Risk Communication, A Component of an Integrated Risk Management Process for Pipeline Operators

1996 ◽  
Author(s):  
David C. DeGagne
Keyword(s):  
Risk Management ◽  
Risk Communication ◽  
Management Plan ◽  
Acceptable Level ◽  
External View ◽  
The Public ◽  
Integrated Risk ◽  
Risk Management Process ◽  
Integrated Risk Management ◽  
Level Of Risk

It is essential in today’s socio-economic environment that pipeline operators adopt and utilize a comprehensive approach to managing technical, environmental, economic and public safety risks associated with their business. Clearly, this type of approach to risk management would be integrated and include a variety of considerations. For example, one is the technical assessment of the level of safety or risk inherent within the system itself. Another, is the external view held of that system. While the physical system and its associated risk can be identified, evaluated and to some extent controlled, the external view of the risk, however, is an entirely different matter. Making important decisions about risk requires that both the external and internal views be in agreement. When this is not the case, an integrated management plan needs to include a risk communication component. Simply, risk communication is the purposeful exchange of information about the existence, nature, form, severity or acceptability of risks.1 An effective risk communication strategy will be able to gauge the political and social reaction to a project. If pipeline operators try to establish what a project’s acceptable level of risk is without a purposeful exchange of information with the community the effort will likely fail. The need to look at the “big picture” is paramount. All factors which affect the outcome of the project need to be understood and, in some way, contribute meaningfully to the final product. The most overlooked aspect in risk management is the qualitative assessment of “how does the public perceive the risk?”. Risk analysts use many basic technical assumptions in their risk assessments. They allow their training and faith in the science to be sufficient indicators of the real risk. The public, on the other hand, view risk from a completely different perspective and set of values. Consequently, when attempts are made to quantitatively determine “what is an acceptable level of risk” the outcome must be viewed as incomplete, lacking the critical external input. Experience suggests that the only ones who can truly determine what is an acceptable level of risk are those who must ultimately accept that risk. This is where the power of effective risk communication can play a significant role in the risk management process. While risk analysis can help in understanding the potential of a risk, effective risk communication and public outreach are necessary in understanding the perceptions and concerns of the community. It seems ironic that corporations dedicate tremendous resources deriving a mathematical estimate of risk that most in the community cannot comprehend much less believe what the numbers are supposed to tell them. This paper will help to explain the fundamentals of risk communication, its ethical use and methods for developing a strategy for outreach programs as part of an integrated risk management plan.

scholarly journals THE RISK MANAGEMENT SYSTEM IS A TOOL FOR THE SUCCESSFUL IMPLEMENTATION OF INTERNATIONAL MEGAPROJECTS

2020 ◽  
Vol 11 (1) ◽  
pp. 98-103 ◽  
Author(s):  
D. V. Shamin
Keyword(s):  
Risk Management ◽  
Management System ◽  
Risk Tolerance ◽  
Successful Implementation ◽  
Monitoring And Control ◽  
Risk Management System ◽  
Management Processes ◽  
Integrated Risk ◽  
Risk Management Process ◽  
Integrated Risk Management

The article is devoted to the optimization of the processes of organization and management of international megaprojects based on the formation of a risk management system.Currently, the implementation efficiency of megaprojects remains low due to the emergence of many risks at various stages of project implementation.In this connection, it is proposed to form an integrated risk management system, which implies a three-stage structure for introducing the 6 element risk management system into the project life cycle, into the main project management processes.This article substantiates the need to form a risk management system in three stages in accordance with the key elements of a risk management system: (1) Planning – the block «Objectives and environment of the project»; (2) Approval of the project – the blocks «Identification», «Classification», «Assessment of risks and risk tolerance», «Risk management plan»; (3) Monitoring and control – the block «Control and monitoring of risks».Thus, the proposed integrated risk management system provides: continuity of the risk management process based on the audit of the RMS; the ability to adjust RMS at the stage of forecasting a risk event; possibility of scenario modeling for forecasting risk reduction potential; risk management program, formed by current risks in order to increase the attractiveness of the mega-project for the investor.It is also proposed to introduce an audit of risk management processes and procedures based on an adapted methodology for the following components of the risk management system: defining events and setting goals; the internal environment of the organization; organization risk assessment; risk control tools; responding to risks; communications and information; risk monitoring.This technique allows you to take into account risks not only at the stage of project development, but also during its implementation, which ensures its feasibility, as well as an audit algorithm for risk management systems of a megaproject is developed and recommendations for improving the RMS through this tool are proposed.

scholarly journals Risk Balancing in an Integrated Farm Risk Management Plan

2001 ◽  
Vol 33 (3) ◽  
pp. 413-429 ◽  
Author(s):  
Cesar L. Escalante ◽  
Peter J. Barry
Keyword(s):  
Risk Management ◽  
Financial Risk ◽  
Management Plan ◽  
Optimization Techniques ◽  
Risk Averse ◽  
Simulation Framework ◽  
Integrated Risk ◽  
Management Plans ◽  
Risk Reducing ◽  
Integrated Risk Management

AbstractUsing optimization techniques in a Simulation framework, this study demonstrates the synergy between risk balancing and alternative strategies in effectively reducing risk under changing farm conditions. Highly risk-averse farmers tend to prefer integrated risk-management plans, based on the diversification principle, that yield offsetting combinations of the risk-reducing benefits of most strategies and the profit-generating capacities of the others. The greater appeal of a more diversified plan usually downplays the risk balancing strategy as the farm utilizes credit reserves to implement other production and marketing plans considered essential to Overall risk reduction. The farm, however, still realizes overall, though more regulated, reduction in its financial risk position.

scholarly journals Development of methodological approaches to establishing an integrated risk management framework for leasing transactions in Ukraine

2017 ◽  
pp. 49-63
Author(s):  
Anzhela Kuznietsova ◽  
Oleksandr Levchenko
Keyword(s):  
Risk Management ◽  
Product Life Cycle ◽  
Risk Mitigation ◽  
Management Framework ◽  
Risk Management Framework ◽  
Integrated Risk ◽  
Credit Mechanism ◽  
Risk Management Process ◽  
Low Efficiency ◽  
Integrated Risk Management

Based on studies of domestic and foreign researchers, the article gives a modified and extended classification of risks related to leasing transactions which includes a new classify cation attribute ‘by types of leasing activities’ (in terms of risk management). Risk mitigation techniques for leasing transactions are described in detail, as well as their essence, ways of introducing and expected outcomes. The advantages of securitization are summarized and key reasons for low efficiency of this method in the domestic leasing market are identified. For these reasons, the domestic stock market is less developed and Ukraine’s current legislation on leasing is imperfect. It is pointed out that success in development of Ukraine’s financial market relies on the growth of leasing along with the efficiency of financial and credit mechanism that supports leasing transactions and determines the quality of risk management framework as an integral part of such a mechanism. The process of risk management for leasing transactions is formalized. A comparative analysis of fragmentary and complex approaches applied in Ukraine towards establishing a risk management framework for leasing companies is undertaken. The paper justifies the necessity of establishing an integrated risk management framework for leasing transactions as part of financial and credit mechanism that supports leasing transactions. The need for establishing such a framework is driven by the following market trends: globalization; increased competition; company consolidation; product standardization; product life cycle decrease; technological innovation; increased attention to risks given by the state, society, stockholders and board of directors. It is stated that establishing an integrated risk management framework for leasing transactions involves the following progressive steps: setting goals and targets, identifying and evaluating risks, planning for potential risks, monitoring risks and introducing risk management process. The article highlights the main goal of an integrated risk management framework for leasing transactions, long-term tasks for achieving this goal, major function that the framework should perform and principles that it should preserve.

Study on the Model of Integrated Risk Management for BOT Projects

2012 ◽  
Vol 174-177 ◽  
pp. 3374-3377
Author(s):  
Gong Liang Jiang
Keyword(s):  
Risk Management ◽  
Management Process ◽  
Infrastructure Projects ◽  
Management Level ◽  
Management Ability ◽  
Integrated Risk ◽  
Risk Management Process ◽  
Process System ◽  
Management Flow ◽  
Integrated Risk Management

Build-Operate-Transfer (BOT) contracts have been increasingly adopting for large infrastructure projects. However, BOT contracts have been a very important model for the investing and building the basic establishment. In order to improve management level and risk management ability for BOT projects, the model of integrated risk management for BOT projects is discussed in this paper. The risk involved in each phase of the project is analyzed. This paper suggests methods to mitigate these risks and put forward the correlative management flow and risk management process system as well as support technology. The method and technique put forward by this paper would be used for risk management of BOT projects. And it is effective for improve risk management ability and reduce the risk in BOT projects.

A Process Architecture Approach to Manage Health Process Reforms

2011 ◽  
pp. 1600-1627
Author(s):  
Christine Stephenson ◽  
Wasana Bandara
Keyword(s):  
Risk Management ◽  
Process Modeling ◽  
Process Management ◽  
Management Process ◽  
Public And Private ◽  
Process Pattern ◽  
Integrated Risk ◽  
Risk Management Process ◽  
Process Architecture ◽  
Integrated Risk Management

Business Process Management (BPM) is often perceived as a top priority concern in organisations; both in public and private sectors. This has been clearly noticed in the Australian health care sector, evidenced by the Australian Government’s commitment to pursuing a reform agenda that reflects a new approach to improving health and aged care services. The adoption of a business process management approach can be a key tool to facilitate health reform in the public and private sectors. This approach provides a structured and hence rigorous approach to ensure that health processes are reviewed, improved and implemented consistently throughout the organisation, especially where public health services are provided from multiple service points. Process modeling is an embedded component of most BPM initiatives, yet a resource intensive task. How process models can be derived efficiently (i.e. with less resources and time) and effectively (at a high quality to meet the specific needs) is an integral element of interest to most organisations, however, this area of research is still in its infancy. This paper aims to address this gap by proposing a ‘process-pattern’ based approach to process modeling where models are created and managed within a ‘process architecture’. The process pattern approach is explained with evidence from a large state based health organisation using an integrated risk management process for health care service management as an example. The study employed an action research approach and the chapter unfolds its findings around the main phases of the research method. The contributions from this work are twofold. From the perspective of practice, it offers a validated high level example of a process pattern for an Integrated Risk Management Program for health. From an academic perspective: it presents a validated Risk Management process pattern for delivering health services which can be used as or a benchmark in further research.

A Process Architecture Approach to Manage Health Process Reforms

2010 ◽  
pp. 289-318
Author(s):  
Christine Stephenson ◽  
Wasana Bandara
Keyword(s):  
Risk Management ◽  
Process Modeling ◽  
Process Management ◽  
Management Process ◽  
Public And Private ◽  
Process Pattern ◽  
Integrated Risk ◽  
Risk Management Process ◽  
Process Architecture ◽  
Integrated Risk Management

Business Process Management (BPM) is often perceived as a top priority concern in organisations; both in public and private sectors. This has been clearly noticed in the Australian health care sector, evidenced by the Australian Government’s commitment to pursuing a reform agenda that reflects a new approach to improving health and aged care services. The adoption of a business process management approach can be a key tool to facilitate health reform in the public and private sectors. This approach provides a structured and hence rigorous approach to ensure that health processes are reviewed, improved and implemented consistently throughout the organisation, especially where public health services are provided from multiple service points. Process modeling is an embedded component of most BPM initiatives, yet a resource intensive task. How process models can be derived efficiently (i.e. with less resources and time) and effectively (at a high quality to meet the specific needs) is an integral element of interest to most organisations, however, this area of research is still in its infancy. This paper aims to address this gap by proposing a ‘process-pattern’ based approach to process modeling where models are created and managed within a ‘process architecture’. The process pattern approach is explained with evidence from a large state based health organisation using an integrated risk management process for health care service management as an example. The study employed an action research approach and the chapter unfolds its findings around the main phases of the research method. The contributions from this work are twofold. From the perspective of practice, it offers a validated high level example of a process pattern for an Integrated Risk Management Program for health. From an academic perspective: it presents a validated Risk Management process pattern for delivering health services which can be used as or a benchmark in further research.

Sign in / Sign up

Export Citation Format

Share Document