Managing Knowledge of Risk in Organizations: An Action Research Approach
Date Issued
2012
Date
2012
Author(s)
Ou Yang, Shirley
Abstract
Despite the widely recognized importance of risk governance and concept of “the risk management of everything” in organization, multiple and unexpected interaction of human and technologies exists the possibilities of unforeseen organizational failures. We argue that common accidents represent commonly-known uncertainty in a global risk society. Nonetheless, there is little understanding of how organizations actually encounter uncertain risk and shift attention to their unawareness of embedded hazards and insecurities in daily routine.
The overall aim of this research is to understand how uncertain risk could be managed in terms of tacit knowledge in an organization. We argue that managing risk and uncertainty can be seen as knowledge management in an organization. Managing uncertain risk introduces a paradigm shift of risk ontology in organizational governance. To explore the relationships between risk management and knowledge management, this research focuses on the institutionalization process of operational risk management in a bank in Taiwan.
Drawing from Nonaka’s (2000) dynamic knowledge creation theory as a theoretical framework, this thesis embarked on an interpretive action research study that develops and designs risk control self-assessment (RCSA) as a knowledge repository for generating tacit knowledge of risk from internal stakeholders in its organizational context. In this project, the researcher has engaged in a close collaboration with practitioners over an 18-month period and been through two action cycles with the practitioners. The research results have facilitated organizational changes in managing operational risk and helped to establish a dynamic risk communication culture within the organization.
This research study offers two contributions. First, it contributes to risk management theory as it provides extensive work-in-practice details to how local organization embraced with global standards and struggled to learn from internal unknown tacit knowledge resources. The research results improve the existing understanding of knowledge of uncertain risk. Second, the study also make a practical contribution by integrating knowledge management theory with risk management practice. This approach consists of a framework for understanding and tailoring dynamic risk communication/culture and risk management to specific contexts. This approach provides valuable risk information to regulator for banking supervision.
Subjects
risk management
knowledge management
action research
operational risk management
uncertain risk
Basel II
Type
thesis
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