Enterprise risk management using the FMEA-AHP approach

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Date

2024

Authors

Panić, Marija

Journal Title

Journal ISSN

Volume Title

Publisher

University of Belgrade, Technical Faculty in Bor

Source

[XX] International May Conference on Strategic Management – IMCSM24, May 31, 2024, Bor [Elektronski izvor]

Volume

XX

Issue

1

Abstract

Risk is an integral part of people's lives and and companies' business. It is often associated with uncertainty because an event can happen but does not necessarily happen. Every decision that managers make carries a certain degree of risk. Therefore, managers must be innovative, flexible and ready to deal with risks. Certain risks can be eliminated or reduced depending on the available capabilities and resources. In today's business conditions and constant changes, for companies to maintain their position in the market, Enterprise Risk Management (ERM) is imperative. The goal of ERM is to recognize all positive and negative factors that can affect the company, thereby increasing the probability of success and reducing the probability of failure to achieve the company's goals. In this paper, the identification of risks in the production company was first carried out using the FMEA method. Then, by applying the AHP method in the Expert Choice software program, the proposed alternatives for ERM were ranked. The obtained results showed that the mentioned measures can greatly improve business operations and significantly mitigate the risks the investigated company faces.

Description

Keywords

risk, risk management, ERM, FMEA, AHP

Citation

DOI

10.5937/IMCSM24004P

Scopus

ISSN

2620-0597

ISBN

978-86-6305-150-8

License

CC-BY-NC-ND

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