Sustainable Development and Risk Management

2021 ◽  
Vol 18 (4) ◽  
pp. 16-27
Author(s):  
E. Yu. Pertseva ◽  
V. Yu. Skobarev ◽  
E. E. Telenkov
Keyword(s):  
Risk Management ◽  
Development Strategy ◽  
Management System ◽  
Financial Risk ◽  
Workplace Safety ◽  
Financial Risks ◽  
Performance Targets ◽  
Company Value ◽  
Risk Management System

In the context of the increasing role of non-financial factors of company value creation, many organizations, when developing a development strategy, go beyond exclusively financial and economic goals and include workplace safety, energy efficiency, customer satisfaction and other non-financial goals in their performance targets. Achieving such goals involves risks, but today there is no common understanding of the composition of the relevant risks, their sources (factors of occurrence), approaches to assessing these risks, as well as universal corporate tools for managing them. In this article, we offer our vision of the place of the so-called “non-financial risks” in the risk management system and show the possibilities of integrating non-financial risk management into the risk management system and the management model of the organization.

THE METHODOLOGICAL VALUE OF THE CLASSIFICATION IN THE COMPANY FINANCIAL RISK MANAGEMENT SYSTEM

2020 ◽  
Author(s):  
A.A. Fathulin ◽  
N. A. Fathulina ◽  
S. N. Basova
Keyword(s):  
Risk Management ◽  
Management System ◽  
Financial Risk ◽  
Methodological Approach ◽  
Financial Risks ◽  
Risk And Uncertainty ◽  
Financial Risk Management ◽  
Risk Management System

The complexity of understanding the nature of risks, as well as the diversity of their types and manifestations, including financial risks, requires the use of a methodological approach to their classification. Classification of financial risks is of particular importance in the company's activities in order to effectively manage them. The article analyzes the concepts of "risk" and "uncertainty", and provides risk classifications for various reasons. It is concluded that it is possible to control and manage risks through comprehensive accounting and, accordingly, prevention of various types of threats and uncertainties in the company's activities.

scholarly journals Risk Management Culture as a Systematic Method for Ensuring Safety Development

2019 ◽  
Vol 8 (4) ◽  
pp. 8652-8657
Keyword(s):  
Risk Management ◽  
Development Strategy ◽  
Management System ◽  
Market Conditions ◽  
Systematic Method ◽  
Management Culture ◽  
Risk Management System ◽  
Risk Managers

Issues of developing a culture of risk management, today is perhaps one of the most significant in risk management. The lack of a well-built risk management culture is for many companies, one of the main barriers to building an effective risk management system. It should be understood that all methods that are used to manage risk are as effective as the culture of risk management in the organisation. It depends on the culture of risk management how secure the organisation can feel as part of its development strategy. The development of a risk management culture, in contrast to increasing the costs of expanding the risk management department, is an intensive way to increase the effectiveness of the risk management system and, as a result, provide the possibility of safe development under any market conditions and challenges. By cultivating a risk management culture for the entire hierarchy of employees, you can achieve much better results than simply hiring expensive risk managers.

The Design of Financial Risk Management System Based on VAR Model

2014 ◽  
Vol 926-930 ◽  
pp. 4016-4019
Author(s):  
Hou Hong Zhou
Keyword(s):  
Risk Management ◽  
Management System ◽  
Financial Risk ◽  
Simulation Method ◽  
Var Model ◽  
Financial Industry ◽  
Historical Simulation ◽  
Risk Management System ◽  
Normal Method ◽  
Suitable System

This paper give a brief introduction for VAR model, through the analysis and comparison of the three classic VAR model: a historical simulation method, Monte Carlo simulation method, Delta-Normal method, combined with actual demand of the financial industry. A suitable system model named Delta-Normal method is summarized to develop the risk management system of the financial industry.

scholarly journals Exploring the role of non-financial risk management in strategy processes of large retail banks

2016 ◽  
Vol 47 (3) ◽  
pp. 1-12
Author(s):  
C. Reimers ◽  
C. B. Scheepers
Keyword(s):  
Risk Management ◽  
Financial Risk ◽  
Research Problem ◽  
Research Approach ◽  
Financial Risks ◽  
Financial Risk Management ◽  
High Profile ◽  
Strategy Process ◽  
Retail Banks

The consideration of risk in the banking industry generally involves the understanding of credit and financial risks. However, the occurrence of high-profile, non-financial risk events (such as system downtime and fraud) have resulted in negative financial and reputational implications for banks globally. These events have provided an opportunity for stakeholders to reflect on the consideration of non-financial risk. Therefore, the objective of this research was to understand the incorporation of non-financial risk management into the strategy process at retail banks, including the related benefits and challenges and the initiatives that have been (and require to be) undertaken. To this end, a qualitative research approach was conducted, using an exploratory design. Twelve banking subject matter experts were interviewed to explore their unique insights and experiences into the research problem. The research identified several challenges related to the consideration of operational and business risk. Key findings emerged including: the need for increased awareness of non-financial risk concepts, the need to balance risk management and business development, and the dangers of over-confidence in existing internal processes.

The Global Organizational Behavior Analysis for Financial Risk Management Utilizing Artificial Intelligence

2022 ◽  
Vol 30 (7) ◽  
pp. 0-0
Keyword(s):  
Artificial Intelligence ◽  
Risk Management ◽  
Organizational Behavior ◽  
Management System ◽  
Financial Risk ◽  
Economic Research ◽  
Research Database ◽  
Financial Risk Management ◽  
Risk Management System ◽  
Extreme Gradient Boosting

Enterprise financial risks are analyzed utilizing the theory of organizational behavior, and a financial risk management system is constructed to improve the design and algorithm of the enterprise risk management system. Base on the CCER (China Center for Economic Research) database, the early warning model for enterprise financial risk management containing five indices is proposed for enterprises. Through Logistic regression analysis, the design principle of the financial risk management system based on AI (Artificial Intelligence) technology is explained. The proposed system innovatively introduces the AI integrated learning method, optimizes objective function through XGBoost (eXtreme Gradient Boosting) algorithm, and trains the model through BP (Backpropagation) NN (Neural Network). Finally, following comparative analysis, the effectiveness of the proposed method is verified.

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