Risk Management Maturity Level Research Articles

Effectiveness of Risk Management through Risk Maturity Measurement: A Study at PT Pelabuhan Indonesia

This research aims to evaluate the effectiveness of risk management at Pelindo post-merger and assess its risk management maturity level. Additionally, the study intends to offer relevant recommendations for the company in developing its risk management strategy and implementation. The research adopts a qualitative descriptive approach with a case study strategy, where the researcher analyzes an organization as a unit of analysis in a natural setting without manipulation. Data collection techniques include interviews with representatives from the Group Risk Management, Governance, and Compliance as the corporate-level risk managers. Document analysis includes textbooks, academic and professional journals, theses, articles, and company department reports. Data analysis follows the Miles and Huberman model. The research indicates that the maturity level of risk management at Pelindo post-merger has reached the good practice phase with a score of 2.94. This reflects a consistent application of risk management in accordance with industry standards, although its effectiveness varies. The organizational structure, framework, processes, and risk culture have begun to be implemented. Recommendations for improvement include strengthening the risk culture, enhancing the effectiveness of risk management functions, and aligning risk strategies with the ERM transformation plan for better effectiveness and compliance.

Effectiveness of Risk Management through Risk Maturity Measurement: A Study at PT Pelabuhan Indonesia

Research aims: This study aims to evaluate the effectiveness of risk management at Pelindo post-merger and measure its risk management maturity level. Moreover, the study intends to offer relevant recommendations for the company in developing risk management strategies and implementation Design/Methodology/Approach: This study adopts a qualitative descriptive approach with a case study strategy, wherein the researcher analyzes an organization as the unit of analysis in a non-contrived setting, reflecting a natural environment without manipulation. Data collection techniques include interviews and document analysis, while data analysis follows the Miles and Huberman model with four main components: data collection, data reduction, data presentation, and conclusion drawing. Research findings: The study's findings indicate that the risk management maturity level at Pelindo post-merger is at the good practice phase, scoring 2.94 from the dimension and performance aspects assessment. Recommendations for improvement include enhancing risk culture, improving the effectiveness of risk management functions, and aligning risk strategy with the ERM transformation plan to increase the effectiveness and compliance of risk management. Theoretical Contribution/Originality: This research makes a theoretical contribution by assessing the level of risk management maturity in the context of mergers among state-owned enterprises (SOEs) in Indonesia's maritime industry. It uses measurement methods tailored to regulations from the Ministry of SOEs, providing a reference for other companies seeking to develop effective risk management strategies. Practitioners/Policy Implications: This research suggests that organizations should strengthen risk culture responsibilities in job descriptions at all levels, as well as adopt technology and automation for real-time risk monitoring to enhance risk management effectiveness and ensure alignment with corporate strategy. Research Limitations/Implications: The limitations of this study primarily stem from restricted access to internal and sensitive data, which constrains the depth of analysis and hampers comparison with industry best practices.

Risk management application in South African power utility construction projects

South Africa's largest electricity producer has embarked on mega investments to build new power stations. This paper reports on the risk management maturity level, and risk management processes. The research adopted the survey research method and self-administrated questions to collect primary data. The investigation targeted the total population of 100 engineers, technical managers, safety officers and quality officers. The researchers collected a total of 44 useful responses. The research established that the overall risk management maturity at the intermediate level. The risk response planning and risk monitoring were identified as processes that need improvement. The risk factors in the South African power utility construction projects were a lack of pre-planning, the level of contractor's performance, community unrest, labour unrest, safety incidents, defective work and poor risk management skills. The paper has both theoretical and practical implications despite the limitations associated with the study design.

Information Security Management Maturity Models

Several maturity models for organizations, their subsystems and processes, for example, information security (IS) incident management are known. Continuing our earlier analysis of the most common maturity models (MMs), models and approaches to assessing the maturity level (ML) of organization's IS management (ISM) maturity, namely The Bank of Russia's ISM MM, ISMS Maturity Capability Model, NIST's IS MM, Open Group's ISM MM, Gartner's Security and Risk Management ML assessment, IS Risk Management Process MM, Security Incident Management Models, and IS Monitoring MM, are selected for consideration within the framework of this research.

Measurement of IT Risk Management Maturity Level in CEC Using IT Domain Risk Governance Framework

IT Risk Management has long been adopted and implemented in CEC. This is inseparable from the high need for reliable and trusted information technology services at CEC as a government institution that has primary task for eradicating corruption. With a good IT risk management is expected to reduce the impact if the IT risk occurs and impacted to overall business process in CEC. However, up to 15 years after the implementation of IT risk management has never been measured how the level of IT maturity risk management. In this research, Author will use the IT Risk Framework with the risk governance domain approach as a standard IT risk management framework to evaluate the implementation of IT risk management in CEC. The process of evaluating the level of IT maturity is based on the maturity model that has been defined in the IT risk framework.

Yapım Firmalarının Kurumsal Risk Yönetimi Olgunluğunda Risk Yöneticisinin Rolü

Addressing the risk management process with a holistic approach, enterprise risk management (ERM) enables efficient business processes to be carried out. Achieving success in time, cost and quality factors for complex projects in the constantly evolving construction industry requires systematic and holistic management approaches. In the management process of the construction projects, managing the possible risks from a holistic perspective is critical to the success and efficiency of the construction projects. However, in the companies operating in the construction sector, the transition steps from project-level risk management to corporate risk management have just begun and the level of maturity has not yet been reached. In this context, the main purpose of this study is to reveal the effect of the existence of the risk manager and corporate risk managament structuring on the corporate risk management maturity level of the construction companies. For this purpose, six main factors (stability of the board and senior management, having corporate risk management, risk identification, analysis and response, integrating corporate risk management into business processes, setting targets, and sufficient resources) are obtained as a result of a comprehensive literature review and a survey field study was organized. The data were analyzed with descriptive statistics and ANOVA analysis methods. As a result of the study carried out, the effect of the presence of the risk manager on the maturity level of corporate risk management in the construction companies and the impact and importance levels of the basic factors on the maturity of ERM were determined and compared. This study shed light on future studies to be done by examining the conceptual framework regarding ERM maturity levels in production companies.

ОЦІНКА РІВНЯ ЗРІЛОСТІ УПРАВЛІННЯ РИЗИКАМИ В ПРОЦЕСІ ЗАБЕЗПЕЧЕННЯ ЕКОНОМІЧНОЇ БЕЗПЕКИ ПІДПРИЄМСТВА: АНАЛІТИЧНЕ ДОСЛІДЖЕННЯ

The article seeks to explore and evaluate the level of risk management maturity in Ukrainian enterprises in the process of ensuring their economic security. The study presents the results of an analytical survey on risk management practices to ensure enterprise economic security. To achieve the research objectives, the following methods have been employed: to obtain data for the analytical research, the method of questionnaire-based expert evaluation on the Google Forms platform; the method of comparison, the graphical method – to evaluate previously received analytical data on the risk management maturity level. The findings revealed that the implementation of a risk-based approach is perceived as a tool to increase the company value and achieve strategic goals. The survey results showed the distribution of expert opinions, indicating the willingness of Ukrainian companies to implement risk-oriented management approaches to ensure their economic security. It is demonstrated that the major objective of the risk-oriented approach is to ensure the effective and lawful business operation in the long run which may come into a conflict with the operational management priority, i. e. short term profit maximization. The analytical survey argues that a risk-oriented approach challenges the use of impartial methods to risk identification, taking risk management actions, and the search for an optimal solution between profit raising here and now, and the long-term sustainable development and protection of shareholders’ interests. The study on the latest tools for assessing the level of economic security using a risk-oriented approach is a critical instrument in enhancing corporate management practices at different management levels, providing further nation-wide implications on stabilization of domestic business performance to improve the overall national security indicators in the international economic and political arenas.

Risk analysis in introduction of new technologies by start-ups in the Brazilian market

PurposeThe volatile scenario of technological innovation demonstrates the need for risk control processes, in order to ensure its viability. The purpose of this paper is to propose a conceptual framework for risk management in the introduction of new technologies by start-ups, aiming to provide the guidelines for the improvement of this process.Design/methodology/approachThe study comes up with conceptual categories related to risk management in start-ups, mainly based on the NPVR approach. The methodology included two comparative case studies: MercadoPago and GuiaBolso, which had their data collected through interviews with key managers and documents provided by the organizations. Data analysis was based on the Miles et al. (2014) model, whereby data were condensed; data were visualized, and conclusions developed and checked.FindingsAmong the main results, there is the proposition of a deductive-inductive matrix for the management of uncertainties and risks in start-ups, which brings elements that provide the calculation of the NPV adjusted for the risk of developing a new product (NPVR), process or service, as well as the contribution of the level of risk management maturity of the companies, setting up the Risk Management Matrix (RMM).Practical implicationsThe authors propose a matrix for the management of uncertainties and risks in start-ups.Social implicationsThe authors present comparative case studies of MercadoPago and GuiaBolso which help the entrepreneurs to develop their start-ups.Originality/valueAs the main contribution, this paper proposes the start-up RMM, a model for the management of uncertainties and risks in start-ups, which brings elements that provide the calculation of the NPV adjusted for the risk of developing a new product (NPVR), process or service, as well as the contribution of the level of risk management maturity of the companies.

An advanced tool for dynamic risk modeling and analysis in projects management

Risk is inherently present in all projects. Quite often, many projects fail to achieve their time, quality, and budget goals. Despite its high relevance to the success of megaprojects, risk management remains one of the least developed research issues. Therefore, advanced risk assessment is essential in minimizing losses and enhancing profitability. This paper proposes an advanced decision support tool using Fuzzy Cognitive Maps (FCMs) for dynamic risk assessment in project management. The proposed tool is able to predict the impact of each risk on the other risks or the outcomes of projects by considering uncertainties and complex interdependencies among risk factors. This tool could help project managers to manage the risks in a more effective and precise way and offer better risk mitigation solutions. The proposed tool could be undertaken by all organizations with the highest level of risk management maturity in the largest and most complex projects. In addition, it can be applied as an advanced decision support tool in variety of problems such as prioritization, failure analysis, etc. An academic numerical example related to outsourcing illustrates the applicability and simplicity of the proposed method.

Developing a Self-assessment Model of Risk Management Maturity for Client Organizations of Public Construction Projects: Indonesian Context

This paper presents a self-assessment model to measure the risk management (RM) maturity level of construction public client organizations within the Indonesian context. It used a mixture of Delphi method to select and validate the most relevant attributes and Analytical Hierarchy Process (AHP) to assign the weights of the selected attributes. A total of 34 attributes, categorized under four dimensions (i.e., organizational culture, RM processes, RM resources, and RM implementation) were used. It has been shown that top management commitment, integrity and ethics, and change management capabilities were found to be the most important attribute, suggesting that RM maturity level is more than formal and standardized systems. The RM maturity score was computed by summing the products of AHP-based weights and ratings which were expressed in a 0–3 scale with 0 representing immature and 3 denoting mature level. Given this score, the maturity level of a client organization under evaluation will be classified into one of the following four levels: naive (0–24), novice (25–49), normalized (50–74), and managed (75–100). This model was pilot tested on a governmental unit under the Ministry of Public Works with a satisfactory result.

Assessing Risk Management Maturity of Construction Organisations on Infrastructural Project Delivery in Nigeria

Assessing risk management capability (RMC) of contractors prior to their selection for a project would contribute significantly to project successful delivery. This paper assessed current RMC of Federal highway projects contractors in Nigeria. The study involves review of literatures and questionnaire survey of eighteen rehabilitation projects across Southwest of Nigeria. Maturity levels of the contractors were assessed on four level scale using Fuzzy set theory. The result suggested that overall risk management maturity level of the contractors is ‘novice’. It also indicated maturity levels of contractors on different RMC attributes and provides additional decision support information for selecting winning bid.

Risk Management Capability Maturity and Performance of Complex Product and System (CoPS) Projects with an Asian Perspective

Complex Products and Systems (CoPS) are high value, technology and engineering-intensive capital goods. The motivation of this study is the persistent high failure rate of CoPS projects, Asian CoPS provider’s weak capability and lack of specific research on CoPS risk management. This paper evaluates risk management maturity level of CoPS projects against a general CoPS risk management capability maturity model (RM-CMM) developed by the authors. An Asian based survey was conducted to investigate the value of RM to project performance, and Asian (non-Japanese) CoPS implementers’ perceived application of RM practices, their strengths and weaknesses. The survey result shows that higher RM maturity level leads to higher CoPS project performance. It also shows project complexity and uncertainty moderates the relationship between some RM practices and project performance, which implies that a contingency approach should be adopted to manage CoPS risks effectively. In addition, it shows that Asian CoPS implementers are weak in RM process and there are also rooms for improvement in the softer aspects of organizational capabilities and robustness.

Understanding and Improving Your Risk Management Capability: Assessment Model for Construction Organizations

Implementing risk management in construction projects and organizations may bring a number of benefits and therefore it is necessary to have risk management as an integral part of a construction organization’s management practice. The aim of this paper is to develop a risk management maturity assessment model for construction organizations. The paper describes the development process of a Web-based RM3 (risk management maturity model), including its contents, its validation and testing, as well as its applications. The RM3 developed has five attributes namely, management, risk culture, ability to identify risk, ability to analyze risk, and application of standardized risk management process/system. These attributes are measured against four levels: initial, repeated, managed, and optimized. It is found that the proposed RM3 was suitable and useful. Using the RM3, it is found that the Australian construction industry’s overall risk management maturity level was relatively low (where 32% rated at Level 2 and 52% rated at Level 3). Furthermore, it is found that the weakest attribute was “analyzing risks” followed by “application of standardized risk management process.” It is therefore necessary to provide more training on qualitative and quantitative risk analysis to construction personnel and to develop and apply standardized enterprise risk management. It is concluded that the proposed RM3 is suitable for construction organizations to assess their risk management maturity levels and find ways for improvement.

1.7.1 Risk Management Capability Maturity Quantitative Assessment Tool

AbstractA checklist and questionnaire based risk management capability assessment method is developed that gives quantitative scores directly linked to the goals and practices of the Capability Maturity Model Integration™ (CMMI) model. Direct and indirect artifact objective evidence is enumerated and scored against a benchmark model using the checklist. Affirmation data is collected using the questionnaire and categorized into culture, process, experience, and application per the Project Management Institute‐International Council on Systems Engineering (PMI‐INCOSE) risk management maturity level development model.

Integrated Methodology for Project Risk Management

This article presents a generic project risk management process that has been particularized for construction projects from the point of view of the owner and the consultant who may be assisting the owner. The process could also be adapted to the needs of other project participants, and many points referred to in the article can be directly applied to them. Any project risk management process must be tailored to the particular circumstances of the project and of the organization undertaking it. First, the article explains a complete or generic project risk management process to be undertaken by organizations with the highest level of risk management maturity in the largest and most complex construction projects. After that, factors influencing possible simplifications of the generic process are identified, and simplifications are proposed for some cases. Then the application to a real project is summarized. As a final validation, a Delphi analysis has been developed to assess the project risk management methodology explained here, and the results are presented.