Risk Management Guidelines for Ready-Mix Concrete Industry in Western Region of Thailand

Abstract

The purposes of this research article were 1) to study internal and external risk factors; 2) to analyze the level and prioritize risks; 3) to study the types of risk factors; 4) to study the relationship between internal and external risk factors, risk levels and priorities, and factors influencing risk management; and 5) to present risk management approaches. Qualitative research was used by conducting in-depth interviews with 30 selected key informants, including business owners, academics and private sector experts, academics and government sector experts, and 6 focus group participants. The content was analyzed to provide context and presented descriptively. The research results found that 1) internal risk factors were organizational culture, management policies, workforce plans, work processes, and information systems. External risk factors were production cost reduction and political situations, marketing services, product quality standards, product quality development and maintenance, natural disaster contingency plans, CSR activities, and corporate image confidence; 2) risk levels and priorities took into account the likelihood of future occurrence, frequency of risk occurrence, the source of the risk, and the severity of the impact on the organization. There should be a clear risk assessment plan; 3) the type aspect of risk factors were management, sales and marketing strategy, competitive strategy, operation, employee capability development, operation, regulation and operation manual for every step; 4) relationship of risk factors within the organization was culture change, management, human resource management, work process, information system, competitors, economy, politics, natural disaster, image and confidence, etc. and risk prioritization; 5) risk management approaches were done by eliminating risk factors, reducing risk size, spreading risk and accepting risk through supervision process, developing strategy, improving financial management and developing the most efficient operation process.