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.

Modeling the Impact of Corporate Risk Management on Firms’ Financial Performance and Sustainable Growth

2022 ◽  
Vol 40 (1) ◽  
Author(s):  
Tanveer Bagh ◽  
Mirza Muhammad Naseer ◽  
Muhammad Asif Khan
Keyword(s):  
Risk Management ◽  
Financial Performance ◽  
Positive Impact ◽  
Developed Countries ◽  
Business Environment ◽  
Sustainable Growth ◽  
Global Business ◽  
Corporate Risk Management ◽  
Corporate Risk ◽  
The Impact

Growing complexities in the indigence and global business environment, the demand for Corporate Risk Management (CRM) has fostered greatly. Equally, Financial Performance (FP) and Sustainable Growth Rate (SGR) are believed to be vital parameters for assessing any organisation's success. Both FP and SGR are get affected by different risks. Therefore, to the best of our knowledge, this paper is the first endeavour meant to empirically shed light on the Impact of CRM on a firm’s FP and SGR. By taking a sample of 160 listed Non-Financial firms from emerging and developed Countries stocks markets, on the bases of market capitalization, covering a period of 12 years (2007-2018). The CRM index has been constructed by using the Principal Component Analysis technique. Panel data fixed-effect Model applied on the bases of Hausman test. The results articulated that CRM has a significant and positive impact on ROE and SGR in the context of both cases. In contrast, inflation negatively relates to both scenarios, but the size and Gross Domestic Product (GDP) have a positive and significant relationship with ROE and SGR. However, in Pakistan's case, Size and GDP have articulated adverse effect on ROE and SGR.

scholarly journals The Impact of Supply Chain Partnership on Firm Performance: an Empirical Study Based on Listed Manufacturing Companies in China

2021 ◽  
Vol 14 ◽  
pp. 22-38
Author(s):  
Panxin Zhou
Keyword(s):  
Supply Chain ◽  
Firm Performance ◽  
Transaction Costs ◽  
Resource Sharing ◽  
Information Exchange ◽  
Business Environment ◽  
Manufacturing Companies ◽  
Additional Test ◽  
Global Business ◽  
The Impact

Today, Supply Chain Management (SCM) is regarded as an essential strategic factor, which has a great deal of influence on earning competitiveness in global business environment. There are conflicts among all members of the SCM. In order to maximize the total profit of the SCM, negotiation among all members is necessary. For enterprise in the supply chain, the supply chain partnership has become a significant factor affecting firm performance. In this paper, I examine the impact of cooperation between enterprise and its supply chain partners. Specifically, I collect survey data from Chinese manufacturing firms about their relations with partners and use regression analysis to test hypotheses about the associations between firm performance and supply chain partnership. My results support that superior supplier partnership has a positive impact on reducing transaction costs and improving financial and market performance. In additional test, I establish a series of models with interactive terms. The results of additional test indicate that the impact is enhanced if the competition of each sub industry of the manufacturing industry is different. Above all, I put forward the following suggestions. Enterprise managers could establish an evaluation mechanism of suppliers and retailers, which select high-quality cooperative partners and reduce low-quality transaction costs for enterprises. When participating in business operation, shareholders could comprehensively understand the business conditions of various supply partners and choose reliable supply chain partners for investment. Also, the government can guide the realization of resource sharing and information exchange among supply chain enterprises, which is beneficial to create a more competitive supply chain to promote economic development.

Effect of Secondary Force on Rigidity of Oil Film of the Slipper Pair Based on Hydrostatic Support

2012 ◽  
Vol 468-471 ◽  
pp. 1380-1383
Author(s):  
Hui Wang ◽  
Yu Xin Wang
Keyword(s):  
Computer Simulation ◽  
Friction Coefficient ◽  
Simulation Model ◽  
Dynamic Characteristics ◽  
Mathematics Model ◽  
Support Structure ◽  
Oil Film ◽  
Work Pressure ◽  
The Impact

Rigidity of oil film is an important hydrostatic support performance of the slipper pair. This paper establishes the mathematics model of hydrostatic support structure on the basis of considering secondary force. And establish the simulation model of rigidity of oil film by using the toolbox of Simulink. Study the dynamic characteristics of rigidity of oil film under the influence of secondary force through computer simulation. And reach a conclusion that the impact of secondary force on rigidity of oil film has a relationship with friction coefficient and work pressure.

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 The Impact of Internal, External and Enterprise Risk Management on the Performance of Micro, Small and Medium Enterprises

2019 ◽  
Vol 11 (7) ◽  
pp. 2172 ◽  
Author(s):  
Dewi Hanggraeni ◽  
Beata Ślusarczyk ◽  
Liyu Adhi Kasari Sulung ◽  
Athor Subroto
Keyword(s):  
Risk Management ◽  
Financial Management ◽  
Business Performance ◽  
Small And Medium Enterprises ◽  
West Sumatra ◽  
Management Factors ◽  
Managing Risk ◽  
Medium Enterprises ◽  
Additional Value ◽  
The Impact

This paper aims to develop the role of internal factors, external factors, and risk management variables on MSMEs’ business performance. This research was conducted in underdeveloped regions of five provinces, which includes 14 cities in Indonesia—East Java, West Sumatra, North Sumatra, West Nusa Tenggara, and East Nusa Tenggara. The Resource-based view and Market-based view methods were chosen to measure 1401 data of MSMEs. The data was collected using offline questionnaires then processed using SPSS. This paper demonstrates a remarkable outcome for MSMEs, showing the significant result of risk management factors that includes risk assessment of marketing and financial management. Other independent variables of internal, external, and risk management factors also show important outcomes on MSMEs performance. This paper offers additional value of the implementation of ERM in MSMEs, which are spread in underdeveloped regions in Indonesia. The findings shown that the activity of the enterprises in identifying and managing risk would bring up the significant effect on operational business performances.

Proposed Framework for Research in the Triple A (Agility, Adaptability, Alignment) in Supply Chains

2011 ◽  
pp. 306-321 ◽  
Author(s):  
Ivan Arana-Solares ◽  
Jose Machuca ◽  
Rafaela Alfalla-Luque
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Competitive Advantage ◽  
Business Performance ◽  
Business Environment ◽  
Sustainable Competitive Advantage ◽  
Global Business ◽  
The Impact

In the rapidly changing global business environment, it can be seen that supply chain designs based solely on efficiency and speed do not necessarily lead to a sustainable competitive advantage. According to Lee (2004), this can only be done if supply chains are designed to incorporate the Triple A: Agility, Adaptability and Alignment. Although Lee provided some examples, to date his claim has not been empirically tested, which is essential. A number of studies have looked at the three component parts of the Triple A separately, but as yet no studies have focused on all three Triple A components concurrently, or on the impact they have on business performance. The main aim of this chapter is to determine the dimensions and factors that characterize these variables, in order to empirically test the accuracy of Lee’s claim.

A CROSS-CULTURAL STUDY ON RISK, UNCERTAINTY, AND INFORMATION

2010 ◽  
Vol 06 (02) ◽  
pp. 167-176
Author(s):  
YUMIKO NARA
Keyword(s):  
United States ◽  
Risk Management ◽  
United States Of America ◽  
Action Plan ◽  
The United States ◽  
Cross Cultural ◽  
Social Survey ◽  
Cross Cultural Study ◽  
The Social ◽  
The Impact

In this paper, the author aims to examine the differences in perception concerning the anxiety toward the risk among three countries — Japan, the United States of America and China. The anxiety, in this case, is triggered by uncertainty. This paper also intends to clarify the effect of information to improve people's risk management targeted on the respondents of the Chinese population focusing on earthquake disasters. The social survey using questionnaire has been carried out in order to obtain the needed quantitative data for my research project. It is interesting to conclude that both respondents in China and in the United States tend to accept the impact of uncertainty better. They have shown somewhat lower level of anxiety toward nineteen items of the risks as compared with that of the Japanese respondents. The significant effects on information designed as a part of the risk management action plan as well as the living sufficiency safeguard are clearly observed.

scholarly journals THE EFFECT OF MANAGING RISK PROCESS IN CONSTRUCTION PROJECTS

2020 ◽  
Vol 5 (4) ◽  
pp. 101-114
Author(s):  
Khanm Noori Kaka HamaAttar
Keyword(s):  
Risk Management ◽  
Construction Projects ◽  
Theoretical Aspect ◽  
Risk Process ◽  
Risk Identification ◽  
Management Process ◽  
Risk Management Process ◽  
Risks Assessment ◽  
Managing Risk ◽  
The Impact

The aim of this study is to get a better understanding for the effect of the set of the risks in the construction projects, in addition to how mitigating these risks in those projects. Indeed risks are frequently playing the same rules, but the nature of project defines the specific risks of the project. The first step in process of risks assessment is identification them. Once risk identification is complete, risk analysis is used to identify the likelihood the risks that have been identified will happen. Thus by using evidence from other research in the area, this study showed the impact of the set of the stages in the risk management process in the construction projects, which were discussed in greater detail in the theoretical aspect of the current study. The findings of the study were revealed the fact that the comprehension of risk and its management has the direct effect of understanding specific issues that involve to the project. In addition to that, the integration of a risk management process at each stage of its stages in construction projects must be oriented to the progress of the project and permeate all areas, functions and processes of the project. In this regard, the most successful project managers maintain open lines of communication throughout their organizations to stay in touch with constituent’s needs.

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 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.

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