The emerging importance of risk management and enterprise risk management strategies in the Indian hospitality industry

2019 ◽  
Vol 11 (4) ◽  
pp. 392-403 ◽  
Author(s):  
Madhu Vij
Keyword(s):  
Risk Management ◽  
Value Creation ◽  
Hospitality Industry ◽  
Enterprise Risk Management ◽  
Management Model ◽  
Content Type ◽  
Business Goals ◽  
Enterprise Risk ◽  
Hospitality Sector ◽  
Hospitality Managers

Purpose The purpose of this paper is to discuss the outlook for risk management and enterprise risk management (ERM) within the hospitality sector including how ERM is being balanced with the need to innovate, and what boards of directors are doing to become more engaged in risk oversight. The implementation of ERM is about taking a strategic view of risk and linking it to business goals and value creation. Design/methodology/approach An interviewer-administered survey was used to collect data from 33 senior risk professionals and other industry experts who had a clear understanding of both risk management and ERM. A structured and semi-structured questionnaire consisting of three sections was personally administered to 33 respondents in 2018 to collect information from risk professionals and other industry experts. Findings It is important to create a culture of risk awareness and to incorporate risk planning into business decisions. The complexity of modern business necessitates that managers in the hospitality sector have greater skill levels than ever before. This research should help hospitality managers to better understand the core risks and link them to strategy. ERM creates an environment where the organization as a whole can support the value creation process with a sharper focus on risk management. Practical implications The growing role of technology along with human connections is shaping the hospitality sector and redefining the travel ecosystem. Future travel experiences are likely to be influenced by a blend of technology and human experiences. Many Indian companies are applying the traditional risk management model in their businesses, while ERM is their future goal. The evolution from a traditional risk management model to ERM is challenging, and so it is important to have an appropriate framework in place for its implementation. Originality/value Hospitality managers need to know how to proactively manage risk management and ERM as the sector is increasingly vulnerable to internal risks. ERM creates a direct linkage between risks and opportunities required for decision-making in a dynamic environment. With growing competition on a global level, the hospitality industry should aim to manage risks strategically to increase the likelihood that organizational objectives can be achieved.

Does the hiring of chief risk officers align with the COSO/ISO enterprise risk management frameworks?

2017 ◽  
Vol 25 (3) ◽  
pp. 274-295 ◽  
Author(s):  
Erastus Karanja
Keyword(s):  
Risk Management ◽  
Enterprise Risk Management ◽  
Clear Understanding ◽  
Press Releases ◽  
Apparent Lack ◽  
Content Type ◽  
Business Operations ◽  
Enterprise Risk ◽  
The Press ◽  
Iso 31000

Purpose There are two main industry-sanctioned enterprise risk management (ERM) models, that is, COSO 2004 and ISO 31000:2009, that firms refer to when implementing ERM programs. Taken together, the two ERM models specify that firms should implement ERM programs to meet a strategic need, improve operations and reporting or to comply with government regulations or industry best practices. In addition, the focus of ERM implementation should be either the subsidiary, business unit, division, firm/entity or global level. The purpose of this study is to investigate whether firms are aligning their ERM implementations with these tenets: strategy, operations, reporting, compliance and the level of implementation. Design/methodology/approach The proxy for ERM implementation is the hiring of a Chief Risk Officer (CRO). The research data come from a sample of 122 US firms that issued a press release following the hiring of a CRO between 2010 and 2014. The press releases were retrieved and aggregated through content analysis in LexisNexis Academic. Findings The results reveal that many ERM implementations are occurring at the firm/entity level, and with the exception of reporting, firms consider ERM to be a strategic firm resource capable of improving business operations and compliance initiatives. Originality/value There is a dearth of research studies specifically investigating whether ERM programs adopted by firms are aligned with the specification of COSO 2004 and ISO 31000:2009 frameworks. The apparent lack of a clear understanding of the alignment between the firm ERM programs and the industry’s ERM frameworks may limit the development and implementation of ERM and the eventual realization of the benefits associated with a successful ERM implementation.

Enterprise risk management and sustainability of banks performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Babajide Oyewo
Keyword(s):  
Risk Management ◽  
Banking Sector ◽  
Management Practice ◽  
Enterprise Risk Management ◽  
Annual Reports ◽  
Banking Reform ◽  
Content Type ◽  
Enterprise Risk ◽  
The Impact

PurposeThis study investigates firm attributes (namely level of capitalisation, scope of operation, organisational structure, organisational lifecycle, systemic importance and size) affecting the robustness of enterprise risk management (ERM) practice, the extent to which ERM affects the performance of banks and the impact of ERM on the long-term sustainability of banks in Nigeria. This was against the backdrop that the 2012 banking reform was a major regulatory intervention that mainstreamed ERM in the Nigerian banking sector.Design/methodology/approachThe study employed a mixed methodology of content, trend and quantitative analyses. Ex post facto research design was deployed to analyse performance differential of banks, with respect to the implementation of ERM, over a 10-year period (2008–2017). A disclosure checklist developed from the COSO ERM integrated framework was used to assess the robustness of ERM by content-analysing divulgence on risk management in published annual reports. The banking reform periods were dichotomised into pre- (2008–2012) and post- (2013–2017) reform periods. Jonckheere–Terpstra test, independent sample t-test and Mann–Whitney test were applied to analyse a total of 1,036 firm-year observations over the period 2008–2017.FindingsResult shows that bank attributes significantly affecting the robustness of risk management practice are level of capitalisation, scope of operation, systemic importance and size. Performance of banks improved slightly during the post-2012 banking reform period. This suggests that as banks consolidate on the gains of ERM, benefits of the regulatory policy on risk management may be realised in the long run. Result also shows that ERM enhances long-term performance, connoting that effective risk management could serve as a competitive strategy for surviving turbulence that typically characterises the banking sector.Practical implicationsThe emergence of level of capitalisation, scope of operation, systemic importance and size as determinants of ERM provides empirical evidence to support the practice of reviewing the capital requirements for banking business from time to time by regulatory authorities (i.e. recapitalisation policy) as a strategy for managing systemic risk. Top management of banks may consider instituting mechanisms that will ensure risk management is given prominence. A proactive approach must be taken to convert risks to opportunities by banks and other financial institutions, going forward, to cope with the vicissitudes of financial intermediation.Originality/valueThe originality of the study stems from the consideration that it provides some new insights into the impact of ERM on banks long-term sustainability in a developing country. The study also contributes to knowledge by exposing the factors determining the robustness of risk management practice. The study developed a checklist for assessing ERM practice from annual reports and other risk management disclosure documents. The paper also adds to the scarce literature on risk governance and risk management.

Enterprise risk management and Solvency II: the system of governance and the Own Risk and Solvency Assessment

2020 ◽  
Vol 21 (4) ◽  
pp. 317-332 ◽  
Author(s):  
Pablo Durán Santomil ◽  
Luis Otero González
Keyword(s):  
Risk Management ◽  
Insurance Industry ◽  
Solvency Ii ◽  
Enterprise Risk Management ◽  
Insurance Companies ◽  
Legal Form ◽  
Content Type ◽  
Enterprise Risk ◽  
Solvency Assessment

Purpose The purpose of this paper is to analyze how enterprise risk management (ERM), the system of governance and the Own Risk and Solvency Assessment (ORSA) have been boosted with the entry of Solvency II. Design/methodology/approach For this analysis, the authors have undertaken a survey of chief risk officers (CROs) working in Spanish insurance companies. Findings The results show that Solvency II has definitely promoted ERM in the European insurance industry and improved the system of governance of the insurance companies, and that the perceived value of the ORSA for the companies is higher than the cost. It is clear that the quality of ERM implemented by companies is higher in those that face more complex risks and with greater interdependencies – that is, larger companies, foreign insurers and insurers with several lines of business – but is unaffected by the legal form of the entity (mutual/corporation). Originality/value This study conducts primary research with surveys of CROs and develops a measure of the quality of ERM implemented by insurance companies.

Enterprise risk management and bow ties: going beyond patient safety

2019 ◽  
Vol 26 (3) ◽  
pp. 770-785
Author(s):  
Hossam Elamir
Keyword(s):  
Risk Assessment ◽  
Risk Management ◽  
Patient Safety ◽  
Assessment Tool ◽  
Enterprise Risk Management ◽  
Risk Assessment Tool ◽  
Management Tool ◽  
Content Type ◽  
Enterprise Risk ◽  
Bow Tie

Purpose The growing importance of risk management programmes and practices in different industries has given rise to a new risk management approach, i.e. enterprise risk management. The purpose of this paper is to better understand the necessity, benefit, approaches and methodologies of managing risks in healthcare. It compares and contrasts between the traditional and enterprise risk management approaches within the healthcare context. In addition, it introduces bow tie methodology, a prospective risk assessment tool proposed by the American Society for Healthcare Risk Management as a visual risk management tool used in enterprise risk management. Design/methodology/approach This is a critical review of published literature on the topics of governance, patient safety, risk management, enterprise risk management and bow tie, which aims to draw a link between them and find the benefits behind their adoption. Findings Enterprise risk management is a generic holistic approach that extends the benefits of risk management programme beyond the traditional insurable hazards and/or losses. In addition, the bow tie methodology is a barrier-based risk analysis and management tool used in enterprise risk management for critical events related to the relevant day-to-day operations. It is a visual risk assessment tool which is used in many higher reliability industries. Nevertheless, enterprise risk management and bow ties are reported with limited use in healthcare. Originality/value The paper suggests the applicability and usefulness of enterprise risk management to healthcare, and proposes the bow tie methodology as a proactive barrier-based risk management tool valid for enterprise risk management implementation in healthcare.

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.

scholarly journals The effect of enterprise risk management (ERM) on firm value in manufacturing companies listed on Indonesian Stock Exchange year 2010-2013

2018 ◽  
Vol 3 (2) ◽  
pp. 224-235 ◽  
Author(s):  
Iswajuni Iswajuni ◽  
Arina Manasikana ◽  
Soegeng Soetedjo
Keyword(s):  
Risk Management ◽  
Firm Value ◽  
Stock Exchange ◽  
Enterprise Risk Management ◽  
Managerial Ownership ◽  
Manufacturing Companies ◽  
Content Type ◽  
Significant Negative Effect ◽  
Enterprise Risk ◽  
Negative Effect

Purpose The purpose of this paper is to identify the effect of enterprise risk management (ERM) with firm size, ROA and managerial ownership as control variables on firm value that is proxied by Tobin’s Q. Design/methodology/approach Population of this research was manufacturing companies listed on the Indonesian Stock Exchange (IDX) in 2010–2013. The used method in this research is multiple linear regression-ordinary least square and hypotheses testing using t-test to test the regression coefficients with level of significance of 5 percent. Findings The results showed that ERM, ROA and size of the company have a significant positive effect on the firm value. While the managerial ownership has a significant negative effect on the firm value. Originality/value The results showed that firm value increases as ERM, ROA and size of the company improves. While the managerial ownership has a significant negative effect on the firm value.

Enterprise risk management: history and a design science proposal

2018 ◽  
Vol 19 (2) ◽  
pp. 137-153 ◽  
Author(s):  
Michael McShane
Keyword(s):  
Risk Management ◽  
Management Practices ◽  
Design Science ◽  
Enterprise Risk Management ◽  
Content Type ◽  
Research And Practice ◽  
Enterprise Risk ◽  
Risk Management Process ◽  
Management Concepts ◽  
Science Approach

Purpose This paper aims to investigate the evolution of enterprise risk management (ERM) out of fragmented disciplinary perspectives to provide a foundation for promoting interdisciplinary research and proposes a design science approach for more effective ERM implementation in organizations. Design/methodology/approach This conceptual paper synthesizes ERM research and practice from multiple disciplines. Findings Corporate risk management concepts were born in academic finance and developed further in the finance subset known as risk management and insurance. With the advent of ERM, efforts must broaden beyond applying statistical models to quantifiable risks. Other disciplines have expanded ERM research by embracing techniques to investigate risk management practices to produce knowledge that integrates practice and theory. ERM is promoted as integrated risk management, yet silos still remain in both practice and research. Originality/value This study provides a foundation and a proposal for moving ERM past academic and organizational silos, which is necessary to achieve the ERM philosophy and increase organizational resilience. Understanding the evolution and fragmented nature of ERM research and practice provides a foundation for interdisciplinary cooperation necessary to achieve the holistic ERM philosophy. A next frontier is effective ERM implementation. This paper argues for an organizational design science approach for mitigating the resistance to change that confounds effective implementation of ERM in organizations facing an increasingly uncertain environment and outlines future research for applying the approach to implementing the ISO 31000 risk management process.

scholarly journals Risk of regulatory failure of “risk-based regulation” while using enterprise risk management as a meta-regulatory toolkit

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohammad Moniruzzaman
Keyword(s):  
Risk Management ◽  
Financial Regulation ◽  
Self Regulation ◽  
Secondary Data ◽  
Enterprise Risk Management ◽  
Regulatory Regime ◽  
Content Type ◽  
Enterprise Risk ◽  
Regulatory Failure ◽  
Risk Managers

PurposeDebate is growing around the expansion of risk-based regulation. The regulation scholarship provides evidence of regulatory failure of the risk-based approach in different domains, including financial regulation. Therefore, this paper aims to provide cautionary evidence about the risk of regulatory failure of risk-based strategy in the financial regulation while using enterprise risk management (ERM) as a meta-regulatory toolkit.Design/methodology/approachBased on interview data gathered from 30 risk managers of banks and five regulatory personnel, combined with secondary data, this study mainly explores the challenges for meaningful use of ERM based self-regulation in regulated banks. The evidence helps to assess the risk of regulatory failure of the risk-based regulation while using ERM.FindingsThe evidence reflects that regulated banks face diverse challenges arising from both peripheral and internal environments that limit the true internalization of ERM-based self-regulation. Despite this, the regulator uses this self-regulation as a meta-regulatory toolkit under the risk-based regulation to achieve the regulatory aims. However, the lack of true internalization of ERM based self-regulation is likely to raise the risk of regulatory failure of risk-based regulation to achieve the regulatory goals. Risk-based regulation is an evolving strategy in the regulatory regime. Therefore, care should be taken while using ERM as a regulatory toolkit before relying on it substantially.Originality/valueThe paper provides empirical insights about the challenges for effective use of ERM as a meta regulatory toolkit that might be useful practically both to the regulators and regulated firms.

scholarly journals Value Creation of Enterprise Risk Management: Evidence from Malaysian Shariah-Compliant Firms

2021 ◽  
Vol 11 (10) ◽  
Author(s):  
Enny Nurdin Sutan Maruhun ◽  
Ruhaya Atan ◽  
Sharifah Norzehan Syed Yusuf ◽  
Rahayu Abdul Rahman ◽  
Wan Razazila Wan Abdullah
Keyword(s):  
Risk Management ◽  
Value Creation ◽  
Enterprise Risk Management ◽  
Enterprise Risk

Research of Wind Power Plant Risk Management Based on Bayesian Network

2014 ◽  
Vol 953-954 ◽  
pp. 587-590 ◽  
Author(s):  
Shuang Yang
Keyword(s):  
Risk Management ◽  
Power Plant ◽  
Wind Power ◽  
Reference Value ◽  
Enterprise Risk Management ◽  
Management Model ◽  
Wind Power Plant ◽  
Management Problem ◽  
Construction Enterprise ◽  
Enterprise Risk

This paper aims to put forward a wind power plant risk management model, using bayesian networks, not only suitable for the project risk management, also useful for subsequent projects. For other construction enterprise risk management problem has great reference value.

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