STEINBEIS TRANSFER CENTER
A D V A N C E D R I S K T E C H N O L O G I E S - R-T E C H
RISKMAN Subproject on
MoRiS: MANAGEMENT OF RISKS
IN PROJECTS AND PROCESSES
of SME’s
Scope and Objectives
Rationale
Project and Business Risks, especially when not properly managed, appear as a problem in many different areas
nowadays: financing, engineering, environment, etc. (annual losses of EU citizens and SME’s in this area are
estimated at €10,000 million/year, tendency steep rising!). Furthermore, for many modern companies with high
level of business process optimization (e.g. high-tech companies) these risks are the most important area where
significant savings can be achieved.
Benefit and applications
Large companies like banks and insurances, and big consultants working for them, have recognized the problem
and implemented the corresponding solutions under the form of Business Risk Management (BRM) solutions.
These solutions (incl. methods, tolls, etc.) developed for large companies are usually too expensive, too complex
and/or too resource consuming, to be used on a broader scale by companies not specialized in risk, as well as by
small and medium enterprises.
Examples: When investing in a new R&D project, when introducing new technology,
when extending your business area or product palette …
General approach, activities and integration
The solution solution to be developed for SME’s shoud be based on:
 innovative, but recognized BRM (Business Risk Management) methodology used also by large companies,
 use of intelligent and other state-of-the-art methods and software tools, and
 reliable and adaptable forms of implementation at the client’s site.
The proposed project should include tasks like should include steps like:
Task 1. Understanding company’s business
Task 2. Establishing BRM goals and its objectives
Task 3. Assessing specific risks
Task 4. Developing BRM strategies
Task 5. Designing of the new or re-examining and customizing of existing Information System for DecisionMaking, incl. the risk control system
Task 6. Designing of the risk control system
Task 7. Implementation of the risk control system
Task 8. Monitoring of BRM Performance
Task 9. Implementation of corrective measures, manage residual risks
Task 10. Continuous improvement of BRM
For the above steps, relevant data should be acquired, stored in a database and analyzed, leading to successful
integration of BRM with client’s ERP (Enterprise Resource Planning), his business process and asset
management.
Expertise needed to achieve the objectives
The „large company“ approaches offer usually one standard (sophisticated) set of methods/tools for virtually all
situations – often with overkilling as the de facto result. We offer flexible and adaptable solutions, which can be
gradually refined or re-sized whenever needed. They allow to
 acquire & manage all risk/relevant data
STEINBEIS TRANSFER CENTER ADVANCED RISK TECHNOLOGIES - R-TECH

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model the risks (both qualitative and quantitative ways)
quantify risk (e.g. by extracting knowledge from data)
 optimize risk management strategy and corrective measures, using advanced quantitative rating/scoring
methods.
The tools are based on application and combination of:
 advanced methods for uncertainty modeling and data analysis, like fuzzy, neuronal networks, casebased reasoning…
 advanced database tools, allowing connection to different database systems
 decision optimization tools combining Bayesian and fuzzy technologies, using Analytical Hierarchy
Process (AHP)
 data mining tools
Change of laws
regulating the
 high level expertise from different
core business
application areas
Introduction of the
New competitor
The risk is treated as a “logical sum” of probability of
new ERP system
from Asia appears
occurrence and severity of consequences.
Typical results of introduction of BRM are
 satisfying legal requirements (e.g.
Increase of loan
Market risk:
KonTraG in Germany),
interest rates
introduction of a
 improving overall business practice and
Fraud in
new product
 achieving savings on e.g. losses prevented
construction area
or reduced insurance costs.
Typical deliverables are
 risk management system implemented,
 database providing overview of all risk/relevant factors and
 risk ranking and prioritization maps identifying critical activities.
The form of the proposed solution spans
 from small, ad-hoc consulting actions for on-going activities and pilot-projects, to taking over of complete
projects for introduction or up-grading of BRM
 from introductory seminars to full-scale on-the-job training

Additional data about partners and costs.
The project will be performed with 3-5 dedicated partners (SME and industry), ideally:
 one SME for “intelligent methods” and software
 one business consultant (incl. rating methods)
 one or more SME’s for testing and implementation of the method.
and in cooperation with other partners in RISKMAN.
The subproject would involve a foreseen effort of ca. 4,5 MEURO and last 3 years.
Contact
STC Advanced Risk Technologies - R-Tech
Dachswaldweg 55, 70569 Stuttgart, Germany
tel: +49-711-6770635 / +49-172-6359190; fax: +49-711–6770606
e-mail: jovanovic@iname.com and stz592@stw.de, www: www.stz-rtech.de and www.risktechnologies.com