Hamburg Port Authority - ifb AG

Incorporating individual requirements
within risk management
ifb Annual 07/08 2
Focus Corporates
Hamburg Port Authority
Carsten Spieck
Hamburg Port Authority
Holger Kruse
swb Erzeugung GmbH & Co. KG
Manuela Nuhn,
Lars Tybussek
ifb group
Hamburg Port Authority and swb AG convert their
company-wide risk/opportunity management systems
using ProKoRisk ®
In less than a decade, risk/opportunity management (ROM) has developed
into a central corporate management instrument. Recognition of the fact
that a systematic approach to risks and opportunities will sustainably in-
crease both the earnings security and performance of a company has led
to ever-greater differentiation in terms of adapting the ROM system to the
individual aspects of the respective company. Moreover, that this trend
particularly lends itself to the application of standard software is ably evi-
denced by ProKoRisk ® . The ifb group ROM software solution is character-
ised by its high flexibility in terms of implementing specific company re-
quirements and offers all the advantages of a fully developed, advanced
solution.
In this respect, some of the major benefits include support for all pro-
cesses of risk/opportunity management, functionally reliable embodiment
throughout the company and user-friendliness. At the same time, ProKo-
Risk ® guarantees clear-cut and efficient processes: automated monitoring,
early warning and communication functions relieve risk managers of time-
consuming routine tasks and guarantee maximum functional security of
the entire system. Company-wide documentation and assessment cycles
are independently organised by the software: the current position remains
transparent at all times and is communicated via specific customised re-
ports. All loss-incurring events are historicised within the system, with a
system-based database provided for central data storage. ProKoRisk ® is
compatible with all standard database platforms and can also be made im-
mediately available throughout the entire corporate group as a web-based
solution.
RCM – Information and decision-making flow (vertical/horizontal)
Supervisory
board meeting
(at least once a year)
Department head meeting
Department head, staff council representative,
directors as necessary (generally once a week)
Departmental routine
Department head, process managers, administrators, controllers
(generally every two weeks)
Process routines
Process managers and department managers (generally once a week)
Department/office meetings, if necessary
Management and staff (as required)
15

ROM system for the Port of Hamburg – HPA masters a complex
range of tasks
Just how complex requirements can be that are efficiently implemented
with ProKoRisk ® is clearly demonstrated by means of a ROM project which
the Hamburg Port Authority (HPA) implemented in cooperation with the
ifb group. The company emerged as a public-law corporation from the Han-
seatic city‘s electricity and port administration in 200 . Tasked with offer-
ing users of the second largest European container port the best possible
framework conditions for freight handling, HPA‘s activities are accordingly
complex in terms of economic and political priorities: port development
planning, maintaining the Elbe as a waterway and ensuring that shipping
traffic runs smoothly are all tasks that fall within the remit of the HPA. It is
responsible for the maintenance, expansion and modification of quayside
walls, moorings, open areas, bridges, streets and track systems – in other
words, practically the entire port infrastructure. Moreover, mooring admin-
istration, port railway operations and supply and waste disposal utilities
also count amongst its functions.
Providing a ROM system capable of appropriately integrating all these
areas required intensive cooperation on the part of experts from all divi-
sions of the port authority, who first had to familiarise themselves with the
mode of operation and commercial possibilities of a company-wide ROM
system. Through dialogue with the protagonists, it soon became clear that
the primary challenge would lie in incorporating the risk/opportunity sys-
tem within the established cooperation processes between the thematic-
ally very different company divisions. In addition, a further factor was to
supplement risk identification and assessment with a process enabling ac-
tuarial consideration of individual risk potential.
Win-win scenario for the company and the Hanseatic city of
Hamburg
Accordingly, the project team anticipated complex tasks in relation to the
inventorisation and quantification of all relevant risks and opportunities.
Given its particular role as a public-law company the HPA is also intricately
bound with the Hanseatic City of Hamburg in various areas of liability.
One of the central tasks incumbent upon the project team was to allocate
individual risks to the various company units with binding effect while
nonetheless affording consideration to HPA processes, and to define
appropriate early warning indicators and, if necessary, additional control
measures. The selected organisational model centrally allocates risk
responsibility to managers of the individual company units, who for their
part then orientated the processes in line with the individual features of
their area. Mapping in ProKoRisk ® also occurred on the basis of this organ-
isational structure.
The user-friendly procedures for inventory, assessment, monitoring, early
warning, reporting and controlling paved the way for smooth integration
of the ROM system into business processes, which in turn has given rise to
a high degree of acceptance on the part of those tasked with responsibil-
ity for risk management and process organisation. The extent to which
Germany‘s largest port operator recognises the system‘s practical commer-
cial potential is evidenced, not least, by the fact that the number of soft-
ware user-stations was increased from the original figure of 2 to 60.
>
In terms of its specific daily
activities, HPA is difficult
to compare with other companies
owing to the highly
specialised, function-oriented
structure, which needs
to be coordinated within
the scope of an extremely
dynamic port company.
Also of importance is the
fact that the efficient and
reliable running of Hamburg
port operations can
only be assured through
the longstanding, exceptionally
multifaceted knowhow
within our company.
Working with ifb, both of
these factors were optimally
incorporated into the
risk management system
processes.
Tino Klemm
Division Manager,
Finance and Accounting
Hamburg Port Authority
ifb Annual 07/08

ifb Annual 07/08
Focus Corporates
swb Erzeugung GmbH
& Co. KG
Our decided objective
was to develop a companyspecific
risk/opportunity
management system that
could be transferred from
the pilot company to all
group units and which
would reflect the clear
responsibilities within a
role-based workflow
concept. This was easily
achievable using the
ProKoRisk ® software.
Andreas-Robert Hartung
Head of Investment
Controlling and Treasury,
swb Erzeugung GmbH &
Co. KG
Department risk
manager
Assesses risks
Group-wide risk management system for Bremen-based
swb Group
The focus of the risk management project (RM project) undertaken for the
swb Group centres on implementing both the management philosophy
and the new process requirements of the corporate group with a software-
supported system that also supported corresponding procedures within
the swb Group risk/opportunity management system.
As one of Germany‘s most established utility companies, swb has under-
gone dynamic development within the scope of energy market deregu-
lation. Employing over 2, 00 personnel, the swb Group is today posi-
tioned as a supplier of electricity, natural gas, drinking water and heating
energy. Moreover, in the waste to energy business division swb occupies
a leading position in Northern Germany, with technical services rounding
off the comprehensive service range. Under the swb AG umbrella, the
various group companies are each tasked with clear-cut areas of responsibil-
ity. Against the background of a challenging competitive environment and
increasing market differentiation, swb plans to provide uniform support
for risk management in all group companies in future by introducing high-
performance standard software – a consequent opportunity to improve
the assessment and management of risks and opportunities as a whole at
group level.
As a long-standing partner to the energy supplier in questions of risk man-
agement, the ifb group was commissioned with initially implementing
the RM system using the current version of ProKoRisk ® at energy provider
swb Erzeugung GmbH & Co. KG. As such, the energy company effective-
ly functioned as a pilot for the entire project. A central requirement of
the software solution was the development and mapping of a workflow
concept that ensured group-wide updating, approval and assessment of
risks/opportunities, measures and possible incidence of loss. At the same
time, a further task was to introduce an access-rights system to allow proc-
essing by the responsible personnel. This took into account the multi-level
risk management process – from the operative implementation incumbent
Company risk
manager
Change in status
• Checks
assessment
• Prepares reports
Change in status
Prepares reports
Change in status
Risk database
Group risk
manager
• Up to six status levels can be used. Read and write access rights can be allocated for each status level.
• Processing can be managed in line with user needs by allocating different staff to the various workflow steps.
Filter and status concept: optimum workflow support
15 a
Risk processing
completed

upon the departmental head and control via the company risk manager,
right through to coordination at group risk management level. The aim
in this respect was to achieve a greater degree of standardisation in order
to create system-inherent functional security and meet the requirements
for future implementation of a standard system solution on a group-wide
basis.
Workflow concept for a standardised total solution
On this basis, the RM process in ProKoRisk ® has been subsequently struc-
tured to allow each user to immediately recognise and carry out their cur-
rent tasks without further coordination and forward the file within the
processing chain. The level of standardisation achieved using this workflow
concept offers all those involved in the risk management process a high
degree of transparency and security, which in turn enhances motivation.
The ProKoRisk ® database concept also contributes in this respect in that the
data bank structure simplifies the standardised information level provided
to all risk management process personnel and those involved in internal
auditing.
In addition, to ensure optimal support for the work and information flow
within the risk management system, the project team also tailored a number
of the ProKoRisk ® functions to the specific needs of swb Erzeugung GmbH
& Co. KG. Accordingly, the software solution now allows data attachments
to be added to the data record pertaining to each individual risk, measure
and loss event, in order to provide others involved with additional informa-
tion material, avoid duplication and limit the effort required.
The ProKoRisk ® email concept was also expanded in such a manner that it
not only undertakes early warning tasks, but, for example, also provides
immediate information on newly established risks. Additional functions
can also be expanded according to need. Following its successful introduc-
tion at swb Erzeugung GmbH & Co. KG, ProKoRisk ® will then be rolled out
on a group-wide basis.
In its continual development of ProKoRisk ® , the ifb group pays particular
attention to expanding additional functionalities in line with client needs
and incorporating these within the overall concept of the software solu-
tion. With their distinct task emphasis and objectives, the projects under-
taken for the Hamburg Port Authority and swb Group are clear examples
of how application of ProKoRisk ® standard software can provide a swift-
ly achievable, successful solution for meeting highly individual risk and
opportunity management needs.
ifb Annual 07/08