A fuzzy approach to assess outsourcing risks in Brazilian navy industrial military organizations

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Luiz Fernando do Nascimento Vieira ◽  
Igor dos Santos Caetano ◽  
Ricardo França Santos
Keyword(s):  
Decision Making ◽  
Risk Management ◽  
Decision Analysis ◽  
Relevant Information ◽  
Content Type ◽  
Military Organizations ◽  
Risk Levels ◽  
Corporate Memory ◽  
Risk Management Process ◽  
Managerial Level

Purpose This study assesses outsourcing risks using the fuzzy analytical hierarchy process (FAHP). Design/methodology/approach This descriptive research combines both qualitative and quantitative approaches. Risks identified in the literature review were classified with FAHP using questionnaire data from respondents in operations, procurement and risk management in Brazilian Navy Industrial Military Organizations (OMPS-I, by its Portuguese acronym). Findings The results indicate that FAHP is a method capable of producing relevant information to decision-making in the risk management process. A framework was created incorporating 16 major risks related to outsourcing. The results point to higher inherent risk levels related to outsourcing in the context of OMPS-Is: in order, hidden costs and unrealized savings; loss of knowledge/skills and/or corporate memory and difficulty in reacquiring a function; and loss of opportunities and reputation. The category of economic risk was revealed as the most important. Originality/value This study improves understanding of outsourcing risks and improves risk assessment by refining decision-making information and developing a system of decision analysis with several criteria. It also contributes to the development and implementation of a usable version of decision analysis with several criteria at a managerial level.

Rethinking risk management in entrepreneurial SMEs: towards the integration with the decision-making process

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chiara Crovini ◽  
Gabriele Santoro ◽  
Giovanni Ossola
Keyword(s):  
Decision Making ◽  
Risk Management ◽  
Multiple Case Study ◽  
Management Decision ◽  
Decision Making Process ◽  
Content Type ◽  
North West ◽  
Risk Management Process ◽  
Multiple Case

PurposeThe main purpose of this study is twofold: first, to analyze how risk is considered and managed by entrepreneurial SMEs, where the original founder is still the entrepreneur running the business, and second to understand if risk management is integrated with decision making.Design/methodology/approachThis research is based on a multiple case study. Three entrepreneurial SMEs based in the North-West of Italy were selected to obtain a heterogeneous sample. They operate in the manufacturing sector and they have different size and corporate ownership.FindingsThe risk management process cannot be always formalized but an unconscious risk analysis is always carried out. Risk is intertwined with decision and entrepreneurial orientation. Nowadays, rethinking risk management means enhancing and improving the decision-making process and integrating the phases of the two processes by introducing an alternative new model (RM-DM) that stands for “risk management-decision making”.Research limitations/implicationsConclusions can be generalized at a theoretical level even though this multiple case study represents a contingent analysis.Practical implicationsThis research enhances the understanding of the potential benefits for entrepreneurial SME owners of a risk mind-set while making decisions. RM-DM model is an alternative tool to manage risks properly in SMEs, especially when a formalized process is not implemented, as it improves the way decisions are made and introduces a more reasoned approach to manage risks.Originality/valueThis empirical study introduces a unique model (RM-DM) that helps to rethink risk management in entrepreneurial SMEs, by integrating it with the decision making and by proposing an alternative tool to manage risks with a more structured approach.

A critical analysis of supply chain risk management content: a structured literature review

2017 ◽  
Vol 14 (1) ◽  
pp. 69-90 ◽  
Author(s):  
Surya Prakash ◽  
Gunjan Soni ◽  
Ajay Pal Singh Rathore
Keyword(s):  
Risk Management ◽  
Supply Chain ◽  
Literature Review ◽  
Critical Analysis ◽  
Future Research ◽  
Supply Chain Risk Management ◽  
Supply Chain Risk ◽  
Marked Rise ◽  
Content Type ◽  
Risk Management Process

Purpose The research on supply chain risk management (SCRM) is visibly on the rise, although its literature still lacks the state of the art that critically analyzes its content. The SCRM literature seems to require studies that utilize risk typology, sources of risk, etc. for reviewing the topic. The purpose of this paper is to bridge the gap by synthesizing the information obtained from 343 articles across 85 journals. This study also presents a critical analysis of the content of SCRM in a structured manner to identify the directions for future research. Design/methodology/approach A systematic literature review (SLR) was devised and adopted, which involved the selection, classification, and evaluation of 343 research articles published over a period of 11 years (2004-2014). The content of extant SCRM literature was critically analyzed and synthesized from the perspective of the risk management process (RMP). Findings The analysis of extant literature shows that there is a marked rise in research in the SCRM area, especially after the year 2005. It was observed that not only risk but also different forms of uncertainties make supply chain (SC) operations difficult to manage. The SCRM actions yielded most benefits when their implementation was at chain or network level and managed strategically. The analysis also reveals that the manufacturing sector is most affected by risks and highly investigated by researchers. Practical implications A complete process for SCRM based on risk stratification, objectives of risk management, and RMP will be a guiding model for firms to manage risks. The research gaps identified and future directions provided here will encourage researchers and managers to devise new methods, tools, and techniques to address the risks in modern SC operations. Originality/value An SLR and risk-based content classification of SCRM literature were performed. To identify, locate, select, and analyze the SCRM literature, a structured and systematic process was adopted with some very rarely used methods such as two levels of search keywords, and strings were formulated to locate the most relevant articles in major academic databases.

Reconsidering contact risk and contractual risk management

2017 ◽  
Vol 59 (4) ◽  
pp. 504-521 ◽  
Author(s):  
Ralph Schuhmann ◽  
Bert Eichhorn
Keyword(s):  
Risk Management ◽  
Corporate Management ◽  
Corporate Risk Management ◽  
Content Type ◽  
Management Processes ◽  
Risk Management Process ◽  
Management Capacity ◽  
Risk Dimensions ◽  
Contractual Risk ◽  
Corporate Risk

PurposeThe aim of this paper is to pursue three objectives: to assess the extent to which theoretical concepts and corporate practice are reflecting the contract’s risk management dimensions; to identify ways to make full usage of the contract’s risk dimensions for risk management purposes; to overcome the isolation of the contract caused by its perception as a legal instrument by integrating its handling into the overall corporate management processes. Design/methodology/approachLiterature is analyzed regarding the contract’s roles as a source of risk and as a risk management device. Based on the relevant findings, it uses the Contractual Management Model to develop a concept that integrates all contract-related risk management processes in an enterprise. FindingsThe paper redefines the term “contract risk” in the light of modern understanding of contract functions and contract purposes. It shows that only Contractual Risk Management theory takes the management capacity of the contract fully into account. A Contractual Risk Management process is suggested which integrates all contract-related corporate management processes and aligns them to the requirements of transaction risk management and enterprise risk management. Originality/valueThe paper may guide executives to optimize corporate risk management processes through a better understanding of the risk potential of contract and of its risk management capacity. It provides a checklist of redefined contract risks as well as a concept that, for the first time, is aligning all contract-related management processes to support the corporate risk management system.

Customisable framework for project risk management

2017 ◽  
Vol 17 (1) ◽  
pp. 68-89 ◽  
Author(s):  
Jennifer Firmenich
Keyword(s):  
Risk Management ◽  
Management Practices ◽  
New Institutional Economics ◽  
Future Research ◽  
Project Risk Management ◽  
Management Process ◽  
Project Risk ◽  
Content Type ◽  
Risk Management Process ◽  
Management Concepts

Purpose The purpose of this paper is to emphasise on the need for efficient and effective project risk management practices and to support project managers in increasing the cost certainty of projects by proposing a new framework for project risk management. Design/methodology/approach The author adopts a “constructivist” methodology, drawing on practices common in construction management sciences and new institutional economics. Findings The author presents a holistic and customisable project risk management framework that is grounded in both practice and academia. The framework is holistic because, amongst others, all steps of the typical risk management process are addressed. The framework is customisable, because it allows for alternative ways of implementing the project risk management steps depending on the project-specific circumstances. Research limitations/implications The framework does not address the potential unwillingness of the project players to set up a project risk management process, at all. The proposed framework has not yet been tested empirically. Future research will seek to validate the framework. Originality/value The framework is designed to account for the difficult circumstances of a complex construction project. It is intended to support decision makers in customising a practical yet comprehensive project risk management concept to the characteristics of the unique project. Although many other project risk management concepts are designed based on the assumption that actors are perfectly rational and informed, this framework’s design is based on the opposite assumption. The framework is dynamic and should adapt over time.

Productivity improvement in solid waste recycling centres through lean implementation aided by multi-criteria decision analysis

2018 ◽  
Vol 25 (5) ◽  
pp. 1480-1499 ◽  
Author(s):  
Guilherme Tortorella ◽  
Glauco Silva ◽  
Lucila M.S. Campos ◽  
Cassiano Pizzeta ◽  
Amanda Latosinski ◽  
...  
Keyword(s):  
Decision Making ◽  
Decision Analysis ◽  
Solid Waste ◽  
Value Stream Mapping ◽  
Analysis Tool ◽  
Productivity Improvement ◽  
Lean Implementation ◽  
Content Type ◽  
Multi Criteria Decision Analysis ◽  
Lean Practices

Purpose The purpose of this paper is to investigate, through a comparative analysis, the applicability of lean manufacturing practices, such as value stream mapping (VSM), for productivity improvement in recycling centres (RCs) aided by multi-criteria decision analysis. Design/methodology/approach The study is carried out in five RCs that sort the municipal solid waste of Porto Alegre, one of the main cities in Brazil. Since all of the centres present their labour composed by poor communities’ members, cultural and social characteristics may represent an incremental challenge for lean implementation. Further, these centres are organised in cooperatives, in which decisions are taken through a participatory way and all their members are entitled to vote, undermining and retarding the decision-making process. Findings The integration of a multi-criteria decision-making tool to the lean practices enables the prioritisation of improvements, complementing the final stage of VSM. In particular, this contribution becomes especially important in cooperatives managed by community, where decisions are often complex and time-consuming. Finally, despite the increasing pressure for better performance of RCs, the existent mindset is still far from the private sector, where lean practices were conceived. Further, the findings suggest that, despite processes similarities, it is not feasible to declare the existence of a one-best practice to such scenario. Originality/value In theoretical terms, the authors demonstrate through a multi-case study the adequacy of analytic hierarchy process as a decision analysis tool complementary to the VSM, enabling a broader perspective about this subject. Concerning the practical contribution, the comprehension of the adaptation needs for lean practices implementation within the production context of solid waste RCs provides a framework with guidelines for this sector, when incorporating lean activities. Lean practitioners and eventual municipal authorities involved in improving productivity of community-managed RCs might benefit from this framework, since they will be able to emphasise the development of recommended and already tested lean practices that tend to improve their operational performance.

Cyber risk management in SMEs: insights from industry surveys

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Felicitas Hoppe ◽  
Nadine Gatzert ◽  
Petra Gruner
Keyword(s):  
Risk Management ◽  
Cyber Security ◽  
Future Research ◽  
Management Process ◽  
Content Type ◽  
Security Culture ◽  
Current State ◽  
Enterprise Risk ◽  
Risk Management Process ◽  
Cyber Risk

PurposeThis article aims to gain insights on the current state of small- and medium-sized enterprises’ (SMEs’) cyber risk management process and to derive future research directions.Design/methodology/approachThis is done by collecting market insights from 37 recent industry surveys and structuring them based on the steps of the risk management process. From this analysis, major challenges are derived and future fields of research identified.FindingsThe results indicate that deficiencies in risk culture as well as the strained market for IT experts are the major obstacles with respect to the implementation of cyber risk management in SMEs, and that these challenges are similar across countries. The findings suggest that especially the relationship between cyber security culture and cyber risk management should be investigated further, and that a stronger link between the research streams on enterprise risk management and cyber risk management would be desirable.Originality/valueThis paper contributes to the literature by providing a systematic overview on the current state of SMEs' cyber risk management from a market perspective. The findings provide support for the existing academic literature by emphasizing the central role of cyber security culture (perception, knowledge, attitude) for a successful cyber risk management, which however should be addressed in more depth in future (empirical) research.

Crowdsourcing the ecosystem’s expectations: a decision-making process to manage the unmanageable

2014 ◽  
Vol 42 (3) ◽  
pp. 3-8 ◽  
Author(s):  
Haydn Shaughnessy
Keyword(s):  
Decision Making ◽  
Ecosystem Change ◽  
Content Type ◽  
Risk Levels ◽  
Continuous Innovation ◽  
Uncertainty Monitoring ◽  
Traditional Sense ◽  
High Level ◽  
Wealth Generation ◽  
A Company

Purpose – The author warns that nowadays a company must learn to be “co-productive” with an app developer community, a supplier community, a content community, an advocacy community or a customer ecosystem in order to stay competitive through continuous innovation. Leaders need new tools to promote informed decisions. Design/methodology/approach – The article shows how companies monitoring dynamic ecosystem change can develop crowd-based reporting scorecards to guide decision making. Findings – Increasingly it is the innovations and expertise of the ecosystem, not the talents and resources of the firm, that are crucial to its future wealth generation. But many of the consequences of ecosystem change are, in fact, unmanageable in any traditional sense. An experimental way to identify the uncertainty produced by a dynamic ecosystem offers decision support. Practical implications – The uncertainty monitoring experiments described in this article can clarify the risk levels and the need for preparatory investments. They offer a high level view of the dynamics of the new market ecosystem environment. Originality/value – This article offers cutting-edge insights for managers struggling to make decisions about investments related to the dynamic ecosystem of users, suppliers, partners and customers in their companies’ markets.

A neural network approach for retailer risk assessment in the aftermarket industry

2019 ◽  
Vol 26 (5) ◽  
pp. 1631-1647 ◽  
Author(s):  
Shirin Rezaei ◽  
Sajjad Shokouhyar ◽  
Mostafa Zandieh
Keyword(s):  
Neural Network ◽  
Risk Assessment ◽  
Supply Chain ◽  
Mitigation Strategies ◽  
Risk Level ◽  
Self Organizing Map ◽  
Neural Network Approach ◽  
Content Type ◽  
Risk Levels ◽  
Risk Management Process

Purpose Given the competitive environment and complicated relationships in supply chains in the modern era, it is important to take into account internal and external risks. In addition, proper methods must be designed to evaluate these risks correctly. The purpose of this paper is to provide a suitable map based on the artificial neural network technique to assess and classify the risk levels of retailers who have interconnected rules in the downstream of the supply chain. Design/methodology/approach In this research, a model for risk assessment with a hexagonal grid and 2D self-organizing map was applied. Findings According to the results, the model used in the study can provide a basis for classification of retailers based on the specified risk levels defined by the experts and risk managers of the company. Also with the model’s visual output, managers can have a better understanding of the distribution of the risk level of retailers. Practical implications The proposed methodology can be adopted by managers to assess the risk of members involved in the supply chain, helping them to formulate the risk mitigation strategies based on the risk levels. Originality/value As a part of the risk management process, organizations can use this developed method to reduce the existing risks imposed by the members or customers on the company.

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