Project plan for graduate thesis

Transcription

1 Project plan for graduate thesis A model for evaluation of consequences from integrating the work with environmental, quality, safety and workers health and safety questions within enterprises. Erik Mattsson, David Wimmercranz Risk management programme RH08 29/4/2009

2 Introduction This graduate thesis will study the effects of an organization integrating its risk management within the areas environment, quality, safety and workers health and safety. Today there is no existing accepted method for studying these effects. This is thus the foundation for this graduate thesis. This project plan serves as an introduction for the graduate thesis that will be done at the University of Lund, Technological Department in collaboration with Brunicon AB. Background Today s enterprises meet competition in many different forms, both economical and technological from the increased globalization. To meet these strains, the enterprises must continuously adapt to the speedy development. According to Akselsson (2008) we live in a speedy society, the technology develops continuously and it is of greatest importance to be flexible to easily adapt to new conditions. Always optimizing one s organization and be one step ahead the competition will be determinant for an enterprise s future. To have a strategy to achieve this is nowadays very important for an enterprise (SIS 2004). Risk management is a phenomenon whose meaning has been acknowledged lately. This is particularly true within the corporate world, where it is now regarded as a competition advantage to have an effective risk management. Since risks are viewed as a natural part of the corporate world, the enterprises must learn how to meet and handle these strains. "No entity operates in a risk free environment, and enterprise risk management does not create such an environment. Rather, enterprise risk management enables management to operate more effectively in environments filled with risks." (COSO 2004) Enterprises today have become aware of the fact that within risk management, a strategy is needed to be efficient and a management system is a strategy that has become very popular. A management system can foremost be described as an organization s policies and goals, as well as how the organization works to achieve these goals (Akselsson 2008). With the help of a management system, organizations can systemize their risk management. This will make it easier to delegate responsibility, prioritize and communicate. An enterprise can have a management system because of many different factors, such as economical factors, demands from clients and suppliers as well as legal demands and standards (Wennersten 2003). Other advantages can be to achieve a more effective operation in regards to the organization s goals. Within an enterprise, there can be several different management systems. This results in that the risk management often is carried out as a couple of more or less separate processes for environment, quality, safety and workers health and safety. When an enterprise is working with several management systems at the same time, which is often the case for most of the larger enterprises, there can be reasons to integrate these systems since profits of coordination then take place (Persson 2004). If the management systems are integrated, they will be more accessible and more easily managed for the employees. A new idea that has developed during the latest years is therefore to handle these areas in one and the same process and

3 thus achieve a good overlook and the possibility of optimizing necessary measure. This has been given the name Enterprise Risk Management (ERM). ISO is a new standard for risk management that will soon be determined. This is the first time within this field that an international guide will be created with common definitions and models. This standard moves towards a holistic view where all risks are described in one process. This standard is also something that points to the fact that the development in this field is heading towards a more integrated risk management. There are many opinions of the advantages and disadvantages regarding this kind of integration: Coordination is followed by several positive effects, such as increased capacity and efficiency, increased productivity and higher possibilities of competing (Schylander & Tosteby). "A coordination of the different processes can also bring negative effects. Large resources are demanded of an enterprise foremost in time and money. This reorganization can be seen as unnecessary and difficult by the employees (Persson 2004). The fact that there are opinions of advantages and disadvantages does not always come from a thorough research within the field. ERM is a relatively new method that has had a large breakthrough but is built mostly on theoretical models. The lack of more empirical studies is evident: Despite the heightened interest in ERM by academics and practitioners, there is an absence of empirical evidence regarding the impact of such programs on firm value" (Hoyt & Moore 2006). "A strong build up of theories about ERM is growing, mostly written by consultancy and interest organizations and mostly with the focus of the advantages that ERM is thought to create. At the same time, there are few empirical studies of how the model works in reality." (Bigsten & Tonnby 2007) Today there is no generally accepted method to measure the advantages and disadvantages of integration of ERM work (NCSU 2009: Hoyt & Moore 2006). The lack of knowledge about the effects that are created by the transition from working with different processes to an ERM process is the foundation of this thesis. The collaboration partner in this thesis is the consultancy company Brunicon AB, who is specialized in helping their clients integrating separate risk management processes in one common platform (mainly by the software called Basic Grey). This to create synergy effects by integrating the ERM work. By this collaboration, the writers of this thesis are given the opportunity to study the enterprises which have, with Brunicon s help, implemented an increased integration of the ERM work, and look into the effects and results of this. Purpose The purpose of the graduate thesis is to study synergy effects (positive as well as negative) from integration of risk management, mainly within the areas of environment, quality, safety and workers health and safety into one main ERM process.

4 Title suggestion A model for evaluation of consequences from integrating the work with environmental, quality, safety and workers health and safety questions within enterprises. Line of questioning How is it possible to measure advantages, disadvantages and synergy effects from integrating the four areas of environment, quality, safety and workers health and safety? The thesis will from these conditions get an exploring and comparative character and the line of questioning is judged by theoretical and empirical studies to be answerable, with the worst case trends of changes and preferably with evidence. Part goals Create a method for measuring changes in the ERM work: Measure changes in key figures, for example incidents, sick days and more. Create a method for measuring changes in cost with an increased integration. Measure changes in for example work time and possibly insurance policies. Method The focus is judged to lie on working out what should be measured empirically to study differences before and after integration of the ERM work, how it should be measured, as well as and gathering and presenting the result of empirical studies. A valuation of the validation of the results is included in the planning. Gathering existing literature of the area and draw conclusions from the theoretical advantages and disadvantages created by integrated ERM work. Discuss models regarding ERM and the different processes interaction. Working out suitable key figure for studying the effects of integration. Discuss methods of measurement of gathering of and working with information. Using the key figures and methods of measurement that are judged to be suitable to get a before and after perspective and thus being able to measure changes with the key figures. Gathering and analyzing data to evaluate the methods validity and reliability. Presenting the results. Empirical gathering of information The empirical gathering of data will mainly be performed by visiting the enterprises that have lately integrated their ERM work by implementing Basic Grey. At these enterprises, the data for key figures that have been decided upon in method and theory be gathered and analyzed for measuring of possible changes.

5 Limitations In the gathering of empirical data, the limitation will be the costumers of Brunicon AB that already use Basic Grey. Because environment, quality, workers health and safety and safety are the areas that the writers as risk engineers are mostly familiar with, the focus will lie on these areas. It should though be mentioned that are other areas within risk management, for example finances and PR, that aren t given much space in this report. Schedule The project will start in April 2009 and finish at the beginning of autumn in During the spring, the emphasis will be literature studies as well as working out methods and theories and preparation for empirical gathering of data. During the first part of summer, the main time will be for visiting enterprises, gathering of data, etc. During the second part of summer, emphasis will be on putting together information and results. During the end of summer, the theory part and empirical parts will be gathered and conclusions drawn. During the beginning of autumn, the report should be finished and presented.

6 References Akselson, R. (2007), Människa, Teknik, Organisation och riskhantering, institutionen för designvetenskaper, Lunds tekniska högskola, Lunds universitet, Lund Bigsten, E & Tonnby D. (2007) Enterprise risk management överstiger fördelarna nackdelarna i ickefinansiella företag? Göteborgs universitet. Cant, J.(2006), Collaboration delivers better risk management: Reduce the risk of enterprise risk management implementation. Journal of Risk intelligence. p 7 9. COSO, The Committee of Sponsoring Organizations of the Treadway Commission (2004), Enterprise Risk Management Integrated Framework, Executive Summary. Hoyt,R. & Moore, D. (2006), The Value of Enterprise Risk Management:Evidence from the U.S. Insurance Industry, Terry College of Business, University of Georgia. NCSU, North Carolina State University College of Management, tillgänglig : Persson, G. (2004), SIS HB 315, Att integrera ledningssystem bygga ett verksamhetssystem, Stockholm: Tryckeri Elanders. ISBN Sahlqvist, W. & Jernhall, B. (1997) Organisationen och den dolda kompetensen. Oskarhamn: ISL Förlag Schylandeer, E & Tosteby, A. (2002), Integrering av miljöledningssystem i befintligt ledningssystem En fallstudie på SAS Scandinavian Technical Services. Luleå: Examensarbete 2002:019 CIV, ISSN: Senge, P. (1996) Den femte disciplinen den lärande organisationens konst. Stockholm: Nerenius & Santérus Förlag SIS. (2004) Strategisk kompetensförsörjning En vägledning till standarden Ledningssystem för kompetensförsörjning. Stockholm: Swedish Standards Institute, SIS Förlag AB Wennersten, R. (2003), Ledning och ledningssystem Hur och varför?, Integrerade ledningssystem, Industriellt Miljöskydd, KTH.