An actionable approach to designing a risk management methodology
- Authors: Hamman, Claudius
- Date: 2012-10-30
- Subjects: Risk management , Strategic planning
- Type: Thesis
- Identifier: uj:10487 , http://hdl.handle.net/10210/7984
- Description: M.Comm. (Strategic Management) , Due to dramatic changes in the organisational landscape, organisations have had to review and amend risk management frameworks, processes and principles more regularly. Consequently, organisations now require an approach to risk management that enables the achievement of strategy, objectives and business activities. Risk management has to be implemented with the consideration of both the internal and external business environment on an enterprise-wide basis. The latter should result in a competitive advantage that drives organisational performance and reduces the total cost of risk. A pro-active approach to managing the effects of uncertainty on objectives has become a necessity for remaining competitive in constantly changing business environment. This study investigates the context and ideology through which risk management can be implemented. The purpose of the research was to identify, customize and recommend a sound methodology which can be incorporated in order to implement risk management as a business enabler. By adopting an exploratory approach, the researcher conducted qualitative research, in the form of an in-depth case study, on a multinational financial services organisation. Structured interviews were held with senior individuals in order to gather data regarding the risk management practices of the organisation.
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An integrated process framework for engineering endeavours
- Authors: Erasmus, Jonnro
- Date: 2013-05-27
- Subjects: Engineering firms - Management , Project management , Strategic planning , Risk management
- Type: Mini-Dissertation
- Identifier: uj:7549 , http://hdl.handle.net/10210/8407
- Description: M.Ing. (Engineering Management) , With the exponential increase in the complexity of modern products, the enterprise which creates the product also increases in complexity. Projects to realise engineering products are often fraught with delays, budget overruns and unsatisfied clients. Such failures are often caused by any of the following factors: Lack of understanding and definition of the responsibilities of the parties involved; Lack of understanding of the challenges and planning to deal with those challenges; Lack of control of the input and output requirements, information and risks; Poor communication in the project team due to ambiguous and undefined technical terms; and Lack of work integration due to poor understanding of the different domains involved in the project. This dissertation sets about exploring the domains of systems engineering, project management and quality management, by extensively referencing industry standards and international good practice in the quest of unravelling conflicts and uncertainties. Selected concepts and business processes of each domain are studied to arrive at an understanding of the objectives and scopes of those processes. This understanding enables the integration of these business processes and concepts by utilising the widely-used plan-do-check-act (PDCA) cycle. The business processes of each domain are divided into the four PDCA quadrants and integrated models of those quadrants are presented. The four quadrants are synthesised into a single framework which shows the project management, quality management and systems engineering processes performed during a single project phase. This Engineering Management Framework may be tailored for the design and realisation of any complex product, given adequate planning, understanding of the challenges and knowledge of the subject matter.
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The alignment of organisation strategy and risk appetite in the financial services industry
- Authors: Schikker, Sijbren
- Date: 2014-10-08
- Subjects: Strategic planning , Risk management , Financial services industry
- Type: Thesis
- Identifier: uj:12554 , http://hdl.handle.net/10210/12346
- Description: M.Com. (Business Management) , This study concerns itself with the concepts of strategy, risk management and risk appetite. Strategy and risk management playa very important role in any business, but it is very difficult to determine the interrelationship between strategy and risk. There is no scientific/academic proof and there is no model or framework on what the alignment between an organisation's strategy and risk appetite is. Therefore, the purpose of this study is to develop a risk appetite model to align an organisation's strategy and risk management, so that management will be able to improve its decision-making. The research design is based on a qualitative evaluation of the various literature concepts on strategy, risk management and risk appetite. Furthermore, personal interviews were held with senior risk, strategy and financial managers in the South African financial services industry to test the risk appetite model and determine the relevance and robustness of the risk appetite model. The main findings of this study revealed that: • to take full advantage of business opportunities, risk management and strategy cannot operate independently in any organisation; they must be integrated or at least linked with one another; • risk appetite is an important concept on its own, but is even more crucial as the link between risk management and strategy; • most financial services organisations assume that there is a link between risk management, strategy and risk appetite but that there is no formal processor framework available to link the three concepts; • effective risk management enables financial services organisations to achieve a competitive advantage, which is achieved by optimising risks and rewards; and • organisations that probably will withstand future crises are those with appropriate enterprise risk management practices in place where risk and strategy are linked with each other; and the risk appetite model can play an important role in achieving this goal. The main conclusion is that the risk appetite model is the formal framework to integrate risk management with strategy, because the model: • takes a holistic view to risk management; • allows all employees at all levels to understand risk appetite because it is quantitative and not too mathematical; • utilises risk appetite as the "gel" to link strategy and risk management; • allows for measured decision-making and proper governing; • allows organisations to be proactive in their risk management; • takes the upside and downside of risk into consideration; • gives strategic direction to the business; and • addresses all the important steps to integrate risk management, risk appetite and strategy. Lastly, for the risk appetite model to be successful it is essential to: • have buy-in from everyone in the organisation; • have the right governance in place to ensure the effective implementation and communication of the organisation's risk appetite; and • continuously monitor the organisation's risk appetite.
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