scholarly journals Risk Governance: An Integrated Approach towards Risk Management in Banks

2020 ◽  
Vol 6 (2) ◽  
Author(s):  
Adamu Yahaya ◽  
Fauziah Mahat
Keyword(s):  
Risk Management ◽  
Banking Sector ◽  
Research Work ◽  
Integrated Approach ◽  
Risk Governance ◽  
Governance Practice ◽  
Governance Strategy ◽  
It Operations ◽  
Risk Element ◽  
Management Issues

This research work aims at giving a conceptual framework as well as the need to embrace risk governance practice in the banking sector. The Banking industry is a highly volatile sector that is embodied with different categories of risk element with different magnitude that affects it operations on regular basis. The continue failures of banks which is attributed largely to their inability to manage risk element has led to the introduction of risk governance strategy as provided in Basel III. The risk governance practice therefore seeks to address all the risk management issues under a single control and make the management proactive in handling risk related issues.  

scholarly journals Multi-Sectoral Reflections and Efforts in Strengthening Partnerships to Reduce Disaster Risk in Mexico: The First MuSe-IDRiM Conference

2020 ◽  
Vol 11 (5) ◽  
pp. 686-691
Author(s):  
Irasema Alcántara-Ayala ◽  
Daniel Rodríguez-Velázquez ◽  
Ricardo J. Garnica-Peña ◽  
Alejandra Maldonado-Martínez
Keyword(s):  
Public Policy ◽  
Risk Management ◽  
Science And Technology ◽  
Integrated Approach ◽  
Disaster Risk ◽  
Civil Society Organizations ◽  
Disaster Risk Management ◽  
Federal State ◽  
Risk Governance ◽  
Civil Protection

Abstract Notwithstanding the high societal impact of disasters in Mexico, there is a lack of integrated efforts to establish a sound policy for reducing disaster risk to counterbalance the existing concentrated endeavors in disaster management. In the face of such segmentation, the science and technology community has advocated for a change of perspective, from civil protection to integrated disaster risk management. The first Multi-Sectoral Conference towards Integrated Disaster Risk Management in Mexico: Building a National Public Policy (MuSe-IDRiM Conference) was held in Mexico City at National Autonomous University of Mexico, 21–24 October 2019. In support of the implementation of the Sendai Framework for Disaster Risk Reduction 2015–2030, the conference aimed at enhancing the dialogue between the science and technology community, citizens, civil society organizations, private and public sectors, and the federal, state, and municipal governments to foster the process of transforming the current National Civil Protection System into a national public policy oriented towards integrated disaster risk management (DRM). Barriers and challenges to the implementation of integrated DRM were identified. Implementation of integrated DRM challenges current socioeconomic structures and encourages all relevant stakeholders to think, decide, and act from a different perspective and within and across spatial, temporal, jurisdictional, and institutional scales. Understanding disaster risk from an integrated approach, learning skills that authorities have not learned or used, and hence, strengthening disaster risk governance are prerequisites to effectively manage disaster risk.

scholarly journals Does risk culture affect banks’ volatility? The case of the G-SIBs

2017 ◽  
Vol 15 (1) ◽  
pp. 33-43 ◽  
Author(s):  
Daniela Coluccia ◽  
Stefano Fontana ◽  
Elvira Anna Graziano ◽  
Matteo Rossi ◽  
Silvia Solimene
Keyword(s):  
Risk Management ◽  
Financial Stability ◽  
Banking Sector ◽  
Positive Impact ◽  
Risk Indicators ◽  
Survey Method ◽  
Risk Governance ◽  
Alternative Measure ◽  
Risk Culture ◽  
Risk Committee

The recent financial crisis highlights the weaknesses of the traditional measures of risk in the banking sector, as Banking Authorities have missed considering the behavioural aspect of the risk culture, which is an essential tool for the value creation process of risk management (Financial Stability Board, 2014; Carretta et al., 2015; Schwizer, 2013; Guiso, Sapienza and Zingales, 2015), usually measured using the survey method. Our paper addresses a central question: What is an alternative measure of risk that estimates the banking risk-taking behaviour, also considering their risk culture? By analysing a panel of the thirty Global Systematically Important Banks (G-SIBs) from 2006 and 2013, our paper provides empirical evidence that the presence of a Risk Committee, the size of the Risk Committee and the number of the Risk Committee’s meetings have a positive impact on a bank’s volatility. Using multiple regression analysis on panel data, we verify the relationship between the bank asset risk and explicative variables that measure risk governance, banks’ size and traditional banks’ risk indicators. Our study extends the literature by providing evidence that separates RCs as having a significant impact on reducing firms’ volatility and as being an important risk governance tool in the hands of boards. Moreover, given the recent emphasis of regulatory bodies on strengthening the risk management and risk reporting systems of financial firms and the overwhelming trend of firms to form a separate RC, our study responds to the opportunity to investigate this relationship.

Optimal Hedge Ratio and Hedging Effectiveness in Stock Futures Market: Evidence from National Stock Exchange, India

2019 ◽  
Vol 118 (3) ◽  
pp. 137-152
Author(s):  
A. Shanthi ◽  
R. Thamilselvan
Keyword(s):  
Banking Sector ◽  
Stock Exchange ◽  
Research Work ◽  
Futures Market ◽  
Least Square ◽  
Time Varying ◽  
Hedge Ratio ◽  
Hedging Effectiveness ◽  
Out Of Sample ◽  
Optimal Hedge

The major objective of the study is to examine the performance of optimal hedge ratio and hedging effectiveness in stock futures market in National Stock Exchange, India by estimating the following econometric models like Ordinary Least Square (OLS), Vector Error Correction Model (VECM) and time varying Multivariate Generalized Autoregressive Conditional Heteroscedasticity (MGARCH) model by evaluating in sample observation and out of sample observations for the period spanning from 1st January 2011 till 31st March 2018 by accommodating sixteen stock futures retrieved through www.nseindia.com by considering banking sector of Indian economy. The findings of the study indicate both the in sample and out of sample hedging performances suggest the various strategies obtained through the time varying optimal hedge ratio, which minimizes the conditional variance performs better than the employed alterative models for most of the underlying stock futures contracts in select banking sectors in India. Moreover, the study also envisage about the model selection criteria is most important for appropriate hedge ratio through risk averse investors. Finally, the research work is also in line with the previous attempts Myers (1991), Baillie and Myers (1991) and Park and Switzer (1995a, 1995b) made in the US markets

Legal, Ethical, and Financial Aspects of Providing Services to Children With Swallowing Disorders in the Public Schools

2000 ◽  
Vol 31 (1) ◽  
pp. 56-61 ◽  
Author(s):  
Thomas J. O'Toole
Keyword(s):  
Risk Management ◽  
Public Schools ◽  
Service Provision ◽  
Swallowing Disorders ◽  
Legal Requirements ◽  
The Public ◽  
Speech Language Pathologist ◽  
Provision Of Services ◽  
Definition Of ◽  
Management Issues

The public schools must follow laws that deal with services for children who meet the legal requirements for having a disability. Children who have swallowing disorders that require the services of a speech-language pathologist typically meet the definition of a child with a disability. This article addresses the importance of the speech-language pathologist being aware of legal requirements for the provision of services as well as liability, ethical, and risk management issues related to the provision of such services. Financial considerations relating to service provision are also described.

A tap water turbidity crisis in Tel Aviv, Israel, due to technical failure: Toxicological and risk management issues

2003 ◽  
Vol 206 (3) ◽  
pp. 193-200 ◽  
Author(s):  
Gary Winston ◽  
Shlomo Lerman ◽  
Shalom Goldberger ◽  
Malcolm Collins ◽  
Alex Leventhal
Keyword(s):  
Risk Management ◽  
Tap Water ◽  
Technical Failure ◽  
Water Turbidity ◽  
Tel Aviv ◽  
Management Issues

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.

Enterprise risk management and sustainability of banks performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Babajide Oyewo
Keyword(s):  
Risk Management ◽  
Banking Sector ◽  
Management Practice ◽  
Enterprise Risk Management ◽  
Annual Reports ◽  
Banking Reform ◽  
Content Type ◽  
Enterprise Risk ◽  
The Impact

PurposeThis study investigates firm attributes (namely level of capitalisation, scope of operation, organisational structure, organisational lifecycle, systemic importance and size) affecting the robustness of enterprise risk management (ERM) practice, the extent to which ERM affects the performance of banks and the impact of ERM on the long-term sustainability of banks in Nigeria. This was against the backdrop that the 2012 banking reform was a major regulatory intervention that mainstreamed ERM in the Nigerian banking sector.Design/methodology/approachThe study employed a mixed methodology of content, trend and quantitative analyses. Ex post facto research design was deployed to analyse performance differential of banks, with respect to the implementation of ERM, over a 10-year period (2008–2017). A disclosure checklist developed from the COSO ERM integrated framework was used to assess the robustness of ERM by content-analysing divulgence on risk management in published annual reports. The banking reform periods were dichotomised into pre- (2008–2012) and post- (2013–2017) reform periods. Jonckheere–Terpstra test, independent sample t-test and Mann–Whitney test were applied to analyse a total of 1,036 firm-year observations over the period 2008–2017.FindingsResult shows that bank attributes significantly affecting the robustness of risk management practice are level of capitalisation, scope of operation, systemic importance and size. Performance of banks improved slightly during the post-2012 banking reform period. This suggests that as banks consolidate on the gains of ERM, benefits of the regulatory policy on risk management may be realised in the long run. Result also shows that ERM enhances long-term performance, connoting that effective risk management could serve as a competitive strategy for surviving turbulence that typically characterises the banking sector.Practical implicationsThe emergence of level of capitalisation, scope of operation, systemic importance and size as determinants of ERM provides empirical evidence to support the practice of reviewing the capital requirements for banking business from time to time by regulatory authorities (i.e. recapitalisation policy) as a strategy for managing systemic risk. Top management of banks may consider instituting mechanisms that will ensure risk management is given prominence. A proactive approach must be taken to convert risks to opportunities by banks and other financial institutions, going forward, to cope with the vicissitudes of financial intermediation.Originality/valueThe originality of the study stems from the consideration that it provides some new insights into the impact of ERM on banks long-term sustainability in a developing country. The study also contributes to knowledge by exposing the factors determining the robustness of risk management practice. The study developed a checklist for assessing ERM practice from annual reports and other risk management disclosure documents. The paper also adds to the scarce literature on risk governance and risk management.

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