Exploring risk culture controls: to what extent can the development of organizational risk culture be controlled and how?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Franziska Grieser ◽  
Burkhard Pedell
Keyword(s):  
Risk Management ◽  
Ownership Structure ◽  
Wide Spectrum ◽  
Organizational Studies ◽  
Structured Interviews ◽  
Content Type ◽  
Top Managers ◽  
Risk Culture ◽  
Context Specific ◽  
Perceive Risk

Purpose This study aims to explore the controllability of risk culture, identify and categorize risk culture controls used in firms and explore how industry and ownership structure affect the use of different risk culture controls. Design/methodology/approach This explorative study is based on 32 semi-structured interviews with 37 participants who are heads of risk management or top managers in German firms from different industries with different ownership structures. Findings Interviewees perceive risk culture to be largely controllable. The authors identify a wide spectrum of risk culture controls, ranging from leadership and motivational controls to risk competence controls; in each category, the authors find value-, symbol- and clan-based controls. Leadership controls were most extensively discussed by the interviewees. The use of risk culture controls varied based on industry and ownership structure. Research limitations/implications Due to the explorative character of the approach, the authors cannot claim representativeness for the results. The study is limited to one point in time and to a German sample. The findings imply that companies should select risk culture controls according to their own context and that implementation requires support by the top and middle management. Originality/value The authors respond to the call for more organizational studies on risk management that consider cultural paradigms (Arena et al., 2010; Mikes, 2011; Power, 2009). The study systematically identifies risk culture controls used in corporate practice and categorizes them. It provides tentative evidence of the relevance of context-specific factors for the use of risk culture controls.

Risk management factors contributing to transgressions in the procurement practices in South African SOEs

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Lindani Myeza ◽  
Naledi Nkhi ◽  
Warren Maroun
Keyword(s):  
South Africa ◽  
Risk Management ◽  
Public Sector ◽  
South African ◽  
Public Procurement ◽  
African State ◽  
Political Influence ◽  
Structured Interviews ◽  
Content Type ◽  
Executive Level

PurposeThe study aims to deepen the understanding of why risk management principles are circumvented, thereby contributing to transgressions in public procurement for South African state-owned enterprises (SOEs). A deeper understanding of why risk management principles are circumvented is especially important in South Africa, given the high social, economic and environmental risks to which national and major SOEs are exposed in the procurement process.Design/methodology/approachThe study uses a qualitative design, based on detailed semi-structured interviews with 19 participants comprising management advisors, forensic investigators and auditors to explore why risk management principles are circumvented by South Africa SOEs.FindingsThe results of the study indicate that the tone that is set at political and executive level plays an important role in determining compliance with risk management principles by lower-level staff. Intense levels of political influence at SOEs are the main reason behind risk management systems being undermined.Originality/valueThe current study is one of the first explorations of why transgressions in public procurement continue to be evident despite risk management reforms being adopted by South Africa public sector. The research responds to the call for more studies on why reforms in South Africa public sector are not reducing transgression in public procurement. The study provides primary evidence on the importance of political and executive leadership in influencing the effectiveness of risk management reforms in the public sector.

Building and property management framework for state schools in New Zealand

Facilities ◽  
2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
An Thi Hoai Le ◽  
Niluka Domingo ◽  
Eziaku Onyeizu Rasheed ◽  
Kenneth Sungho Park
Keyword(s):  
New Zealand ◽  
School Boards ◽  
Review Literature ◽  
Property Management ◽  
Ministry Of Education ◽  
Structured Interviews ◽  
Content Type ◽  
Top Managers ◽  
Comprehensive Framework ◽  
State Schools

Purpose This paper aims to develop an integrated and comprehensive framework for building and property management (BAPM) for state schools in New Zealand. The results are expected to clarify the complicated process and provide a guide for school boards to manage their property effectively and efficiently. It also seeks to explore the relationship between the key stakeholders and how this impacts the BAPM. Design/methodology/approach In addition, to review literature, qualitative data were obtained through semi-structured interviews with 16 top managers in state schools. The data analysis results were used to develop the framework using the integration definition for process modelling. Findings The findings contribute to understanding the processes in the BAPM in state schools of school board members by adding input, output, control and mechanism elements in each activity of the processes. The systematic models with main activities and people involved are presented as a guide for school boards in state schools in New Zealand. Challenges and issues in the processes are also identified to draw further study for both school boards and the Ministry of Education. Research limitations/implications The research was conducted with the participation of stakeholders who are sampled from top managers in state schools in New Zealand. A larger scale of participants from other schools may generalise the findings further. Practical implications The research findings are based on the needs and requirements of the stakeholders to understand, implement and control the BAPM for their schools and aid them to achieve the best value for money spending on the management. Originality/value The paper highlights the complexity of the BAPM in schools, presents the roles and responsibilities of the school stakeholders and proposes a systematic framework to assist the school managers in this management process.

scholarly journals Understanding employees’ intrapreneurial behavior: a case study

2020 ◽  
Vol 49 (8) ◽  
pp. 1677-1694 ◽  
Author(s):  
Georgiana-Alexandra Badoiu ◽  
Mercedes Segarra-Ciprés ◽  
Ana B. Escrig-Tena
Keyword(s):  
Organizational Support ◽  
Single Case ◽  
New Technology ◽  
Organizational Factors ◽  
Corporate Entrepreneurship ◽  
Structured Interviews ◽  
Content Type ◽  
Individual Level ◽  
Top Managers

Purpose The purpose of this paper is to provide a deeper insight into the organizational factors and personal motivations of intrapreneurs that may foster intrapreneurial behaviors of employees in a new technology-based firm (NTBF). Design/methodology/approach The paper takes a qualitative approach to explore organizational and individual antecedents of employees’ intrapreneurial behavior. A single case study was conducted on the basis of semi-structured interviews with the founders and top managers of the firm and with intrapreneurial employees. Findings Results show that intrapreneurial projects may arise in firms whose top managers support corporate entrepreneurship (CE) in a non-active manner. Intrapreneurial behaviors of employees can emerge despite the lack of time and limited resources available for undertaking projects. Moreover, work discretion and mutual confidence and the quality of the relationship between employees and top managers are the most valued factors for intrapreneurs. Practical implications Based on the intrapreneurial projects studied, this paper helps to contextualize intrapreneurs’ perception of organizational support and the personal motivations for leading projects within an NTBF. Originality/value Traditionally, the literature has mainly focused on the top-down implementation of entrepreneurial projects within large firms. This paper contributes to the understanding of the combination of firm- and individual-level factors that facilitate intrapreneurial behaviors of employees. It also illustrates the contextual conditions and the firms’ orientation on CE within an NTBF.

Risk management in facility management for data centres: status and deficits

2020 ◽  
Vol 38 (2) ◽  
pp. 219-240
Author(s):  
Juergen Bieser ◽  
Björn-Martin Kurzrock ◽  
Ritika Batra
Keyword(s):  
Risk Management ◽  
Critical Infrastructure ◽  
Wide Spectrum ◽  
Facility Management ◽  
Content Type ◽  
Service Companies ◽  
Consulting Firms ◽  
Building Operation ◽  
Data Centres ◽  
Practical Implications

Purpose Data centres (DC) serve as critical infrastructure and require a sustainable and uninterrupted building operation. Effective risk management (RM), as a component of enterprise RM (ERM), is the basis for secure DC operations. The purpose of this paper is to determine, whether holistic and integrated RM solutions already exist or what they might look like. Design/methodology/approach A literature review of laws, norms, standards, methods and certifications combined with transcribed paper and pencil expert interviews with DC, facility service companies and consulting firms has been conducted. The study also investigates RM practices of 23 large international DC and facility service companies. Findings Results of literature research and intensive interviews with experienced DC experts, covering the entire life cycle of buildings, indicate that there are no holistic and integrated RM practice applications for DC on a sound academic basis. Practical implications Findings suggest that there is a need for developing a holistic and integrated RM framework for DC. This paper is a contribution to the expansion of ERM research and can be very valuable for builders and operators. The results of this research form the basis for the development of a structured RM framework for DC that improves performance. Originality/value The study allows professionals to understand the operational state-of-the-art of RM in critical environments and shed light on the wide spectrum of conceptualities and definitions.

Creation processes for radical manufacturing technology innovations

2019 ◽  
Vol 30 (7) ◽  
pp. 1005-1033
Author(s):  
Pooja Chaoji ◽  
Miia Martinsuo
Keyword(s):  
Manufacturing Firms ◽  
Manufacturing Technology ◽  
Structured Interviews ◽  
Manufacturing Firm ◽  
Content Type ◽  
Process Innovations ◽  
Radical Innovations ◽  
Technology Innovations ◽  
Context Specific

Purpose This paper empirically investigates the processes by which manufacturing firms create radical innovations in their core production process, referred to as radical manufacturing technology innovations (RMTI). The purpose of this paper is to improve the understanding of the processes and practices manufacturing firms use to create RMTI. Design/methodology/approach Creation processes for 23 RMTI projects from diverse industry and technology contexts are explored. Data were collected via semi-structured interviews, and an inductive analysis was carried out to identify similarities and differences in RMTI types and creation processes. Findings Three types of RMTI and three alternative RMTI creation processes are revealed and characterized. An integrated view is developed of the activities of the equipment supplier and the manufacturing firm, highlighting their different roles and interaction across the three RMTI creation process types. Research limitations/implications The exploratory design limits the depth of the analysis per RMTI project, and the focus is on manufacturing technology innovations in one country. The results extend previous case and context-specific findings on RMTI creation processes and provide novel frameworks for cross-case comparisons. Practical implications The manufacturing firms’ proactive role in RMTI creation is defined. A framework is proposed for using different RMTI creation processes for different types of RMTI. Originality/value This study addresses recent calls for empirical research on understanding the ways in which process innovations unfold in manufacturing firms. The findings emphasize the role of manufacturing firms as creators of RMTI in addition to their role as innovation adopters and implementers and reveal the suitability of different RMTI creation processes for different RMTI types.

The challenges of introducing internal social media – the coordinators’ roles and perceptions

2017 ◽  
Vol 21 (1) ◽  
pp. 2-16 ◽  
Author(s):  
Vibeke Thøis Madsen
Keyword(s):  
Social Media ◽  
Design Methodology ◽  
Structured Interviews ◽  
Content Type ◽  
Daily Routines ◽  
Work Related ◽  
Top Managers ◽  
Internal Social Media ◽  
Practical Implications

Purpose The purpose of this paper is to explore the challenges associated with introducing internal social media (ISM) into organizations in order to help them reap the benefits of coworker communication on ISM. Design/methodology/approach The paper is based on an exploratory study in ten organizations. The data were collected in semi-structured interviews with ISM coordinators in Spring 2014. Findings According to the ISM coordinators, four challenges were associated with introducing ISM: coworkers could perceive communication on ISM as not work related; coworkers might not understand the informal nature of communication on ISM, and self-censorship might stop them communicating on ISM; ISM was not considered a “natural” part of the daily routines in the organizations; and top managers mainly supported ISM in words, not in action. Research limitations/implications The study is based on the perceptions of ISM coordinators. Further research is called for to explore both coworker perceptions and actual communication on ISM. Practical implications Practitioners introducing ISM should be aware of these four challenges, and should help coworkers to make sense of communication on ISM as work-related communication among coworkers. ISM coordinators’ perceptions of their own role in relation to coworker communication on ISM make a difference. Originality/value The study provides insights into the key challenges associated with introducing ISM, as well as the role of ISM coordinators as community facilitators and sense-givers.

Credit risk management of Ghanaian listed banks

2016 ◽  
Vol 58 (2) ◽  
pp. 162-178 ◽  
Author(s):  
Michelle Ayog-Nying Apanga ◽  
Kingsley Opoku Appiah ◽  
Joseph Arthur
Keyword(s):  
Risk Management ◽  
Credit Risk ◽  
Management Practices ◽  
Banking Sector ◽  
Banking Industry ◽  
Credit Risk Management ◽  
Structured Interviews ◽  
Content Type ◽  
Credit Risks ◽  
Commercial Loans

Purpose – The study aims to assess credit risk management practices within financial institutions in Ghana. Specifically, the study compares credit risk management practices of listed banks in Ghana with Basel II (1999). Design/methodology/approach – The analysis is based on data gathered from varied sources, namely, use of questionnaires, analysis of internal credit policies and procedure manuals and semi-structured interviews and discussions with credit risk managers of the selected banks in May 2007 and October 2014. Findings – Overall, the credit risk management practices within listed banks in Ghana are in line with sound practices. The only dissimilarity, however, is the role of the board of directors in defining acceptable types of loans and maximum maturities for the various types of loans. The listed banks in Ghana are also exposed to credit risks associated with granting both corporate and small business commercial loans and the use of collaterals to mitigate their credit risk exposures. Practical implications – Banks in Ghana should consider developing the skills of all their personnel and appropriately motivating those involved in the credit risk management processes to ensure that they carry out this process efficiently. Originality/value – Research into credit risk management in the banking industry from the Ghanaian perspective remains scant. This study is, therefore, timely, and its findings are invaluable for the efficient management of credit risk in the banking industry. This study provides policy recommendations which will enhance shareholder value and, in this way, contribute to greater stability in the banking sector in developing countries, in particular.

Ownership concentration of three large Belgian banks during the crisis

2015 ◽  
Vol 15 (5) ◽  
pp. 663-677
Author(s):  
Jean-Charles Deudon ◽  
Ana C. Marques ◽  
Gerrit Sarens
Keyword(s):  
Ownership Structure ◽  
Financial Distress ◽  
Point Of View ◽  
Sources Of Information ◽  
Content Type ◽  
Concentrated Ownership ◽  
Top Managers ◽  
External Sources ◽  
The One ◽  
Year 2000

Purpose – In this paper, two different ownership structures in Belgian banks are studied to see whether this had an impact on how these banks went through the financial crisis of 2007-2008. On the one hand, there is the concentrated ownership structure with a number of major shareholders, while on the other hand, the ownership can be really dispersed with no shareholder having a significantly large stake and ability to influence management’s decisions. Design/methodology/approach – The authors study three large Belgians banks. Dexia and KBC followed the first model (concentrated ownership), while Fortis’ ownership was really dispersed since the year 2000. The authors perform several interviews with people involved with these banks during the crisis and analyze several external sources of information. Findings – The mitigating impact that major shareholders could have had on the – in hindsight – wrong decisions of Belgian banks’ top managers is found to be very limited. Therefore, it can be concluded that the dispersed ownership structure of Fortis was not an important factor in its collapse. Nevertheless, a concentrated ownership structure has been found out to help in case of financial distress, mainly because governments will be more inclined to participate to bailouts when a sound rescue strategy, elaborated with the help of a stable and concentrated ownership structure, is present. Originality/value – By performing interviews, the authors get an insider’s point of view of these banks during the crisis.

A context-specific model of organizational trust

2015 ◽  
Vol 22 (2) ◽  
pp. 297-320 ◽  
Author(s):  
Carvell N. McLeary ◽  
Paula A. Cruise
Keyword(s):  
Cultural Values ◽  
Organizational Support ◽  
Organizational Trust ◽  
Specific Model ◽  
Organizational Studies ◽  
Confirmatory Factor Analyses ◽  
Content Type ◽  
Individual Level ◽  
Employee Trust ◽  
Context Specific

Purpose – Employee trust research has been criticized for restricted theoretical conceptualization, limited contextual application and low replication of measures in organizational studies. The purpose of this paper is to expand the theoretical framework underpinning individual-level organizational trust to include cognitive and socio-affective components in order to examine trust determinants in a unique cultural setting. Design/methodology/approach – A national survey of 653 employees from six companies in Jamaica completed the perceived organizational support scale, perceived organizational justice scale, employee trust propensity scale and the organizational trust measure (Rawlins, 2008) after focus groups revealed the role of socio-cultural values in employee trust relationships. Findings – Controlling for common methods variance, confirmatory factor analyses revealed that a model of organizational trust that included a combination of cognitive and socio-affective determinants was more valid in the Jamaican culture than a model comprised of cognitive determinants alone. National social values of justice and respect were significant determinants of employee trust. Results also provide validity evidence for the previously non-replicated Rawlins trust scale, thereby, providing future researchers with a measure that can be readily replicated. Research limitations/implications – Employee trust levels influenced participation and consequently restricted the sample size and industry profile of the survey. Cross-cultural trust researchers are, therefore, encouraged to design studies with similar subject loss projections. Originality/value – Strict focus on the collectivistic/individualistic dimension of culture restricts researchers’ ability to measure trust effectively across a range of settings. The authors, therefore, propose the uncertainty avoidance dimension as a more valid paradigm to understand inter-cultural differences in trust orientations, particularly in restricted trust domains.

The uncertainties of risk management

2014 ◽  
Vol 27 (3) ◽  
pp. 489-526 ◽  
Author(s):  
Eija Vinnari ◽  
Peter Skærbæk
Keyword(s):  
Risk Management ◽  
Network Theory ◽  
Internal Audit ◽  
Actor Network Theory ◽  
Legal Aspects ◽  
Structured Interviews ◽  
Management Tools ◽  
Content Type ◽  
Internal Auditors ◽  
Multiple Frames

Purpose – The purpose of this paper is to analyse the implementation of risk management as a tool for internal audit activities, focusing on unexpected effects or uncertainties generated during its application. Design/methodology/approach – Public and confidential documents as well as semi-structured interviews are analysed through the lens of actor-network theory to identify the effects of risk management devices in a Finnish municipality. Findings – The authors found that risk management, rather than reducing uncertainty, itself created unexpected uncertainties that would otherwise not have emerged. These include uncertainties relating to legal aspects of risk management solutions, in particular the issue concerning which types of document are considered legally valid; uncertainties relating to the definition and operationalisation of risk management; and uncertainties relating to the resources available for expanding risk management. More generally, such uncertainties relate to the professional identities and responsibilities of operational managers as defined by the framing devices. Originality/value – The paper offers three contributions to the extant literature: first, it shows how risk management itself produces uncertainties. Secondly, it shows how internal auditors can assume a central role in the risk management system. Thirdly, it develops Callon's framing/overflowing framework with the notion that multiple frames are linked and create unexpected dynamics, and applies it to the study on the effects of risk management tools in an internal audit context. It shows how, despite recurring attempts to refine risk management, further uncertainties are continuously produced, thus providing an empirical illustration of how reframing and overflowing intertwine in a continual process.

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