Does executive portfolio structure affect risk management? CEO risk-taking incentives and corporate derivatives usage

2002 ◽  
Vol 26 (2-3) ◽  
pp. 271-295 ◽  
Author(s):  
Daniel A Rogers
Keyword(s):  
Risk Management ◽  
Risk Taking ◽  
Portfolio Structure

Does bank governance affect risk and efficiency? Evidence from Islamic banks in GCC countries

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Samir Srairi ◽  
Khawla Bourkhis ◽  
Asma Houcine
Keyword(s):  
Risk Management ◽  
Financial Crisis ◽  
Risk Taking ◽  
Audit Committee ◽  
Governance Structure ◽  
Board Structure ◽  
Islamic Banks ◽  
Bank Efficiency ◽  
Content Type ◽  
Gcc Countries

Purpose The motivation of the study is to shed further light on the question of whether the governance structure of Islamic banks (IBs) has an impact on the efficiency and risk of Islamic banks operating in the Gulf Cooperation Council (GCC) after the global financial crisis and during the period 2010–2018. This study aims to examine the extent of governance structure on the efficiency and risk of IBs as the effect of the financial crisis has been less on IBs. In addition, the authors are interested in the GCC region as it represents the hub of Islamic finance. Design/methodology/approach In this study, the authors examine how the banking governance structure affects the risk-taking and performance of IBs in the GCC countries between 2010 and 2018. The authors construct a banking governance index (CGI) composed of sub-indices for the board structure, risk management, transparency and disclosure, audit committee, Sharia supervisory board and investment account holders. Unlike the majority of previous studies, bank performance is measured with technical efficiency scores using a data envelopment analysis and the authors use a comprehensive CGI. Findings The results show that IBs in GCC countries adhere to 54% of the attributes covered in the CGI. The authors also note a lack of disclosure regarding the investment account holders and the audit committee. As well, the results indicate that bank governance is positively associated with risk-taking and bank efficiency. Banking risk is influenced by the Sharia board and risk management while bank efficiency is affected by the characteristics of the board structure and investment account holders. Originality/value To the best of the authors’ knowledge, this is the first study that has developed a comprehensive governance index for IBs in GCC countries that includes a wide range of governance dimensions. The study contributes to the literature on governance in the banking sector by simultaneously examining its impact on the risk-taking and efficiency of IBs and recognizes the dynamic relation between these three variables for IB.

scholarly journals Corporate Ownership Structure as a Determinant of “Risk Taking”: Insights from Italian Listed Companies

2020 ◽  
Vol 15 (11) ◽  
pp. 138
Author(s):  
Pier Luigi Marchini ◽  
Veronica Tibiletti ◽  
Alice Medioli ◽  
Gianluca Gabrielli
Keyword(s):  
Risk Management ◽  
Ownership Structure ◽  
Risk Taking ◽  
Listed Companies ◽  
Governance Structure ◽  
Interesting Case ◽  
Ownership Concentration ◽  
Contributing Factors ◽  
Corporate Transparency ◽  
Management Procedures

Ever since major accounting scandals and corporate collapses of the early 2000’s, the improved risk taking and the lax approach to risk management procedures, which are viewed as contributing factors to the market breakdown that occurred in the international market and, in particular, in the U.S. in 2007, have led to an increased awareness of the importance of managing risk on the part of listed companies. Risk management has gained importance in the definition of what it means to be the best and most efficient corporate governance structure and mechanism, as it can play a fundamental role in helping to achieve the company’s target. Also disclosure related to risk management is fundamental for the efficient functioning of capital markets since it helps to improve corporate transparency and to reduce the information asymmetry between insiders and outsiders. This paper aims to investigate the relationship between ownership structure and corporate risk-taking behavior and disclosure, as a tool for protecting shareholders, among Italian listed companies. The analysis is devoted to the Italian stock market because it is strongly characterized by a high ownership concentration and by the presence of a family ownership model; and this scenario makes the Italian one an interesting case to study. Based on a sample of 233 Italian listed companies, through a multivariate regression, we find that a high level of ownership concentration is positively related to a firms' low level of risk taking by the board of directors, so giving interesting insights to regulators and practitioners, as well as for further research.

scholarly journals How Individuals Who Self-Harm Manage Their Own Risk—‘I Cope Because I Self-Harm, and I Can Cope with my Self-Harm’

2020 ◽  
pp. 003329412094517
Author(s):  
Samantha Woodley ◽  
Suzanne Hodge ◽  
Kerri Jones ◽  
Andrew Holding
Keyword(s):  
Risk Management ◽  
Support Group ◽  
Risk Taking ◽  
Interpretative Phenomenological Analysis ◽  
Service Users ◽  
Coping Mechanism ◽  
The Social ◽  
Management Plans ◽  
Self Harm ◽  
Current Risk

Self-harm is a complex and idiosyncratic behaviour. This article focuses on how those who self-harm manage their own risk. Utilising opportunity sampling, ten members of a self-harm support group were interviewed about how they risk manage their self-harm and the data analysed using interpretative phenomenological analysis. The analysis showed that all participants were actively involved in risk management of their self-harm. Through a process of managing consequences, exercising control in the process, and an awareness of the social context. It is posited that people who self-harm should be viewed as actively engaging with the risks of self-harm whilst it is a coping mechanism, as opposed to passive or ignoring. This understanding can be integrated into current risk management plans within services and invites a more dynamic conversation of self-harm between services users and services. Effective risk management involves good relationships between individuals who self-harm and clinicians, services which promote positive risk taking as opposed to defensive practice, and true collaboration between services and service users.

Credit Risk Management of Kumari Bank Ltd. Nepal

2018 ◽  
Vol 7 (4) ◽  
pp. 14
Author(s):  
Kalpana Sahani ◽  
Soni Sahani ◽  
Sundip Bansal ◽  
Deepak Shakya ◽  
Binay Shrestha
Keyword(s):  
Risk Management ◽  
Credit Risk ◽  
Risk Taking ◽  
Management Systems ◽  
Primary Concern ◽  
Credit Risk Management ◽  
Foreign Exchange Risk ◽  
Exchange Risk ◽  
Negative Effect ◽  
Recent Financial Crisis

Banks are always faced with different types of risks that may have a potentially negative effect on their business. Risk-taking is an inherent element of banking and, indeed, profits are in part the reward for successful risk taking in business. On the other hand, excessive and poorly managed risk can lead to losses and thus endanger the safety of a bank's depositors. Risks are considered warranted when they are understandable, measurable, controllable and within a bank’s capacity to readily withstand adverse results. Sound risk management systems enable managers of banks to take risks knowingly, reduce risks where appropriate and strive to prepare for a future, which by its nature cannot be predicted.Financial institutions are subject to a number of risks such as Credit risk, Market risk management, Foreign exchange risk, Operational risk, and Liquidity risk. Although credit risk has always been of primary concern to these institutions, its importance became paramount during the recent financial crisis. The crisis exposed the shortcomings of existing risk management systems, and several firms saw significant losses resulting from failure of their counterparties to deliver on contracts. Firms may also be worried about a second recession, which makes credit risk a top priority.

Risk-Taking and Risk Management

2020 ◽  
pp. 92-112
Author(s):  
Carolyn James
Keyword(s):  
Decision Making ◽  
Risk Management ◽  
Risk Taking ◽  
The Other ◽  
Political Decision ◽  
Competitive Behaviour ◽  
The One ◽  
Political Decision Making

This chapter explores the ways in which gender shaped the respective approaches to political decision-making by the marquis and his wife. I argue that while the delegated nature of her authority encouraged Isabella to keep her emotions strictly in check and to be prudent in a diplomatic setting, Francesco was far more erratic. On the one hand, he adopted strategies of temporizing, prevarication, and swift changes of allegiance to hedge his bets politically, seen by contemporaries as intrinsically female vices, on the other, he indulged in reckless and competitive behaviour designed to display his masculine courage and princely disdain for caution. Together the couple evaded the dangers posed by the second French descent and the fall of Milan to Louis XII, but it was Isabella’s prudence that neutralized the ill-considered risk-taking of her husband.

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