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Modern Risk Management Tools for SMEs. VTT Automation Turku School of Economics and Business Administration Finnish Institute of Occupational Health Tampere University of Technology. Contents. The problem 3 The need for systematic tools 4 RM tools and information 5 Starting points 6
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Modern Risk Management Tools for SMEs VTT Automation Turku School of Economics and Business Administration Finnish Institute of Occupational Health Tampere University of Technology 1(22)
Contents The problem 3 The need for systematic tools 4 RM tools and information 5 Starting points 6 Phases of the project 7 Preliminary Study 1995 8 Phase 1. 1996 - 98 9 Participating SMEs 10 SMEs 11 Phase 2. 1999 - 2000 12 New development projects 13 Risk Management products 14 Types of RM tools 15 Risk Management Tools 16 Use of RM tools in SMEs 17 Vulnerability analysis 18 Personnel risks 19 Business risks 20 Product risks 21 2(22)
The problem ”SMEs, in particular, have great difficulties meeting existing quality and safety requirements” Research study covering 840 EU and EEA companies (Anfor) 3(22)
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 4(22)
Set of RM Tools for SMEs Expert Network Basic requirements Vulnerability analysis Per-sonnel Busi-ness Pro‑duct RM tools and information Training and consulting services 5(22)
Starting points • Current risk management tools tailored for SMEs • Product family for risk management • Extensive assessment of risks • Involvement of personnel in risk management 6(22)
Phases of the project • Initiative 1994 • Preliminary study 1995 Phase 1: 9/96 - 12/98 Development of the Risk Management Tools Phase 2: 1/99 - 6/2000 Computer support for the Risk Management in SMEs 7(22)
Preliminary Study 1995 • Questionaire for SMEs • Interview of SMEs and experts • Review of RM tools and literature The most critical risks according to SMEs 8(22)
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 9(22)
Participating SMEs Training for 650 employees in SMEs and 117 RM experts • Metal, electric, woodprocessing, rubber, food etc industry • Bookkeeping, real estate, engineering office etc service companies • Restaurant, shops etc trading companies Over 50 companies in the RM expert register 10(22)
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 11(22)
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 12(22)
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 13(22)
Risk Management products • Risk Management Tools • Basic Risk Management Package • Trainer’s Folder 14(22)
Types of RM tools • Guide booklets • Working and info cards • Workbooks • Directories: literature and experts 15(22)
Risk Management Tools 16(22)
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 • Groupwork • Systematically • Documention • Follow-up 17(22)
Vulnerability analysis 18(22)
Personnel risks 19(22)
Business risks 20(22)
Product risks 21(22)
Development team VTT Automation Finnish Institute of Occupational Health Tampere University of Technology Turku School of Economics and Business Administration Participants Insurance Companies Federation of Finnish Insurance Companies Federation of Accident Insurance Institutions SMEs Federation of Finnish Enterprises Ministry of Social Affairs and Health Ministry of Trade and Industry Federation of Bookkeeping Companies Finnish Work Environment Fund The Central Organisation of Finnish Trade Unions Finnish Confederation of Salaried Employees Confed. of unions for Academic Professionals in Finland Confederation of Finnish Industry and Employers Risk Management in Northern Finland -project 22(22)