scholarly journals Model of evaluation of enterprise risk management

2019 ◽  
pp. 55-63
Author(s):  
Jonas Mackevičius ◽  
Lukas Giriūnas
Keyword(s):  
Risk Management ◽  
Risk Identification ◽  
Enterprise Risk Management ◽  
Risk Classification ◽  
Risk Level ◽  
Management Tools ◽  
Enterprise Risk ◽  
Evaluation Problem ◽  
Risk Determinants ◽  
Enterprise Activity

It should be noted that in this article the enterprise‘s activity risk management and evaluation problem is defined. The risk classification is defined in these criteries: coming way, effect, activity‘s area, time, probability of result, probability of management, importance and misuses. The model of evaluation of enterprise risk management is recommended. The model consists of these stages of risk management and evaluation: 1) identification of enterprise activity internals, 2) identification of risk determinants, 3) risk identification, 4) evaluation of risk level, 5) evaluation of risk consequence, 6) system of risk management tools, 7) evaluation of costs of risk management, 8) choice of strategy of risk management, 9) evaluation of results.

scholarly journals How Can Enterprise Risk Management Help in Evaluating the Operational Risks for a Telecommunications Company?

2021 ◽  
Vol 14 (3) ◽  
pp. 139
Author(s):  
José Ruiz-Canela López
Keyword(s):  
Risk Management ◽  
Banking Sector ◽  
Operational Risk ◽  
Field Work ◽  
Risk Identification ◽  
Enterprise Risk Management ◽  
Management Tool ◽  
Self Assessment ◽  
Operational Risks ◽  
Enterprise Risk

Operational risk is defined as the potential losses resulting from events caused by inadequate or failed processes, people, equipment, and systems or from external events. One of the most important challenges for the management of the company is to improve its results through its operational risk identification and evaluation. Most of Enterprise Risk Management (ERM) scholarship has roots in the finance/risk management and insurance (RMI) discipline, mainly in the banking sector. This study proposes an innovative operational risk assessment methodology (OpRAM), to evaluate operational risks focused on telecommunications companies (TELCOs), on the basis of an operational risk self-assessment (OpRSA) process and method. The OpRSA process evaluates operational risks through a quantitative analysis of estimates which inputs are the economic impact and the probability of occurrence of events. The OpRSA method is the “engine” for calculating the economic risk impact, applying actuarial techniques, which allow estimation of unexpected losses and expected losses distributions in a TELCO. The results of the analyzed business unit in the field work were compared with standardized ratings (acceptable, manageable, critical, or catastrophic), and contrasted against the company’s managers, proving that the OpRSA framework is a reliable and useful management tool for the business, and leading to more research in other sectors where operational risk management is key for the company success.

scholarly journals Implementation of a sustainable enterprise risk management framework: The Administrator on Duty model

2016 ◽  
Vol 5 (2) ◽  
pp. 80
Author(s):  
Linda L Vila ◽  
Vito Buccellato
Keyword(s):  
Health Care ◽  
Risk Management ◽  
Organizational Performance ◽  
Health Care Organization ◽  
Well Being ◽  
Safety Net ◽  
Risk Identification ◽  
Enterprise Risk Management ◽  
Care Organization ◽  
Enterprise Risk

Background: Today’s health care landscape requires a new standard of service delivery aimed at quality outcomes, cost-effective provisions of coordinated treatment, and access to equitable care. This standard has brought emerging risks that pose threats to the operational and financial well-being of health care organizations, especially safety net hospitals. The establishment of enterprise risk management (ERM) programs guided by the efforts of efficacious health care managers will promote deeper risk analysis, engagement of the entire health care organization, and structured, coordinated and cohesive mitigation responses to risk exposures.Objective: To establish and implement an ERM program using the Administrator on Duty (AOD) model that will promote a patient-centric paradigm of care while optimizing organizational performance and mitigating risk and exposure.Results: The AOD model significantly contributes to all phases of ERM, particularly risk identification, risk assessment, risk response and monitoring. The model, as perceived by both AODs and hospital senior leadership, provides tremendous benefits to a health care organization. These include, among many others, a substantial leadership presence, dynamic risk mitigation efforts, continuous education to staff and facilitation of problem solving and conflict resolution.Conclusions: The AOD program is a vital constituent of an ERM endeavor. AODs are pivotal to managing the global risk terrain of a health care organization and play a substantial role in promoting patient, staff and visitor safety while working to ensure potential and actual risk issues are addressed timely and appropriately.

scholarly journals STRATEGIC APPROACH TO MANAGING THE RISK OF THE COMPANY'S BUSINESS PORTFOLIO

Management ◽  
2018 ◽  
Vol 27 (1) ◽  
pp. 111-118
Author(s):  
Liudmyla M. GANUSHCHAK-EFIMENKO ◽  
Mаryana S. SHKODA ◽  
Оlena M. NIFATOVA
Keyword(s):  
Risk Assessment ◽  
Risk Management ◽  
Enterprise Risk Management ◽  
Economic Feasibility ◽  
Innovation Activity ◽  
Management Mechanism ◽  
Management Tools ◽  
Management Measures ◽  
Strategic Approach ◽  
Enterprise Risk

Introduction and purpose of the research: The inevitable condition of management is uncertainty. Innovation activity is more risky than other areas of entrepreneurship. In the conditions of instability of the economic situation, the problem of the risk of loss when the company invests in innovations becomes especially relevant.Hypothesis of scientific research. It is assumed that the justification of enterprise risk management measures should be based on the synthesis of the economic feasibility of the method and its ability to address the risk, which will enable competent executives to choose effective risk management tools for the enterprise.The aim is to study the process of risk management in the innovation activity of the enterprise, to develop and substantiate the recommendations for the formation of the enterprise risk management mechanism taking into account the ownership form and its size.Research methods:- comparison methods to identify the weak and strong points of the classification schemes, methods of risk assessment and management;- systematization and classification to determine the characteristics (advantages, disadvantages, peculiarities of application) of methods of enterprise risk assessment, risk management methods and construction of a classification scheme of enterprise risks as the basis of the mechanism of its risk management;- decompositions in the construction of a business risk card due to the division and analysis of the totality of its business activities;- expert assessments in determining the enterprise risks for small, medium and large enterprises in the field of mechanical engineering.Results: substantiated and solved problems of implementation of the strategic approach in project risk management at the enterprise.Conclusions: the mechanism of enterprise risk management based on the system approach combines the administrative, legal and organizational components, makes it possible to identify the risks of the company in three aspects (industry characteristic, form of ownership, size), ensures the formation of a portfolio of risks of a particular enterprise and creates the principles for improving the management mechanism for them.

OPERATIONAL RISK MANAGEMENT OF SURABAYA MAIN NAVAL BASE V REPAIR AND MAINTENANCE FACILITY BASED ON ISO 31000 FRAMEWORK

JOURNAL ASRO ◽  
2019 ◽  
Vol 10 (3) ◽  
pp. 111
Author(s):  
Yunus Patabang ◽  
Suprayitno Suprayitno ◽  
Erpan Sahiri ◽  
I Made Jiwa
Keyword(s):  
Risk Management ◽  
Phase 1 ◽  
Armed Forces ◽  
Risk Identification ◽  
Enterprise Risk Management ◽  
Phase 2 ◽  
Effective Prevention ◽  
Enterprise Risk ◽  
Iso 31000 ◽  
Naval Base

Surabaya Main Naval Base V Repair and Maintenance Facility is one of the work units under the auspices of the Indonesian Navy that is tasked with carrying out the maintenance and repair of all major weapons systems of the Indonesian Navy. In carrying out their duties Surabaya Main Naval Base V Repair and Maintenance Facility has a big challenge and even there are various kinds of risks to prepare all the Indonesian Armed Forces defense equipment in accordance with the demands of need. Therefore, in this research, risk management will be carried out at the Surabaya Main Naval Base V Repair and Maintenance Facility Operational based on the ISO 31000: 2018 framework. Based on this framework, risk management will be carried out, namely how to carry out risk assessments in the form of risk identification, risk analysis, and risk evaluation for all risks in the operational field. Enterprise Risk Management (ERM) is also used to carry out in-depth risk management processes. One method used to solve existing problems is to use the House of Risk (HOR) method, which is divided into two stages. Stage 1 HOR focuses on ranking the Aggregate Risk Potential (ARP) value and with the help of the Pareto diagram the cumulative ARP value is obtained to determine the risk event (risk agent) selected, which then requires treatment on a priority scale. The results of this HOR phase 1 are then included in HOR phase 2 to rank the most effective prevention measures based on costs and resources. From the results of the HOR phase 2, further brainstorming was carried out with the Surabaya Main Naval Base V Repair and Maintenance Facility in accordance with the actions chosen for preventive actions that could be immediately carried out.Keywords: House of Risk, Enterprise Risk Management, SNI ISO 31000: 2018.

scholarly journals The Challenges and Opportunities for ERM Post-COVID-19: Agendas for Future Research

2020 ◽  
Vol 13 (12) ◽  
pp. 323
Author(s):  
Don Pagach ◽  
Monika Wieczorek-Kosmala
Keyword(s):  
Risk Management ◽  
Risk Identification ◽  
Enterprise Risk Management ◽  
Additional Research ◽  
Future Research ◽  
Research Attention ◽  
Enterprise Risk ◽  
Challenges And Opportunities ◽  
The Impact

In this paper, we examine the impact that COVID-19 has had on enterprise risk management (ERM). Guided by the origins and philosophy of ERM, we suggest an agenda for future research on ERM in a “post-COVID-19” reality, by addressing its integrated, strategic, and value-enhancing orientation. To guide future research endeavors in ERM, which is still an evolving discipline, we present topics that would benefit from additional research attention within both risk identification and analysis, as well as the strategic dimension of ERM.

A framework for enterprise risk identification and management: the resource-based view

2019 ◽  
Vol 34 (2) ◽  
pp. 162-188 ◽  
Author(s):  
Birendra K. Mishra ◽  
Erik Rolland ◽  
Asish Satpathy ◽  
Michael Moore
Keyword(s):  
Risk Management ◽  
Online Survey ◽  
Risk Identification ◽  
Enterprise Risk Management ◽  
Sample Survey ◽  
Risk Exposure ◽  
Organizational Resources ◽  
Data Set ◽  
Content Type ◽  
Enterprise Risk

Purpose This study aims to examine the factors influencing enterprise risk management and propose a framework for identifying and explaining the components of enterprise risk management. To enable broader analytical thinking about risk factors, the framework utilizes the resource-based theory to link various classes of risks to an extended set of organizational resources. Design/methodology/approach The paper opted for an exploratory study using a sample from an online survey. The survey subjects were recruited from the membership database of the American Institute of Certified Public Accountants, focusing primarily on CFOs. The survey consisted of six sections: demographics, a section on each of the four risk types included in ERM: strategic risk, operational risk, financial risk and hazard risk, and exit questions (where very general questions about ERM were asked). The survey yielded a data set of 227 valid responses. Findings Using the associated sample survey data, the paper provides empirical validation of the proposed framework that managers in any organizations could use to identify and manage risks. Research limitations/implications The proposed model does have limitations that predominantly exist from the fact that human judgment in decision-making is not always data-driven, and hence, a proper risk exposure could be ignored based on pure arguments of cost and benefits from domain experts. Therefore, researchers and practitioners are encouraged to test the proposed framework further. Practical implications Risk exposure is not a snapshot event in an organization’s time horizon. Rather, risk identification is an ongoing process and the proposed framework allows organizations to handle increasing complex risks and/or identifying them based on how the organizational resources may be exposed over time. Managers could use a form of risk control analytics (monitoring dashboard of all identified risks under each interaction sets on a regular basis) to become more proactive in managing risk or exploiting opportunities across enterprise. Originality/value This paper fulfills an identified need to study how enterprise risks exposure can be proactively assessed and managed.

scholarly journals Decentralized Enterprise Risk Management Issues under Rapidly Changing Environments

Risks ◽  
2021 ◽  
Vol 9 (9) ◽  
pp. 165
Author(s):  
Levente Bakos ◽  
Dănuț Dumitru Dumitrașcu
Keyword(s):  
Risk Management ◽  
Risk Identification ◽  
Enterprise Risk Management ◽  
Theory And Practice ◽  
Changing Environments ◽  
Operational Risks ◽  
Multidisciplinary Cooperation ◽  
Single Person ◽  
Enterprise Risk ◽  
Management Techniques

Under the growing complexity of manufacturing processes, supply chains, markets and stakeholder expectations, enterprise risk management (ERM) has become an extremely important, probably yet still underdeveloped, management function. Enterprise risk management theory and practice should keep pace with the changes of rapidly changing environments, through new, more adaptive approaches. The article presents some of the results of a longitudinal survey at Eastern-European manufacturing organizations made on risk management techniques. The goal of the research was the study of risk management techniques under rapidly changing environments in highly standardized industries (pharmaceutical and automotive). The research was focused on the role of human resources in handling technology-related/operational risks and to what extent a decentralized risk management is present. Multidisciplinary cooperation, the selection of the teams, communication and the decision making within the team was analysed. During our research few common risk analysis routines were identified at the studied organizations. Through an interview-based qualitative survey, possible weaknesses of common risk identification techniques were identified. The article presents three risk evaluation methods with the same features. The answers provided during the interviews indicate that risk assessment techniques are mostly centralized (coordinated by a single person/unit), linear (based on If-Then construct) and rigid, definitively not suitable when quick changes are in the organization environment.

scholarly journals Risk management practices and financial performance nexus: Evidence from MSMEs in Osun State, Nigeria

2021 ◽  
Vol 8 (1) ◽  
pp. 44-55
Author(s):  
Olugbenga Ayo Ojubanire ◽  
Solomon Dawodu
Keyword(s):  
Risk Management ◽  
Financial Performance ◽  
Management Practices ◽  
Risk Identification ◽  
Enterprise Risk Management ◽  
Primary Data ◽  
Medium Scale ◽  
Firm Financial Performance ◽  
Enterprise Risk ◽  
And Control

This study assessed the effect of enterprise risk management on the firm financial performance of Micro, Small and Medium-scale Enterprises in Osun state Nigeria. Precisely, the risk encountered, the adoption of risk management practices, the implementation of Enterprise Risk Management (ERM) practices, and the financial performance of micro, small and medium scale enterprises in Osun state Nigeria. Primary data was used for this study; a well-structured questionnaire was used to elicit data from 273 respondents. The study population consists of owners and managers of small and medium businesses in Osun state, Nigeria. Data were analyzed using descriptive analysis and was the inferential statistic used to test the hypotheses. The results showed that market (33.7%), strategic (57%), financial (46.9%), operational (34.2%), management (47.6%), and technological (45.4%) are risks prevalent to micro and small businesses, but most of the respondents disagreed that the relationship of their staff to the customer is poor. Risk acceptance with a mean score of (2.27 ± 1.21) is the most utilized risk management practice adopted by the MSMEs. The implementation of ERM practices shows that MSMEs more utilized setting of objectives (43.6%), risk identification (38.3%), risk assessment (36.2%), and control activities (31.2%) and the financial performance of the businesses was moderate (69.7%). The correlation analysis shows no significant relationship between the scale of business and the adoption of risk management practices. Also, the regression analysis shows that Risk identification (β = 0.388, p ≤0.01) and Control activities (β = 1.096, p ≤0.01) are the only ERM variables that significantly affect financial performance. The study concluded that the implementation of enterprise risk management practices has a significant effect on the financial performance of Micro, Small and Medium enterprises in Osun State, Nigeria.

scholarly journals Using digit analysis to evaluate financial reporting risk in the enterprise risk management process

2008 ◽  
Vol 6 (1-4) ◽  
pp. 443-448
Author(s):  
Shirley J. Daniel ◽  
Liming Guan ◽  
John P. Wendell
Keyword(s):  
Risk Management ◽  
Financial Reporting ◽  
Boards Of Directors ◽  
Enterprise Risk Management ◽  
Audit Committees ◽  
Management Tools ◽  
Rating Agencies ◽  
Enterprise Risk ◽  
Risk Management Process ◽  
Reported Earnings

Boards of Directors and their audit committees are responsible for the oversight of risk management for the enterprise. Because entities are being asked by rating agencies to more explicitly describe their enterprise risk management processes, boards and management will be well served to employ risk management tools to efficiently and effectively assist them in identifying areas of higher financial reporting risk. Studies using digit pattern analysis of earnings have consistently found that reported earnings are subject to misstatements due to inappropriate rounding. Recent actions by regulators make it clear that such misstatements, even when relatively small in magnitude, are unacceptable. This article provides guidelines and a new tool for preventing and detecting such misstatements

scholarly journals Amil Zakat Governance Risk Mitigation

2021 ◽  
Vol 6 (1) ◽  
pp. 1-12
Author(s):  
Nono Hartono ◽  
Achmad Kholiq
Keyword(s):  
Risk Mitigation ◽  
Management Training ◽  
Risk Identification ◽  
Enterprise Risk Management ◽  
Risk Level ◽  
Enterprise Risk ◽  
Risk Vulnerability ◽  
The Impact ◽  
Governance Risk

Risk in zakat management is a potential event, both predictable and unpredictable, which negatively impacts the level of trust, sharia considerations, and sustainability in the management process. The purpose of this study is to investigate and formulate mitigation efforts of amil zakat governance. The research method uses an Enterprise Risk Management with the Committee of Sponsoring Organizations approach of the Treadway Commission (COSO) modification (ERM-COSO modified) with four indicators discussed that describe the level (likelihood), influence (impact), change (vulnerability) and speed (onset speed). The results of the study indicate that the identified risk of amil governance is as much as nine of the twenty seven risks that should arise with the risk level of amil governance being in an intermediate position. This is different from several previous studies. The level of risk in zakat management is largely determined by the quality of amil. The results of the heatmap analysis resulted in a small dot heatmap size which means a low level of vulnerability to risk (vulnerability), while the dot color consists of six purple, two blue and one red which means the speed of the occurrence of high risk. The impact of this risk identification requires amil recruitment patterns and the provision of good zakat management training. The recommended risk response is to reduce the risk that will occur by (1) implementing reward and punishment for amil to be more professional in carrying out their duties, (2) involving third parties (universities) in monitoring and supervising the distribution of zakat funds.

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