european journal of social sciences issn: 1450-2267 - EuroJournals

European Journal of Social Sciences – Volume 5, Number 3 (2007)
net assets and liquidity are concerned and there are no discernible risks endangering continuation of the
company as a going concern in the foreseeable future (Fraport A.G., 2006).
Fraport has a comprehensive risk management system. It makes sure that significant risks are
identified, monitored constantly and limited to an acceptable level. Fraport actively looks for
opportunities and tkaes them when this is justified by the ratio of the size of the anticipated benefits to
the risks involved. Controlled risk exposure is the primary objective of Fraport’s risk management
system. This objective is the basis fort he following risk policiy principles:
• The risk strategy is co-ordinated with the corporate strategy and is required to be
consistent with it, as the strategy specifies how strongly the company’s operations are
exposed to risks.
• Risk management is integrated in the ongoing business process.
• Risks are maneged primarily by the organizational units that operate locally.
• The aim of the risk managemen process is to make sure that significant risks are
identified, monitored constantly and limited to an acceptable level.
• Active and open communication of the risks is a major success factor in the risk
management system.
• All the employers of Fraport A.G. are expected to participate actively in risk
management in their area of responsibility.
5.2. TAV ERM Practice
TAV Airport Holding Co. is the biggest and pioneer as an airport operator in the Turkey. Also TAV
has many superior and different characteristics from the other airport operators in the Turkey. TAV
operates 3 main and biggest airports in the Turkey: Istanbul-Atatürk, Ankara-Esenboga and Izmir-
Adnan Menderes. TAV is operates Gurcistan-Tıflis Airport from February, 2007. Also, TAV is
operating broad geographical field as an operational. TAV with its know-how and expertise has been
awarded with the construction and B.O.T projects inside and outside of Turkey since 2003. The
projects are investment, construction and operation of Ankara Esenboga New Domestic and
International Terminal, Izmir Adnan Menderes International Terminal and Tbilisi and Batumi Airports,
The Construction of Cairo International Terminal Construction, TB3/Eygpt, Tohid Iranian School
Construction/UAE, Emirates New Engineering Centre Hangar Roof Structural Steel Work/UAE,
Majestic Tower (G+6P+46) in Al Memzar/Sharjah/UAE, Al Sharaf Shopping Mall Construction, UAE.
As the company has grown so fast for the last years, the management has made the decision to gather
all the investment, construction and operation activities and facilities in the aviation sector under one
roof and for this purpose TAV INVESTMENT HOLDING Co. (TAV Holding) has been established
on 1 July 2005 to unite all TAV group companies.
TAV Airports Holding Co. is rapidly growth duration both Turkey and the across the world as
an airport operators. Their growth includes service concept and geographical area in the both the
managerial and the operational context. This growth increase and diversify of their risks. Also, growth
process is risky. TAV managers are aware of the providing to the continuously and sound growth. The
process and providing of its continuity is risky. ERM is indispensable and important implementation
issue for sustainable growth, protect and increase of corporate value, provide to reasonable assurance
for organizational objectives, effective and successful airport management to TAV.
TAV is get ERM implementation decision at the end of the 2005 within a formal framework. In
the 2006, TAV ERM model developed with university-private sector collaboration. Created Airport
ERM model tailored according to the characteristics and needs of TAV airport holding Co. (The model
is basically based on: “Kucuk Yilmaz, Ayse. ‘Enterprise Risk Management Implementations and
Model Suggestion to Airports’, Doctoral Dissertation, Anadolu University, Social Science Institute,
Civil Aviation Management Branch, Eskisehir, Turkey, 2007”). ERM model identifies 32 steps of the
ERM implementation process, which are designed as the 6 key components and their subcomponents:
i. Analysis of Internal environment and Determination of Requirements of ERM
69