Proposed Risk Management Framework Research Articles

Risk management framework of peer-to-peer electricity markets

Due to the acceleration of energy transition from fossil fuels to Distributed Energy Resources (DERs), the structure of the power industry (mainly generation and distribution) is changing. The emergence of the smart grid concept and Peer-to-Peer (P2P) electricity markets make local producers and consumers face new challenges and risks. Managing the risks that the participants in P2P markets are encountered is necessary to guarantee a sustainable penetration of such markets. This article provides a comprehensive risk analysis by implementing a proposed risk management framework to address the identification, classification, assessment, and mitigation of all risks that prosumers will face when participating in a P2P electricity market. The main risk factors have been investigated in an elaborated way through risk assessment and preliminary suggestions for risk mitigation. Ten risks have been identified and categorized into three main groups. The proper potential responses are addressed for each assessed risk to mitigate the impact of risk associated with participation in the P2P electricity market. Studying the risks from a prosumer's point of view, considering management of those risks in the context of micro-grid scheduling/optimization, and designing the mechanism of the P2P electricity trading market will enhance the acceptance of participating in these markets. Moreover, further research opportunities and directions regarding risk management concepts in P2P electricity markets are discussed.

A proposed risk framework as a tool for sustainability for the South African wine industry

Aim: There is an existing gap in the literature that addresses the importance of risk management as a tool for sustainability in the winemaker’s activities and operations. The purpose of this article is to propose a risk management framework for the South African wine industry that can be used as a tool for sustainability.Setting: The study comprised 10 participants at five wine-producing estates located in the five different wine-growing areas within the Stellenbosch region.Method: The study is exploratory in nature, adopting a case study approach. Interviews with wine producers in the Stellenbosch region of the Western Cape province of South Africa were conducted in order to identify the various risks they face.Result: A thematic analysis was used to analyse the data. The four steps of risk management were used as a reference point and to underpin the proposed risk management framework. The study was done using the Supply Chain Operations Reference model, which is divided into six process categories, namely plan, source, make, deliver, return and enable.Conclusion: The article makes a twofold contribution. Firstly, wine producers might use the proposed framework to identify and mitigate their risks and thus as a tool for sustainability. Secondly, the proposed framework is expected to contribute to the existing body of knowledge on risk management and sustainability.

Trustworthiness Evaluation for Permissioned Blockchain-Enabled Applications

As permissioned blockchain becomes a common foundation of blockchain-based circumstances for current organizations, related stakeholders need a means to assess the trustworthiness of the applications involved within. It is extremely important to consider the potential impact brought by the Blockchain technology in terms of security and privacy. Therefore, this study proposes a rigorous security risk management framework for permissioned blockchain-enabled applications. The framework divides itself into different implementation domains, i.e., organization security, application security, consensus mechanism security, node management and network security, host security and perimeter security, and simultaneously provides guidelines to control the security risks of permissioned blockchain applications with respect to these security domains. In addition, a case study, including a security testing and risk evaluation on each stack of a specific organization, is demonstrated as an implementation instruction of our proposed risk management framework. According to the best of our knowledge, this study is one of the pioneer researches that provide a means to evaluate the security risks of permissioned blockchain applications from a holistic point of view. If users can trust the applications that adopted this framework, this study can contribute to the adoption of permissioned blockchain-enabled technologies. Furthermore, application providers can use the framework to perform gap analysis on their existing systems and controls and understand the risks of their applications.

Sustainable Risk Management of Rural Road Networks Exposed to Natural Hazards: Application to Volcanic Lahars in Chile

Natural hazards may temporarily or permanently interrupt the normal operation of rural road networks. The potential social, economic, environmental and physical impacts of natural events on rural road infrastructures empirically evidence the need to incorporate a sustainable risk approach to manage rural road networks exposed to natural hazards. Available risk management systems are applied to major networks emphasizing the physical risk of road infrastructure in terms of expected economic losses and travel time delays, without considering a systemic approach and other dimensions of risk, such as social vulnerability and the consequent socio-economic effects. The study proposes a sustainable risk management framework for rural roads that accounts for the social vulnerability of rural population, the physical vulnerability of rural roads and the environmental context in terms of natural hazards. The proposed framework is applicable to rural road networks exposed to major natural events that permanently or temporarily disrupt accessibility and mobility in the system. A case study is selected from a developing country, due to the socio-economic condition of the rural population and high vulnerability in the context of natural events. The proposed risk management framework is scaled at the network level rather than an element based analysis, or project level approach, considering the interdependencies between road links, the variability of road infrastructure types in the rural context, and the impacts on network accessibility and mobility due to natural events. The proposed framework is applied to a rural road network exposed to volcanic hazard, specifically lahar flows that are usually the most recurrent and disruptive process in terms of road infrastructure. Outcomes demonstrate that rural population present high social vulnerability levels, resulting in a slower recovery when exposed to the effects of infrastructure disruptions. Therefore, considering social vulnerability under a sustainable risk management approach depicts the sustainable role of rural road networks, which commonly are managed only under a physical vulnerability perspective. The proposed methodology will allow road agencies and municipalities to design sustainable mitigation and recovery strategies by incorporating dimensions such as social vulnerability, probability of failure of road links and their impacts on road accessibility and mobility due to natural hazards.

An activity-based defect management framework for product development

Abstract As competition intensifies, development of complicated hardware products and the decrease in development cycle lead to increasing design defect risk in hardware products, resulting in all kinds of problems such as unsafe product, product development failure and so on. Therefore, it is important to manage design defect during all stages of product development to improve product design quality and product development success rate. Factors influencing design defects injection vary according to the different attributes of a product development, including the product complexity, the experience of the developers, the development cycle and tool. The most significant challenge in design defect management is to identify design activities that are likely to cause defects. This paper proposes a design defect management framework based on design activities that assess and identify design defects. First, the product development process is decomposed by using a work breakdown structure (WBS) to obtain design activities. Subsequently, a Bayesian network is adapted to construct defect assessment model using design activities as network nodes. Finally, the defect control activities such as review, verification, and validation are used to identify design defect. The proposed risk management framework enables an product development to be focused on the key defect activities in which the most serious defect risk exists and provides a more effective way to assess, identify defect risk along the product development cycle. A case study on medical syringes is presented to validate the capability of the proposed approach in providing low residual defect in delivered products.

Risk Assessment Strategy for Decommissioning of Fukushima Daiichi Nuclear Power Station

Abstract Risk management of the Fukushima Daiichi Nuclear Power Station decommissioning is a great challenge. In the present study, a risk management framework has been developed for the decommissioning work. It is applied to fuel assembly retrieval from Unit 3 spent fuel pool. Whole retrieval work is divided into three phases: preparation, retrieval, and transportation and storage. First of all, the end point has been established and the success path has been developed. Then, possible threats, which are internal/external and technical/societal/management, are identified and selected. “What can go wrong?” is a question about the failure scenario. The likelihoods and consequences for each scenario are roughly estimated. The whole decommissioning project will continue for several decades, i.e., long-term perspective is important. What should be emphasized is that we do not always have enough knowledge and experience of this kind. It is expected that the decommissioning can make steady and good progress in support of the proposed risk management framework. Thus, risk assessment and management are required, and the process needs to be updated in accordance with the most recent information and knowledge on the decommissioning works.

Toward Integrated Enterprise Risk Management, Model Risk Management & Cyber-Finance Risk Management: Bridging Networks, Systems and Controls Frameworks

By adopting and integrating the 3 levels of specific frameworks discussed herein, a financial institution can develop, maintain, improve, and sustain its enterprise risk management and compliance frameworks. The proposed risk management framework identifies 3 levels for bridging the gaps in industry frameworks of prudent risk management and information assurance. Context-sensitive adaptation can be enabled by integration across vulnerability analysis and penetration testing embedded within overall systems and networks controls framework and risk management frameworks. Given the discussed contexts of risk management, controls, and compliance frameworks, compliance can benefit from adapting the proposed framework to institution’s specific needs. Integration across the 3 levels of vulnerability analysis and penetration testing embedded within overall systems and networks controls and overarching risk management frameworks can facilitate such context-sensitive adaptation. From perspective of the ISACA framework, vulnerability assessment and penetration testing can be embedded within IT audit framework of assessment of adequacy of internal controls for effective risk management and compliance.

Institutionalization of risk management framework in Islamic NGOs for suppressing terrorism financing

Purpose – The aim of this paper is to propose solutions for improving internal controls and transparency to alleviate concerns of international community over alleged linked with terrorist groups. Design/methodology/approach – The authors explore the counter-insurgency theory and political process model to explain the current state of counter-terrorism activities aimed at Islamic NGOs after 9/11. Findings – The authors believe the idea of money flow disruption to be of greater importance than freezing the accounts to suppress terrorism financing. Practical implications – Islamic NGOs established for philanthropic and humanitarian aid in third world Muslim countries have been accused of being involved in terrorism financing. This revelation is to the disadvantage of the donors who do not channel their donations for such activities. The authors propose risk management framework useful at operational level to detect and prevent welfare activities financing warfare activities. Originality/value – The proposed risk management framework is to complement various regional and international initiatives championed by Asia/Pacific Group on Money Laundering and Financial Action Task Force to combat money laundering and terrorist financing.

비즈니스 연속성 확보를 위한 IT 기반 위험관리체계 구축 연구 : 자동차 제조 산업 사례를 중심으로

기업이 경영활동이 세계화되고 글로벌 경영기업으로 탈바꿈하면서 이를 둘러싼 경영적 요소 및 환경도 급변하게 되어 기업이 처한 위험의 유형이나 빈도가 더욱 증가하게 되었다. 특히, 근래에 들어 IT와 산업이 융합되면서 산업의 비즈니스 프로세스에 중추적인 역할을 하고 있다. 그러나, 인터넷 환경하의 정보시스템은 기업 경영의 효율성을 증가시키는 반면 이에 따른 위험의 발생 정도와 그 파급 효과를 더욱 증가시키고 있다. 위험을 인식하고 이를 분석하고 평가하여 관리하는 능력이 뛰어난 기업은 위험에 따른 피해의 확산을 조기에 차단하고 오히려 이를 기회로 이용할 수 있다. 따라서, 본 연구에서는 정보시스템을 기반으로 하는 자동차 제조 산업을 대상으로 비즈니스 연속성 확보를 위한 위험관리체계에 대한 연구를 하였다. 세부적으로 자동차 제조 산업의 비즈니스를 분석하여 정보자산을 식별하고 자산의 위험을 분석하여 평가하였다. 그리고 평가 요소에 따른 위험관리 대책을 수립하고 이에 따른 비즈니스 관점의 위험관리체계에 대한 프레임워크를 연구하였다. Management activities of Business was globalization and had changed to a global management. Under these circumstances, business management factors and the environment has changed rapidly. Accordingly, the number of risk categories in business has increased. Especially in recent years, the convergence of industry with IT has a pivotal role in the industry's business processes. However, information systems in the Internet environment increased the efficiency of business management. Also, it increased the degree of risk and the occurrence ripple effects. In this study, we proposed risk management framework for ensuring business continuity management in information system based automobile manufacturing industry. In detail, we analysis business process in automotive manufacturing industry and identify information assets and we analysis and assess the risk.

Risk Management Framework That Meets the Implementation Challenges in IT-Centric Micro and Small Companies

This paper presents an overview of the proposed risk management framework and how it is designed to meet the challenges usually faced by IT-centric micro and small companies when implementing risk ...

Risk Management Framework That Meets the Implementation Challenges in IT-Centric Micro and Small Companies

This paper presents an overview of the proposed risk management framework and how it is designed to meet the challenges usually faced by IT-centric micro and small companies when implementing risk management. The issues and challenges identified for the IT-centric micro and small companies are centered around the exposure to various risks and necessity to have a risk management approach which covers these various risks, as well as to limited resources for risk management and necessity for usable and comprehensive framework. The new framework is based on the analysis of the best practices in risk management concepts as well as direct experience from dealing with over 20 companies in South-east Europe. The segments covered by the framework include people, policy, methodology and process, and tools.

A Risk Management Framework for Users’ Integratation in Product Innovation

The necessity of integrating users into innovation process is widely researched. However, there is little literature on risks of users’ integration. Thus, a risk management framework for users’ integration in product innovation process is established based on the characteristics of user’s collaborative work. Meanwhile, key techniques, methods and processes supporting this framework are also discussed. Meanwhile, a risk factors reference set for users’ integration in product innovation is proposed, which is rare in other product innovation risk researches. Besides, the author provides evaluation process to evaluate performance of the proposed risk management framework. Also, recommendations for future research have been suggested.

Project risk management using multiple criteria decision-making technique and decision tree analysis: a case study of Indian oil refinery

This study proposes an integrated analytical framework for effective management of project risks using combined multiple criteria decision-making technique and decision tree analysis. First, a conceptual risk management model was developed through thorough literature review. The model was then applied through action research on a petroleum oil refinery construction project in the Central part of India in order to demonstrate its effectiveness. Oil refinery construction projects are risky because of technical complexity, resource unavailability, involvement of many stakeholders and strict environmental requirements. Although project risk management has been researched extensively, practical and easily adoptable framework is missing. In the proposed framework, risks are identified using cause and effect diagram, analysed using the analytic hierarchy process and responses are developed using the risk map. Additionally, decision tree analysis allows modelling various options for risk response development and optimises selection of risk mitigating strategy. The proposed risk management framework could be easily adopted and applied in any project and integrated with other project management knowledge areas.

A performance-oriented risk management framework for innovative R&D projects

Uncertainty is one of the major inherent difficulties in developing innovative products, due to their highly dynamic markets and technologies. The presence of a large degree of uncertainty leads to high R&D risks, resulting in many R&D failures. Therefore, it is important to manage R&D risks through all R&D stages to improve R&D project success rates. This paper proposes a new risk management framework that aligns project risk management with corporate strategy and a performance measurement system to increase success rates of R&D projects and to accomplish corporate strategic goals. The balanced scorecard is used to identify major performance measures of an R&D organization based on the firm vision and strategy. Quality function deployment is adapted to transform organizational performance measures into project performance measures and a systematic procedure is developed for risk identification, assessment, response planning, and control. The proposed risk management framework enables an R&D project to be focused on achieving the corporate goals and provides a more effective way to identify, assess, analyze, and monitor R&D risks along the project cycle. The proposed methodology is illustrated with a drug development project.

Managing enterprise resource planning projects

PurposeThe purpose of this paper is to help managers to successfully plan, implement, and operate enterprise resource planning (ERP) projects using a risk management framework.Design/methodology/approachThis paper adopted a combined literature review and case study method. Using literature review, the paper first identified major issues of managing ERP projects and develops a risk management framework for managing those issues. The proposed risk management framework was then applied to a ERP implementation project of a UK‐based energy services group and its effectiveness for managing ERP projects implementation had been demonstrated. Additionally, the risk factors as identified from the case application are compared with the risk factors from the previous researches so as to suggest mitigating measures.FindingsAll the risk factors are categorized into planning, implementation and operations phases along with project processes, organizational transformation and information technology (IT) perspectives. Project implementation phase is the most vulnerable to failure. The case study results reveal that the effect of other projects on on‐going ERP project, management of overall IT architecture and non‐availability of resources for organizational transformation are most critical from likelihood and impact perspectives. Managing risk across various phases of project and equal emphasize to effective project management, organizational transformation and IT adoption are the key to success in ERP implementation.Practical implicationsThe risk factors, which were identified using literature review and the case study, have great significance as mitigating measures of those risks may result successful implementation of ERP projects in the industry. Additionally, proposed risk management framework could be customized to implement ERP projects elsewhere.Originality/valueERP projects are risky as they are capital intensive, technically complex, and call for organizational transformation. There are both success and failure stories. However, both researchers and practitioners agree, that if it can be implemented and operated successfully and benefits should be achievable. Although there are many studies on ERP implementation, little has been discussed on managing risks of ERP projects. Therefore, this paper bridges the gap.

Managing project risk using combined analytic hierarchy process and risk map

The main purpose of the study is to develop an integrated framework for managing project risks by analyzing risk across project, work package and activity levels, and developing responses. Design/methodology/approach The study first reviews the literature of various contemporary risk management frameworks in order to identify gaps in project risk management knowledge. Then it develops a conceptual risk management framework using combined analytic hierarchy process (AHP) and risk map for managing project risks. The proposed framework has then been applied to a 1500 km oil pipeline construction project in India in order to demonstrate its effectiveness. The concerned project stakeholders were involved through focus group discussions for applying the proposed risk management framework in the project under study. Findings The combined AHP and risk map approach is very effective to manage project risks across project, work package and activity levels. The risk factors in project level are caused because of external forces such as business environment (e.g. customers, competitors, technological development, politics, socio-economic environment). The risk factors in work package and activity levels are operational in nature and created due to internal causes such as lack of material and labor productivity, implementation issues, team ineffectiveness, etc. Practical implications The suggested model can be applied to any complex project and helps manage risk throughout the project life cycle. Originality/value Both business and operational risks constitute project risks. In one hand, the conventional project risk management frameworks emphasize on managing business risks and often ignore operational risks. On the other hand, the studies that deal with operational risk often do not link them with business risks. However, they need to be addressed in an integrated way as there are a few risks that affect only the specific level. Hence, this study bridges the gaps.

Managing risk in software development projects: a case study

PurposeThe main objective of the paper is to develop a risk management framework for software development projects from developers' perspective.Design/methodology/approachThis study uses a combined qualitative and quantitative technique with the active involvement of stakeholders in order to identify, analyze and respond to risks. The entire methodology has been explained using a case study on software development project in a public sector organization in Barbados.FindingsAnalytical approach to managing risk in software development ensures effective delivery of projects to clients.Research limitations/implicationsThe proposed risk management framework has been applied to a single case.Practical implicationsSoftware development projects are characterized by technical complexity, market and financial uncertainties and competent manpower availability. Therefore, successful project accomplishment depends on addressing those issues throughout the project phases. Effective risk management ensures the success of projects.Originality/valueThere are several studies on managing risks in software development and information technology (IT) projects. Most of the studies identify and prioritize risks through empirical research in order to suggest mitigating measures. Although they are important to clients for future projects, these studies fail to provide any framework for risk management from software developers' perspective. Although a few studies introduced framework of risk management in software development, most of them are presented from clients' perspectives and very little effort has been made to integrate this with the software development cycle. As software developers absorb considerable amount of risks, an integrated framework for managing risks in software development from developers' perspective is needed.