GRC

SECTORAL RISK INDEX DEVELOPMENT PROJECT

The aim of the Sectoral Risk Index Project carried out in cooperation with the Istanbul Chamber of Commerce and GRC Management is to create risk inventories of 11 sectors for the member companies of the Istanbul Chamber of Commerce, and to produce risk scores for companies and to publish sectoral risk reports every 3 months.

Sectoral Risk Index; At sectoral scale, sectoral risk index is an indication of the determination of the risks that the relevant sectors may be exposed to and how these risks may affect the sectors in terms of both impact and probability when they occur in the future.

The project started in January, 2021, and Sectoral Risk Inventories are at the stage of preparation. In the preparation of the Sectoral Risk Inventories, support is received from the Istanbul Chamber of Commerce and GRC Management teams, as well as from the committee members affiliated to the Istanbul Chamber of Commerce and from the faculty members from Istanbul Commerce University. Within the scope of the project, Risk Reports, the first of which will be published in July, will be published specific to 10 different sectors and general risk reports.

The main goal of the project is to define and evaluate the key risks of the sectors within the Istanbul Chamber of Commerce, as well as to guide the relevant managers in the formulation and updating of their corporate strategies.

About Risk Management

Necessity of risk management systems are increasing every day. The size of the businesses does not affect that necessity. However, regardless of the scale of the enterprise, the basic areas required by the business senior management and the risk management practices are parallel in application.

In particular, the disruption of business continuity during the pandemic process, volume-turnover losses in service-oriented sectors such as tourism and transportation, and traditional problem areas of the Turkish economy have recently brought risk management to the fore.

Project Team

The Sectoral Risk Inventories and Risk Index Creation Project started in January 2021 under the management of Prof.Dr.Davut Pehlivanlı. Pehlivanlı, who has been working in the project subject area for many years, has a specialized technology company (GRC Management). Pehlivanlı also has two patent applications in similar fields. In addition to the project manager Pehlivanlı, Prof.Dr.Elçin Aykaç Alp from Istanbul Commerce University and Altuğ Aksoy as the project assistant are included in the project team. The project was originally planned for 18 months.

Goals

The general objectives of the project are as follows;

1. Preparation of risk inventories for 11 sectors at Istanbul scale:

11 Risk inventories will be prepared in the workshop environment with the participation of companies to be selected from the sector.

2. Creating a Risk Index:

Risk Index will be developed; Sectoral Risk Index and enterprise level Risk Index will be created. Businesses will be able to see their Risk Score.

3. Publishing risk reports

Istanbul Sectoral Risk Report will be published with the implementation of risk surveys in 3-month periods.

Outputs

Project outputs are planned as follows;

1. 10 Sector-Specific Risk Inventory
2. Quarterly Risk Reports and their publication
3. Risk indices specific to the sectors and businesses

Project Activities

Completed:

• Corporate Risk Management Training, 04 March 2021.
• Risk Management System Design Brainstorm, March 16, 2021.
• Sectoral Risk Workshops:
  • Residential Construction – Construction Contracting Workshop, 13 April 2021
  • Machinery and Equipment Workshop, 13 April 2021
  • Wholesale and Foreign Trade Workshop, 20 April 2021
  • Wholesale Food and Cleaning Products Workshop, 20 April 2021
  • Retail Trade Workshop, 20 April 2021
  • Transportation and Logistics Workshop, 22 April 2021
  • Ready-to-Wear and Apparel Workshop, 22 April 2021
  • Information Technology Workshop, 27 April 2021
  • Health Services Workshop, 27 April 2021
  • Restaurant, Food and Beverage Services Workshop, 4 May 2021
  • Tourism-Hotel Management Workshop, 4 May 2021
  • Automotive Workshop, 4 May 2021

Planned:

• Determination of Sectoral Risk Inventories, 4 March-4May
• Determining / determining the content of the Risk Index, 4March-4May
• Risk Index Survey data collection period, 4May-10 June
• Sectoral Risk Inventory data collection period, 4May-10June
• Beginning of the Sectoral Risk Reports publication period 11June-…
• Disclosure of Risk Index / Indices ………