european journal of social sciences issn: 1450-2267 - EuroJournals
european journal of social sciences issn: 1450-2267 - EuroJournals
european journal of social sciences issn: 1450-2267 - EuroJournals
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European Journal <strong>of</strong> Social Sciences – Volume 5, Number 3 (2007)<br />
Application <strong>of</strong> Analytic Network Process in the Enterprise Risk<br />
Management: An Example <strong>of</strong> the Selecting Best Operator in<br />
the Airport Business<br />
Ayse Kucuk Yilmaz<br />
Anadolu University, Ikı Eylul Kampus, School <strong>of</strong> Civil Aviation, 26470, Eskisehir, Turkey<br />
E-mail: akucukyilmaz@anadolu.edu.tr<br />
Tel: +90 535 462 55 90 Office: +90222 335 35 80-6812<br />
Abstract<br />
This paper proposes an application <strong>of</strong> the analytic network process (ANP) for the selection<br />
<strong>of</strong> best operator for enterprise risk management (ERM) practice in the airport business.<br />
This survey is deal with solving “Who has best practices related to the ERM<br />
Implementation in the airport business?” problem. In order to identification <strong>of</strong> the best<br />
practice criterias to the ERM is realized to interview with airport managers, analysis <strong>of</strong> best<br />
practice surveys and ERM guidelines. ERM is required to serious investment, resources<br />
and integrated holistic approach. In this complex concept, many various criterias is<br />
important to best ERM implementation. ANP is used solving the problem, which it is<br />
include many measure and inderdependency. TAV Airport Holding Co. and Fraport A.G.<br />
are determined as alternatives in the proposed ANP model.<br />
Keywords: Airport Business; Analytic network process; Enterprise risk management;<br />
Factors affecting best enterprise risk management practice.<br />
1. Introduction<br />
Recent developments and changes in the airport business environment have completely changed both<br />
the risks organisations face and their management <strong>of</strong> those risks. Globalisation, e-business, new<br />
organisational partnership, changes in the air transportation industries and the increasing speed� <strong>of</strong><br />
business activity are rapidly changing and expanding the organisations face. ERM has emerged as an<br />
important new business trend at the airport business environment. ERM is structured and disciplined<br />
approach aligning strategy, process, people, technology and knowledge wtih the purpose <strong>of</strong><br />
evaluationg and managing the uncertainties the enterprise faces as it creates value. “Enterprise-wide”<br />
means the removal <strong>of</strong> traditional functional, divisional, departmental, or cultural barriers. A truly<br />
holistic, integrated, future-focused, and process-oriented approach helps an organisation manage all<br />
key business risks and opportunities with the intent <strong>of</strong> maximising shareholder value fort he enterprise<br />
as a whole. Business leaders are realising that risk creates opportunitiy that opportunity creates value,<br />
and that value ultimately creates shareholder wealth. “How best to manage risks to derive that value”<br />
has become the critical question. ERM has the potential to provide organisations with a new<br />
competitive advantage (Mercer Oliver Wyman, 2006).<br />
The art <strong>of</strong> managing risk is more challenging than ever. ERM is become a focus point in the air<br />
transportation industry and airport business like as the other business and industries. Today business<br />
environment, managers is focused to “how should the best ERM practice?” question. Most<br />
organisations are uncertain about how, exactly, to translate the concept <strong>of</strong> ERM into concrete actions<br />
steps that will help them best practice. Rather, there is an emerging consensus about how to achieve<br />
effective ERM implementation and how it can benefit the organization. In this study, I deal with<br />
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