Research on the Impact of Internal Control on Risk Management of Chinese Listed Insurance Companies

2021 ◽  
Author(s):  
Shuliang Liu ◽  
Jinying Chen
Keyword(s):  
Risk Management ◽  
Internal Control ◽  
Insurance Companies ◽  
The Impact

Board and Management-Level Factors Affecting the Maturity of IT Risk Management Practices

2018 ◽  
Vol 33 (3) ◽  
pp. 117-135
Author(s):  
Nishani Edirisinghe Vincent ◽  
Julia L. Higgs ◽  
Robert E. Pinsker
Keyword(s):  
Risk Management ◽  
Internal Control ◽  
Management Practices ◽  
Factors Affecting ◽  
Management Level ◽  
It Risk Management ◽  
Top Managers ◽  
Risk Oversight ◽  
The Impact ◽  
It Risk

ABSTRACT The Securities and Exchange Commission's 2009 enhanced proxy disclosure requirements and the updated Committee of Sponsoring Organizations' (COSO) Internal Control Framework have caused organizations to increase their focus on risk management and consider the impact of information technology (IT) in enterprise risk management. Our study examines whether board involvement, board expertise, and top management's risk culture affect the maturity of IT risk management practices (maturity) in firms. We find that board involvement positively influences maturity while top managers' risk-taking behavior is associated with lower maturity. Even though board expertise influences maturity, board involvement is more important in explaining maturity. Maturity is higher in firms where risk oversight lies with a board-level, rather than a management, committee. However, the maturity of ITRM practices does not differ among firms whether risk oversight lies with the overall board, or any other board committee. The findings contribute to an under-researched area in IT governance.

Understanding the influence of lean and agile strategies on creating firms’ supply chain risk management capabilities

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Waqar Ahmed ◽  
Muhammad Zaki Rashdi
Keyword(s):  
Risk Management ◽  
Supply Chain ◽  
Empirical Evidence ◽  
Internal Control ◽  
Market Condition ◽  
Equation Modeling ◽  
Supply Chain Risk ◽  
Content Type ◽  
Management Capabilities ◽  
The Impact

Purpose Lean and agile strategies are two basic supply chain paradigms that strategist decouples based on their internal and external environment. This study aims to identify the influence of market orientation (MO) and quality management (QM) deployment on the supply chain strategies. Furthermore, this study also seeks empirical evidence of the impact of these core strategies on creating risk management capabilities. Design/methodology/approach Quantitative research technique is deployed to explain the phenomenon. The data was gathered through a structured scale questionnaire from supply chain professionals working at different manufacturing firms. Valid data of 134 respondents is then analyzed through partial least squares structural equation modeling for further empirical understanding. Findings The outcome of the research indicates that MO capability; as an external drive is a key to make an operational strategy. QM as an internal control is more prone to formulating a lean strategy (LS). Another important finding is that LS does not complement risk management capabilities especially in an uncertain market condition. Practical implications The study suggested concrete implications for risk management through the right mix of lean and agile supply chain strategies. There are some good insights for the supply chain policy-makers working in a developing country. Originality/value This study will provide empirical evidence for managing supply chain risk through an effective strategy making.

Governance and Risk Management in United Kingdom Insurance Companies. Discussion held at the Institute of Actuaries

2009 ◽  
Vol 15 (3) ◽  
pp. 557-572
Keyword(s):  
Risk Management ◽  
United Kingdom ◽  
Internal Control ◽  
Insurance Companies ◽  
Original Research ◽  
Insurance Company ◽  
Equity Risk ◽  
Enterprise Risk ◽  
Complex Models ◽  
Wide Group

Mr M. R. Kipling, F.I.A.: This paper is entitled Governance and Risk Management in United Kingdom Insurance Companies. It is a very timely paper in light of the recent publication of the Turner review which, among other things, covers the governance of UK financial institutions.Mr S. P. Deighton, F.I.A. (introducing the paper): The paper is the first formal output from the Research and Thought Leadership subcommittee of the Enterprise Risk Management (ERM) Practice Executive Committee (PEC). It may seem odd, therefore, that it contains no original research. There is not an equation in sight, and there is only one token diagram. This is because the most important of its key themes is that there is much more to ERM than complex models and fancy mathematics.There are a number of areas associated with ERM. One of them is understanding the wider governance framework within which an insurance company must operate, and hence the introduction to that subject at the beginning of the paper. The second is how to run the very detailed identification and mitigation of the myriad of small risks across a wide group which is at the other end of the spectrum to the multi-million pound derivative transactions that manage equity risk. Our paper sees this as indistinguishable from the internal control framework that a company needs in order to comply on the governance front.

scholarly journals The Impact of The Reinsurance Institute on The Financial Results of Insurance Companies

2021 ◽  
Vol 13 (3) ◽  
pp. 117-130
Author(s):  
Marina V. Polyakova ◽  
◽  
Konstantin L. Polyakov ◽  
Keyword(s):  
Risk Management ◽  
Financial Management ◽  
Cash Flows ◽  
Insurance Companies ◽  
Financial Indicators ◽  
Short Term ◽  
Ex Post ◽  
Insurance Business ◽  
Financial Characteristics ◽  
The Impact

Risk management is one of the biggest challenges for financial market participants, in particular for the insurance companies. To solve this problem, the regulator and the insurance market have created a number of institutions, one of which is the institution of reinsurance. Institutions contribute to the solution of problems arising due to the limited rationality and opportunism of participants of contract processes. By use of these institutions organizations have an opportunity to reduce the “ex post” and “ex ante” transaction costs associated with contracts. At the same time, institutions only determine the rules and goals. The organization’s tactics and the way of fulfilling the requirements are completely controlled by its leadership of all levels, which also defines the role of institutions in solving other important business tasks, such as ensuring its efficiency and sustainability. The sustainability and efficiency of the insurance business significantly depends on proper risk management. This study analyses how the use of reinsurance institution as a part of risk-management affects the financial results of insurance companies. The insured events specified in contracts may not occur during their validity period, and one can suppose that in the short-term perspective reinsurance generates mostly outgoing cash flows, which affect the efficiency, solvency and liquidity of the organization. So the aim of the study is to analyse the impact of reinsurance intensity estimated by the share of premium transferred to the reinsurer on the specific financial characteristics of Russian insurance business. As a result, it was revealed that in the short term the impact is significantly negative: the use of reinsurance leads to decrease in financial performance of domestic insurance organizations. This result, of course, does not diminish the significance of reinsurance for risk-management, but it should be taken into account within financial planning and actuarial activities. For completeness, the relationship of various financial indicators with efficiency, solvency and liquidity of insurance companies was also analysed. In particular, it was shown that a change in the influence strength of a number of financial management tools affect above mentioned characteristics. We also noted the need to consider the nonlinear nature of relationships between financial indicators used in study in processes of forecasting and management.

scholarly journals A review of Solvency II: Has it met its objectives?

2018 ◽  
Vol 23 ◽  
Author(s):  
R. A. Rae ◽  
A. Barrett ◽  
D. Brooks ◽  
M. A. Chotai ◽  
A. J. Pelkiewicz ◽  
...  
Keyword(s):  
Risk Management ◽  
Financial Stability ◽  
Working Party ◽  
Solvency Ii ◽  
Capital Requirements ◽  
Insurance Companies ◽  
Original Design ◽  
Risk Margin ◽  
The Impact ◽  
Market Consistency

AbstractSolvency II is currently one of the most sophisticated insurance regulatory regimes in the world. It is built around the principles of market consistency and embedding strong risk management and governance within insurance companies. For business with long-term guarantees, the original basis produced outcomes that were unacceptable to the member states. The original design was amended through Omnibus II. The working party has looked back at the outcome of the final regulation and comments on how well Solvency II has fared, principally from a UK perspective, relative to its initial goals of improved consumer protection, harmonisation, effective risk management and financial stability. We review Pillar 1’s market consistent valuation (including the risk margin and transitional measures) as well as the capital requirements (including internal models). We look at the impact this has on asset and liability management, pro-cyclicality and product design. We look at Pillars 2 and 3 in respect of the Own Risk and Solvency Assessment, liquidity and disclosure. Finally, we stand back and look at harmonisation and the implications of Brexit. In summary we conclude that Solvency II represents a huge improvement over Solvency I although it has not fully achieved the goals it aspired to. There are acknowledged shortfalls and imperfections where adjustments to Solvency II are likely. There remain other concerns around pro-cyclicality, and the appropriateness of market consistency is still open to criticism. It is hoped that the paper and the discussion that goes with it provide an insight into where Solvency II has taken European Insurance regulation and the directions in which it could evolve.

scholarly journals Pengendalian Internal Terhadap Deteksi Risiko Kecurangan dan Kinerja Perusahaan Daerah Air Minum

2016 ◽  
Vol 8 (2) ◽  
pp. 151
Author(s):  
Yuli Ardianto ◽  
Dian Riskarini
Keyword(s):  
Risk Management ◽  
Internal Control ◽  
Corporate Performance ◽  
Enterprise Risk Management ◽  
Partial Least Square ◽  
Least Square ◽  
Enterprise Risk ◽  
Malcolm Baldrige ◽  
The Impact ◽  
Positive Effect

<p align="center"><em>ABSTRACT</em></p><p><em><br /> The </em><em>research</em><em> was entitled The </em><em>influence </em><em>of Internal Control </em><em>on </em><em>Risk Management </em><em>and its implication on Perusahaan Daerah Air Minum </em><em>Performance. </em><em>The formulation of the problem is whether there: internal control influence on enterprise risk management, internal control influence on corporate performance, </em><em>fraud </em><em>influence on corporate performance. The purpose of this study is to examine and analyze: internal control influence on enterprise risk management, internal control influence on corporate performance, </em><em>fraud </em><em>influence on corporate performance. During this time many research fields of accounting and finance are well have analyzed the influence of the internal control</em><em> on</em><em> risk management and corporate performance, but rarely all three studies measure the impact of these variables on corporate performance as measured by Malcolm Baldrige. The research method uses analytical descriptive and exploratory. Samples were directors and audit committee in </em><em>PDAM </em><em>Jakarta, Bogor, Tangerang and Bekasi. Methods of data analysis using partial least square. Results of the study are: internal control positive effect on the risk management, internal control positive effect on the malcolm baldrige performance, risk management positive effect on the malcolm baldrige performance</em></p>

scholarly journals Risk Management Indicators in Patients with Lymphoma in Colombia

Blood ◽  
2018 ◽  
Vol 132 (Supplement 1) ◽  
pp. 5852-5852
Author(s):  
Paula Ramírez ◽  
Ana Milena Gil ◽  
Juan Camilo Fuentes ◽  
Claudia Lucia Sossa ◽  
Claudia Marcela Chalela ◽  
...  
Keyword(s):  
Risk Management ◽  
Health Insurance ◽  
Healthcare System ◽  
Insurance Companies ◽  
Health Providers ◽  
Management Indicators ◽  
Health Insurance Companies ◽  
Online Voting ◽  
The Impact ◽  
Consensus Report

Abstract Background: Lymphomas are the sixth most common type of cancer in adults in Colombia. According to Cuenta de Alto Costo data from health insurance companies and health providers, there were 10,928 cases (1,257 new cases reported in 2016) of lymphoma in Colombia in 2017. Consequently, it is crucial to develop an instrument to assess and monitor risk management by insurance companies and providers in adults with diagnosis of Hodgkin and non-Hodgkin lymphoma. This would eventually contribute to reduce the impact of the disease in the patients, their families, and the healthcare system. The aim of this study was to establish evidence-based risk management indicators to measure health insurance companies' and health providers' performance in risk control in patients with lymphoma in Colombia. Methods: A consensus report was conducted adapting the method "The RAND/UCLA Appropriateness Method (RAM)". First, a detailed literature review was performed to synthesize the latest evidence on the topic. Second, a list of indicators was pre-selected. Third, expert panel rated the pre-selected indicators in two rounds. During the first-round, experts answered an online questionnaire to rate each indicator from 1 to 7 using a Likert scale. The ratings were made individually with no interaction among panelists. During the second-round, panelists met and discussed each indicator and the ratings. Then, re-rated each indicator individually. Indicators with a score over 80% were considered consensus. Fourth, a panel meeting was conducted to establish final indicators. And finally, results were shared with all actors involved in the Colombian healthcare system. Results: Twenty-four insurance companies representatives, 2 government representatives, and a public advocate participated. After reviewing the literature and a panel discussion, experts pre-selected a list of 25 management indicators which then were submitted to online voting. Twenty-three indicators achieved a high score and were validated, but since the two remaining indicators only received an intermediate score, all 25 indicators were submitted to a second online voting after discussing the first-round results. During the second-round, 3 indicators that were rated "inappropriately" by the panelists due to lack of relevance or viability, were conclusively excluded. Lastly, 15 final management indicators were approved and classified in five different domains (diagnosis, staging, treatment, opportunity, and results-overall survival, relapse-free survival, and mortality) during the panel meeting. Conclusion: Risk management indicators were established by a consensus report to assess and monitor management of patients with lymphoma by insurance companies and health providers. Since management indicators can be assessed from information reported by insurance companies to Cuenta de Alto Costo group, implementing strategies to improve survival rates and health-related quality of life can have great impact decreasing the burden of the disease in the Colombian healthcare system. Disclosures No relevant conflicts of interest to declare.

scholarly journals The Implementation of ERM in Non-Life Insurance Companies in Albania

2020 ◽  
Vol 5 (6) ◽  
Author(s):  
Armanda Tola
Keyword(s):  
Risk Management ◽  
Field Study ◽  
Life Insurance ◽  
Firm Value ◽  
Management Practices ◽  
Capital Allocation ◽  
Insurance Companies ◽  
Structured Interviews ◽  
Adoption And Implementation ◽  
The Impact

Enterprise risk management (ERM) has emerged a significant change starting from the way firms manage their complex portfolio of risks. Particularly, the insurance companies that use ERM have shown propensity of success during their daily operation and have been capable to diminish the collective risk of their output. This study draws attention to the performance, firm value and capital allocation effects of ERM adoption in emerging economies using the case of non- life insurance companies in Albania. The objective of the paper is to examine the effects trigged by ERM implementation on their firm value and the factors that caused it based on a structural and institutional theoretical framework. The sample is the population itself including all the non-life insurance companies which have implemented ERM from 2015 and on. The methodology includes explanatory field study through semi-structured interviews with the key actors of risk management departments of these companies. This study distinguishes the impact of institutional and managerial pressures in adapting ERM in non-life insurance companies, based on empirical evidence and field study. The aim is to contribute in a better understanding of all the forces driving ERM adoption and implementation and the change in risk management practices and capital allocation within non-life insurance companies in Albania. The findings identify the nature of internal and external factors which can be useful in creating new policies in relation of improving risk management systems and corporate governance.

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