2014年2月11日星期二

HKSQ Seminar - Enterprise Risk Management - the MTR Practice

A Seminar named "Enterprise Risk Management - the MTR Practice" was organized by HKSQ and co-organized by ASQ-HK on 11 Feb 2014. Risk management is a term that is widely quoted in many industries in Hong Kong nowadays. Heavy industries like construction sites and production plants often take safety risk management as their enterprise priority, whereas investment industries often take financial risk management as their enterprise priority. This seminar aims to share Enterprise Risk Management (ERM) concept and MTR progress along the ERM journey.

In the beginning, Dr. Albert Tsang who had three hats represented HKSQ, ASQ-HK and PolyU gave an opening speech and introduced our guest speaker Dr. Henry Yu.


Dr. Henry Yu (Senior Manager - Enterprise Risk, MTR) presentation topic entitled "ERM Practice in MTR" and his discussion included "Why managing risks", "Steps we went through", "How we are using it", "Key success factors" and Concluding remarks".


Firstly, Dr. Yu explained what is risk. The famous equation is "Risk = Frequency x Consequency" and then he introduced the road map of risk management in MTR. In 2006, MTR was from safety level up to Enterprise level through the establishment of a company-wide Risk Management Framework. It is because many business under MTR and many risk inside. The three key elements of the Framework included:
* SIMPLE - process and tools
* USED - for supporting business decisions
* LIVING - risk culture
Then Dr. Yu introduced ISO 31000:2009 which is a standard for risk management.


Secondly, Dr. Yu briefed Enterprise Risk that had significantly impact in five key consequences such as Financial, Safety, Business Performance, Political/Reputation and Legal/Regulatory. He said if the risk identified as Top Risks by ERM team, Process should be reported to the Audit Committee, Key Result should be reported to Executive Committee per 6 month and to the Board of Directors annually.
The following ERM Framework - Tools was mentioned and discussed.


Dr. Yu explained the ERM Framwork's Process.
1. Risk Identification
2. Risk Evaluation
3. Risk Treatment
4. Risk monitoring & Reporting


And then we practiced the Enterprise Risk Map (examples). If we had only one resource to handle the risk, it had better to treat the very high risk (Catastrophic) under E1 (Red color) or E2 (Orange color) zone first.


After that Dr. Yu shared key success foactors of ERM below:
1. Top management commitment
2. Risk ownership - line management's responsibility (which depends on value & culture)
3. Effective IT tool to facilitate the process (it need user friendly interface to enhance risk inform culture)
4. Continuous Improvement

Finally, Dr. Henry Yu concluded that "Nothing is too difficult" because we are all risk managers (e.g. Buying house, crossing the road, etc.); and "Don't take tings for granted". Risk assessment is as good as your assumption.

Before end of the seminar, I (Former Chairman of HKSQ) represented HKSQ to present a souvenir to Dr. Henry Yu.


Reference:
HKSQ - www.hksq.org

Other related topics:
20120224: Seminar on "Safety Management and Risk Assessment in Railway Operations" - http://qualityalchemist.blogspot.hk/2012/02/seminar-on-safety-management-and-risk.html
20130216: ASQ InfVoices - Failure is the Mother of Success (with ISO 31000) - http://qualityalchemist.blogspot.hk/2013/02/asq-infvoices-failure-is-mother-of.html

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