Framework for risk management software system for SMEs in the engineering construction sector

Small and medium-sized enterprises (SMEs) in construction sector are vulnerable and face exposure to risks whilst operating without risk management system in place. Evidence from market research and industry surveys confirm that SMEs underperform due to inability to manage operational risk challenges facing them. The objective of this study is to develop risk management software enabling SMEs in the construction sector to proactively identify, analyse and manage risks facing them to enhance business performance. Performance in the construction sector is assessed in terms of completion time, project execution cost and overall quality of delivery. Research framework based on balanced score card highlights risk indicators affecting performance. The risk software guides operator to avoid, minimise, mitigate or manage the relevant risks to enable successful performance outcome. The system will enable systematic risk management to achieve minimum cost and time overrun while optimising quality of delivery in a project management environment.EU FP7 Marie Curie Award27th International Conference on Flexible Automation and Intelligent Manufacturing, FAIM2017, 27-30 June 2017, Modena, Ital

From risk management to ERM

At one point in time, there was self-insurance. Then came risk management. Now comes the era of enterprise risk management(ERM). Traditional risk management will always be necessary, but ERM will complement existing risk activities by extending the field to cover all core risks as well as emerging and strategic opportunities, because without taking risks, organisations gain no value. This paper will present the main elements of an ERM framework and characteristics of different types of ERM.ERM, CRO, risk management, risk designation, risk framework, risk system, risk culture, governance, risk intelligence, risk capital, GIR

An integrated approach to supply chain risk analysis

Despite the increasing attention that supply chain risk management is receiving by both researchers and practitioners, companies still lack a risk culture. Moreover, risk management approaches are either too general or require pieces of information not regularly recorded by organisations. This work develops a risk identification and analysis methodology that integrates widely adopted supply chain and risk management tools. In particular, process analysis is performed by means of the standard framework provided by the Supply Chain Operations Reference Model, the risk identification and analysis tasks are accomplished by applying the Risk Breakdown Structure and the Risk Breakdown Matrix, and the effects of risk occurrence on activities are assessed by indicators that are already measured by companies in order to monitor their performances. In such a way, the framework contributes to increase companies' awareness and communication about risk, which are essential components of the management of modern supply chains. A base case has been developed by applying the proposed approach to a hypothetical manufacturing supply chain. An in-depth validation will be carried out to improve the methodology and further demonstrate its benefits and limitations. Future research will extend the framework to include the understanding of the multiple effects of risky events on different processe

THE ASSESSMENT PROCEDURE OF THE OPERATIONAL RISK EVENTS

A credit institution must establish a management framework of the operational risk.This framework must cover the appetite and tolerance to the operational risk of a credit institution,in accordance with the management policies of this risk, including the measure and method inwhich the operational risk is transferred outside the credit institution.The management framework of the operational risk should include policies and processes for theidentification, assessment, monitoring and control/diminishing of the operational risk.operational risk, frequency and validation, risk levels, monitor, indicators.

Helping the poor manage risk better : the role of social funds

Recent trends in trade, technology, and politics have created new opportunities for global welfare improvement, but have also increased risks. This challenge requires rethinking social protection, and its instruments, particularly social funds. This paper reviews social funds, and suggests future directions by using a"social risk management"framework, to examine how social funds can help the poor manage risk better. Risk management covers risk reduction, risk mitigation, and risk coping. Analyzing social funds within the social risk management framework, suggests that: they should be assessed as one of many components in countries'social risk management strategies; they should move from coping and mitigation, to risk reduction; they should focus more on the medium term impact of projects; their targeting should focus on vulnerability, and vulnerable groups; their"investment menus"should be expanded to include more risk reduction projects; and, more emphasis should be given to participation, and capacity building.Banks&Banking Reform,Social Risk Management,Environmental Economics&Policies,Rural Poverty Reduction,Safety Nets and Transfers

Risk Management in IT Governance Framework

The concept of governance has an already old contour: the system by which business corporations are directed and controlled. The most praised principles regarding shareholder rights, transparency and board accountability now constitute the foundation for new tendencies evolved from such ground. Executive compensation, transparency and shareholder reporting are new issues attached to board responsibilities. Besides such almost negative approaches the board faces a more and more prominent role from risk management and IT governance perspective. Nowadays is generally acknowledged that the board is in charge for managing and controlling the risks to assets of the enterprises and business future. IT Governance has emerged as a support for corporate governance, as an important part of board’s striving efforts to perform better in a competition environment. These responsibilities, risk management and IT Governance, remain within the framework of old concept of corporate governance and are fed from its substance. The interaction between these concepts is the core interest of this research.IT Governance is defined as procedures and policies established in order to assure that the IT system of an organization sustains its goals and strategies. The management of the organisations face a new challenge: structural redefinition of the IT component in order to create plus value and to minimize IT risks through an efficient management of all IT resources of the organisation. The evolution of the present IT environment is a natural process according to which business environment should adapt.Corporate Governance, IT Governance, IT risk, Risk Management.

A Benchmark Framework for Risk Management

The paper describes a general framework for contingent claim valuation for finance, insurance and general risk management. It considers security prices and portfolios with finite expected returns, where the growth optimal portfolio is taken as numeraire or benchmark. Benchmarked nonnegative wealth processes are shown to be supermartingales. Fair benchmarked values are conditional expectations of future benchmarked prices under the real world probability measure. Standard risk neutral and actuarial pricing formulas are obtained as special cases of fair pricing. The proposed benchmark framework covers the infinite time horizon and does not require the existence of an equivalent risk neutral pricing measure.benchmark model; growth optimal portfolio; fair pricing; risk neutral pricing; actuarial pricing

Risk management instruments in agriculture : an assessment of efficacy and distortions

The Dutch Ministry of Agriculture asked LEI, IRMA and Berenschot to evaluate different risk management instruments in terms of its initial goal(s), efficacy and distortions. At EU-level, the government involvement in agriculture insurance is discussed as part of the so called 'Health Check'. In total, 13 risk management instruments in different European countries, USA and Canada have been evaluated as well as the role of the governments with respect to risk management instruments. Based on the theoretical framework and the evaluation of the cases, recommendations for prospective risk management instruments are made

Complex Choices: Producers Risk Management Strategies

Producers have a wide variety of risk management instruments available. How do producers make a choice of risk management instruments? Using the recently developed choice bracketing framework, we examine what risk management strategies producers use and identify the factors that drive their risk management decisions. Our results identify that producers use a wide variety of combinations of risk management instruments and that they bracket their choices into sets of alternative risk management instruments. Using multinomial logit models to estimate the choice process provides information about the factors that influence producers' decision making. The results show that broad bracketing producers use different risk management instruments than narrow bracketers. Policy makers and financial institutions can improve the performance of their programs and products when they are able to identify the bracketing level of segments of producers.Risk and Uncertainty,

A probability-based approach to setting annual catch levels.

The requirement of setting annual catch limits to prevent overfishing has been added to the Magnuson-Stevens Fishery Conservation and Management Reauthorization Act of 2006 (MSRA). Because this requirement is new, a body of applied scientific practice for deriving annual catch limits and accompanying targets does not yet exist. This article demonstrates an approach to setting levels of catch that is intended to keep the probability of future overfishing at a preset low level. The proposed framework is based on stochastic projection with uncertainty in population dynamics. The framework extends common projection methodology by including uncertainty in the limit reference point and in management implementation, and by making explicit the risk of overfishing that managers consider acceptable. The approach is illustrated with application to gag (Mycteroperca microlepis), a grouper that inhabits the waters off the southeastern United States. Although devised to satisfy new legislation of the MSRA, the framework has potential application to any fishery where the management goal is to limit the risk of overfishing by controlling catch