scholarly journals The teoretical aspects of Risk management and Crisis management

2009 ◽  
Vol 57 (6) ◽  
pp. 377-382
Author(s):  
Josef Zrůst
Keyword(s):  
Risk Management ◽  
Crisis Management ◽  
Business Environment ◽  
Negative Effects ◽  
Risk Regulation ◽  
Reciprocal Relations ◽  
Definition Of ◽  
Basic Features ◽  
The Impact ◽  
Subsequent Stabilization

This article defines the theoretical specification of risk management and crisis management. The main goal of this article is to define the basic features and understand the reciprocal relations between risk management and crisis management and their function in the business environment.Risk management is a process of risk regulation. It helps to protect an enterprise from the impact of existing and future risks. Part of this process is the decision process which derives from risk's analysis.Crisis management can be defined as a permanent process of monitoring single factors of efficiency with the goal to identifying and applying proactive steps leading to the prevention of crisis creation and its negative effects. Another definition evaluates crisis management as a process of crisis identification and the enterprise's subsequent stabilization.The specification of areciprocal relationship between risk management and crisis management arises from the definition of risk as a source of danger causing current or future crisis in the enterprise.

scholarly journals Liquidity risk regulation and its practical implications for banks: the introduction and effects of the Liquidity Coverage Ratio

2020 ◽  
Vol 94 (9/10) ◽  
pp. 367-378
Author(s):  
Alette Tammenga ◽  
Pieter Haarman
Keyword(s):  
Risk Management ◽  
Liquidity Risk ◽  
Bank Lending ◽  
Capital Regulation ◽  
Literature Study ◽  
Risk Regulation ◽  
Coverage Ratio ◽  
Definition Of ◽  
The Impact ◽  
Practical Implications

Following the financial crisis, quantitative liquidity risk regulation was introduced by means of the Liquidity Coverage Ratio (LCR). This literature study aims to investigate whether the introduction of the LCR leads to better liquidity risk management in banks. It elaborates on the drivers and definition of liquidity risk as well as the history, benefits and goals of this regulation. It also delves into the exact composition of the ratio and the assumptions used. The impact on bank lending as well as banks' business model and risk management is addressed, as well as the interaction with monetary policy operations and capital regulation. This paper then describes the operational differences that were observed after the implementation, and behavioral aspects. We also address the Net stable Funding Ratio (NSFR) and the discussion on interaction between the two indicators and possible redundancy. We have found that the introduction of the LCR leads to better management of liquidity risk for most financial institutions, but more harmonious implementation throughout the sector could reduce liquidity risk even further.

Strategic Practices and Crisis Management

2019 ◽  
pp. 156-181
Author(s):  
Yacoub Adel Nasereddin ◽  
Fayez Albadri
Keyword(s):  
Crisis Management ◽  
Management Strategies ◽  
State Level ◽  
Preventive Strategy ◽  
Negative Effects ◽  
Recognition Phase ◽  
Shock Phase ◽  
Definition Of ◽  
Phase Recognition ◽  
Adaptation Phase

Important as it is, crisis has become the hallmark of the present era, making it necessary to confront, contain, and reduce its negative effects. As a science, crisis management is associated with responding to crises, and as an art, it is about making decisions under exceptional pressure in the absence of information. It also needs to follow methodical practices such as strategic thinking, strategic planning, and strategic management to ensure effectiveness. This chapter provides an overview of crisis management as a discipline, highlighting important aspects, such as the definition of crisis and related terms (accident, conflict, danger, and disaster), concepts, causes, and characteristics, and distinguishing between crisis management and management crisis in practice. The study also outlines a typical crisis life cycle and its phases (shock phase, regression phase, recognition phase, and adaptation phase). The research then moves to identifying crisis management strategies, defining preventive strategy technique, emphasizing the importance of effective strategic practices in crisis management, and minimizing their impact. The research concludes by proposing a model to increase the effectiveness of crisis management through effective strategic practices at the state level.

Risk disclosure and risk governance characteristics: evidence from a developing economy

2020 ◽  
Vol 28 (4) ◽  
pp. 577-605 ◽  
Author(s):  
Shamsun Nahar ◽  
Mohammad Istiaq Azim ◽  
Md Moazzem Hossain
Keyword(s):  
Risk Management ◽  
Developed Countries ◽  
Business Environment ◽  
International Standards ◽  
Risk Governance ◽  
Developing Economy ◽  
Risk Disclosure ◽  
Content Type ◽  
Governance Practices ◽  
The Impact

Purpose The purpose of this paper is to explore to what extent risk disclosure is associated with banks’ governance characteristics. The research also focuses on how the business environment and culture may create a bank’s awareness of risk management and its disclosure. This study is conducted in a setting where banks are not mandated to follow international standards for their risk disclosures. Design/methodology/approach Using 300 bank-year observations comprising hand-collected private commercial bank data, the study uses regression analysis to investigate the influence of risk governance characteristics on risk disclosure. Findings This paper reports a positive relationship between risk disclosure and banks’ governance characteristics, such as the presence of various risk committees and a risk management unit. Practical implications Because studies are lacking on risk disclosure and risk governance conducted in developing countries, it is expected that this research will make a significant contribution to the literature and provide a foundation for further research in this field. Social implications This study complements the corporate governance literature, more specifically the risk governance literature, by incorporating agency theory, institutional theory and proprietary cost theory to provide robust evidence of the impact of risk governance practices in the context of a developing economy. Originality/value Previous studies on risk disclosure and governance determinants primarily involve developed countries. This paper’s contribution is to examine risk disclosure and risk governance characteristics in a developing country in which reporting according to international standards is effectively voluntary.

scholarly journals Risk Management as Part of Crisis Management Tasks

2017 ◽  
Vol 9 (1) ◽  
Author(s):  
Witold Skomra
Keyword(s):  
Risk Management ◽  
Natural Disasters ◽  
Crisis Management ◽  
Management System ◽  
Preventive Measures ◽  
Research Problem ◽  
New Challenges ◽  
Definition Of

AbstractThe increasing number of natural disasters requires the use of preventive measures. One of the elements is the inclusion of risk management in crisis management. On the basis of this observation, the research problem was formulated: “In the light of new challenges, should the crisis management system continue to be built on the theory of crisis within the security sciences, or should it be based on risk management developed in the area of management sciences?” In summary, the answer to the question was provided, and a new definition of the concept of “crisis management” was proposed.

scholarly journals MANAGING RISK WITH THE USE OF COMPUTER SIMULATION

2021 ◽  
Vol 2 ◽  
pp. 17-23
Author(s):  
Monika Bučková ◽  
Miroslav Fusko ◽  
Gabriela Gabajová ◽  
Martin Gašo ◽  
Branislav Mičieta ◽  
...  
Keyword(s):  
Computer Simulation ◽  
Risk Management ◽  
Simulation Model ◽  
Action Plan ◽  
Business Environment ◽  
Global Business ◽  
Risk Management Methodology ◽  
External Risk ◽  
Managing Risk ◽  
The Impact

Internal and external risk management has become an important issue in today's global business environment, which is fraught with health, natural, political, economic and technical threats. This article deals with the design of a methodology for problem-solving and risk management in connection with computer simulation. The risk management methodology proposed by us consists of individual steps, which are summarized into three stages - risk assessment, risk analysis and risk management. The proposed computer simulation methodology consists of several steps, for example creating a parametric simulation model, designing experiments, analysis of the simulation model results or the evaluation of the simulation results. These steps are described in the article. After completing the previous steps, we describe the points of an action plan and what it must contain to avoid consequences and the impact of risks at the lowest possible level. An example of the use of computer simulation is the risk situation associated with the fluctuation of employees. In the end, the proposed methodology is supported by the results of our research and its further direction.

scholarly journals Globalization and Bankruptcy of SMEs in Slovakia

2021 ◽  
Vol 92 ◽  
pp. 07015
Author(s):  
Jaroslav Dado ◽  
Lenka Hvolkova ◽  
Janka Taborecka
Keyword(s):  
Value Added ◽  
Structured Interview ◽  
Business Environment ◽  
Global Market ◽  
Market Potential ◽  
Negative Consequences ◽  
Negative Effects ◽  
Market Opportunities ◽  
Evidence Of Impact ◽  
The Impact

Research background: Globalization - the process of increasing social, cultural, political, and economic interdependence - has resulted in several changes in business environment. Global market opportunities and threats are major effects of globalization; they refer to the increases in market potential, trade and investment potential and resource accessibility. Global market threats refer to the increases in the number and level of competition, and the level of uncertainty. Global competitors can have the impact on bankruptcy of local SMEs in less developed or smaller countries. Are globalization in economics and company bankruptcy related? In the past, the cause of bankruptcy was mainly in the company itself. The development of globalization has brought a number of positive as well as a number of negative consequences for several areas of society. Is one of the negative effects of globalization the bankruptcy of companies? Purpose of the article: The paper presents a classification of external and internal causes of bankruptcy and indicators of the threat of company bankruptcy. The paper also focuses on the results of the research analysis about the causes of small and medium-sized enterprises mortality in Slovakia and the impact of globalization factors as the causes of their bankruptcy. The analysis of bankruptcies is oriented on the research of the causes of small and medium-sized enterprises mortality in Slovakia and the influence of globalization factors as the causality of their bankruptcy. Methods: The research sample presents structured interview with 16 SMEs´ owners. They identified more aspects of globalization impact to Slovak SMEs bankruptcy. Findings & Value added: The results of research indicate that there is an evidence of impact of globalization on the bankruptcy of SMEs in Slovakia, but there are some differences among various industries.

scholarly journals THE IMPACT OF SOCIAL AND ECONOMIC FACTORS IN THE CREDIT RISK MANAGEMENT OF SME

2018 ◽  
Vol 24 (3) ◽  
pp. 1215-1230 ◽  
Author(s):  
Jaroslav BELAS ◽  
Lubos SMRCKA ◽  
Beata GAVUROVA ◽  
Jan DVORSKY
Keyword(s):  
Risk Management ◽  
Credit Risk ◽  
Family Environment ◽  
Interest Rate Risk ◽  
Business Environment ◽  
Point Of View ◽  
Quality Data ◽  
Economic Factors ◽  
Credit Risk Management ◽  
The Impact

Numerous research studies deal with the issue of researching the impacts on credit risk determinants in the SME segment. The study of economic factors that are easier to quantify from methodological point of view, and which prevent complex evaluation of causality of interest rate risk and the discovery of various social barriers dominate. This consistent fact forms a platform in designing the research to introduce a model of dependency of effective credit risk management in the SME segment on significant social and economic factors. Empirical research was carried out in the Czech business environment in 2017 on a sample of 352 enterprises. The structural analysis modeling (SEM) was the main analytical method. The research results confirmed the fact that an effective approach to managing the SME’s credit risk is determined by a number of factors of a noneconomic nature. The most important are education and family environment. These are followed by economic factors, such as a relationship with banks, financial knowledge in the area of capital and payment discipline. The multi-spectral dimension of the findings and causality also opened up a wide discussion and prepared a high-quality data research base for further deeper exploration of this issue.

scholarly journals PROCESSES OF GLOBALIZATION OF THE INTERNATIONAL BUSINESS-ENVIRONMENT ARE IN MODERN REALITIES

2017 ◽  
Vol 19 (2(64)) ◽  
pp. 32-36
Author(s):  
A.I. Boiarchuk
Keyword(s):  
World Economy ◽  
Business Environment ◽  
Modern World ◽  
Legal Information ◽  
Nation States ◽  
The World ◽  
Definition Of ◽  
The Right ◽  
National Economies ◽  
The Impact

In the article the influence of globalist processes, widely developing in nowadays world, are analyzed. Because of that the art becomes to be a tool of reach countries to have the right of domination in a world space. Authors argue about positive and negative sides of globalization in this text. The main objective of this paper to analyze in detail the impact of globalization on the world economy. The paper presents the analysis of the nature of the process of globalization in the modern world. Globalization has been analyzed in the following interdependent aspects: economic, territorial. Here are main reasons of globalization. The paper presents two main directions to define of globalization in terms of the behavior of nation-states in the global geopolitical environment. The paper presents the positive and negative influences of globalization on the world economy and national economies in the world. Special attention is paid to the problems associated with globalization for the different states. Globalisation is an incessant process, which lasts a lot of years, but problems, associated with it. Autor dispute among themselves about globalisation and can't create a single definition of this process. Autor argue about positive and negative sides of globalisation in this text. Necessity of formation of uniform economic, legal, information and technological space for realization of free and effective enterprise activity of all subjects of managing has led the Ukrainian economy to to transformation of integration economic processes in a new system condition - globalization of economic communications.

scholarly journals COVID- 19 PANDEMIC IMPACT ON FREE ZONES

2020 ◽  
Vol 1 (12) ◽  
pp. 65
Author(s):  
Sandra Ezmale
Keyword(s):  
Economic Structure ◽  
Document Analysis ◽  
Business Environment ◽  
Economic Situation ◽  
Key Factors ◽  
Negative Effects ◽  
Free Zone ◽  
The World ◽  
Economic Zones ◽  
The Impact

COVID-19 pandemic has an impact on global economic activity, but the negative effects vary from country to country. The key factors determining the depth of the impact are the economic situation at the beginning of 2020, the features of the economic structure and the fiscal capacity of governments to help citizens, businesses and the economy as a whole. Free zones and special economic zones are historically perceived as places that, to some extent, protect investors from unpredictability and act as places where the weak business environment is mitigated. The article investigates the impact of pandemic COVID - 19 on the world's economic situation and free zones, as well as free zones forecasts on the economic recovery. The objective of the article – to analyse the impact of pandemic COVID-19 on the world free zones performance and global economic situation. Within the framework of the study has been characterised the impact of pandemic COVID - 19 on the world's economic situation, described the extent and nature of the COVID- 19 pandemic impacts on performance in the Free Zones, as well as has been described the impact of pandemic COVID 19 on the operation of free-zone enterprises in Latvia by analysing the example of Rezekne's special economic zone.The descriptive methods, document analysis, comparative analysis was used in the study, survey.

scholarly journals Institutional Aspects of Risk Strategic Management in Azerbaijan Hospitality Sector

2020 ◽  
Vol 12 (4) ◽  
pp. 126-137
Author(s):  
Nuray Rauf Rza-Zadeh ◽  
◽  
Marek Dvořák ◽  
Keyword(s):  
Risk Management ◽  
Strategic Management ◽  
Information And Communication Technologies ◽  
Business Processes ◽  
External Environment ◽  
Business Environment ◽  
Starting Point ◽  
Hospitality Sector ◽  
Institutional Aspects ◽  
The Impact

Nowadays, in the 21st century that is distinguished by the high penetration of information and communication technologies, interconnectedness and globalization, the effectiveness of institutions is increasingly manifesting the pressing need to clearly define and assess the prospects and directions of business development, taking into account the likelihood and the occurrence of the objective and subjective risks. This is happening mostly due to the growing volatility of the macroeconomic environment, increased competition, and the rapid globalization of various business processes and solutions. Taking this into account, one can see that the risk of the management process of the hospitality industry represents a complex multi-level procedure. The starting point of the whole risk management system is their forecasting which becomes the most effective way to prepare management decisions in hotel enterprises for the future. This paper focuses on the institutional aspects of risk strategic management in Azerbaijan hospitality sector related to legal, organizational, and cultural characteristics of development. The aim of this study is to identify the major institutional aspects of risk factors of the external environment as well as to realistically assess the changes in the impact of these factors on the activities of hotel enterprises and the hospitality sector of Azerbaijan for the nearest future based on the expert risk forecasting method. Moreover, the paper aims at updating the strategy of hotel development taking into account the changes in the external environment and to link these risks to the business processes taking place in hotel enterprises and in the hospitality sector. We analyze and describe the most important factors and sources of threats to hotel enterprises of Azerbaijan, such as the probability of new competitors, increasing competitive pressure, imperfect business environment in the country, increase in airline tariffs, changing customer needs and tastes, and maintaining a visa regime with many countries. Our results propose some organizational and economic mechanisms for risk management in the hospitality sector.

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