Part IX Legal and Conduct Risk Management, 29 The Essentials of Legal and Conduct Risk Management

2018 ◽  
Author(s):  
Mccormick Roger ◽  
Stears Chris
Keyword(s):  
Risk Management ◽  
Financial Institutions ◽  
Monitoring And Control ◽  
Risk Scenarios ◽  
Management Function ◽  
Regulatory Principle ◽  
Risks Assessment ◽  
And Control ◽  
What Matters

This chapter first discusses the general approach of regulators to risk management. Regulators often claim that they take a risk-based approach to the regulation of banks and other financial institutions. What matters to the regulator is compliance with the substance of its enunciated principles, not merely with their form. ‘Creative compliance’ and trying to find ‘ways round’ a clearly stated regulatory principle are not options. However, legal and conduct risk can be affected simply by a change of attitude on the part of the regulator without there being any change in rules or regulations. The remainder of the chapter covers risk management principles, the scope of the risk management function, examples of risk scenarios, identification of risks, assessment of risks, monitoring, and control and mitigation.

The Operational Risk Assessments in Manufacturing Industry

2017 ◽  
pp. 125-146
Author(s):  
Melek Akgün
Keyword(s):  
Risk Management ◽  
Manufacturing Industry ◽  
Operational Risk ◽  
Hazard Identification ◽  
Natural Environments ◽  
Operational Environment ◽  
Risk Environment ◽  
Operational Risk Management ◽  
Management Function ◽  
And Control

Today's companies are facing frequent fluctuation in their social, politics, economics and natural environments, which significantly increased complexity in management function. In such a high risk environment planning, coordinating and control of a company's functions is a very challenging duty for management teams. Regardless of the source this kind risks are dealt with by operational risk management process. The operational risk management has been applied mostly in financial institutions, particularly in the banks until near past. Nevertheless, the companies that are non-financial have to also use operational risk management techniques to continue properly their operations. The purpose of operational risk management can be defined as enhancing hazard identification in the operational environment in order to eliminate risks or reduce them to an acceptable level. In this chapter will be discussed the methods and techniques could be used for the operational risk assessment in manufacturing industry.

Management accounting systems, enterprise risk management and organizational performance in financial institutions

2014 ◽  
Vol 22 (2) ◽  
pp. 128-144 ◽  
Author(s):  
Siti Zaleha Abdul Rasid ◽  
Che Ruhana Isa ◽  
Wan Khairuzzaman Wan Ismail
Keyword(s):  
Risk Management ◽  
Organizational Performance ◽  
Financial Institutions ◽  
Management Accounting ◽  
Enterprise Risk Management ◽  
Accounting Systems ◽  
Content Type ◽  
Management Accounting Systems ◽  
Enterprise Risk ◽  
And Control

Purpose – The purpose of this paper is to examine the linkages between management accounting systems (MAS), enterprise risk management (ERM) and organizational performance by examining MAS information characteristics that match ERM implementation and joint effects of MAS and ERM on organizational performance. Design/methodology/approach – The research method involved administering a questionnaire to 106 financial institutions (FIs) in Malaysia. The respondents were chief financial officers or staff members holding the most senior positions in the finance department of the institutions. Findings – The significant findings on the association between ERM and MAS show that implementation of ERM requires the use of sophisticated MAS information. ERM and MAS complement each other as both are integral to decision making, planning and control in an organization. The finding also substantiates the important role of ERM in enhancing non-financial performance. Research limitations/implications – This study covered only MAS as part of sub-control systems in an organization. Future studies could investigate the link between a more comprehensive management accounting and control system and ERM. Furthermore, this study used perceptual measures of MAS, ERM and organizational performance. Practical implications – The regulating body should promote best management practices of sophisticated MAS and ERM among FIs as these practices will create competitive advantage as well as help those institutions comply with regulations. Originality/value – This study has contributed to the body of knowledge on the linkages between MAS, risk management system and organizational performance.

Risk and risk management practices

2020 ◽  
Vol 11 (8) ◽  
pp. 1555-1581 ◽  
Author(s):  
Adel Elgharbawy
Keyword(s):  
Risk Management ◽  
Credit Risk ◽  
Management Practices ◽  
Archival Data ◽  
Islamic Banks ◽  
Monitoring And Control ◽  
Content Type ◽  
Different Types ◽  
Conventional Banks ◽  
And Control

Purpose This study aims to compare types and levels of risk and risk management practices (RMPs) including the recognition, identification, assessment, analysis, monitoring and control of risk in both Islamic and conventional banks. Design/methodology/approach A questionnaire survey was conducted among the Islamic and conventional banks in Qatar, together with an analysis of archival data extracted from the Thomson Reuters Eikon database for the period 2009-2018. Data were analysed using descriptive statistics, ANOVA and regression analysis. Findings Islamic banks encounter unique types and levels of risk that are not encountered by conventional banks. In Islamic banks, risks such as those of operation and Sharia non-compliance are perceived to be higher, while in conventional banks other risks such as those of credit and insolvency are higher; other risks, for example, liquidity risk, are faced by both. RMPs are determined by understanding risk and risk management, risk identification, risk monitoring and control and credit risk analysis, but not by risk assessment and analysis. However, the RMPs of the two types of bank are not significantly different, except in the analysis of credit risk. Research limitations/implications The study contributes to the debate in the literature by developing a better understanding of the dynamism of risk management in Qatari banks, which can be extended to similar contexts in the region. However, the relatively small sample size in only one country limits the possibility of generalizing the findings. The survey methodology is based on the perception of bankers rather than their actual actions and does not provide in-depth analysis for each type of risk, especially credit risk. However, using archival data, in addition to those from the survey, minimises the bias that would result from depending on one source of data. Practical implications The study provides valuable insights into the different types and levels of risk, as well as the RMPs in Islamic and conventional banks, which can help in guiding the future development and regulation of risk management in the banking sector of Qatar and its region. Originality/value The study helps to explain the mixed results of previous studies that compare types and levels of risk and RMPs in Islamic and conventional banks. Using different types of data and analysis, it provides evidence from one of the fastest growing economies in the world. It also addresses the concerns over RMPs in banks since the global financial crisis.

scholarly journals ANALISIS MANAJEMEN RISIKO KREDIT SEBGAI ALAT UNTUK MEMINIMALISIR RISKO KREDIT PADA BANK NAGARI CABANG PEMBANTU SIMPANG HARU

2020 ◽  
Author(s):  
jhon fernos ◽  
Oriza Satifa
Keyword(s):  
Risk Factors ◽  
Risk Management ◽  
Credit Risk ◽  
Risk Measurement ◽  
Monitoring And Control ◽  
Credit Risk Management ◽  
Measurement Monitoring ◽  
Special Concern ◽  
Credit Risk Measurement ◽  
And Control

This study aims to determine the application of credit risk management and criteria as well as efforts to minimize credit risk in Bank Nagari Simpang Haru Sub-Branch. In implementing credit risk management at Bank Nagari Simpang Haru Sub-Branch, it includes the identification, measurement, monitoring and control of credit risk. Credit risk is the risk of non-performing loans where the debtor must be under special surveillance while the credit measurement must be in accordance with the NPL, Non-perfoming loan (NPL) is very important for credit risk measurement at Bank Nagari Simpang Haru Sub-Branch, because it must be in accordance with the applicable provisions of the Bank Indonesia (BI), by using a non perfoming loan, it will be easy for the Bank to find out the criteria in analyzing credit risk where the Indonesian bank sets a maximum Npl of 5%. Credit collectability is the basis in calculating the level of NPL. Credit Risk Issues that appear at Bank Nagari Simpang Haru Sub-Branch, namely Problem Loans. In this case there are credit risk factors including internal banks, debtors and others. Thus the debtor becomes a factor that often arises and is of special concern.

The Operational Risk Assessments in Manufacturing Industry

2018 ◽  
pp. 653-675
Author(s):  
Melek Akgün
Keyword(s):  
Risk Management ◽  
Manufacturing Industry ◽  
Operational Risk ◽  
Hazard Identification ◽  
Natural Environments ◽  
Operational Environment ◽  
Risk Environment ◽  
Operational Risk Management ◽  
Management Function ◽  
And Control

Today's companies are facing frequent fluctuation in their social, politics, economics and natural environments, which significantly increased complexity in management function. In such a high risk environment planning, coordinating and control of a company's functions is a very challenging duty for management teams. Regardless of the source this kind risks are dealt with by operational risk management process. The operational risk management has been applied mostly in financial institutions, particularly in the banks until near past. Nevertheless, the companies that are non-financial have to also use operational risk management techniques to continue properly their operations. The purpose of operational risk management can be defined as enhancing hazard identification in the operational environment in order to eliminate risks or reduce them to an acceptable level. In this chapter will be discussed the methods and techniques could be used for the operational risk assessment in manufacturing industry.

The Risk Management Practice of a Deep Foundation Pit Project

2014 ◽  
Vol 638-640 ◽  
pp. 703-709
Author(s):  
Shu Min Nie ◽  
Jun Yan Liu
Keyword(s):  
Risk Management ◽  
Management Practice ◽  
Risk Identification ◽  
Monitoring And Control ◽  
Deep Foundation ◽  
Foundation Pit ◽  
Deep Foundation Pit ◽  
Risk Monitoring ◽  
And Control ◽  
The Empirical Analysis

Risk management consists of Risk Identification, Risk Measurement, Risk Assessment, and Risk Monitoring and Control. This paper based on An office building in Dongying, uses Monitoring data to analyze, in order to gain an applicable Risk Management Practice. This article suggest we have to do the survey work well and also should pay attention to the empirical analysis of experts and field technicians at the same time to analyze risk to deep foundation pit engineering.

scholarly journals Do operational risk and corporate governance affect the banking industry of Pakistan?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Komal Altaf ◽  
Huma Ayub ◽  
Malik Shahzad Shabbir ◽  
Muhammad Usman
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Commercial Banks ◽  
Operational Risk ◽  
Primary Data ◽  
Monitoring And Control ◽  
Content Type ◽  
Operational Risk Management ◽  
And Control ◽  
The Impact

PurposeDue to increase in operational risk, banks are facing huge losses. In order to avoid losses, banks need to manage operational risk. This study aims to analyze the impact of operational risk management (ORM) processes, which include identification, assessment, analysis, monitoring and control in the presence of corporate governance (CG) that can also contribute to effective ORM practices.Design/methodology/approachOperational risk management processes are used to manage operational risk along with CG. Primary data are collected through questionnaire from (167) operational risk managers of commercial banks. Multiple linear regressions has been run to analyze the data.FindingsResults indicate significant impact of CG and operational risk identification (ORI), monitoring and control on ORM practices in commercial banks of Pakistan.Originality/valueThe study suggests policy makers to improve the ORM framework by CG. Beside this, in order to lessen operational risk, proper identification, monitoring and control of operational risk could also contribute.

scholarly journals Risk Management in Information Technology Project: An Empirical Study

2016 ◽  
Vol 7 (3) ◽  
pp. 191 ◽  
Author(s):  
Kornelius Irfandhi
Keyword(s):  
Information Technology ◽  
Risk Management ◽  
Dynamic Environment ◽  
Monitoring And Control ◽  
It Projects ◽  
Risk Manager ◽  
It Project ◽  
Information Technology Project ◽  
Negative Impacts ◽  
And Control

The companies are facing some risks due to changes in a dynamic environment. If risks are not managed properly, it will have some negative impacts on the companies at the present and the future. One important function of the Information Technology (IT) governance is risk management. Risk management in IT project aims to provide a safe environment for IT projects undertaken. Risk management becomes an important process for the success of IT projects. This article discussed the risk of IT project and whether there was a relationship between risk management and the success of the project. The method used was performing a literature review of several scientific articles which published between 2010 and 2014. The results of this study are the presence of risk management and risk manager influence the success of the project. Risk analysis and risk monitoring and control also have a relationship with the subjective performance of IT projects. If risk management is applied properly, the chance of the success of the projects undertaken can be increased. 

scholarly journals Research on Risk Assessment and Control for Urban Rainwater Resources Utilization

2021 ◽  
Vol 233 ◽  
pp. 03032
Author(s):  
Qin Li ◽  
Ma Chengxiang ◽  
Wang Junde ◽  
Jin Yanzhao ◽  
Yang Guangdong
Keyword(s):  
Risk Assessment ◽  
Risk Management ◽  
Evaluation Model ◽  
Risk Tolerance ◽  
Social Characteristics ◽  
Monitoring And Control ◽  
Analytic Hierarchy ◽  
Assessment Index ◽  
Daily Monitoring ◽  
And Control

Strengthening risk management and control of urban rainwater resources utilization is the key to ensuring the sustainable and efficient use of urban rainwater resources. On the basis of comprehensive research on urban rainwater utilization, the definition and connotation of urban rainwater utilization emphasizing the attributes of resource utilization are proposed, and the definition and function model of urban rainwater utilization risk are established. Based on the whole process of the development and utilization of urban rainwater resources including external environment, urban natural and social characteristics, rainwater utilization engineering systems, and project operation management, the risk assessment index system for urban rainwater utilization and risk evaluation model by using Analytic Hierarchy Process are established, and a comprehensive risk assessment standard based on risk value and risk tolerance, as well as residual risk management and control theory and risk management methods are put forward. The results of research on risk assessment and control of rainwater resources utilization in Xifeng District of Qingyang City shows that the main risks of rainwater utilization in this district are as follows in order of severity: policies and regulations, economy developing level, maintenance costs, precipitation and natural eutrophication. Risk assessment shows that the risks are low and acceptable and thus can be reduced by strengthening daily monitoring and control.

Computers for data, control and simulation

1988 ◽  
Vol 46 ◽  
pp. 920-921
Author(s):  
David C. Joy
Keyword(s):  
Personal Computers ◽  
Monitoring And Control ◽  
Data Logging ◽  
Data Logger ◽  
Operational Conditions ◽  
Data Control ◽  
The Many ◽  
And Control

Personal computers (PCs) are a powerful resource in the EM Laboratory, both as a means of automating the monitoring and control of microscopes, and as a tool for quantifying the interpretation of data. Not only is a PC more versatile than a piece of dedicated data logging equipment, but it is also substantially cheaper. In this tutorial the practical principles of using a PC for these types of activities will be discussed.The PC can form the basis of a system to measure, display, record and store the many parameters which characterize the operational conditions of the EM. In this mode it is operating as a data logger. The necessary first step is to find a suitable source from which to measure each of the items of interest. It is usually possible to do this without having to make permanent corrections or modifications to the EM.

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