Risk Management Application-Level Analysis in South Korea Construction Companies Using a Generic Risk Maturity Model

Author(s):  
Batagalle Vinuri Gimanthika Karunarathne ◽  
Byung-Soo Kim
2021 ◽  
Vol 13 (2) ◽  
pp. 659
Author(s):  
Agnieszka A. Tubis ◽  
Sylwia Werbińska-Wojciechowska

Recently, the maturity models for risk management are attracting growing attention. The obtained maturity level defines an assessment of an organization’s management competence. Therefore, as a set of various tools and practices, the maturity model is critical for a company’s overall risk maintenance strategy development and implementation. Thus, the purpose of this article is to present a model for risk management maturity for logistic processes. We investigated the main defined assessment areas for risk maturity model implementation in logistic systems. Based on research findings, we introduced a new risk maturity assessment area based on participation in the supply chain—cooperation at risk. The proposed model constitutes the base for a two-stage assessment method implementation, where the global maturity index is introduced. Finally, we implement the proposed two-stage assessment method to verify the proposed model’s diagnostic function and determine its labor intensity. The study confirmed that the five defined maturity areas (knowledge, risk assessment, process risk management, cooperation at risk, and risk monitoring) provide a complex diagnostic tool for risk maturity level identification and, based on the obtained results, allows to define an appropriate development strategy for a given decision-making environment.


Algorithms ◽  
2020 ◽  
Vol 13 (5) ◽  
pp. 115
Author(s):  
Mohammadjavad Arabpour Roghabadi ◽  
Osama Moselhi

Risk maturity evaluation is an efficient tool which can assist construction organizations in the identification of their strengths and weaknesses in risk management processes and in taking necessary actions for the improvement of these processes. The accuracy of its results relies heavily on the quality of responses provided by participants specialized in these processes across the organization. Risk maturity models reported in the literature gave equal importance to participants’ responses during the model development, neglecting their level of authority in the organization as well as their level of expertise in risk management processes. Unlike the existing models, this paper presents a new risk maturity model that considers the relative importance of the responses provided by the participants in the model development. It considered their authority in the organization and their level of involvement in the risk management processes for calculating the relative weights associated with the risk maturity attributes. It employed an analytic network process (ANP) to model the interdependencies among the risk maturity attributes and utilizes the fuzzy set theory to incorporate the uncertainty associated with the ambiguity of the responses used in the model development. The developed model allows the construction organizations to have a more accurate and realistic view of their current performance in risk management processes. The application of the developed model was investigated by measuring the risk maturity level of an industrial partner working on civil infrastructure projects in Canada.


2021 ◽  
Vol 2 (Issue 1 (January to March 2021)) ◽  
pp. 23-32
Author(s):  
Moreblessing Ngwenya ◽  
Sam Ngwenya

Enterprise Risk Management (ERM) has become a necessity in the financial sector to fulfil stakeholder expectations. Studies confirm that ERM impacts positively on the performance of firms. The main objective of the study was to assess ERM maturity levels of the insurance industry in Botswana. This was achieved through first designing a framework to measure enterprise risk management maturity levels. The ERMMF incorporated elements from COSO’s ERM framework and the AON risk maturity model obtained through literature review. Data were sourced from four strata; 9 long term insurance companies (15 respondents), 11 short-term insurance companies (19 respondents), 3 reinsurers (5 respondents), and 44 brokerages (75 respondents). While all organisations in the population were used, a sample of 114 out of possible 134 respondents was used. Data were analysed using SPSS version 16. The findings revealed that the insurance industry in Botswana had somewhat implemented ERM. It is therefore recommended that the insurance industry in Botswana should take ERM as a continuous process for growth in ERM maturity levels as such an improvement is highly likely to enhance their performance.


2021 ◽  
Vol 1 (12) ◽  
Author(s):  
Franciskus Antonius Alijoyo ◽  
Ivonne Bonita ◽  
Kevin Bastian Sirait

This study identified the risk management maturity status, revealed the major sources of the firm risk management maturity, issues in running quality risk management of a financial technology firm in Indonesia, and recommended enhancements. It used the Risk and Insurance Management Society – Risk Maturity Model to evaluate the risk management maturity status. To get detailed information about the risk management implementation, the researchers also did observations and interviews. This study confirmed that the firm was in ad-hoc status. The firm was overconfident of their previous success in implementing risk management and careless in transforming the risk management concepts into real practices. Thus, they lost their ability to decide appropriate decisions in handling the risks that they faced. As a result, they could not run effective and efficient management. Detail findings and recommendations on the risk management maturity of the firm are provided in this article.


2020 ◽  
Vol 17 (1) ◽  
pp. 59
Author(s):  
Ching Ching Wong

Enterprise Risk Management (ERM) is an effective technique in managing risk within an organization strategically and holistically. Risk culture relates to the general awareness, attitudes and behaviours towards risk management in an organisation. This paper presents a conceptual model that shows the relationship between risk culture and ERM implementation. The dependent variable is ERM implementation, which is measured by the four processes namely risk identification and risk assessment; risk treatment; monitor and consult; communicate and consult. The independent variables under risk culture are risk policy and risk appetite; key risk indicators; accountability; incentives; risk language and internal relationships. This study aims to empirically test the relationship between risk culture and ERM implementation among Malaysian construction public listed companies. Risk culture is expected to have direct effects and significantly influence ERM. This study contributes to enhance the body of knowledge in ERM especially in understanding significant of risk culture that influence its’ implementation from Malaysian perspective.


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