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

European Journal of Social Sciences – Volume 5, Number 3 (2007)
8. Conclusion and Suggesstions
The paper presents a method for applying ANP in determination of best operator to ERM
implementation in the airport business. By managing risks, managers are more likely to achieve their
objectives. Hence, they would be more likely to meet service delivery objectives and targets. Practices
such as the organizational philosophy, open communication channels, teams and committees,
guidance, and training contribute to a supportive work environment. These practices also support
innovation.
While the practices do facilitate management decision-making and planning, the link to sound
resource allocation is less strong. However, the tools for mapping, modelling, identifying and assessing
risks do help focus the resources on key risks and, in this way, allocate the resources to the most
critical areas.
There may be significant barriers to implementing those best practices that are very different
from the status quo. Most federal departments and agencies operate with traditional organizational
structures having a defined reporting and management hierarchy. Hence, implementing a philosophy
and culture that everybody is a risk manager may be a stretch target. Similarly, the current
environments do not welcome bad news or open communication channels.
Departments and agencies will need to adopt the practices that make sense for the organization
and are linked with the benefit targeted by the organization. There are many different ways that these
practices can be implemented in organizations.
The major contribution of this paper lies in the development of a comprehensive methodology,
for the selection of a best ERM operator in the airport business. The paper also provides for a review of
the issues, which influence the best practice of ERM. The ANP approach, as a part of this
methodology, not only leads to a logical result but also enables the decision-makers to visualize the
impact of various criteria in the final result. Further, I have demonstrated that the interdependencies
among various criteria can be effectively captured using the ANP technique, which has rarely been
applied in the context of ERM. The proposed methodology serves as a guideline to the airport
managers ERM implementation-related decisions.
ERM implementation, which is one of the company’s most important managerial approaches,
must be systematically considered from the decision makers. For this reason, ERM implementation is
evaluated in a sample ERM framework and guidelines consist of various techniques from the
experimental to the analytical ones and its successful applications were performed in numerous sectors.
In this paper, selection of best ERM operator was considered as an multi criteria decision problem
(MCDP) and a model is proposed by using ANP. The evaluation criterias were developed according to
the best practice surveys and ERM guidelines and the model was applied to actual two ERM operators
in the airport business. This paper shows that, ANP is a decision tool by making strategical decisions,
such as selecting a best ERM operator. Generally, managers might be inclined not to use a
sophisticated method, but by using user-friendly software like super decision, developed by Saaty, the
decision making process by using ANP will be handled more easy. Evaluating the operators from both
objective and subjective criterias will gain flexibility to the decision process.. Another important
finding is that the proposed model is more reflecting the relation of how the best practice criterias
affect the selected operators. This paper moves us one step closer to the implementation of ERM as
best practice in real airport business.
The effective management largely starts with a proper strategy. Hence, in order to implement
the ERM successfully, there has a critical issue of how companies can better evaluate and select a
favorable ERM strategy, framework and it’s best practice. However, the best operator selection of
ERM usually involves subjective and qualitative judgment. In particular, ERM best practice is a
strategic issue, which is restricted by resource needs, realistic support, time requirements, and
conformity with expected outcomes or business purposes. In this sense, the treatment of ERM best
operator selection is required to handle several complex factors in a better objective and logical
manner. Thus, the ERM best operator selection is a kind of MCDM problem, and requires MCDM
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