Improvement of the Risk Management Process in Organizational Management Systems Using PDCA Cycles

Abstract:

The risk management process has been improved, which, unlike the known one, provides for procedure for making management decision on the expediency of accepting, reducing, rejecting and transferring unacceptable or acceptable risk using different PDCA cycles types: circular and/or spiral, diverging or converging. It is proposed to combine the procedure for improving the risk management process itself using circular and spiral PDCA cycles with the procedure for management decision making, which will ensure timely detection and prevention of possible subjective biases influence on the results and conclusions obtained. The scientific novelty lies in identifying relationship between management decision made based on risk level assessment (acceptable or unacceptable) and revision (update) of estimated risk levels and risk management procedure itself based on the application of circular and spiral PDCA cycles, which create conditions for improving the risk management process. Practical value lies in development of eight combinations hierarchy of management decisions, depending on risk level (acceptable/unacceptable) and four types of management decisions regarding acceptable and unacceptable risk levels: accept risk, reduce risk, transfer risk or refuse risk; and corresponding management decisions matrix has also been developed.

• Periodical: Advances in Science and Technology (Volume 172)
• Pages: 313-326
• DOI: https://doi.org/10.4028/p-4YLtd8
• Online since: January 2026
• Authors: Vitaliy Tsopa, Tamara Bil'ko, Serhii Cheberiachko*, Oleg Deryugin, Lidiia Cheberyachko, Oksana Stanislavchuk
• Keywords: Management, Management System, Organization, PDCA Cycle, Process, Risk

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