scholarly journals Risk Management Maturity, its Determinants and Impact on Firm Value: Empirical Evidence from Joint-Stock Companies in Bosnia and Herzegovina

2021 ◽  
Vol 16 (2) ◽  
pp. 132-149
Author(s):  
Minela Nuhic Meskovic ◽  
Azra Zaimovic
Keyword(s):  
Risk Management ◽  
Bosnia And Herzegovina ◽  
Firm Value ◽  
Ordinary Least Squares ◽  
Business Environment ◽  
Management Model ◽  
Management Models ◽  
Key Stakeholders ◽  
Wide Range ◽  
Poor Management

Abstract The current extremely volatile business environment requires companies to manage a wide range of risks. Poor management of the company’s main risks can lead to significant value losses for key stakeholders. Companies strive to preserve and protect their value by developing risk management models based on organisational culture, processes and structure. The main objective of this paper is to assess the maturity of risk management, explore its determinants and examine its impact on firm value. In order to quantify the maturity of the risk management model, we have created an index based on 31 reference components whose weighting values have been determined by a group of experts using the Delphi technique. In addition, this paper aims to identify the determinants of the risk management model maturity in companies in Bosnia and Herzegovina (B&H). Based on the estimated ordinary least squares (OLS) model, the results confirm that companies from the financial sector have more mature risk management models compared to the real sector. Moreover, the size of the firm and the type of auditor were identified as additional determinants of risk management maturity. The OLS model confirms the positive and statistically significant impact of risk management model maturity on Tobin’s Q value.

scholarly journals Risk management and internal audit: Evidence from Greece

2017 ◽  
Vol 7 (3) ◽  
pp. 104-110 ◽  
Author(s):  
George Drogalas ◽  
Stiliani Siopi
Keyword(s):  
Risk Management ◽  
Internal Audit ◽  
Business Environment ◽  
Added Value ◽  
Comprehensive Overview ◽  
Internal Auditor ◽  
Internal Audit Function ◽  
Management Processes ◽  
Wide Range ◽  
Mailed Survey

Risk management is ranked by financial executives as one of their most important objectives. For this reason, a wide range of literature on risk management has been developed. Within this fluid business environment, internal audit plays a key role in monitoring a company’s risk profile and identifying areas for improving risk management processes. The purpose of this study is to provide a comprehensive overview of the factors that impact on risk management regarding internal audit function. Empirical evidence was collected by means of a mailed survey. Regression analysis is used in order to illustrate the information gathered. Consistent with theory and our expectations, the results indicate that internal audit, internal auditor and added value of internal audit are statistically significantly associated with risk management.

scholarly journals Enterprise risk management and firm value within China’s insurance industry

2014 ◽  
Vol 14 (1) ◽  
Author(s):  
Qiuying Li ◽  
Yue Wu ◽  
Udechukwu Ojiako ◽  
Alasdair Marshall ◽  
Maxwell Chipulu
Keyword(s):  
Risk Management ◽  
Firm Value ◽  
Pearson Correlation ◽  
Statistical Significance ◽  
Ordinary Least Squares ◽  
Enterprise Risk Management ◽  
Strategic Decision ◽  
Regression Modelling ◽  
Enterprise Risk ◽  
The Relationship

Orientation: The article discusses the relationship between enterprise risk management (ERM) and firm value.Research purpose: The purpose of the study is to empirically examine the relationship between ERM and firm value. The study is undertaken within the context of the Chinese insurance industry.Motivation for the study: Recent attempts to link ERM with firm value have been undertaken primarily in the USA and Europe and have produced ambiguous and inconclusive findings.Research design, approach and method: Data was obtained from the China Insurance Regulatory Commission, a government body responsible for regulating insurance products and services in China. The data sample consisted of 135 insurance companies operating in China (in 2010). Regression modelling is employed to analyse the data.Main findings: The results show the relationship between ERM and firm value at first appears statistically significant within a Pearson correlation matrix but then falls below statistical significance on closer scrutiny through regression analysis. Accordingly, it is recommended that insurers in China should not look to aggressive investment in ERM as a strategy for producing quick gains in firm value.Practical/managerial implications: Risk managers should plan ERM development from a risk management maturity perspective, which equates the highest level of ERM development with ERM’s capacity to improve firm resilience to the unknown and serve as a mechanism for strategic decision-making.Contribution/value-add: The study employed return on equity as a proxy for firm value, utilising ordinary least squares regression modelling to test propositions of the relationships between variables.

scholarly journals CORPORATE RISK MANAGEMENT PRACTICES IN BOSNIA AND HERZEGOVINA COMPANIES

2017 ◽  
pp. 198-216
Keyword(s):  
Risk Management ◽  
Bosnia And Herzegovina ◽  
Management Practices ◽  
Cash Flows ◽  
Business Environment ◽  
Risk Tolerance ◽  
Corporate Risk Management ◽  
Modern Business ◽  
Corporate Risk ◽  
The Impact

Over the last few decades, corporate risk management has become a very important element of management to financial and non-financial companies. In the modern business environment every company is exposed to corporate risk. It can be said that the way to deal with the corporate risk has become a crucial competitive advantage for enterprises in all industry sectors. Reducing the impact of corporate risks such as financial risks, operational risks, strategic and hazardous risks, companies can reduce the volatility of cash flows, thus reducing the expected costs of financial difficulties and agency costs and increase the present value of expected future cash flows. Also, by reducing the volatility of cash flows company increases the likelihood of securing sufficient quantities of its own funds for planned investments, eliminating the need to cut profitable projects or bear the transaction costs of expensive external financing. The paper presents the results of research on the practice of corporate risk management in large non-financial companies in Bosnia and Herzegovina. Data on corporate risk management were collected using a questionnaire. The questionnaire was sent to 120 companies from Bosnia and Herzegovina, where 66 companies provided the required answers to the questions on the basis of which is ultimately formed variable risk that indicates the level of implementation of corporate risk management. Based on the study on the management of corporate risk in Bosnia and Herzegovina it can been concluded that most of the analyzed companies manage corporate risk, at least in certain segments. The largest number of companies actively controls only part of the overall exposure to corporate risk, or are considering the implementation of the complete process of corporate risk management. However, there are still a significant number of companies do not even manage corporate risk, and with them the risk management is primarily a result of occurred events. Although most of the observed companies monitor risks, it is worth pointing out that even 32% of the companies do not elucidate the risk tolerance, and even 45% of companies did not quantify the risks.

scholarly journals Records management and risk management at Kenya Commercial Bank Limited, Nairobi

2011 ◽  
Vol 13 (1) ◽  
Author(s):  
Cleophas Ambira ◽  
Henry Kemoni
Keyword(s):  
Risk Management ◽  
Commercial Bank ◽  
Management Practices ◽  
Process Analysis ◽  
Management Model ◽  
Success Factor ◽  
Records Management ◽  
Wide Range ◽  
The Government ◽  
Government Of Canada

Background: This paper reported empirical research findings of an MPhil in Information Sciences (Records and Archives Management) study conducted at Moi University in Eldoret, Kenya between September 2007 and July 2009.Objectives: The aim of the study was to investigate records management and risk management at Kenya Commercial Bank (KCB) Ltd, in the Nairobi area and propose recommendations to enhance the functions of records and risk management at KCB. The specific objectives of the study were to, (1) establish the nature and type of risks to which KCB is exposed, (2) conduct business process analysis and identify the records generated by KCB, (3) establish the extent to which records management is emphasised within KCB as a tool to managing risk, (4) identify which vital records of KCB need protection because of their nature and value to the bank and (5) make recommendations to enhance current records management practices to support the function of risk management in KCB.Method: The study was qualitative. Data were collected through face-to-face interviews. The theoretical framework of the study involved triangulation of the records continuum model by Frank Upward (1980) and the integrated risk management model by the Government of Canada (2000).Results: The key findings of the study were, (1) KCB is exposed to a wide range of risks by virtue of its business, (2) KCB generates a lot of records in the course of its business activities and (3) there are inadequate records management practices and systems, the lack of which undermines the risk management function.Conclusion: The findings of this study have revealed the need to strengthen records management as a critical success factor in risk mitigation within KCB and, by extension, the Kenyan banking industry. A records management model was proposed to guide the management of records within an enterprise-wide risk management framework in the bank.

Effect of Enterprise Risk Management on Firm Value: Empirical Evidence from Non-Financial Firms in Pakistan

GIS Business ◽  
1970 ◽  
Vol 13 (2) ◽  
pp. 15-28
Author(s):  
Nouman Nasir
Keyword(s):  
Risk Management ◽  
Firm Value ◽  
Positive Impact ◽  
Stock Exchange ◽  
Enterprise Risk Management ◽  
Least Square ◽  
Return On Equity ◽  
Financial Firms ◽  
Enterprise Risk ◽  
Ordinary Least Square Regression

This research examines the effect of enterprise risk management on firm value in Pakistan. Further, this study empirically examines company characteristics that establish the execution of an enterprise risk management system. Using a sample of final dataset of 83 non-financial firms located in Pakistan. The sample included non-financial firms from the year 1999 to 2015 and so up to seventeen observation years per company. As in context of Pakistan, most of the organizations are already implement an ERM programs and establish specialized ERM departments because the ERM is now a global term and has become increasingly relevant because of the growing difficulty of risk and an additional development of regulatory frame works. For the empirical evidences, data collected from non-financial firms listed at the Pakistan Stock Exchange (PSX). Results of logistic regression shows that Capital Opacity, Profitability, Financial Leverage, Firm Size and Slack have positive impact on the implementation of an ERM system but Industrial diversification, Industry and Return on Equity are negatively related to an ERM engagement. The results of ordinary least square regression finds positive relationship between use of an ERM and firm value.

Grid Cyber-Physical System Risk Management Model Based on Cooperative Game Theory

2020 ◽  
Vol 21 (1) ◽  
Author(s):  
Cunbin Li ◽  
Ding Liu ◽  
Yi Wang ◽  
Chunyan Liang
Keyword(s):  
Game Theory ◽  
Risk Management ◽  
Cooperative Game ◽  
Physical System ◽  
Cooperative Game Theory ◽  
Power Grid ◽  
Management Model ◽  
Cyber Physical System ◽  
Model Based ◽  
Generation Power

AbstractAdvanced grid technology represented by smart grid and energy internet is the core feature of the next-generation power grid. The next-generation power grid will be a large-scale cyber-physical system (CPS), which will have a higher level of risk management due to its flexibility in sensing and control. This paper explains the methods and results of a study on grid CPS’s behavior after risk. Firstly, a behavior model based on hybrid automata is built to simulate grid CPS’s risk decisions. Then, a GCPS risk transfer model based on cooperative game theory is built. The model allows decisions to ignore complex network structures. On this basis, a modified applicant-proposing algorithm to achieve risk optimum is proposed. The risk management model proposed in this paper can provide references for power generation and transmission decision after risk as well as risk aversion, an empirical study in north China verifies its validity.

scholarly journals Shared burdens: The General Average adjustment of the Jan Maria

2021 ◽  
Vol 33 (2) ◽  
pp. 322-343
Author(s):  
Sabine C P J Go
Keyword(s):  
Risk Management ◽  
Business Environment ◽  
Coping Mechanisms ◽  
Small Scale ◽  
Marine Insurance ◽  
Financial Innovations ◽  
Complex Procedure ◽  
General Average ◽  
The Baltic

The Jan Maria was a Dutch schooner that, in 1883, en route from the Baltic to its home port, was forced to jettison cargo during a fierce storm, which resulted in a General Average (GA) procedure. GA refers to a method that redistributes damages that were deliberately inflicted by the master, in order to save the ship and its cargo, among all those parties that benefited from the action. The report of this procedure of the Jan Maria has been preserved and is exceptional in its completeness. It offers a unique view on a complex procedure and also on the coping mechanisms of small-scale entrepreneurs in a volatile business environment. In this article, I will explain the principle and functioning of GA, and I will argue that, in spite of financial innovations like marine insurance, GA remained an important part of risk management.

scholarly journals Dynamics of Systems with a Discontinuous Hysteresis Operator and Interval Translation Maps

Axioms ◽  
2021 ◽  
Vol 10 (2) ◽  
pp. 80
Author(s):  
Sergey Kryzhevich ◽  
Viktor Avrutin ◽  
Nikita Begun ◽  
Dmitrii Rachinskii ◽  
Khosro Tajbakhsh
Keyword(s):  
Risk Management ◽  
Invariant Measure ◽  
Invariant Measures ◽  
Interval Exchange ◽  
Management Model ◽  
Closing Lemma ◽  
Symbolic Model ◽  
Metric Properties ◽  
Ergodic Measures ◽  
Maximal Invariant

We studied topological and metric properties of the so-called interval translation maps (ITMs). For these maps, we introduced the maximal invariant measure and demonstrated that an ITM, endowed with such a measure, is metrically conjugated to an interval exchange map (IEM). This allowed us to extend some properties of IEMs (e.g., an estimate of the number of ergodic measures and the minimality of the symbolic model) to ITMs. Further, we proved a version of the closing lemma and studied how the invariant measures depend on the parameters of the system. These results were illustrated by a simple example or a risk management model where interval translation maps appear naturally.

scholarly journals Lack of Informations about COVID-19 Vaccine: From Implications to Intervention for Supporting Public Health Communications in COVID-19 Pandemic

2021 ◽  
Vol 18 (11) ◽  
pp. 6141
Author(s):  
Silva Guljaš ◽  
Zvonimir Bosnić ◽  
Tamer Salha ◽  
Monika Berecki ◽  
Zdravka Krivdić Dupan ◽  
...  
Keyword(s):  
Vaccine Efficacy ◽  
Health Belief ◽  
Ordinary Least Squares ◽  
Vaccine Hesitancy ◽  
Equal Proportion ◽  
Least Squares Regression ◽  
Online Questionnaire ◽  
Demographic Groups ◽  
Population Immunity ◽  
Wide Range

Lack of knowledge and mistrust towards vaccines represent a challenge in achieving the vaccination coverage required for population immunity. The aim of this study is to examine the opinion that specific demographic groups have about COVID-19 vaccination, in order to detect potential fears and reasons for negative attitudes towards vaccination, and to gain knowledge on how to prepare strategies to eliminate possible misinformation that could affect vaccine hesitancy. The data collection approach was based on online questionnaire surveys, divided into three groups of questions that followed the main postulates of the health belief theory—a theory that helps understanding a behaviour of the public in some concrete surrounding in receiving preventive measures. Ordinary least squares regression analyses were used to examine the influence of individual factors on refusing the vaccine, and to provide information on the perception of participants on the danger of COVID-19 infection, and on potential barriers that could retard the vaccine utility. There was an equal proportion of participants (total number 276) who planned on receiving the COVID-19 vaccine (37%), and of those who did not (36.3%). The rest (26.7%) of participants were still indecisive. Our results indicated that attitudes on whether to receive the vaccine, on how serious consequences might be if getting the infection, as well as a suspicious towards the vaccine efficacy and the fear of the vaccine potential side effects, may depend on participants’ age (<40 vs. >40 years) and on whether they are healthcare workers or not. The barriers that make participants‘ unsure about of receiving the vaccine, such as a distrust in the vaccine efficacy and safety, may vary in different socio-demographic groups and depending on which is the point of time in the course of the pandemic development, as well as on the vaccine availability and experience in using certain vaccine formulas. There is a pressing need for health services to continuously provide information to the general population, and to address the root causes of mistrust through improved communication, using a wide range of policies, interventions and technologies.

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