risk identification method by negative expressions is not enough to identify them. In this paper, we propose a risk identification method by automatic acquisition of risk expressions. The proposed method acquires the risk expressions from existing project plan documents by using the frequency of appearance in the sentences including the risks. After the acquisition of the risk expressions, the proposed method extracts the sentence where the expression indicates the risk. From the extracted sentence, the proposed method identifies the risk by comparing the items of the checklist of risks. In particular, the proposed method identifies the items corresponding to each extracted sentence by using related words of each item. The experimental result shows that the proposed method identifies 10.7 known risks and 5.8 unknown risks on average.
Article
Risk management is the key element of project management. To deal with project risks various standards have developed their own models and different tools have been created to this end. A good model is a key part of a good process and having a successful project depends on it. Also proper tools are important to have a victorious project. But the combination of a good model and proper tools are the most important factor of victory. This paper, based on the latest researches, examines proper tools and models of risk management which can be applied for green (renewable) generating of electricity.
Chapter
Since the start of the new century the world at large has experienced escalating uncertainty as a result of climate changes, epidemics, terrorist threats and an increasing amount of economic upheaval. These uncertainties create risks for the proper functioning of supply chains. This chapter provides an insight into developing a proactive approach to predict risks and manage uncertainties that may potentially disrupt the supply chain. The aim of the chapter is to present a holistic perspective regarding supply chain risk management and incorporate a methodology to manage supply chain risks proactively. When discussing supply chain risk issues with industry personnel it was noticed that post 9/11, the issue of supply disruption had gained importance within the industry. But the focus on managing these disruptions and sources of these disruptions has been primarily reactive. Supply chain personnel in some instances have remarked that they have in the past researched and presented to their top management proactive risk management solutions which had been subsequently rejected and no investment provided. There is now, however, an increasing interest regarding proactive tools and hence this chapter seeks to present a framework for implementing proactive risk management. The chapter also suggests some tools which may prove useful in predicting supply chain risks.
Conference Paper
During the last years value engineering has become a usable method for assessing, developing and improving high value products. It has also been used as a basis for assessing and improving value in software processes. In complex and highly competed markets information of assessed and planned value might not always be enough, because development of high value products contains also several risks. These risks can have a significant effect for the value and to the profitability of the company in question. Therefore it is highly recommended that a company interested in of value would also consider the risks related to it. This research combines value engineering and risk management practices into a usable new method in order to better respond to the challenges that risks might cause to the value of software companies and their product development. This is done in part by defining the concepts of value, worth and cost and in part by defining the value engineering process with needed risk management practices. The practical industrial case shows that proposed two-dimensional method works in practice and is useful to the assessed company.
Chapter 14 is a light-hearted but effective treatment of the project risk management process with many good tips
  • Stanley E Portny
Portny, Stanley E. Project Management for Dummies. New York: Hungry Minds, Inc. 2001. Chapter 14 is a light-hearted but effective treatment of the project risk management process with many good tips.
Includes an overview of the risk management process with many industry examples illustrating how product developers apply the principles
  • Preston G Smith
Smith, Preston G. Managing risk as product development schedules shrink. Research-Technology Management 42(5):25-32 (September-October 1999). Includes an overview of the risk management process with many industry examples illustrating how product developers apply the principles. Supplementary Reading
This book is oriented toward very large military and aerospace projects, but it provides considerable information on using (and abusing) qualitative (ordinal) scales in prioritizing risks
  • Edmond H Conrow
Conrow, Edmond H. Effective Risk Management. Reston, Virginia: American Institute of Aeronautics and Astronautics, 2000. This book is oriented toward very large military and aerospace projects, but it provides considerable information on using (and abusing) qualitative (ordinal) scales in prioritizing risks. See Appendices G and I and pages 144-160, 205-214.
Chapter 17 provides detailed information on using scales to analyze risks
  • Harold Kerzner
Kerzner, Harold. Project Management, Seventh Edition. New York: John Wiley & Sons, Inc., 2001. Chapter 17 provides detailed information on using scales to analyze risks.
A practical handbook on performance metrics. Although he is oriented toward broad-scale corporate metrics programs, Brown offers valuable advice on constructing and using many types of metrics
  • Mark Brown
  • Graham
Brown, Mark Graham. Keeping Score. Portland, Oregon: Productivity, Inc, 1996. A practical handbook on performance metrics. Although he is oriented toward broad-scale corporate metrics programs, Brown offers valuable advice on constructing and using many types of metrics.
This is the first author we know of to divide metrics into strategic and tactical categories. Although oriented toward software projects, by drawing on his experience working at Hewlett-Packard, Grady provides valuable insights on strategic metrics
  • Robert B Grady
Grady, Robert B. Practical Software Metrics for Project Management and Process Improvement. Englewood Cliffs, ew Jersey: Prentice-Hall, 1992. This is the first author we know of to divide metrics into strategic and tactical categories. Although oriented toward software projects, by drawing on his experience working at Hewlett-Packard, Grady provides valuable insights on strategic metrics.
Excellent source on tactical metrics-emphasizing dashboards-that a product development team can use to improve its own performance
  • Christopher Meyer
Meyer, Christopher. How the right measures help teams excel. Harvard Business Review 72(3): 95-103 (1994). Excellent source on tactical metrics-emphasizing dashboards-that a product development team can use to improve its own performance.
A good overview of the de ign structure matrix tool
  • Steven D Eppinger
Eppinger, Steven D. Innovation at the speed of information. Harvard Business Review 79(1): 149-158 (January 2001). A good overview of the de ign structure matrix tool; it lists a URL at the end for additional information and software to perform the calculations.
After a brief introduction, this whole book addresses risk simulation in detail, primarily using the RISK program
  • Stephen Grey
Grey, Stephen. Practical Risk Assessment for Project Management. Chichester, UK: John Wiley & Sons, 1995. After a brief introduction, this whole book addresses risk simulation in detail, primarily using the RISK program. It includes practical approaches for approximating probability distributions as triangles.
A solid reference on decision analysis methods. The
  • John R Schuyler
Schuyler, John R. Risk and Dedsion Analysis i11 Projects. Second edition. Newtown Square, Pennsylvania: Project Management Institute, 2001. A solid reference on decision analysis methods. The 1996 first edition also includes everything you will need to know.
Reinertsen offers an excellent conceptual treatment of exploiting failure, based on information theory
  • Donald G Reinertsen
Reinertsen, Donald G. Managing the Design Factory. New York: The Free Press, 1997. Reinertsen offers an excellent conceptual treatment of exploiting failure, based on information theory (Chapter 4).
Chapter 12 of this book covers the risk management approaches discussed in our current Chapter 10 plus some related ones
  • Preston G Smith
  • Donald G Reinertsen
Smith, Preston G. and Reinertsen, Donald G. Developing Products in Half the Time. New York: John Wiley & Sons, 1998. Chapter 12 of this book covers the risk management approaches discussed in our current Chapter 10 plus some related ones. Chapter 6 provides more detail on apportioning risk.
Although most organizations today claim to already have cross-functional teams, Cooper calls many of them "fake" or "pretend" teams that are clearly subservient to the functional organization and thus have little power to take action
  • Robert G Cooper
Cooper, Robert G. Winning at New Products, Third Edition. Cambridge, Massachusetts: Perseus Books, 2001. Although most organizations today claim to already have cross-functional teams, Cooper calls many of them "fake" or "pretend" teams that are clearly subservient to the functional organization and thus have little power to take action; he lists the earmarks of such teams (p. 119).
When implementing programs such as risk management, implementers often consider various rewards to encourage compliance
  • Alfie Kohn
Kohn, Alfie. Punished by Rewards. Boston: Houghton Mifflin, 1993. When implementing programs such as risk management, implementers often consider various rewards to encourage compliance. Read Kohn's sobering view before you take this approach.
A bit misleadingly titled, this book is about implementing major organizational change through a chain of small wins that builds confidence and ultimately creates organizational capability. This is an effective technique for a program, such as risk management
  • Robert H Shaffer
Shaffer, Robert H. The Breakthrough Strategy. Cambridge, Massachusetts, 1988. A bit misleadingly titled, this book is about implementing major organizational change through a chain of small wins that builds confidence and ultimately creates organizational capability. This is an effective technique for a program, such as risk management, that often has to overcome cultural hurdles.