“NICOLAE BALCESCU” LAND FORCES ACADEMY THIS EVENT IS ORGANIZED BY “NICOLAE BALCESCU" LAND FORCES ACADEMY IN. COLLABORATION WITH THE MINISTRY OF EDUCATION, RESEARCH AND INNOVATION. The 15* International Conference The Knowledge-Based Organization MANAGEMENT CONFERENCE PROCEEDINGS 2 26-28 NOVEMBER 2009 ‘= “NICOLAE BALCESCU” LAND FORCES ACADEMY PUBLISHING HOUSE SIBIU, 2009Scientific advisors: Prof. Hortensia GORSKI, PhD Prof. Benoni SFARLOG, PhD Prof. Lucian CULDA, PhD Prof. Lucian Ionel CIOCA, PhD Prof. Gheorghe MINCULETE, PhD Assoc. Prof.Eng. Petr CECH, PhD Copyright: out of charge, all reproductions are authorized provided that specific references are made. “Nicolae Bileescu” Land Forces Academy Address: 3-5 Revolutici Street, Sibiu Tel.: 0269/432990, Fax: 0269/215554 E-mail: office@armyacademy.ro E-mail: editura@armyacademy.ro web: www armyacademy.ro web: \www.armyacademy.ro/editura The authors take full responsibility of the content of their articles. ISSN 1843 - 6722MANAGEMENT TABLE OF CONTENTS The Cybernetic Model of Risk Management, Mihaela ALBICI, Delia TESELIOS, “Constantin Brincoveanu” University, Pitesti .....sscseeesseu 5 Management Audit and Company Audit, Alexandru BABOS, Land Fores Academy, Sibiu ......... f : seid etnae® Knowledge Leadership: Where Knowledge Meets Excellence in Emergency Situations, Cosmin Laurentiu BALCU, lonela NISTOR, Monica Oriana BEJENARU, Emerwency Inspectorate, Sibiu ee pennants i secseeeseenee 1B The Knowledge-Based Organisation, Motivation and the Social Dialogue. Lieramioarn BALAN (CORCHES)*, Laura PANOIU*, luliana CEBUC*, Adrian VINTILESCU BELCIUG**. *-Constantin Brancoveanu” University, Pitesti, **Internal Auditor of the General Department of Public Finances, Buzit .. : cee ee ey, Good Resistance to Manipulation - The Assessment of the Competence of Applying Ethics in Management, Daniela BELU, “Henri Coanda” Air Force Academy, Brasov eee zi ae 2 The Assessment of the Competence of Applying Ethics in Management-Upright Persons, Daniela BELU, “Henri Coanda” Air Force Academy, Brasov 29, Strategic Human Resources Management in the Maritime Knowledge-Based Organization, Belev BLAGOVEST", Radu HANZU PAZARA**, Cristina NISTOR®*, "Nikola Vapisarov” Naval Academy, Varna, Bulgaria, **Constanja Maritime University, Constanta Behavioural Safety and Major Accident Hazards, Gabriel Bujor BABUT*, Roland Iosif MORARU*, Lucian Ionel CIOCA**, Monica Crinela BABUT®**, *University of Petrosani, Lucian Blaga” University, Sibiu, ***University of Petrosani eidteeliatise aS! A bramework for Organisational Characteristic Assessment and Their Influences on Safety and Health at Work, Lucian tonel CIOCA®, Roland losif MORARU**, Gabriel Bujor BABUT**, "Lucian Blaga” University, Sibiu, "University of Petrosani ....... ae The Voluntary Activity ~ a Way of Social Involvement, Elena CLENCI, Land Forces Academy, SibiU.essseceneeve aes 49 The Organisation of Military Structures. Particularities of the Force Structure, Gheorghe DIMA, General Staff, Bucharest. 4 Syntegration as a Highly Efficion Method of Optimising Knowledge-Sharing, Opinion. Forming and Decision-Making, Franz J. DIRINGER, INKOM Institute, Regensburg, Germany. Strategic Management ina Project of Oral History, Paul DOMINTE, University of Bucharest. eeneaea ey f a 64 Leadership and Military Manager, Zdenek FLASAR, Petr CECH, Geoffrey Charles PART, University or Defence, Bmo, Czech Republic cst The Impact of Knowledge Management on Organisational Efficiency, Nicoleta Valentina FLOREA, University Valahia of Targoviste 7 Conflict Management in Organizational Culture, Cristina GELAN, “Andrei Saguna” University, Department of Mass Communication and Political Science, Constanta sl Piemantiat i ea 8 of Romania's Participation in Stability and Support Operations on Defense GRIGORAS, “Nicolae Balcescu” Land Forces Academy, Sibiu nee 83 The Implication Resources, ConstantKBO 2009 International Conference THE CYBERNETIC MODEL OF RISK MANAGEMENT. Mihaela ALBICI, Delia TESELIOS Constantin Brincoveanu University, Pitesti Abstract: Risk management is a matter of organization of the protection against the main threats which are human and financial. in order to make up for the difficulty of processes when they are theoretically modelled, studied and monitored, one can use an inwuitive evbernetic model that emphas and it can outline malfunctions and their causes, Keywords: management, risk, model Risk management or, in other words, the administration with good knowledge is essentially a matter of organization against the main threats which are human and financial. Risk management emerged when human gatherings were set up and ever since it has manifested itself in various forms, gradually growing up to deliberate actions of risk treatment, attack prevention or vulnerability amendment. Risk management refers to the passage of a business aspect through all potential scenarios. It is about an attitude of care and belief in the possibility that a risk might come true. Starting with this altitude, one makes a constructive decision to remove oF diminish the damages that might occur subsequent to the respective risk. Thus, risk management becomes a process of identification, analysis and response to an organization's, informational system's or project’s potential risks, The main goal of risk management is to help understand the risks an organization may face so that they can be managed, According to the time risks are analyzed, there are pre-event goals (before a risk comes true) when one pursues the 8 system elements, their functional ability to integrate, their dependence on troubling factors avoidance of risk occurrence, and post- event goals (a risk has already come true) when one aims at ensuring business continuity and company survival The main advantage of a risk management programme is economic efficiency managers become aware of the risks an organization faces and manage them properly so that they should never come true Risk management is not only a matter of costs, but also a complex subject with theoretical principles, organizational and practical applications. Risk management is an activity organized and planned by intermingling with general management whose subject it is, based on three constituents: + Operational management —the activity to make current or prospective decisions, amendments, adaptabilities, hierarchical responsibilities, parameter and structure changes. interhuman relations, quality tests, soundings, business relations’ planning and assessment; + Essential activities?” management ~ ensures the efficient development of production or services, including theKBO 2009 International Conference business connections with customers or other similar companies, competitors or additional firms; + Logistic support — the mutual support of business and operations, ineludi human, financial, energetic, informational and IT resources as. well as the adequate environment for activities and production, support and protection, able to ensure special and overall functional features. Risk management is influenced by a scries of random factors that are hard to define and, therefore, hard to manage. Yet, many of the logical, mathematical models of hard-to-monitor complex processes were originally conceived and accomplished according to the negative events which were subsequently adjusted using the promotion models of structural eiiciency or the prevention ways of force majeure cases. Sai IMPOSED STANDARD cs. #, ERROR SIGNALS PARAMETER, . Pawan siecle eel Laan | v In compliance with the time risks are analyzed, there are: © pre-event goals before a risk comes true, ‘when one pursues the avoidance of risk occurrence: post-event goals, so a risk has already ‘come true and one aims at ensuring the continuity of business and the survival of the company The provesses which eannot be theoretically modelled (analytical, logical, mathematical processes etc.) are difficult to study and Monitor. It is in this class that management processes in general and risk management processes in particular are included. In order to ease this difficulty, one can use an intuitive cybernetic model that emphasizes system — elements, their functional ability to integrate, their dependence on outside factors, and it can outline malfunctions and their causes (Graph 1). | NEGATIVE REACTION exIr ENTRY ORGANIZATION] STRUCTURE | APPROACHIN Goat ca POSITIVE REACTION PARAMETER 2 compensatory Fal and et ene smal petrbtion Source: www.revistasalarma ro Graph 1 - The Cybernetic Model of Risk Management This class of cybernetic models series_of parameters. whose acceptable characterizes all types of social, mechanical and especially mixed processes (such as the machine-man type). Generally speaking, an organizational structure is defined when exitting by a values can influence the quality of a product or service. In this circumstance, the aim of the approach is the comparison between a product's or service's performance and a standard defining andKBO 2009 International Conference ranking such quality, stating its ability for use. The comparison standard and the acceptability limits are part of the approaching strategy and mean the social command of risk management. The wider the limits, the higher the acceptance tisk and the wider risk management becomes. ‘The narrower the limits, the more coercive management grows and, therefore, the risk is lower. Subsequent to the comparison between the imposed standard and the achieved parameters, there results an (£,) vector of error sizes whose values are perceived by the instability sensor and tured into active signals (and/or real-time signals) whose error equals the difference between the (S,,) standard’s medium values and the current values of (S,): E, s, a ‘The error signals excite the convertor which then turns them into the command parameter (CS) according to a sensitivity (security) limit and to a conversion and action speed. The command parameter is applied as a negative reaction to the organizational structure which regulates its functioning and adjusts the error according to the command’s sense and size. The influence of outside or inside negative factors upon a process is perceived by the organizational structure as. some pressure slowing down its functioning. This difference of functional speed is additionally emphasized when exitting as (2) tact differences as compared to the normal one. Tact differences are processed by the compensator of inside or outside troubles and turned into an amplifying command (CA) of the process speed, thus Bibliography ccmpensating the delays due to troubles’ effects The essential aspects below are obvious in the model's functioning: * Monitoring the functioning is done continuously and the reactions of the two loops compensate for the system malfunctions” prompiness; ‘* The scope of the negative reaction must be comprehensive or aim at the basic parameter range: The sensitivity of instability perception must comply with the levels set up by management: if the levels are too low. control can be too severe and so it can affect good functioning: if the levels are too high, control can become weak, therefore ineffective; ‘+ The flexibility of approaching strategies must include the entire range of exit parameters, so that all types of errors could be compensated; © There should be enough energetic and informational resources for an effective compensation: ‘The reactions of effective compensation must have the same opportunity levels both regarding errors’ amplitude (levels), and the process speed. ‘The main advantage of a risk management programme is economic efficiency: managers become aware of the risks thei organizations face and manage them properly so that they never come true. Risk management is the duty of an entire tcam in a company. This aspect should be improved by the emergence of a risk management department or at least the presence of a person that should have attributions in this respect. Comescu, V., Marinescu, P., Curteanu, D., Toma, §., Management —from Theory to Practice, University of Bucharest, 2004, Hie, Gh., Urdareanu, T., Full Security, UTI Publishing House, Bucharest, 2001. Mie, Gh., Stoian, 1., Ciobanu, V., Jnformation Security, Military Publishing House.KBO 2009 International Conference Bucharest, 1996. Urdireanu, T., Hie, Gh., Blaha, M., Financial and Banking Institutions’ Security, UTI Publishing House, Bucharest. www. revista-alarma.ro-