Social Risk Management as a Response to Increasing International Pressure for Social Performance

2021 ◽  
Author(s):  
J. D. Borbor ◽  
Katinka C. Van Cranenburgh ◽  
Christiaan W. F. Luca
Keyword(s):  
Risk Management ◽  
Financial Institutions ◽  
Industrial Revolution ◽  
Oil Spills ◽  
Social Performance ◽  
The United States ◽  
International Standards ◽  
Social Risk ◽  
International Pressure ◽  
Development Framework

Abstract In the past decades, financial institutions have led the way for companies to adhere to international standards for social performance. The journey began in the Industrial Revolution, when negative societal business impacts rapidly escalated, which led people to demand for their management. Initially focused on working conditions, impacts on the environment soon started to gain notice. Halfway through the 20th century, a combination of oil spills and mass media attention generated enough public pressure for the United States to sign the first piece of legislation requiring the environmental impact assessment. With this law and its replication abroad, however, came the concern with social impacts as well. Both environmental and social performance expectations soon spread internationally and, by the 1980s, multilateral financial institutions, most prominently the World Bank, incorporated such considerations into their investment and lending practices, which is the source of all such international standards today. These standards require the establishment of a social management system to integrate risk and impact management processes and stakeholder engagement activities. Given the challenge of implementing these requirements, a social risk management development framework is proposed to bring together the extensive and multidisciplinary demands of effective social performance. Five development areas are proposed: governance, social policy, tools, resourcing and capacity, and knowledge sharing. This is an important step to take today as it is expected that the next decades will see these international demands increase, possibly by ever increasing governmental regulation.

scholarly journals The Establishment of GRC Integrated Approach in Iranian bank’s for Smoothing the Interaction with the International Banking System

2018 ◽  
Vol 10 (1) ◽  
pp. 94
Author(s):  
Seyed Mehdi Hosseiny ◽  
Sheida Asli ◽  
Mohammad Rajabi ◽  
Sholeh Asli
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Financial Institutions ◽  
Banking System ◽  
Integrated Approach ◽  
Business Environment ◽  
International Standards ◽  
Strategic Decision ◽  
International Level ◽  
Governance Risk

In today's complex global business environment, having a clear vision of information and corporate governance approach, management and ensure the performance of compliance, risk and accepting it, are essential for the success of any organization. Organizations that choose corporate governance, risk management and compliance (GRC), at their forefront of their actions, have a competitive advantage. They well-informed their abilities in strategic decision-making, and able to respond with agility and speed to the threats and opportunities that arise. Therefore, the concept of GRC, in recent years, has attracted the serious attention of banks and financial institutions at the international level. Banks, as financial intermediaries, play an important role in creating economic stability. Hence, the development of processes and structures in order to manage the activities of the organization, in line with the needs of beneficiaries, internal and international business regulations and requirements and business risks as well as ensuring the safety and health performance of these financial institutions are necessary and inevitable. In particular, in the current situation that the premises and the space necessary to interact with foreign banks have been developed, attention to the frameworks and international standards in the interaction between banks, including the implementation of corporate governance, risk management and compliance have the utmost importance. Hence, the concept of GRC at international level has attracted the serious attention that covers all the organization's activities in the three areas of governance, risk management and compliance. Implementation of GRC integrated approach ensures that an organization reaches its desired goals and vision if acts rationally. However, some challenges and structural constraints in the banking system of the country and the lack of comprehensive instructions, which is derived from the requirements and internal conditions of the country and is developed based on international standards, cause the importance of this issue will be trimmed in the banks and financial institutions.Hence, in this study, first, the concept of GRC and the importance of its implementation in the banking system are explained and then, Different approaches to deployment GRC are included in the organization in and the following, we pointed to the relationship between GRC components, including corporate governance, risk management and compliance and examined the principles governing the establishment of each international authorities’ perspective and challenges in the banking system in this context, presented suggestions in order to overcome obstacles and constraints in implementation of GRC, effectively.

scholarly journals Perception versus reality: Iranian banks and international anti-money laundering expectations

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Vahid Molla Imeny ◽  
Simon D. Norton ◽  
Mahdi Salehi ◽  
Mahdi Moradi
Keyword(s):  
Risk Management ◽  
Money Laundering ◽  
Task Force ◽  
The United States ◽  
International Standards ◽  
Accounting Firms ◽  
Content Type ◽  
The Government ◽  
Domestic Banks ◽  
The Uk

Purpose Iran has been ranked by the Basel Committee on Banking Supervision and the Financial Action Task Force (FATF) as one of the foremost countries in the world for money laundering. However, Iranian banks claim that they comply with international standards for reporting suspicious activity, risk management and training. This paper aims to investigate this dichotomy between perception and reality. Design/methodology/approach A Wolfsberg-style questionnaire was sent to partners in Iranian accounting firms, which have audited domestic banks over the past five years to investigate the adequacy of risk management systems. Findings Most Iranian banks have anti-money laundering (AML) systems, which compare favourably with those of international counterparties. Banks take a risk-based approach to potential criminal behaviour. The negative perception of Iranian banks is principally attributable to the government’s unwillingness to accede to “touchstone” international conventions. In spite of having in place AML laws, which are comparable in intent with those of the UK and the United States of America (USA), weak enforcement remains a significant impediment of which the political establishment is aware. Practical implications Measures required to bring Iranian banks into compliance with international standards may be less extensive than perceptions suggest. However, failure of the government to accede to conventions stipulated by the FATF means that banks may remain ostracised by foreign counterparties for the foreseeable future. Originality/value This study provides a unique insight into the extent of AML compliance in Iranian banks as verified by external auditors.

scholarly journals LEGAL STATUS OF INDIVIDUALS AS SUBJECTS OF SOCIAL RISK MANAGEMENT

2020 ◽  
pp. 576-603
Author(s):  
E. A. Istomina ◽  
◽  
M. Yu. Fedorova ◽  
Keyword(s):  
Risk Management ◽  
Social Security ◽  
Legal Status ◽  
The United States ◽  
Social Risk ◽  
Social Risks ◽  
Foreign Countries ◽  
The Social ◽  
Srm System

Introduction: the article analyzes current legislation of Russia and some foreign countries as well as the views of Russian and foreign scholars on the legal status of individuals as subjects of the social security legal relations in the context of the social risk management (SRM) conceptual framework. Purpose and objectives: based on the modern ideas of social risks, to study the status of individuals as actors within the SRM system having specific rights and responsibilities. Methods: analysis and synthesis of scientific and legal information, historical and comparative methods. Results: today social security is considered a vital part of the SRM system. Having analyzed the specific features and dynamics of social risks, the authors conclude that to some considerable degree these risks are subjective in nature, which should determine a more active role of individuals. The article analyzes not only the legal personality of individuals in the social security legal relations but also – in a broader context – their agency in the SRM system. The authors provide examples of legislative regulation in some foreign countries: the French Republic, the Grand Duchy of Luxembourg, the United States of America. Different models of the individuals’ participation in the SRM system are presented. Based on the extent of different SRM subjects’ involvement and the distribution of the responsibility for the protection against social risks among them, the authors identify paternalistic, market-based (liberal), mixed (complex), and transitional models. Based on the extent of the individual’s interest in the protection against social risks and their readiness for taking actions in this sphere, the authors distinguish active and passive SRM models (with the latter one including indifferent and parasitical models). Conclusions: the paper offers a new approach to the understanding of social risks and protection against these (including through social security), and also to the role of individuals as subjects of social risk management.

Audit Practices of PricewaterhouseCoopers

2000 ◽  
Vol 19 (2) ◽  
pp. 176-182 ◽  
Author(s):  
Barry N. Winograd ◽  
James S. Gerson ◽  
Barbara L. Berlin
Keyword(s):  
The United States ◽  
International Federation ◽  
International Standards ◽  
Certified Public Accountants ◽  
American Institute ◽  
Distinctive Features ◽  
International Firms ◽  
New Development ◽  
Auditing Standards ◽  
Audit Approach

This paper discusses the development of the PricewaterhouseCoopers Audit Approach (PwCAA), identifies distinctive features of this approach, and provides information on new development areas. The discussion will provide a summary of each of these items and will focus on the distinctive features of the PwCAA. The article will not cover elements that appear to be consistent with other firm methodologies. Significant consistencies exist since all of the major international firms essentially operate under generally accepted auditing standards, i.e., the International Standards on Auditing (ISA) as established by the International Federation of Accountants. In the United States, they also comply with generally accepted auditing standards (GAAS) as established by the American Institute of Certified Public Accountants (AICPA).

scholarly journals Trends in educational mobility: How does China compare to Europe and the United States?

2019 ◽  
Vol 5 (2) ◽  
pp. 214-240
Author(s):  
Rob J Gruijters ◽  
Tak Wing Chan ◽  
John Ermisch
Keyword(s):  
Educational Opportunity ◽  
The United States ◽  
International Standards ◽  
Educational Mobility ◽  
The Us ◽  
The Usa ◽  
Economic Boom ◽  
The Uk ◽  
Large Decline ◽  
Inequality Of Educational Opportunity

Despite an impressive rise in school enrolment rates over the past few decades, there are concerns about growing inequality of educational opportunity in China. In this article, we examine the level and trend of educational mobility in China, and compare them to the situation in Germany, the Netherlands, the UK and the USA. Educational mobility is defined as the association between parents’ and children’s educational attainment. We show that China’s economic boom has been accompanied by a large decline in relative educational mobility chances, as measured by odds ratios. To elaborate, relative rates of educational mobility in China were, by international standards, quite high for those who grew up under state socialism. For the most recent cohorts, however, educational mobility rates have dropped to levels that are comparable to those of European countries, although they are still higher than the US level.

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