Risk management models in two Norwegian institutions

Abstract

The research field of this research programme was integrated risk management. The research methodology was inspired by action research. The candidate collaborated with two Norwegian institutions in their initiative to design, implement and use an integrated causal risk management model (ICRMM) to improve risk management decision making. The research question adopted for the analysis section of the research programme was: • How can an integrated causal risk management model be designed, implemented and used to predict the likely effect of proposed actions on the risk profile? The research was conducted in three research cycles. As part of the first research cycle, a qualitative ICRMM was designed and used by using causal maps to represent the risk profile. As part of the second research cycle, a semi-quantitative ICRMM was designed and used by running Monte Carlo simulations to represent the risk profile. The research results of these two research cycles indicated that both the qualitative and the semiquantitative ICRMM can be used by organisations for predicting the likely effect of proposed actions on the risk profile. The third research cycle looked at the early phases of an initiative to implement an integrated risk management framework, where the ICRMM was one of the core components in the framework. The candidate assisted in organising the project and looked at how the most important stakeholders influenced the design and implementation of the ICRMM. The findings in the third research cycle indicated that using a project management methodology is effective in organising, authorising and managing an integrated risk management initiative in an organisation. By using project management methodologies, it is ensured that the various stakeholders in the organisation cooperate on the design and implementation of the framework, including the ICRMM. The use of project management methodologies thereby secures stakeholder ownership, which again increases the likelihood of future use of the ICRMM after the project is closed.