Increasing the prevention of process failure and the overall resilience of businesses through the process risk assessment
Volume 02 Issue 1
Authors
Peter Kardos, Iveta Chmielová Dalajková, Najid Ahmad
Keywords
assessment, industry, quantitative research, process risk sources, services, Slovak republic
Citation in APA style
Kardos, P., Chmielová Dalajková, I., Ahmad, N. (2024). Increasing the prevention of process failure and the overall resilience of businesses through the process risk assessment. Journal of Business Sectors, 2 (1), 68–78. https://doi.org/10.62222/FWNR2982
DOI
Abstract
Research background:
Properly set processes represent the basic framework of enterprise management. By assessing process risks, enterprises can timely identify problems in the implementation of processes, which can cause failure or interruption of activity, a decrease in performance, an increase in process costs, etc.
Purpose of the article:
The aim of the article is to identify, analyse and quantify the approach of enterprises to process risk assessment with the intention of improving processes, increasing the prevention of process failures and the overall resilience of the organization.
Methods:
A questionnaire was created to find out the attitudes of enterprises in the assessment of process risks. Data collection was carried out by an external agency using the Computer Assisted Web Interview method. The sample consisted of 353 enterprises from the business environment of the Slovak Republic. The questionnaire was evaluated using the simple sorting method. The research hypotheses were evaluated by applying Chi-square test.
Findings & Value added:
Enterprises most often assess risks in quality control, production processes, service provision processes. The frequency of assessment of process risks is for a third of the enterprises with every change, planning, disagreement or fluctuation of the economic indicator. More than 40% of Slovak enterprises do not have any management system implemented. The business sector is an important factor in the use of methods for the identification, analysis and evaluation of process risks. To identify process risks, in service sector, the owner/manager's own experience is used to a greater extent than in enterprises in industry. Enterprises in service sector use risk detection for risk analysis, industrial enterprises use process FMEA. Enterprises in service sector use scenarios analysis and enterprises in industry use the effectiveness of measures to evaluate process risks. Every tenth enterprise stated that the human factor is the cause of the occurrence of problems in up to 70% of all processes in the enterprise. Enterprises in service sector for process measurement use productivity of the enterprise to a greater extent than enterprises in industry, which use multiple economic indicators.