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VTT AutomationTurku School of Economics and Business Administration

Finnish Institute of Occupational HealthTampere University of Technology

Modern RiskManagement

Toolsfor SMEs

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ContentsThe problem 3The need for systematic tools 4RM tools and information 5Starting points 6Phases of the project 7Preliminary Study 1995 8Phase 1. 1996 - 98 9Participating SMEs 10SMEs 11Phase 2. 1999 - 2000 12New development projects 13Risk Management products 14Types of RM tools 15Risk Management Tools 16Use of RM tools in SMEs 17Vulnerability analysis 18Personnel risks 19Business risks 20Product risks 21

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The problem

”SMEs, in particular, have great difficulties

meeting existing quality and safety

requirements”

 

Research study covering 840 EU and EEA

companies (Anfor)

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The need for systematic tools

For risk management in small and medium sized companies is self-evident

Rapid change in technology, production networks and business environment

Increasing demand of self-control by safety authorities in Scandinavia

Large companies require formal quality, environment and safety management systems from their contractors

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RM tools and information

Set of RM Tools for SMEs

Per-sonnel

Busi-ness

Pro‑duct

Expert Network

Basic requirements

Vulnerability analysis

Training and consulting services

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Starting points

Current risk management tools tailored for SMEs

Product family for risk management Extensive assessment of risks Involvement of personnel in risk management

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Phases of the project

Initiative 1994 Preliminary study 1995

Development of the Risk Management Tools

Phase 1: 9/96 - 12/98

Computer support for the RiskManagement in SMEs

Phase 2: 1/99 - 6/2000

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Preliminary Study 1995 Questionaire for SMEs Interview of SMEs and experts Review of RM tools and literature

Personnel

Business

Property

Computer and data

Liability

Products

Business interruption

Transportation

Others

%(N=135)

30 70

The most critical risks according to SMEs

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Phase 1. 1996 - 98 Development of the set of risk management tools for

SMEs Training for 650 persons in 106 SMEs Training for 117 RM experts Expert network Over 60 articles Over 80 presentations for alltogether 2 500 participants 1,1 MECU 17,6 man-years

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Number of Employee

SMEs

1 – 10 45 11 - 50 46

51 – 100 11 101 – 250 4

Total 106

Participating SMEs

Metal, electric, woodprocessing, rubber, food etc industry

Bookkeeping, real estate, engineering office etc service companies

Restaurant, shops etc trading companies

Training for 650 employees in SMEs and 117 RM experts

Over 50 companies in the RM expert register

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SMEs

Less than 250 employees

Annual turnover less than 40 MECU or an annual balance sheet of no more than 27 MECU

Less than 25% owned by non-SMEs

Emphasis on small companies

Industry, trade and services

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Phase 2. 1999 - 2000

Development of computer support for the

tool set – RM tools to the Web

New development projets

Training: SMEs and RM experts

Marketing

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New development projects Environmental risks Liability and contract risks

New working and info cards also dealing with Business interruption risks Transportation risks Data and computer risks Fire risks Criminal risks

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Risk Management products

Risk Management Tools

Basic Risk Management Package

Trainer’s Folder

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Types of RM tools Guide booklets Working and info cards Workbooks Directories: literature and experts

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Risk Management Tools

General risk management

Personnel risks

Risk Management

Tools

Business risks

Product risks

Vulnerability analysis

Legislation

Other risks

Expert directory

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Use of RM tools in SMEs Problem oriented activities Development of risk management practices Training of RM basics Evaluation of RM practices Vulnerability analysis Legislation

Work on different types of risks Business, personnel and product risks Use of RM experts

GroupworkSystematicallyDocumentionFollow-up

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Vulnerability analysis

Vulnerability

Damage to property, downtime

Personnel

EconomyAffiliated groups

Conditions for operation

Organization of operations

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Personnel risks

Personnel risks

Working environment

Employment relationship

Education, know-how

Health

Mistakes, errors and violations

Functioning of work organization

Traveling and transportation

Risk of entrepreneurship

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Business risks

Business risks

Norms, government and other interest

groups

Investments

Personnel

Economics, financing and managing

Sales, marketing and clients

Subcontracting, purchasing,

transportation and storing

Production and products

Competitors and trade cycles

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Product risks

Product risks

Compliance with the general requirements

Sales and marketing

ProductionProduct development

Delivery, Guarantee and Environment Use of product and

Product liability

Product idea and concept

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Development teamVTT Automation

Finnish Institute of Occupational HealthTampere University of Technology

Turku School of Economics and Business Administration

ParticipantsInsurance Companies

Federation of Finnish Insurance CompaniesFederation of Accident Insurance Institutions

SMEsFederation of Finnish Enterprises

Ministry of Social Affairs and HealthMinistry of Trade and Industry

Federation of Bookkeeping CompaniesFinnish Work Environment Fund

The Central Organisation of Finnish Trade UnionsFinnish Confederation of Salaried Employees

Confed. of unions for Academic Professionals in FinlandConfederation of Finnish Industry and Employers

Risk Management in Northern Finland -project