This article discusses the challenge of integrating entity’s risk management with strategy and performance in the context of digital transformation and the unprecedented growth of risk tensions in the economy. The aim of the study is to develop a theoretical framework, digital distributed performance assessment methods and a new digital risk management schedule that reflects the link between risk management and organisational strategy with performance taking into account the synergies between the factors at play and providing the necessary confidence in assessments for practice. Digital methods for the distributed assessment of the cost, effectiveness and efficiency of building and implementing an integrated risk management system in an entity performance are explored. In contrast to existing Monte Carlo simulation methods the proposed methods are based on the assumption of non-linearity and an arbitrary (not necessarily normal) distribution of the desired cost, efficiency and effectiveness parameters, as well as the application of the mathematical apparatus of integral number convolution. To assess the efficiency of risk treatments a modification of Hauston’s Value for Organisation model has been developed. It distinguishes by the ability to value risk by taking into account the ‘price of risk’. A numerical risk management graphics is proposed that relies on a distributed assessment of cost, quality and performance using a discrete risk function and reflects the relationship between strategy, risk level and performance and subject to the required performance between strategy, risk level and cost of risk. The findings of the study and the new risk management graph make it possible to make informed decisions on the manner and scope of the necessary risk management measures.
Digital Integration of the Entity’s Risk Management with Strategy and Business Performance
Lect. Notes in Networks, Syst.
International Scientific Siberian Transport Forum ; 2021 May 11, 2021 - May 14, 2021
International Scientific Siberian Transport Forum TransSiberia - 2021 ; Kapitel : 25 ; 221-229
2022-03-19
9 pages
Aufsatz/Kapitel (Buch)
Elektronische Ressource
Englisch
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