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Lean Implementation into Risk Management Process
University of Borås, School of Engineering.
University of Borås, School of Engineering.
2009 (English)Independent thesis Advanced level (degree of Master (One Year))Student thesis
Abstract [en]

Any business management process involves a relevant risk management process whereas proper integration of risk management process following the lean guidelines can result in an efficient risk management process. This is a vital advantageous character for successful companies of this era. However, in real world business, many cases have been observed with different types of hidden wastes associated with their risk management process. These wastes act as obstacles to create value for their customer. Hence, the need for an integrated risk management process enabled with a lean perspective is growing in all levels of business and industry. Lean management and risk management process are in close interaction whether we see it or not. There would be two options ahead of organizations. First option is to ignore this mutual relationship between lean management and risk management process and the other option is to try to understand this interaction in detail with a continuous effort to make it more efficient. This conscious approach to the issue can turn into an efficient integration in successful cases. Integration process towards having a lean risk management is a tricky journey that requires proper understanding of the issue among the associated people and smart strategic decision making along with proper tactical knowledge and know-hows. In the current thesis work, we have tried to apply lean philosophy in order to recognize the wastes and non value added activities. This integration process starts with recognizing the context of risk management in a target organization. It is critical to recognize the risk management process steps because it is necessary to analyze the process steps one by one. Importance of following the flow principle of lean philosophy is a must in order to attain to a streamlined progress in the work. Consequently eight typical lean wastes should be identified in the relevant risk management process steps. In order to be able to eliminate the identified non value added activities, lean tools would be applied at this stage of the work. In other words, the root causes to the process wastes would be tracked down with the aim of eliminating or reducing them. Through proper application of lean tools in the integration process, we would get to a level of improved effectiveness and efficiency in our organization. In a comprehensive lean risk management integration strategy, the future state of risk management process would be drawn following lean principles with an eye on extension work for developing the lean risk management policies throughout the supply chain. This lean extension program is a key to catch hidden synergies in risk management process of the whole supply chain. Inbuilt KPIs and process metrics would be the proper provision for enabling the organization be in a state of continuous thrive for perfection. Applications of lean principles make a quick response enterprise with proper level of flexibility which results in an aware personnel attitude in a lean risk management working environment. Mixing the factor of improved internal efficiency with our risk management process, would help us have a better control over our associated risks. The result to this integration work would be a lean organization with continuously growing voracity to make improvements to the status of lean risk management process.

Place, publisher, year, edition, pages
University of Borås/School of Engineering , 2009.
Series
Magisteruppsats
Keywords [en]
lean risk management, risk management process, lean risk integration, process wastes, risk management process wastes, 8 wastes
National Category
Engineering and Technology
Identifiers
URN: urn:nbn:se:hb:diva-19568Local ID: 2320/5421OAI: oai:DiVA.org:hb-19568DiVA, id: diva2:1311502
Available from: 2019-04-30 Created: 2019-04-30

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CiteExportLink to record
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