AbstractsBusiness Management & Administration

Effective and efficient Risk Information Management : Environment, structure and development in a Case of Financial institution

by Vesa Saarinen

Institution: Laurea-ammattikorkeakoulu
Year: 2014
Record ID: 1130751
Full text PDF: http://www.theseus.fi/handle/10024/79843


Importance and execution of systematic risk management and processes in organizations has been increasing in past years. Execution of a risk management processes produces information about organizations risks and amount of information grows in correlation with organization size and complexity of operations. This opens a new challenge on how this risk information should be managed to ensure best value from the investment to the risk management. This Thesis explored structure and success criteria of effective and efficient risk information management in a Case study of Finnish Financial Institution. Research problem was approached from three different angles. Literature review was conducted to collect information regarding global risk information management best practices. Second angle was document analysis to review external obligations and case organization’s risk management framework and policies to identify processes regarding risk information management. Thirdly business responsible having risk ownership were interviewed to collect their opinions about current state of risk information management and implementations. Research results show that concept of risk information management or success criteria have not been particularly target of previous academic research. As in this Thesis in previous research risk information management have been identified as integrated part of risk management. Thesis findings support that risk information management can also be analyzed individually with fundamental element and success criteria. In the case organization 1. External and internal environment, 2. Risk management framework and policies, 3. Risk management processes and practices and 4. Risk management communication and consultation where identified as fundamental elements of risk information management. Additionally success criteria of each fundamental element to support efficient and effective risk information management, is identified in the Thesis. Compared to risk information management success criteria development opportunities where identified within each fundamental element. Based on the findings three step development program is recommend towards more effective and efficient risk information management. First priority is holistically identify, map and prioritize the external and internal demands regarding risk information and at the same time define framework and policies for risk management. Second step is to build and implement processes with responsible to ensure risk information collection and management with key risk indicators to response to the identified needs. Processes should be supported with efficient tools for information management. Third step is to ensure continuous development including feedback collection from risk owners. Research results are reflected to be strongly linked with maturity of risk management in organization and maturity to the age of new organization after major merger. Although many development opportunities were identified interviewed stakeholders from business saw overall…