Search results

Industry 4.0 is characterised by the exponential pace of technological innovations compelling organisations to transform or be displaced. Industry 4.0 transformation of construction enterprises lacks systematic guidance and notable earlier studies have utilised maturity models to map transformation of enterprises. This paper proposes a conceptual maturity model for construction enterprises for business scenarios leading to Industry 4.0.

The requirements for designing maturity models, including comparison with existing models and scientifically documenting the design process, make Systematic Literature Reviews (SLR) appropriate. Two systematic literature reviews (SLRs) are conducted to shortlist a total of 95 papers, which are subjected to subsequent content analysis.

The first SLR identifies the following process categories as critical levers of industry 4.0 maturity; data management, people and culture, leadership and strategy, collaboration and communication, automation, innovation and change management. The second SLR ascertains that the existing maturity models in construction literature do not adequately correspond to Industry 4.0 business scenarios with limited emphasis on data management, automation, change management and innovation. The findings are assimilated to propose a conceptual Smart Modern Construction Enterprise Maturity Model (SMCeMM).

The paper systematises the transformation of construction enterprises in Industry 4.0 and leads to state-of-the-art development of Industry 4.0 and maturity model research in construction. The proposed conceptual model addressed both the demands of the construction industry as well as what is required to navigate Industry 4.0 better.

The purpose of this research is to develop a validated general measure of supply chain risk management maturity (SCRMM) to assess organizational risk management maturity in the context of the supply chain (SC).

Dimensions and statements measuring SCRMM were developed through a literature review and consultation with experts. The instrument was refined through a pilot study and a full-scale study of 140 SC managers in the USA. A final SCRMM instrument, consisting of 25 statements, was obtained through scale purification, exploratory factor analysis, reliability analysis, and confirmatory factor analysis of construct validity. Cluster analysis was conducted to characterize the organizational groupings with respect to the instrument dimensions.

SCRMM was found to be comprised of the three main dimensions of SC Risk Management Orientation, Enterprise Risk Management Integration (ERMI), and SC Risk Collaboration. ERMI was found to be comprised of the three sub-dimensions of SC Risk Mitigation, Improvement of Risk Management Processes, and Organization Internal Risk Management. Cluster analysis revealed three groups characterized according to SCRMM as leaders, followers, and laggards.

The findings are based on a sample in the USA, so the SCRMM scale may not generalize to supply chains in other countries or geographic regions.

The instrument provides a self-assessment and benchmark tool for businesses to advance their SC risk management through different stages of maturity.

This is a pioneering general instrument that treats risk management maturity of the organization in the context of the SC. Participants span many industries and SC positions.

The purpose of this paper is to develop a knowledge-based decision support system for enterprise risk management (KBDSS-ERM) for Chinese construction firms (CCFs) to facilitate their ERM implementation. The specific objectives of the KBDSS-ERM are: first, assess the ERM maturity in a CCF; second, visualize the ERM maturity assessment results; third, provide action plans for improving the ERM implementation along the maturity continuum; and finally, generate a printable ERM maturity assessment report.

Microsoft Visual Studio 2010 was used to develop the KBDSS-ERM. Based on literature review and structured interviews, 191 action plans for improving ERM implementation were identified and included in the knowledge base. A fuzzy ERM maturity model, including 16 maturity criteria and 66 best practices, was embedded into the KBDSS-ERM. A total of ten experts from ten different CCFs, who were not involved in the survey or the development of the action plans, were invited to validate the KBDSS-ERM.

The validation results indicated that the results of the KBDSS-ERM were consistent with the expert judgments, and that the KBDSS-ERM had the accuracy ranging from 92.9 to 83.7 percent in assessing the maturity criteria and the overall ERM maturity of CCFs. In addition, the experts recognized the KBDSS-ERM as being a robust, convenient and useful tool for ERM implementation in CCFs.

First, the maturity criteria and ERM best practices that were identified in this study may not be exhaustive even though close attention was paid in the research methodology adopted to circumvent this risk. Additionally, as the applicability of the best practices and the importance of the maturity criteria were checked in the context of CCFs, one should be cautious when the KBDSS-ERM is being applied in other construction firms outside of the CCFs domain.

Using the KBDSS-ERM, the management can clearly understand its ERM implementation as well as the strengths and weaknesses, and obtain the action plans recommended by the KBDSS-ERM. Thus, with the information from the KBDSS-ERM, the management would make better decisions relating to ERM. In addition, while using the KBDSS-ERM, the staffs need to read the ERM best practices, which allows them to learn the ERM fundamentals and produce practical or innovative ideas relating to ERM. Thus, the KBDSS-ERM would contribute to the organizational learning of companies.

The primary contribution is the provision of 191 specific action plans that could be followed to enhance ERM practice. These action plans are arguably the first to be presented for the construction industry and therefore add to existing knowledge of ERM, now embedded in the KBDSS. In addition, the KBDSS-ERM is also the first computerized ERM tool developed specifically for construction firms. Although the KBDSS-ERM is primarily designed for CCFs, the implications of this study are not limited to CCFs because researchers and practitioners could adopt the research method of this study to develop KBDSSs for other construction firms.

The critical success factor of enterprises is the ability to identify risks and subsequently adapt to the ever-changing technology, as well as the business environment. This paper aims to investigate the top risks faced by small and medium-sized enterprises (SMEs). In the meantime, this paper outlines the perspectives on enterprise risk management (ERM)-based best practices and the adoption level of ERM practices in SMEs.

A mixed methodology was used to collect a comprehensive understanding of the adoption of ERM, especially in SMEs. The research is based on cross-sectional questionnaires and collected from risk practitioners in Malaysia. Detailed analysis of the top risks and best practices presented in this paper to identify the developments of risk management in changing organizations. This study used chi-square tests to examine the distribution of the adoption of the ERM programme using risk and insurance management society risk maturity model attributes. Logit regression was used to test the association of ERM efforts with the probability of adopting/considering ERM practices.

The findings indicated that business interruption risk and economic slowdown risk are the major concern for companies in Malaysia. A business continuity plan was found to be the most common risk management practice. Efforts such as the establishment of a risk management team and the development of risk appetite and/or risk tolerance statements in an organization are associated with the probability of adopting/considering ERM practices.

This paper helps to identify challenges of implementing risk governance and management in SMEs that shed light on the regulatory setting which we rather know a little about its impacts.

There are limited studies conducted in emerging countries on ERM and the application of the ERM framework in SMEs. Prior research studies are mostly generalized and lack details of risk management strategies applying to specific risks. This paper successfully examined the low maturity level of ERM practices and how SMEs in Malaysia managed those risks that emerged in their organizations.

The purpose of this paper is to analyze the identification, evaluation and treatment of risks, as well as the appetite and corporate maturity in relation to enterprise risk management in the urban bus market of the city of São Paulo, Brazil.

A qualitative case study was formulated in two stages: the first one includes an interview with a bus market specialist and the second stage comprehends eight interviews with executives from bus chassis and coachwork manufacturers and bus fleet operators of this market.

The results show that larger companies tend to manage their risks in a more structured way when compared with smaller ones, although there are some exceptions. The most critical risks evaluated concerns to the political type followed by the economic/financial, strategic, environmental, social, operational, technological, image and ethical types; and the risk appetites are generally consistent with the risks criticality level.

This case study of an important sector in the economy can be emblematic for the adoption of good practices of risk management by managers.

Risk appetites are generally consistent with criticality and the main forms of treatment are to reduce, share and follow, linked to participation in representative associations.

The purpose of this paper is to propose a supply chain risk management (SCRM) maturity model combined with a fuzzy TOPSIS classification method to evaluate and sort an organization into a pre-defined maturity level.

An axiomatic and prescriptive research method guided this study. Therefore, it proposes a prescriptive approach of maturity classification based on a theoretical SCRM maturity model combined with a multi-criteria decision technique.

The results of a pilot application indicated a consistent classification and the value of the model for diagnosing flaws and pointing directions for improving operational and disruption risk management. Its comprehensiveness allows applying it to supply chains of several industry sectors.

The proposed model does not include all possible risks and could be revised in further developments. Also, adjustment of the maturity profiles of the multi-criteria decision-making (MCDM) model requires a learning process from practical applications.

The adoption of the risk management maturity grid by practitioners may bring the benefit of a more objective and comprehensive evaluation of risk management processes in the supply chain context.

An immediate social implication derives from the improvement actions that may result from the diagnosis of risk management vulnerabilities identified in the pilot application. In general, the proposed model has the potential to reduce risks, improve results and contribute to economic sustainability.

The maturity grid and decision model integrate overall aspects of risk management, bringing together managerial concepts to deal with a variety of supply chain operational risks. The combined multi-criteria classification procedure to sort the maturity level of an organization is also a novelty.

Supply chains are among the most important, complex and risky systems in the modern world. Thus, managing risk is no longer an option, but a fundamental process in organizations. Given the lack of pathways that guide companies toward supply chain risk management (SCRM), the purpose of this study is to provide a conceptual reference, in the form of a maturity model, to support them in the evolution and improvement of this process.

The proposal covered a broad literature review, a survey and a multiple case study. The research was conducted in the aerospace industry and included companies from the supply chain of a leading aircraft manufacturer.

The model elaborated with the research results has eight attributes and four levels, addressing critical issues for SCRM to achieve its scope and purposes. The attributes include the structuring and scope of the SCRM process, the importance it receives within the organization, the resources used and the qualification of employees, the role of leadership and the inter-organizational collaboration.

Managing risk along supply chains is particularly challenging, demands resources and knowledge and requires a continuous effort. The proposed model offers a reference for improvement, helping to identify areas that need to be strengthened and practices to be implemented. Thus, it can guide the focus and efforts in a more efficient and systematic way, in addition to support evaluations and comparisons.

Although maturity models are abundant in different fields and several are available for risk management, models specifically developed for SCRM are scarce. This study broadens the understanding of SCRM with novel insights about how to improve this process in an evolutionary way. While many researchers focused their efforts on the SCRM process steps, this study identified critical issues that transcend these steps. The research was carried out in a sector with a long tradition in risk management and included companies belonging to a same supply chain, that is, using an approach still little explored in studies on SCRM or risk management maturity models.

Enterprise risk management (ERM) has become an important subject of increasing interest among companies throughout the world. It is gaining global attention among risk management professionals and academics. However, little is known about the extent of ERM implementation in the Tunisian context. More importantly, there are limited studies in literature that examine the determinants of this implementation. The purpose of this study is threefold, to propose an index to measure the level of ERM implementation, to examine the level of ERM implementation in Tunisian companies and to propose a conceptual framework for the determinants of this implementation. From the review of literature, several factors are found to be determinants of ERM implementation. Such factors are the presence of a Chief Risk Officer, the appointment of an internal auditor, the type of industry and the firm size.

To further understand the relation between ERM implementation and its determinants, a questionnaire survey was conducted in 2016 and administrated to 80 companies. Respondents were CRO and more often internal auditors or financial directors. Other data were collected from annual reports and notes to the financial statements. Along with this, the ordinal regression was applied to test the dependence between ERM implementation and its determinants.

Based on the data gathered, Tunisian companies have shown an increasing interest in risk management in the post-revolution context; however, an integrated approach of ERM implementation is still at an early stage. Descriptive statistics suggest that ERM is essentially developed in financial institutions, especially in banks and some large companies operating in non- financial industries. With regard to the multivariate regression results, the level of ERM implementation is positively related to the presence of a Chief Risk Officer, internal auditor, the type of industry and the firm size.

This study attempts to contribute to the risk management literature in two ways. Conceptually, this study proposes an ERM index to assess the level of ERM implementation. Empirically, it provides some empirical evidence that highlights factors which determine the level of ERM implementation. Therefore, this study will extend the scope of literature by providing novel empirical evidence by exploring the Tunisian context.

Public–private partnership (PPP), a project financing arrangement between private investors and the public sector, has revolutionized the approach to the funding and development of public infrastructure worldwide. However, the increasing cases of financial risks and poor financial risk management related to the model threaten the sustainability and financial success of PPP projects leading to huge financial investment losses. This study aims to review existing literature to establish the key measures to control the financial risks of sustainable PPP projects.

A PRISMA-compliant systematic literature review method was used in this study. Data were sourced from academic databases consisting of 56 impactful peer-reviewed journal articles.

The review outcomes demonstrate 41 critical factors (measures) in mitigating the financial risks of sustainable PPP projects. They include minimum revenue guarantee, strategic alliance with private investors, financial transparency and accountability and sound macroeconomic policies. The principal results of the study were categorized and conceptualized into a financial risk management maturity model for sustainable PPP projects. Lastly, the study reveals that further studies and project policies must focus more on addressing financial challenges relating to climate risks, and health and safety concerns such as COVID-19 outbreak that have negative impacts on PPP projects.

The results provide essential research gaps and directions for future studies on measures to mitigate the financial risks of sustainable PPP projects. However, this study used small but significant existing publications.

A checklist and a conceptual maturity model are provided in this study to help practitioners to learn and improve upon their practices to mitigate the financial risks of sustainable PPP projects.

This study contributes to managerial measures to reduce huge losses in financial investments of PPP projects and the attainment of sustainability in public infrastructure projects with a financial risk maturity model.

This paper aims to provide an update to the risk management literature, as it compiles a survey of 65 recent theoretical and empirical studies on the topic.

This is a survey paper that summarizes recent theoretical and empirical research regarding the relationship between risk management and firm value.

Recent empirical evidence provides support for theoretical propositions in the literature that risk management increases firm value and returns, while reducing return and cash flow volatility. The results are largely consistent with early findings, and there have been significant empirical advances that address concerns regarding the endogeneity of risk management practices relative to corporate financial decisions. The literature has become broader and deeper, as there are now studies with larger sample sizes across more industries and geographic areas.

Firms that use sound risk management practices obtain higher valuations, achieve better financial performance and experience diminished costs of financial distress. Recent research has emerged regarding enterprise risk management and its potential for value creation and risk reduction.

The paper provides a new compilation and synthesis of recent theoretical and empirical research in risk management that addresses many of the limitations of prior research.