A hybrid risk management model:
a case study of the textile
Ivan K.W. Lai
Faculty of Hospitality and Tourism Management,
Macau University of Science and Technology, Taipa, Macau, and
Henry C.W. Lau
School of Management, University of Western Sydney, Sydney, Australia
Purpose – The purpose of this paper is to propose a hybrid risk management model, focusing on
identiﬁcation and evaluation of potential risk scenarios in industry/enterprise level, which assists in
preventing negative impacts from adverse risks.
Design/methodology/approach – The proposed hybrid risk management model embraces the
concept of hierarchical holographic modelling (HHM), enterprise-wise risk management (ERM) and
risk ﬁltering, ranking, and management (RFRM) that could be applied in real commercial settings.
A case study is conducted in order to validate this comprehensive theoretical model.
Findings – This study shows the potential risks that may be faced by the textile industry in Hong
Kong. Corresponding responses are suggested for the risks in different levels, which provide a
systematic approach in managing the risks.
Research limitations/implications – The use of a single case study may limit the generalizability
of the ﬁndings.
Practical implications – The risks suffered by the textile industry are identiﬁed through the case
study, which provide an insight for better planning and preparation, so as to gain a better chance of
success than that of competitors.
Originality/value – The proposed model does not only provide theoretical merits to the literature
but can also be applied to different industries for risk management practices.
Keywords Hong Kong, Textile industry, Risk management, Hierarchical holographic model,
Enterprise-wide risk management,
Paper type Case study
In today’s business environment, many uncertainties are affecting the business
operational environment of an organisation. Many of them are unpredictable and would
occur suddenly, they include ﬁnancial crisis, terrorist attacks and natural disasters.
These risks can have signiﬁcant impact on both the short- and long-term performances
of a business organisation (Tang, 2006) and organisations are likely to suffer loss if they
do not actively manage these risks.
The current issue and full text archive of this journal is available at
The authors are most grateful to anonymous reviewers and the Editor-in-Chief,
Professor David Bennett, for their constructive comments that helped to improve the
presentation of the paper considerably.
A hybrid risk
Received 6 November 2010
Revised 11 May 2011,
23 July 2011,
17 September 2011
Accepted 22 September 2011
Journal of Manufacturing Technology
Vol. 23 No. 5, 2012
q Emerald Group Publishing Limited