Risk Management Standards Research Articles

Development and Validation of Plain English Interpretations of the Seven Elements of the Risk Management Process

A fundamental problem with risk management standards and other associated guiding documents is that the definitions and descriptors of the seven elements of the risk management process within these documents are commonly at odds with each other and are difficult to understand. An implication is that personnel within and across organisations interpret the process in different ways. This has led to some companies developing their own interpretations of the elements in their risk/work health and safety (WHS) management systems and thereby exacerbating the problem. A standard set of definitions, terminology and language are vital for addressing WHS issues efficiently and effectively to result in better outcomes. This study aimed to develop a set of plain English interpretations (PEI) for each of the seven elements of the risk management process. These seven elements sit between the scant and technical definitions contained in standards (primary and secondary) and the voluminous guidance in the handbooks and codes of practice. The Delphi-technique was used with 20 risk-experts to evaluate, over two iterations a set of draft PEIs—developed by the researchers. These were finally reviewed for readability and understandability by 24 operators/workers. The implications for these new PEIs is that they could be considered for future standards and guidance documents by the ISO Working Group Risk Management Standard and similar committees and used by organisations for their risk/WHS management systems.

Pension Funds ’ Investment Position in the Second Decade of XXI Century

The article explores investment position of pension funds which become important actors in the national economies and world investment flows; with comparative analysis of the pension funds based in different countries with different models of pension systems and investment regulatory practices. The role of pension funds as investors is based on accumulating growing funding which become nearly half of total OECD gross domestic product. The assets of pension funds in the second decade of the century are concentrated in US, United Kingdom, Canada, with pension funds in other countries less than 5% for each country. But assets of pension funds based in some other countries show significant growth. The article focuses on the pension funds’ assets structure and compares those in different countries. The perspectives of investment pension assets in the national economies and abroad will depend among other factors on the regulation of pension funds and their investments. Focusing on ensuring better access to different investment opportunities in the domestic market and abroad should go hand in hand with raising standards of risk management in pension fund investment.

THE PLACE OF RISK MANAGEMENT IN AGILE METHODOLOGY

Risk Management is an organized decision-making process that efficiently plans, assesses, handles, monitors, and documents risk to increase the likelihood of achieving project goals and decrease the likelihood that a risk would become a future problem. The introduction of agile project management as a methodology in organizations poses new challenges to risk management. Although some of the conventional methods can be applied, it is important to take into account the specific characteristics of the agile methodology. This implies a more dynamic application of a set of methods and techniques for identifying, analyzing, assessing, and affecting risk. Risk management is a complex activity requiring a specific approach in terms of the capacity of an organization and the characteristic features of projects. Risk management is an important part of the integrated project management framework. It is not a coincidence that this process is included in the methodologies of the Project Management Institute and the International Project Management Association as well as in a number of standards.Risk management is a complex activity requiring a specific approach in terms of the capacity of an organization and the characteristic features of projects. This means that even when standard rules, procedures, methods and techniques for project risk management exist, they need to be adapted to each particular case, analyzed and verified in the course of their implementation. Thus, this process can be highly effective.Organizations’ expectations of enhancing their effectiveness through risk management pose new challenges to project risk management methods and techniques. The dynamics of environmental factors – internal and external – is the main prerequisite for the attention managers pay to this process.It is important to note that each project is specific and standardized risk management systems would be not only difficult to implement, but also ineffective. The agile approach to project management implies agile risk management. This means that standard risk management methods, techniques and limitations need to be adapted to the specifics and complexity of a project on the one hand, the requirements of stakeholders, and the team and organizational capacity, on the other.The report focuses on issues related to agile project management, the integration of risk management into the project management process, and some contributing points of the agile methodology to improving the effectiveness of the project management process. Risk is presented as an unforeseen event that may have a positive or negative impact on project goals. The main advantages of agile risk management in a project and the possibility of integrating it with the overall project management are highlighted.

STANDARDIZED DATABASE FOR FLOOD RISK MANAGEMENT IN MOROCCO

Abstract. Flood is considered to be one the worst kind of hazard. It has severe effects on human society in the form life losses, damages to property, roads, and on natural setting. The inventory of affected sites in Morocco is important for better risk management. This article describes the detailed process for creating, modeling, and designing the flood database. This design allows homogenization of data exchanges between national stakeholders and follows international standards for flood risk management. It is standardized and could be interoperable.

ANALYSIS OF WORLD STANDARDS OF RISK MANAGEMENT IN THE CONTEXT OF IMPLEMENTATION OF AVIATION ACTIVITY

В статті розглянуто аналіз світових стандартів управління ризиками. Так визначено, що схожість природи появи ризиків зросла актуальність їх зниження до прийнятного рівня для різних критичних додатків обумовлює актуальність створення методології забезпечення і підтримки гарантованого рівня безпеки майбутніх польотів.

Organizational aspects of analysis in the management process at the stage of identification of currency risks

The article discoveres how organizational aspects of currency risk analysis are considered in the scientific literature. In the course of the study, directions were provided for the development of organizational support for the analysis of currency risks. In analyzing currency risk identification, analytic actions and techniques, that could be used to manage risks, were systematized systematic. The conducted study allowed to construct a model for determining currency risk in the enterprise management system, which takes into account all the described phases of this stage. The article describes a general approach to the implementation of this stage, which should be taken into account when developing a currency risk register. The proposed form of the register was given, it takes into account the features of currency risk identification. The risks are analyzed in accordance with the standards of risk management that can be transformed and applied to different types of currency risks that arise at enterprises engaged in foreign trade operations in foreign currency. We consider it expedient to present a description of currency risks by types of risks, since not all of them should use management methods. This allowed to build the structure of the document which invited companies to write records on the description of identified types of currency risk. The schematic representation of the Currency Risk Measurement Card using the Value at Risk evaluation is given.

Reflections from Crisis: A Phenomenological Study of the Texas A&M Bonfire Collapse

The 1999 Texas A&M University Bonfire collapse killed 12 students and injured dozens. Response to this event involved a number of campus administrators, lasted for many years, and led to the emergence of new risk management standards. Nearly 20 years later, researchers explored how campus leaders experienced the tragedy and reflected on their role over time. The study analyzed personal experiences and lessons learned from 15 leaders who led the crisis response and recovery.

Case study of the Tianjin accident: Application of barrier and systems analysis to understand challenges to industry loss prevention in emerging economies

Accident analysis methods are widely used in industry to understand how companies with seemingly strong safety management systems failed to prevent a serious incident. These methods can equally be used to help governments, particularly in emerging economies, to analyse industrial incidents to understand how their institutions may be failing to control risk, providing insight into potential improvements while also extracting lessons for other emerging economies with similar risk profiles. The fire and explosion accident of the Ruihai hazardous goods warehouse at Tianjin Port, China, that occurred on 12 August 2015 is a prime example of a common emerging economy dilemma. Emerging economies typically struggle for years, sometimes decades, to build the capacity sufficient to address the challenges of sustainability that accompany rapid and wide-spread economic development. These economies experience particularly high rates of serious and catastrophic industrial disasters, with significantly higher rates of injury, death and environmental impacts in comparison to more mature developed economies. Yet, in many of these incidents, the country may already have some, or even substantial, legal frameworks in place to address industrial risk. In the case of Tianjin, China has strengthened industrial law substantially since the early 2000s to establish more rigorous control over chemical hazard sources. In this circumstance, understanding the sequence of events, and missed opportunities by various actors to prevent the accident and mitigate its impacts could provide support to targeted improvements to risk governance in China, and also other countries who are striving to impose a higher standard of industrial risk management. This paper describes a study in which accident analysis methods based on bow tie barrier analysis and safety systems theory were used to analyse the institutional failures that contributed to the occurrence and severity of the Tianjin disaster. The resulting analysis shows that the application of accident analysis methods to industrial disasters can highlight weaknesses in the evolving governance systems of emerging economies that may also offer lessons to other countries who are also on a similar path.

Artificial Intelligence Based Commercial Risk Management Framework for SMEs

Risk management in commercial processes is among the most important procedures affecting the competitiveness of small and medium-sized enterprises (SMEs), their innovativeness and potential contribution to global sustainable development goals (SDGs). The ecosystem of commercial processes is the prerequisite to manage risk faced by SMEs. Commercial risk assessment and management using elements of artificial intelligence, big data, and machine learning technologies could be developed and maintained as external services for a group of SMEs allowing to share costs and benefits. This paper aims to provide a conceptual framework of commercial risk assessment and management solution based on elements of artificial intelligence. This conceptualization is done on the background of scientific literature, policy documents, and risk management standards. Main building blocks of the framework in terms of commercial risk categories, data sources and workflow phases are presented in the article. Business companies, state policy, and academic research focused recommendations on the further development of the framework and its implementation are elaborated.

The tax risk management system conceptualization: strategic goals and directions of reforming the State Tax Service of Ukraine

The article is devoted to actual issues of the State Tax Service of Ukraine reforming for creation a comprehensive tax risk management system in view of the basics of risk theory, risk management standards, global trends and specific features of domestic tax administration. The article focuses on the concretization of specific areas of work with tax risks, taking into account the expert evaluation by the TADAT methodology. The strategic approaches of tax authorities to increase the level of compliance by taxpayers with tax rules, as well as the interdependence of instruments to counteract of the tax risks are presented. It is proved that the differential approach application requires the creation and functioning of tax risk monitoring, the level of taxpayer risk determining, as well as a high level of communication with taxpayers to minimize tax risks in order to be able to minimize the number of tax violations through non-audit measures and service functions. The ways of responding to the risks of non-compliance with tax legislation are defined. Performed analysis of relevant indicators for key areas of tax risk management performance assessing allowed determining the priority directions for integrated tax risk management system development regarding non-compliance by taxpayers with tax legislation in the State tax service of Ukraine activity in accordance with modern international best practice. It is noted that the level and effectiveness of tax risk management largely depends on the level of analytical work and provides for identification stages, analysis, evaluation (measurement), and ranking. Recommendations for the TADAT assessment are presented, which indicate that the main steps for working with risk information are: environmental testing, analysis of audit data, third-party data, taxpayer behavior, cross-border trade research on the application of tax evasion schemes, the shadow economy.

A Functional Protection Method for Availability and Cost Risk Management of Complex Research Facilities

While the area of functional safety for industry has evolved over the years by developing well-renowned standards and methods proven in use, such standards are not present in the field of equipment protection for complex research facilities. Research facilities in particular do typically not apply global, systematic approaches for functional equipment protection, but rather rely on system expert judgment for the individual systems, often leaving out the emergent properties of complex systems of systems. With the increasing demands on research facilities to be highly reliable and available, comparable to industrial facilities, a holistic and systematic method for equipment protection is, if not necessary, highly beneficial. This paper describes the development of a risk management method named functional protection, and benchmarks its lifecycle steps toward the IEC 61508 functional safety standard as well as the ISO 31000 risk management standard. The functional protection method is currently applied for the design and construction of the European Spallation Source in Lund, Sweden.

Exploring ISO31000 Risk Management during Dynamic Fire and Emergency Operations in Western Australia

Firefighting remains an inherently dangerous occupation with serious injuries and fatalities reported globally. The Australasian Fire Authorities Council adopt ISO31000 as the standard of risk management for all firefighting and mitigation operations. However, previous studies have reported that decisions made by incident controllers during dynamic emergencies are typically reactionary and only partially compliant with the ISO31000 process. This paper describes research using new qualitative and quantitative data that support incident controllers in managing risk during dynamic fire and emergency situations, in accordance with ISO31000. The research was completed through two studies. The first study explored risk attitudes of serving fire service officers through semistructured interviews and in-depth structured surveys. The second study identified the severity of firefighting consequences and likelihood through analysis of Western Australian fire service safety and incident reports between January 1st, 2001 and January 1st, 2015. The overall and conditional probability of specific injuries during the various tasks undertaken during emergency incidents was calculated using Bayesian statistical analysis. The findings indicate that whilst current practices are arguably effective in preventing worst case consequences being realised, improvements in operational risk management can be made in accordance with ISO31000 during emergencies and in pre-incident planning.

РИЗИК-МЕНЕДЖМЕНТ ЯК ІНСТРУМЕНТ ЗАБЕЗПЕЧЕННЯ СТІЙКОГО ФУНКЦІОНУВАННЯ ПІДПРИЄМСТВА В УМОВАХ НЕВИЗНАЧЕНОСТІ

У статті розглянуто поняття невизначеності середовища функціонування підприємства, досліджено сутність і природу загроз та ризиків, встановлено відмінність між ризиком та невизначеністю. Досліджено систему ризик-менеджменту на підприємстві. Встановлено, що система ризик-менеджменту є невід’ємною складовою частиною підсистеми менеджменту організації та являє собою систему управління ризиками на основі процесу їх ідентифікації, оцінки та аналізу, а також вибору і використання методів нейтралізації їх наслідків, що спрямована на досягнення необхідного балансу між стратегічними можливостями підприємства та рівнем ризику.Здійснено аналіз міжнародних стандартів ризик-менеджменту та розглянуті особливості національних стандартів. Визначено, що в Україні діє Державний стандарт ДСТУ ISO 31000:2018, який надає можливість суб’єкту господарювання порівняти свою практику управління ризиками з міжнародним досвідом. Узагальнено основні фактори впливу ризиків на систему управління. Доведено, що сьогодення вимагає постійного моніторингу ризикоутворюючих факторів для створення ефективної та гнучкої системи господарювання підприємства в умовах ринкової кон’юнктури. Представлено та деталізовано етапи ризик-менеджменту: аналіз оточення, ідентифікація ризику, аналіз ризику, оптимізація ризиків. Розглянуто особливості управління ризиками та основні методи їх оптимізації на підприємстві для мінімізації їх впливу на результати діяльності підприємства. Встановлено, що ризик для кожного підприємства є індивідуальним, тому і використання того чи іншого методу оптимізації є також індивідуальним і визначається умовами зовнішнього та внутрішнього середовища.Світовий досвід найбільш часто використовує зовнішні методи (страхування, хеджування, диверсифікація, розподіл ризику) та внутрішні методи (самострахування, лімітування, забезпечення якості виготовленої продукції, бізнес-планування) зниження ризиків підприємства. Узагальнено, що від прийнятої концепції управління ризиками значною мірою залежить ефективність всього ризик-менеджменту та результативність діяльності економічних суб’єктів.

Methodological interpretation of risks financial safety of the enterprise in the system of economic analysis

The purpose of the article is to develop methodological provisions for interpreting of an enterprise’s financial security risks for timely identification and evaluation, as well as to develop of methods for their leveling or minimization and possible prevention by means of economic analysis. it is proposed to interpret risks classification as their distribution within economic analysis system by specific groups and certain criteria for management influence implementation and leveling their effect on the entities’ financial security. It is substantiated that in developing of the risk management measures in an entity’s business model it is expedient to use the provisions of international risk management standards that allow more effective control over business and accounting risks with the least impact on financial security to achieve the goals and maximize revenues. In order to take into account impact of risks on the financial security level it is proved that risks classification should take into account the indicators of financial, industrial, socio-reputational, human and natural capital of the business entity. The following principles is proposed to consider as a basis of the financial security risks classification: systematic; complexity; continuity; involvement of interested parties; continuous improvement facilitation; structuring; openness; awareness division of powers. It is proved that adherence to certain principles in the financial security risks classification allows to develop effective methods of the financial security risks counteraction, and implement anti-risks strategy in an entity’s business model through economic analysis system. To comply with the organizational principles of risk classification it is proposed to classify financial security risks by determining the subjects and stages of entity’s business model realization: personnel; expectations of stakeholders; organizational and managerial; structural business planning; administrative; infrastructure; corporate monitoring; creation of value; corporative management; results of activity. It is substantiated that developed financial security risks classification should become a basis for methodological recommendations of their quantitative and qualitative assessment.

Evaluation of Risk Management among Managers of the Primary Health Care Centers in Baghdad City: Comparative Study

Background: Several risk managem-ent standards had been developed including the Project Management Institute, the National Institute of Standards and Technology, actuarial societies, and ISO standards.
 Objective: The study aimed at evaluating risk management among managers of model and ordinary primary health care centers in Baghdad City and comparing the risk management among these centers.
 Methods: A descriptive comparative design was carried throughout the present study at 55 primary health care centers; 15 model primary health care centers and 40 ordinary health care centers in Baghdad City. The study was initiated from May 25th 2017 up to January 25th 2018. Non-probability (purposive) sample of 55 managers of primary health care centers was selected of 15 model primary health care centers and 40 ordinary primary health care centers in Baghdad City. A questionnaire was constructed for the purpose of the study. The overall number of items included in the questionnaire is 20 items. Internal consistency "split-half" reliability was obtained through computation of Cronbach alpha correlation coefficient. Data were collected through the employment of the questionnaire and the interview technique as means of data collection. Data were analyzed through the application of descriptive and inferential statistical data analysis approaches.
 Results: The study revealed that most of the managers of both model and ordinary primary health care centers had employed poor performance of standards of risk management of method of identifying risk (67%) (52.5%); risk management process (67%)(55%); potential risk treatments (60%)(67.5%); and cardinal rules for the practices of risk communication (60%)(50%) respectively. Conclusions: Managers of both sites unfortunately had performed the risk management standards inadequately.

Risk management standards and the active management of malicious intent in artificial superintelligence

The likely near future creation of artificial superintelligence carries significant risks to humanity. These risks are difficult to conceptualise and quantify, but malicious use of existing artificial intelligence by criminals and state actors is already occurring and poses risks to digital security, physical security and integrity of political systems. These risks will increase as artificial intelligence moves closer to superintelligence. While there is little research on risk management tools used in artificial intelligence development, the current global standard for risk management, ISO 31000:2018, is likely used extensively by developers of artificial intelligence technologies. This paper argues that risk management has a common set of vulnerabilities when applied to artificial superintelligence which cannot be resolved within the existing framework and alternative approaches must be developed. Some vulnerabilities are similar to issues posed by malicious threat actors such as professional criminals and terrorists. Like these malicious actors, artificial superintelligence will be capable of rendering mitigation ineffective by working against countermeasures or attacking in ways not anticipated by the risk management process. Criminal threat management recognises this vulnerability and seeks to guide and block the intent of malicious threat actors as an alternative to risk management. An artificial intelligence treachery threat model that acknowledges the failings of risk management and leverages the concepts of criminal threat management and artificial stupidity is proposed. This model identifies emergent malicious behaviour and allows intervention against negative outcomes at the moment of artificial intelligence’s greatest vulnerability.

Risks Related to Foreign Trade Activities and Their Mininmization When Entering into a Foreign Trade Contract

The access of Russian companies to foreign markets is associated with the introduction of a risk-based approach to foreign trade management. In this article, the authors aim to build an algorithm of the actions of companies to identify, evaluate and select methods of risk management in foreign trade transactions, to specify their scope and to justify practical solutions for their prevention and minimization under foreign trade contracts and contractual work. To solve this problem, the authors use theoretical and methodological advances in the theory of risks, contract theory, risk management standards, as well as the practice of export operations of Russian companies. The results of the study include specific proposals for managing risks arising on the part of a foreign counterparty, a home country and a country of expansion of Russian enterprises, as well as the risks encountered in the process of interaction with the bodies, regulating foreign trade transactions.

Health and Safety Analysis of Light Rail Transit Projects in Palembang

Several sports in the XVIII Asian Games will be held in Palembang city in 2018. To support activities and facilities it is necessary to support such buildings as Light Rail Transit (LRT). The city government of Palembang targets LRT construction to operate in June 2018 with a total length of 23.4 km and a 12 meter LRT road width for two lines. PT. Waskita Karya (Persero) Tbk as the implementation of LRT project development. In an effort to prevent or reduce accidents on the required development an occupational safety and health program (K3). The purpose of this study is to calculate the frequency and impact of OHS risk on the Light Rail Transit (LRT) project in Palembang. This research uses field observation and interview method, and conducting assessment based on risk assessment matrix from AS / NZS 4360: 2004 risk management standard. Matrix risk assessment methods derived from Australian Standards / New Zaeland Standards (AS / NZS) 4360: 2004 and ISO 31000: 2009. From 60 variables that have been tested previously obtained 78 factors in group L (low), 18 factors in the group Medium (M) and as many as 4 factors in group H (high).

Risk Management as a Process Security Tool

Abstract The article presents the essence and significance of risk management processes in the project, as the key field for successful completion of the project, in the field of project management. Based on literature review, the methods and standards of risk management in the project as well as standards related to process safety were defined. The risk management process according to the PMBoK methodology was discussed as an example of an international project entitled 3DCentral – Catalyzing Smart Engineering and Rapid Prototyping.

Certifying Private Security Companies: Effectively Ensuring the Corporate Responsibility to Respect Human Rights?

AbstractThe key purpose of this article is to critically assess the extent to which auditing and certification to quality assurance and risk management standards containing human rights-related requirements are an adequate and effective means of ensuring that private security companies internalize their responsibility to respect human rights. Based on participant observation, interviews and publicly accessible data, it concludes that in the absence of the adoption of specific assurance measures in the certification and oversight processes, the constructivist ‘tipping point’ resulting in the internalization of the corporate responsibility to respect may not be attained when there is inadequate norm compliance or, worse yet, norm regression.