scholarly journals ERM adoption in the insurance sector

2016 ◽  
Vol 13 (4) ◽  
pp. 472-510 ◽  
Author(s):  
Mirna Jabbour ◽  
Magdy Abdel-Kader
Keyword(s):  
Risk Management ◽  
Management System ◽  
Implementation Process ◽  
Value Added ◽  
Insurance Companies ◽  
Institutional Pressures ◽  
Multiple Sources ◽  
Content Type ◽  
Adoption Decision ◽  
Risk Management System

Purpose This paper aims to investigate various institutional pressures driving the adoption and implementation of a new risk management system; enterprise risk management (ERM). Design/methodology/approach The implementation of ERM-related practices is analysed based on an institutional framework and drawing on empirical evidence from multiple sources in ten large/medium-sized insurance companies. This paper focuses on extra-organisational pressures exerted by political, social and economic institutions on insurance companies which drove the adoption decision. Findings It was found that different change agents have taken part in the decision to introduce new risk management system as a part of ERM implementation process. Further, the institutional pressures, coercive, mimetic and normative, were found to differ in character and strength over different intervals of time in relation to the adoption of ERM. Companies that adopted ERM early were mostly driven by internal strategic drivers, whereas the recent adoption decision was more driven by coercive and mimetic pressures. Thus, evidence of divergence between insurance companies was found. Research limitations/implications The findings have implications for policy makers, regulatory agencies and innovation developers. ERM was considered not only as a necessity but also as a value added to the insurance companies under study. Thus, regulators and innovation developers should survey main players in any specific organisational field to understand their views before issuing new compulsory regulations or developing innovations. They also need to consider exploring companies’ experiences with ERM, which can provide a basis for the development of strengthened and more informative regulatory ERM frameworks. This will support a faster and easier understanding and implementation of ERM framework hindered by the confusions companies may face when considering the complicated/changing regulatory and risk requirements. Originality/value This study extends the scope of institutional analysis to the risk management field, particularly ERM and to the explanation of how different institutions affect the decision to move towards ERM and modify the risk management rules applied within the organisational environment. It looks not only at convergences but also divergences associated with the period of time when ERM adoption decision was made. Thus, it develops a processual view of change.

scholarly journals The development of the active risk management system

2017 ◽  
Vol 7 (3) ◽  
pp. 155-167 ◽  
Author(s):  
Stephanie Kewley ◽  
Mark Blandford
Keyword(s):  
Risk Management ◽  
Design Methodology ◽  
Implementation Process ◽  
Assessment System ◽  
Management Tool ◽  
England And Wales ◽  
Content Type ◽  
Early Evaluation ◽  
Risk Management System ◽  
Dynamic Factors

Purpose The purpose of this paper is to detail the development and implementation process of a risk management tool that includes the assessment of static and dynamic factors, as well as factors that are both risk related and protective. Design/methodology/approach Active Risk Assessment System (ARMS) is a tool used to help criminal justice practitioners as they work to support the safe reintegration of those with sexual convictions back into the community. Findings The tool was developed for use by the police, probation and prison services across England and Wales and this paper outlines the following: the process adopted by the development team in designing the tool, the theoretical principles considered and adopted by the team, and a summary of the early evaluation and recommendations made. Originality/value This paper includes some further recommendations for both the developers of the tool and for the police service in England and Wales.

Farmers’ responses to the changes in Hungarian agricultural insurance system

2018 ◽  
Vol 78 (2) ◽  
pp. 275-288 ◽  
Author(s):  
Anna Zubor-Nemes ◽  
József Fogarasi ◽  
András Molnár ◽  
Gábor Kemény
Keyword(s):  
Risk Management ◽  
Panel Data ◽  
Technical Efficiency ◽  
Management System ◽  
Crop Insurance ◽  
Two Stage ◽  
Agricultural Insurance ◽  
Content Type ◽  
Risk Management System ◽  
The Relationship

Purpose The purpose of this paper is to investigate the role of crop insurance among Hungarian crop farmers and the responses to the introduction of the two-scheme risk management system. Specifically, first, it examines the economic and environmental factors affecting the willingness of farmers to contract crop insurance. Second, it reveals the relationship between having crop insurance and technical efficiency of crop producing farms. Design/methodology/approach Probit models of panel data are applied to explore the factors of insurance decisions. The relationship between efficiency and insurance is investigated with two-stage data envelopment analysis (DEA) model with double bootstrap using panel data for the 2001 to 2014 period. Findings The results of Probit model estimations show that the education, the size, the indebtedness of crop producing farms and the new two-scheme risk management system are in positive correlation, while the concentration of farming activity are in negative correlation with the crop insurance contracting. The estimations of two-stage DEA model reveal that crop producing farms with an agricultural insurance contract are more efficient than the farmers without using this risk management tool. Originality/value Empirical investigation of the influencing factors of agricultural insurance demand in Hungary and the examination of the relationship between insurance and technical efficiency may contribute to the development of Hungarian risk management system.

Performance indicators for lifecycle process of public private partnership (PPP) projects in Malaysia

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Suhaiza Ismail ◽  
Rosnani Mohamad ◽  
Julia Mohd Said
Keyword(s):  
Risk Management ◽  
Private Sector ◽  
Performance Indicators ◽  
Management System ◽  
Cost Management ◽  
Public And Private ◽  
Private Partnership ◽  
Content Type ◽  
The Public ◽  
Risk Management System

PurposeThis paper has two objectives. The first objective is to examine the important performance indicators of the lifecycle process of public private partnership (PPP) projects. The second objective is to investigate the difference in the perception of the importance of the performance indicators between the public and private sectors.Design/methodology/approachTo achieve the research objectives, the study used a questionnaire survey. The questionnaire was distributed via postal mail to officers of government departments and private sector companies who may have been involved in PPP projects. A total of 237 completed questionnaires were received, representing a 51.52% response rate. To examine the importance of performance indicators, the descriptive statistical tests of mean, standard deviation and mean score ranking were used. Independent t-tests were conducted to investigate the differences in the perceptions of the importance of performance indicators between the two respondent groups.FindingsThe findings show that all the 16 performance indicators are perceived as important and very important. The top five important performance indicators for a PPP project lifecycle process are “Time management”, “Contractual management”, “Cost management”, “Safety management” and “Effective risk management system”, while “stress or conflicts management” is the least important. In terms of the differences in the perception of the public and private sector groups, the results indicate that four indicators (“environment protection”, “cost management”, “effective risk management system” and “good work environment”), show a significant statistical difference between the perception of the public and the private sector respondents.Originality/valueThis study offers empirical evidence on key performance indicators for a PPP project that are crucial throughout its lifecycle as perceived by two key parties in a PPP contract, i.e. the public and the private sectors.

scholarly journals The effectiveness of risk management system and firm performance in the European context

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Louai Ghazieh ◽  
Nadia Chebana
Keyword(s):  
Risk Management ◽  
Control System ◽  
Management System ◽  
Stock Exchange ◽  
Management Systems ◽  
Management Committee ◽  
Content Type ◽  
European Context ◽  
Risk Management System ◽  
Risk Management Committee

PurposeThe purpose of this paper is to study the effectiveness of the risk management system in the European context, especially with regard to the risk management committee, the uncertainty of the environment and company performance. In summary, it evaluates European companies listed on the stock exchange in France, Germany and the United Kingdom to determine how risk management systems influence financial companies' performance.Design/methodology/approachTo study the effectiveness of risk management systems and their influence on performance, the large companies selected in our sample are fairly representative of the European market, according to the Dutch indices of each country (SBF 120 in France, HDAX 110 in Germany and FTSE 100 in United Kingdom).The empirical evidence is based on an international quantitative analysis, using a data set involving 320 companies listed on the stock exchange over a ten-year period from 2005 to 2014.FindingsThe results indicate that the establishment of a risk management and control system by a company positively influences its management, and its performance level and value creation also improve. The results of this study demonstrate a significant strengthening of the role of the risk management committee in the three countries. The surveillance function is reinforced, and in particular, the internal control system is accentuated.Research limitations/implicationsThis study has some limitations that can form leads for future research. One of these limitations is the sample size. The authors have represented the European context by three countries that certainly constitute great European powers, but have regulations different from other countries. The company size is also a possible research element. Indeed, risk management system varies between large, small and medium-sized enterprises, so it is important to study each type of company well.Originality/valueThis study identifies the risk management committee as a mechanism of control that is highly important in the company, and it proposes an international framework that comparatively and empirically evaluates how the risk management system used in large European companies can improve their financial performance.

Corporate sustainability through non-financial risk management

2014 ◽  
Vol 14 (4) ◽  
pp. 575-586 ◽  
Author(s):  
Anson Wong
Keyword(s):  
Sustainable Development ◽  
Risk Management ◽  
Management System ◽  
Financial Risk ◽  
Social Issues ◽  
Corporate Sustainability ◽  
Effective Management ◽  
Financial Risk Management ◽  
Content Type ◽  
Risk Management System

Purpose – This paper aims at highlighting the significance in developing non-financial risk management, emphasizing the need of managing environmental and social issues for enhancing corporate sustainability. Particularly, through discussing the implications of non-financial risk management, its benefits, opportunities and challenges will also be presented. Design/methodology/approach – Drawing on authoritative academic literature, reports of corporations’ studies, current articles and documents, the researcher has managed to examine and construe the development and implications of non-financial risk management. Findings – Several key findings are covered in this article. First of all, environmental and social concerns are usually being deemed as intangible issues that need to be properly articulated and managed by an effective non-financial risk management system for enhancing corporate sustainability. Second, through different interpretations of sustainability, links could be drawn for highlighting the significance of non-financial risk management and corporate sustainability. Third, by explaining the impacts from non-financial risk management to sustainable development and profits, the article has illustrated corporate sustainability as a clear business case for any corporation. Fourth, challenges are also portrayed for the effective management of non-financial risk management by corporations. Finally, and most importantly, the need of a systematic and strategic non-financial risk management system for helping businesses to be more competitive, thus, moving closer to sustainable development, is discussed in this paper. Originality/value – The contribution of the article is thought to be significant. Although there exists a wide body of research on sustainable development, risk management and corporate sustainability, there is limited insight into how the corporations can effectively conceptualize such intangible or non-financial risk in relation to sustainability. Integrating environmental and social risks is critical to the effective management of any corporation’s real risks, and to improve resources allocation in a sustainable fashion. This demands a systematic and strategic identification of issues through non-financial risk management. Most significantly, this article has shown the way this can be achieved by any corporation, and the concepts can be applied globally.

scholarly journals Risk Management of Investment Activities (on the Example of Insurance Companies)

2017 ◽  
Vol 6 (1) ◽  
pp. 13-20
Author(s):  
Моргунова ◽  
Yelyena Morgunova ◽  
Моргунова ◽  
M. Morgunova
Keyword(s):  
Risk Management ◽  
Management System ◽  
Insurance Companies ◽  
Risk Management System ◽  
Enterprise Level ◽  
Risk Controlling

The article presents the results of the study of risk management of investment activities (on the example of insurance companies). In the article there is process of analyzing counter processes for the implementation and development of risk management system «from above», or at the enterprise level (strategic level), and the system of risk controlling in a particular field of activity investment (tactical level). The method of implementation is developed and the process of functioning of this system is described.

Customs Risk Management System in the Context of Clearance of Customs Procedures

2020 ◽  
Vol 22 (1) ◽  
pp. 59-63
Author(s):  
Ihor Nestoryshen ◽  
◽  
Ivan Berezhnyuk ◽  
Alina Brendak ◽  
◽  
...  
Keyword(s):  
Risk Management ◽  
International Trade ◽  
Economic Activity ◽  
Management System ◽  
Control Measures ◽  
International Treaties ◽  
External Threats ◽  
Risk Management System ◽  
Operational Activities ◽  
International Conventions

Introduction. The article emphasizes that the current features of the implementation of foreign economic activity require consideration of two factors that are contradictory to each other. In particular, on the one hand, the growth of external threats is forcing the governments of many countries to tighten control measures when crossing the state border of goods and commercial vehicles. On the other hand, according to international conventions and agreements (Kyoto Convention, WMO Framework Standards for Security, WTO Facilitation Agreement), measures to reduce the interference of regulatory authorities in the operational activities of economic operators are envisaged. In this context, the use of risk-oriented customs control tools, which allow simplifying business without reducing the level of national security, is becoming especially important. Purpose. The purpose of the article is to generalize and systematize foreign and domestic approaches to simplification of customs procedures through the use of risk-oriented instruments of customs control, as well as to develop their own proposals for simplification of foreign trade entities in the domestic regulatory field by using subject-oriented criteria. Results. The authors analyzed the provisions of the International Convention on the Simplification and Harmonization of Customs Procedures, the Framework Standards for Security and Facilitation of International Trade, the WTO Agreement on Trade Facilitation, which are provided for significant simplification of international trade procedures by reducing the share of customs inspections and controls. Сustoms security, customs clearance of goods and vehicles on the territory of the subjects of foreign economic activity or in another place permitted by the customs, without the direct participation of customs officials. These measures are based on the widespread use of risk-oriented instruments of customs control. It is noted that some of the provisions of international conventions and agreements on the use of risk-oriented instruments of customs control and simplification of economic operators have been implemented in domestic customs legislation, namely Art. 320 of the Customs Code of Ukraine introduced selective customs control, it is determined that the forms and scope of control sufficient to ensure compliance with legislation on state customs and international treaties of Ukraine in customs clearance are selected by customs (customs posts) based on the results of risk management. Conclusion. The study analyzes the peculiarities of the customs risk management system application in customs control in Ukraine, and offers proposals for the use of subject-oriented criteria of customs control as a simplification for honest economic operators to reduce the selectivity of risk profiles ASUR.

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