Exploring innovative leadership in the financial sector: A case of risk management in banking

2019 ◽  
Vol 3 (2) ◽  
pp. 19-29
Author(s):  
Viwe Mrwebi ◽  
Yongama Cici
Keyword(s):  
South Africa ◽  
Risk Management ◽  
Service Providers ◽  
Financial Sector ◽  
Primary Data ◽  
Empirical Literature ◽  
Financial Risks ◽  
Operational Risks ◽  
Innovative Leadership ◽  
Constant Change

The study explores the issue of innovative leadership in the financial sector and opts to use a case of a bank in South Africa. The existing empirical literature delivers a detailed review of leadership pioneering with the issue of risk management. Due to the constant change in the global space and evolution in the needs of consumers, in the taste of financial service providers, innovation from human resources is now the key to sustainability. However, risk management plays a fundamental role in the operations of financial sectors, and particularly for banks as their operational risks are also frequently financial risks. Hence, to ensure that all is well balanced this study explores innovative leadership in the financial sector in South Africa. The research project was qualitative in nature, with primary data collected using email interviews and document analysis. The research found that the main problem is the operational structures that guide the financial sectors. To this end, the artifact that was produced to address the problem is a conceptual framework as a recommendation to be utilised by the bank to allow freedom to leaders and their team to be innovative within the confinements of the organisational structures.

Risk Management

2021 ◽  
pp. 206-225
Author(s):  
Eman A. Zabalawi ◽  
Abderazak Bakhouche ◽  
Randa El Chaar
Keyword(s):  
Risk Management ◽  
Organizational Culture ◽  
Business Processes ◽  
Financial Risks ◽  
Legal Compliance ◽  
Planning Stage ◽  
Operational Risks ◽  
External Events ◽  
High Level ◽  
Risk Managers

The chapter covers practical risk managers' points during the planning stage of entrepreneurship to integrate into decision making and core business processes. The chapter includes three risks and how to improve the integration of risk management into organizational culture grouped into three high-level objectives. First, strategic risks include the study of competitors, macroeconomics with its industry changes. Second, financial risks such as the business return of investment and forecasting, customer payments, loan interest charges, and liquidity. Access to finance featured prominently in several studies as a constraint on SME development. The third is the operational risks and internal analysis that includes legal compliance, breakdown of essential equipment, employee mismatch, partnership, information technology, external events, and supply chain reliability. It is vital to establish an organizational culture where risk management is a daily component activity.

scholarly journals Empirical Analysis of Financial and Non-Financial Risks of the Commercial Bank

2019 ◽  
Vol 8 (2) ◽  
pp. 101 ◽  
Author(s):  
Asie Tsintsadze ◽  
Vladimer Glonti ◽  
Lela Oniani ◽  
Tamar Ghoghoberidze
Keyword(s):  
Risk Management ◽  
Credit Risk ◽  
Operational Risk ◽  
Financial Risks ◽  
Operational Risks ◽  
Increase Risk ◽  
Method Approach ◽  
Selection Of ◽  
Regressive Analysis

Background: Activities of commercial banks are connected with numerous risks, the source of which is the internal and external processes of the bank. Objectives: Risk management science has been studying the origins of the risks, determining their impact quality and avoiding expected loss models from the 1950s. Method/Approach: Credit risk regressive analysis is based on the selection of effective factors, determination of their influence and prediction of future according to the correlation coefficient. Results/Findings: In the article, it is discussed the regressive analysis of operational risk. Conclusion: The effect of credit and operational risks on the financial results of the Bank is based on the results obtained and recommendations have been developed to increase risk management efficiency. Keywords: credit risk, operational risk, regressive analysis, risk management, forecasting.

scholarly journals MANAJEMEN RISIKOUSAHATANI JAMUR TIRAM PUTIH (PLEROTUS ASTREOTUS) DALAM UPAYA MEMPERTAHANKAN PENDAPATAN PETANI

2017 ◽  
Vol 4 (2) ◽  
pp. 11
Author(s):  
Endah Djuwendah ◽  
Eka Septiarini
Keyword(s):  
Risk Management ◽  
Financial Risk ◽  
Management Practices ◽  
Economic Value ◽  
Secondary Data ◽  
Oyster Mushroom ◽  
Primary Data ◽  
Financial Risks ◽  
Production Risk ◽  
The Village

Horticulture is one of the subsectors of agriculture that has great prospects for development, it is associated with the number of horticultural varieties that have high economic value if properly cultivated.White oyster mushroom (Pleurotus astreatus) is one of the prospective horticulture commodities to be cultivated. Characteristics of white oyster mushroom both taste and nutritional content of the main attraction that drives demand.However, the development of farming oyster mushroom farming exposed to various risks. The purpose of this are  to identify the risks of farming oyster mushroom, describe farmer's perception of the risk and risk management of oyster mushroom farm. The research location in the village of Kertawangi, Cisarua district at West Bandung Regency. The research method used was survei. The primary data obtained through interviews with 39 farmers oyster mushroom, while secondary data obtained from the study of literature both from the mass media, research reports and related articles. The results showed that the risk of oyster mushroom farm in the village of Kertawangi Cisarua subdistrict consists of the production risk by 54 percent, the risk of 6- 7 percent and marketing and financial risk by 39 percent.Farmers about risk perception is all that is likely to prejudice the business, production and income instability, farmers believe the risks can be prevented or mitigated with good risk management practices and correct. Risk management is done by way of production diversification, marketing risks are managed dengana collecting market information and financial risks anticipated with supply of cash and credit from various financial institutions.

scholarly journals Internal Financial Risk Management In Microfinance Companies: A Case Study Of Akuapem Rural Bank, Ghana

2018 ◽  
Vol 7 (5) ◽  
pp. 64
Author(s):  
Rebecca Davis ◽  
Elvis K. Donkoh ◽  
Bernard Mawah ◽  
Blessed Amonoo
Keyword(s):  
Risk Management ◽  
Financial Risk ◽  
Financial Analysis ◽  
Practical Knowledge ◽  
Financial Statements ◽  
Financial Risks ◽  
Microfinance Institutions ◽  
Operational Risks ◽  
Credit Risks

The operations of Microfinance Institutions (MFIs) in Ghana have recently come under serious public scrutiny. This position was fairly caused by Bank of Ghana’s (BOG’s) announcement regarding 70 microfinance companies whose provisional licenses were revoked BOG (2016). This led to the closure of DKM Diamond Microfinance and some other microfinance companies in the country. This worsening circumstance surrounding the microfinance industry calls for the need to provide practical knowledge on the use of financial analysis tools to manage internal financial risks of the microfinance industry. Data from Akuapem Rural Bank (AKRB) financial statements for the period of 2008 to 2015 (refer to appendix) was analysed using regression analysis, descriptive statistics, trend analysis and ratios. It was observed that the profitability of AKRB is greatly influenced by credit risks, bank size, interest income growth and debt-ratio. The study also revealed that AKRB had comprehensive and adequate risk management structures in place in managing its credit and other operational risks.

scholarly journals The analysis of drivers of operational risks in Nigerian commercial banks

2021 ◽  
Vol 3 (3) ◽  
pp. 1-14
Author(s):  
Olajide Solomon Fadun ◽  
Diekolola Oye
Keyword(s):  
Risk Management ◽  
Commercial Banks ◽  
Operational Risk ◽  
Primary Data ◽  
Microsoft Excel ◽  
Internal Process ◽  
Operational Risk Management ◽  
Operational Risks ◽  
It Systems

Despite the institutionalization of operational risk management in banks and the strict supervision of bank regulators, operational risk events are still on the increase. It is becoming evident to banks that there is a need to identify the drivers of this risk and nib it at the root to reduce the probability of recurrence. Hence, this study examined the drivers of operational risks in Nigerian commercial banks and the extent to which each driver contributes to operational risk. To achieve the study’s objectives, primary data were collected from the Operational Risk Management Desks of six (6) sampled commercial banks and analyzed using SPSS and Microsoft Excel. The result showed that Internal processes, IT systems and Quality of Risk Officers are determinants of operational losses in banks. The internal process was however indicated as having the most impact. The study concluded that Internal Process is the major driver of operational risk in Nigerian Commercial banks. The researcher, therefore, recommends that bank management must have defined procedures for core activities and prioritize regular review of their critical processes to reduce operational risk events and the associated costs.

scholarly journals Operational Risk Management in Financial Institutions: An Overview

2018 ◽  
Vol 8 (2) ◽  
pp. 11 ◽  
Author(s):  
Abdullah Aloqab ◽  
Farouk Alobaidi ◽  
Bassam Raweh
Keyword(s):  
Risk Management ◽  
Financial Institutions ◽  
Operational Risk ◽  
Risk Identification ◽  
Financial Risks ◽  
2008 Financial Crisis ◽  
Operational Risk Management ◽  
Operational Risks ◽  
International Regulations ◽  
The 2008 Financial Crisis

After the 2008 financial crisis, many attributed the crisis due to the inability of financial risks to manage operational risks. The period during and after 2008 was critical in providing insight on how vital operational risk management is essential to financial institutions and how best these risks can be managed. The study begins with an overview of the concept of risk and BASEL I, II and III and how they apply to financial institutions. Further, the paper discusses the growing need for operational risk management in the context of financial institutions taking into considerations various models and approaches used in the management of financial risks. Moreover, several pieces of literature discussed operational risks in the financial institutions. The paper also looks at the various methods of operational risk identification and management before concluding that for better management of operational risks in banks, there is the need to comply with both the national and international regulations and procedures.

scholarly journals Supply chain disruptions: Insights from South African third-party logistics service providers and clients

2018 ◽  
Vol 12 ◽  
Author(s):  
Jaco Nel ◽  
Evert De Goede ◽  
Wesley Niemann
Keyword(s):  
South Africa ◽  
Risk Management ◽  
Supply Chain ◽  
South African ◽  
Service Providers ◽  
Third Party ◽  
Third Party Logistics ◽  
Supply Chain Disruptions ◽  
Logistics Service ◽  
Logistics Service Providers

Background: Despite risk management efforts, supply chains have become increasingly vulnerable to disruptions. Disruptions should be successfully managed if organisations are to thrive in today’s ever-changing world.Purpose: This study explored supply chain disruptions of third-party logistics service providers (3PLs) and their clients based in South Africa by investigating the disruptions these organisations face, and how they go about managing them.Method: A generic qualitative research approach was used to gather data by conducting semi-structured interviews with 22 participants, which comprised 11 3PLs and 11 client organisations operating in South Africa.Findings: This study classified disruptions as intra-, inter- and extra-organisational. South African 3PLs and their clients face the majority of their disruptions either intra- or inter-organisationally. The focus of 3PLs and clients has shifted from risk management to disruption management. The findings show that 3PLs and their clients based in South Africa prefer disruption learning over traditional risk management as a method to better manage future disruptions.Conclusion: This study contributes to existing literature by providing insight into the specific supply chain disruptions that 3PLs and their clients based in South Africa face, according to the disruption location in the supply chain and how 3PLs and clients manage supply chain disruptions.

scholarly journals The analysis of drivers of operational risks in Nigerian commercial banks

2020 ◽  
Vol 2 (2) ◽  
pp. 19-35
Author(s):  
Olajide Solomon Fadun ◽  
Diekolola Oye
Keyword(s):  
Risk Management ◽  
Commercial Banks ◽  
Operational Risk ◽  
Primary Data ◽  
Microsoft Excel ◽  
Internal Process ◽  
Operational Risk Management ◽  
Operational Risks ◽  
It Systems

Despite the institutionalization of operational risk management in banks and the strict supervision of bank regulators, operational risk events are still on the increase. It is becoming evident to banks that there is a need to identify the drivers of this risk and nib it at the root to reduce the probability of recurrence. Hence, this study examined the drivers of operational risks in Nigerian commercial banks and the extent to which each driver contributes to operational risk. To achieve the study’s objectives, primary data were collected from the Operational Risk Management Desks of six (6) sampled commercial banks and analyzed using SPSS and Microsoft Excel. The result showed that Internal processes, IT systems and Quality of Risk Officers are determinants of operational losses in banks. The internal process was however indicated as having the most impact. The study concluded that the Internal Process is the major driver of operational risk in Nigerian Commercial banks. The researcher, therefore, recommends that bank management must have defined procedures for core activities and prioritize regular review of their critical processes to reduce operational risk events and the associated costs.

scholarly journals The claims handling process of liability insurance in South Africa

2015 ◽  
Vol 5 (1) ◽  
pp. 133-140 ◽  
Author(s):  
Jacoline van Jaarsveld ◽  
Frederik J. Mostert ◽  
Jan Hendrik Mostert
Keyword(s):  
South Africa ◽  
Service Providers ◽  
Secondary Data ◽  
Liability Insurance ◽  
Professional Service ◽  
Primary Data ◽  
Short Term ◽  
Personal Lives ◽  
Empirical Survey ◽  
Term Insurance

Liabilities play a very important financial role in business operations, professional service providers as well as in the personal lives of people. It is possible that a single claim may even lead to the bankruptcy of the defendant. The claims handling process of liability insurance by short-term insurers is therefore very important to these parties as it should be clear that liability claims may have enormous and far-reaching financial implications for them. The objective of this research paper embodies the improvement of financial decision-making by short-term insurers with regard to the claims handling process of liability insurance. Secondary data was initially studied which provided the basis to compile a questionnaire for the empirical survey. The leaders of liability insurance in the South African short-term insurance market that represented 69.5% of the annual gross written premiums received for liability insurance in South Africa were the respondents of the empirical study. The perceptions of these short-term insurers provided the primary data for the vital conclusions of this research. This paper pays special attention to the importance of the claims handling factors of liability insurance, how often the stipulations of liability insurance policies are adjusted by the short-term insurers to take the claims handling factors into consideration, as well as the problem areas which short-term insurers may experience during the claims handling process. Feasible solutions to address the problem areas are also discussed.

The Impact of Shariah Governance and Corporate Governance on the Risk Management Practices: Evidence from Local and Foreign Islamic Banks in Malaysia

2018 ◽  
Vol 15 (2) ◽  
pp. 1-20
Author(s):  
Sabri Embi ◽  
Zurina Shafii
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Management Practices ◽  
Principal Component ◽  
T Test ◽  
The Body ◽  
Primary Data ◽  
Islamic Banks ◽  
Shariah Governance ◽  
The Impact

The purpose of this study is to examine the impact of Shariah governance and corporate governance (CG) on the risk management practices (RMPs) of local Islamic banks and foreign Islamic banks operating in Malaysia. The Shariah governance comprises the Shariah review (SR) and Shariah audit (SA) variables. The study also evaluates the level of RMPs, CG, SR, and SA between these two type of banks. With the aid of SPSS version 20, the items for RMPs, CG, SR, and SA were subjected to principal component analysis (PCA). From the PCA, one component or factor was extracted each for the CG, SR, and RMPs while another two factors were extracted for the SA. Primary data was collected using a self-administered survey questionnaire. The questionnaire covers four aspects ; CG, SR, SA, and RMPs. The data received from the 300 usable questionnaires were subjected to correlation and regression analyses as well as an independent t-test. The result of correlation analysis shows that all the four variables have large positive correlations with each other indicating a strong and significant relationship between them. From the regression analysis undertaken, CG, SR, and SA together explained 52.3 percent of the RMPs and CG emerged as the most influential variable that impacts the RMPs. The independent t-test carried out shows that there were significant differences in the CG and SA between the local and foreign Islamic banks. However, there were no significant differences between the two types of the bank in relation to SR and RMPs. The study has contributed to the body of knowledge and is beneficial to academicians, industry players, regulators, and other stakeholders.

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