Decision making for risk management: A multi-criteria perspective

Karunathilake, Hirushie; Bakhtavar, Ezzeddin; Chhipi‐Shrestha, Gyan; Mian, Haroon R.; Hewage, Kasun; Sadiq, Rehan

doi:10.1016/bs.mcps.2020.02.004

Cited by 27 publications

(18 citation statements)

References 97 publications

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“…This is reflected in the four elements resilience builds on: Error-tolerant design, early warning signal alertness, 'plasticity' of mind, and effective means of recovery from damage. Risk management will draw on many sources of information including expert judgment [69], while optimizing to achieve a certain target will also require decision making [70] on what alternatives fit best, while dealing with conflicting weighted criteria such as performance, budget, and cost similar to [71]. Methods for this are available and are not subject of this paper.…”

Section: Discussionmentioning

confidence: 99%

Resilience of Process Plant: What, Why, and How Resilience Can Improve Safety and Sustainability

2020

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Resilience is the ability to restore performance after sustaining serious damage by a usually unexpected threat. This paper analyzes resilience of process plants as there are oil and gas refining, chemical manufacturing, power-producing plants, and many more. Over the years, plant safety has shifted from retrospective to proactive measures. Safety is important from many points of view, such as protection of workforce and nearby population, but certainly too from an economical and sustainability aspect. Pro-action requires predictive insight of what in the process can go wrong because of internal or external disruptive disturbance. Over the years, to that end, much effort was spent developing risk assessment methods and management. However, risk assessment has proven to be fallible because of various uncertainties and not the least by overlooked or unknown threats. To protect against those upsetting threats, measures can be taken up to a certain limit. These start in designing error-tolerant equipment able to be receptive to early warning signals during operations, responding to those with ‘plasticity’ of mind (that is, an organization and its leadership especially able to think ‘outside-the box’ for coping with unexpected situations), and finally, to deploy effective emergency response and able to recover from damage quickly. The paper presents a summary/review of nearly a decade of research work at the Mary Kay O’Connor Process Safety Center at the Texas A&M University to develop the concept and the techniques to realize a resilient plant, so far with a focus on chemical plant. It is, however, still a ‘work-in-progress’; potential is large. Besides the conceptual details, cases are presented that show how human and technical factors, combined in a socio-technical system, can lead to a broader plant safety insight enabling more effective risk control and increased resilience. These cases have up to now only considered warning signals and possible management action, while still limited to internal threats. Hence, aspects of equipment design and recovery should be further considered, also in the light of the dynamics of present-day business environment.

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Section: Discussionmentioning

confidence: 99%

Resilience of Process Plant: What, Why, and How Resilience Can Improve Safety and Sustainability

2020

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“…The implementation of risk management must be an integral part of the company's activities, especially decision-making (Zhu, Haugen, & Liu, 2021). This is because one of the objectives of risk management is to assist the leadership in determining policies so that these policies do not endanger the company's position (Karunathilake et al, 2020;Merkelbachm & Daudin, 2011). However, from the findings of this study, it can be said that Company X ignores risk management in its activities and decision making, which of course, has the potential to harm the success of the company itself.…”

Section: The Major Sources Of the Firm Risk Management Maturity Levelmentioning

confidence: 99%

Evaluation Of Risk Management Maturity Of A Fintech Firm In Indonesia

Alijoyo

Bonita

Sirait

2021

edv

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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.

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“…Risk management systematically applies management policy processes to determine, identify, control, and minimize the effects and consequences of potential events. Risk identification and assessment are the main core of a risk management system [69].…”

Section: Risk Analysismentioning

confidence: 99%

“…To this end, risks can be ranked to assist managers in identifying and evaluating areas with high risks, the necessary controls, and then adjusting techniques for those required controls [23]. After identifying risks, analysis, and assessment of the risks can be done based on three factors: occurrence probability, severity, and detection using the conventional failure mode and effects analysis (FMEA) method [20,69].…”

Section: Risk Analysismentioning

confidence: 99%

“…The modern world relies on sophisticated human systems and new technologies to make decisions in the presence of uncertainty. As a result, decision-makers attempt to control the risks that arise from the complexity of those systems when making decisions [69]. Exposure to risks is inevitable in fields such as management, engineering, medicine, etc.…”

Section: Introductionmentioning

confidence: 99%

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Fuzzy cognitive maps in systems risk analysis: a comprehensive review

Bakhtavar

Valipour

Yousefi

et al. 2020

Complex Intell. Syst.

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Fuzzy cognitive maps (FCMs) have been widely applied to analyze complex, causal-based systems in terms of modeling, decision making, analysis, prediction, classification, etc. This study reviews the applications and trends of FCMs in the field of systems risk analysis to the end of August 2020. To this end, the concepts of failure, accident, incident, hazard, risk, error, and fault are focused in the context of the conventional risks of the systems. After reviewing risk-based articles, a bibliographic study of the reviewed articles was carried out. The survey indicated that the main applications of FCMs in the systems risk field were in management sciences, engineering sciences and industrial applications, and medical and biological sciences. A general trend for potential FCMs’ applications in the systems risk field is provided by discussing the results obtained from different parts of the survey study.

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Decision making for risk management: A multi-criteria perspective

Cited by 27 publications

References 97 publications

Resilience of Process Plant: What, Why, and How Resilience Can Improve Safety and Sustainability

Resilience of Process Plant: What, Why, and How Resilience Can Improve Safety and Sustainability

Evaluation Of Risk Management Maturity Of A Fintech Firm In Indonesia

Fuzzy cognitive maps in systems risk analysis: a comprehensive review

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