NORDSCI Conference proceedings 2019, Book 2

Business and management

IMPLEMENTATION OF MODERN MULTIDIMENSIONAL RISK MANAGEMENT IN INDUSTRIAL ENTERPRISE

Assist.Prof. Dr.Ivars Godmanis

ABSTRACT

This paper characterizes many aspects and directions of implementation of modern, multidimensional enterprise risk management in the manufacturing enterprise in the pharmaceutical industry in Latvia. First time as the basis for this research was taken the only international risk management standard – ISO 31000 -2018.
The multisided risks, eight basic stages in process of implementation of enterprise risk management (ERM), two opposite directions of ERM operation and four parts of ERM implementation process have been presented. This research is concentrated on the second part of ERM implementation process – risk assessment and quantification. The key multisided risks were identified and prioritized in the manufacturing pharmaceutical enterprise by applying common metrics method: obtaining evaluations from the two highest levels of management (Board and senior line managers).
TOP 20 of key risks was created from 64 different risks and the convergence and difference between the risk rankings, evaluated by enterprise’s Board and senior line management was obtained and analyzed. The main conclusion from the obtained results is that manufacturing enterprises in the pharmaceutical industry have specifics regarding exposure to multisided risks, where the main, key risk is regulatory risk.

KEYWORDS

risk management, risk appetite,risk dashboard reports

REFERENCE

NORDSCI Conference Proceedings 2019, Book 2, Conference Proceedings, ISSN 2603-4107, ISBN 978-619-7495-06-5, IMPLEMENTATION OF MODERN MULTIDIMENSIONAL RISK MANAGEMENT IN INDUSTRIAL ENTERPRISE, 61-69 pp, DOI paper 10.32008/nordsci2019/b2/v2/06