Investigation of risk management and risk disclosure practices of Italian listed local utilities

2013 ◽  
pp. 121-167 ◽  
Author(s):  
Selena Aureli ◽  
Federica Salvatori
Keyword(s):  
Risk Management ◽  
Qualitative Methodology ◽  
Management Practices ◽  
Service Providers ◽  
Document Analysis ◽  
Risk Exposure ◽  
Risk Disclosure ◽  
Utility Companies ◽  
Utility Services

Local utility services deeply affect the overall quality of life of a country's population. For this reason service providers should pay strong attention to risk management practices, but also to the external communication of both the risk exposure and the risk responses. Following a qualitative methodology, this paper aims at exploring the risk management and risk disclosure practices of five Italian listed local utility companies combining two research methods: questionnaire and document analysis. Results show that these Italian listed local utilities are characterized by different maturity levels of risk management practices, which are not extensively disclosed in public reports and documents. Interestingly, the link between the level of disclosure and maturity of risk management practices is confirmed just for those companies that seem to be the most mature in terms of risk management.

scholarly journals Key Mechanisms of Risk Management in South Africa’s National Government Departments: The Public Sector Risk Management Framework and the King III Benchmark

2016 ◽  
Vol 14 (2-3) ◽  
Author(s):  
Tankiso Moloi
Keyword(s):  
Risk Management ◽  
Management Practices ◽  
Data Extraction ◽  
Risk Process ◽  
National Government ◽  
Annual Reports ◽  
Risk Governance ◽  
Risk Disclosure ◽  
Poor Risk ◽  
Management Disclosures

Government provides essential services to the population and therefore, uncertainties that could hinder government’s objectives should be identified, mitigated/controlled and monitored. Using the content analysis for data extraction in the annual reports of national government departments (NGDs), this paper explored risk management practices in South Africa’s public service, with national government departments as a case in point. The findings are that in general, there are poor risk management practices in the NGDs as the majority of the observed categories were not disclosed in the NGDs annual reports.Since risk deals with the uncertainties on the objectives, it is concerning that NGDs have poor risk management practices, particularly because they are enablers (implementers) of government overarching strategy. As enablers of government strategy, it is recommended that NGDs view risk management as a process that enables them to identify threats which could hinder the attainment of their objectives, whilst also leveraging opportunities that may arise. It is further recommended that the risk process is viewed as a scenario or option analysis exercise that allows NGDs to properly plan, understand the intended outcomes and prepare responses to deal with any uncertainties. A summarised and harmonized risk governance requirement used for the purpose of exploring risk management disclosures has been suggested by this study and it could be used as a reference point of risk disclosure improvement by NGDs.

Corporate Governance and Risk Management on Listed Banks, The Tanzania Perspective

2021 ◽  
Vol 8 (1) ◽  
pp. 27
Author(s):  
Erick Lusekelo Mwambuli ◽  
Avitus Mwebembezi Dominick
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Board Of Directors ◽  
Ownership Structure ◽  
Management Practices ◽  
Stock Exchange ◽  
Management Approach ◽  
Financial Risks ◽  
The Board Of Directors

The study was to assess on corporate governance and risk management in Tanzania. The study was guided by three objectives which were to assess if transparency, disclosure and audit have significant effect on risk management of the firm, to assess if the board of directors have significant effect on risk management of the firm and evaluate if the ownership structure have significant effect on risk management of the firm. Furthermore, we assess how corporate governance and particularly board of directors, ownership structure, transparency disclosure and audit can affect risk management practices in the context of Dar es Salaam stock exchange listed banks. By the use of a content in analysis approach, the level of exposing the risks in terms of likelihood, consequences of such risk and the strategies used for managing that risk were identified for each kind of risk by using attributes. The results show that corporate governance is related to board of directors, ownership structure, transparency, disclosure and audit play a positive significant and crucial role in establishing an integrative risk management approach. The results from data collected demonstrate that corporate governance has positive significant effect in determining the the good quality of risk management through the level of risk-taking in decisions, especially in terms of financial risks management.

scholarly journals Health evaluation: health assessment for people with ostomies

2020 ◽  
Vol 73 (4) ◽  
Author(s):  
Diana Mary Araújo de Melo Flach ◽  
Luísa Gonçalves Dutra de Oliveira ◽  
Gisela Cordeiro Pereira Cardoso ◽  
Marilda Andrade ◽  
Wanderson Alves Ribeiro
Keyword(s):  
Qualitative Methodology ◽  
Care Service ◽  
Evaluation Model ◽  
Health Assessment ◽  
Document Analysis ◽  
Evaluation Study ◽  
Collaborative Approach ◽  
Structural Elements ◽  
Judgment Matrix

ABSTRACT Objectives: to perform an evaluation study of the Ostomy Care Service in Brazil. Methods: a qualitative methodology was used, with a collaborative approach of the participants using the service, based on the seven elements proposed by Thurston and Ramaliu, which include service modeling and evaluation model proposal. Document analysis, direct observation, consensus workshops, and interviews with key informants were used. Results: the description and construction of the theoretical-logical model of the ostomy care service, the development of evaluative questions, the construction of the analysis and judgment matrix, and the evaluation proposal were presented. Final Considerations: it was found that it is feasible to systematically evaluate the service based on its structural elements, such as its theory, material and human resources. The proposed evaluation aims to provide support for improving the quality of care.

scholarly journals Governance of risks in South Africa’s public higher education institutions (HEIs)

2016 ◽  
Vol 13 (2) ◽  
pp. 226-234 ◽  
Author(s):  
Tankiso Moloi
Keyword(s):  
Higher Education ◽  
South Africa ◽  
Risk Management ◽  
Management Practices ◽  
Higher Education Institutions ◽  
Relevant Literature ◽  
Strategic Decision ◽  
Annual Reports ◽  
Risk Governance ◽  
Risk Disclosure

The author examines the manner in which risk is governed within higher education institutions (HEIs) in South Africa by formulating risk governance statements based on the requirements of the King III Report on Corporate Governance and other relevant literature. The formulated risk governance statements are used to develop the risk disclosure measurement index. Disclosure measurement method is accepted as a flexible method to use when extracting the pre-determined information in the annual reports. The developed risk disclosure index is used to extract the information from South Africa’s higher education institutions’ annual reports. The information disclosed in these annual reports is deemed a proxy of risk management practices within the higher education institution concerned. The results obtained indicate that South Africa’s higher education institutions have not embraced risk management as a key process in their activities. This is apparent in the assessed annual reports as compliance with the pre-determined set of statements was around 50%. For those that have not demonstrated these practices, it is stated that the concern is around the manner in which their highest decision makers make decisions, as it appears that risks may not necessarily be taken into account. As higher education institutions in South Africa continues to face challenges and they would possible be revising their strategies to take into account the recent events, every strategic decision being undertaken should be accompanied by a proper risk assessment to identify potential pitfalls (threats) and/or take advantage to achieve results promptly (opportunities)

scholarly journals Derivative Use by Commercial Banks in Bangladesh

2015 ◽  
Vol 47 ◽  
pp. 107-115
Author(s):  
Golam Mohiuddin
Keyword(s):  
Growth Rate ◽  
Risk Management ◽  
Commercial Banks ◽  
Management Practices ◽  
Interest Rate Risk ◽  
Risk Exposure ◽  
Exposure Level ◽  
High Exposure ◽  
Risk Management Process ◽  
Intermediary Role

Derivative use by commercial banks operating in Bangladesh is hypothesized to improve their intermediary functions. The study outcome identifies the influence of derivative use on the growth of advances by commercial banks. Bank’s participation in advances increases with increase in hedging activities through futures. It has also been found that the Bangladeshi private sector commercial banks have a high exposure of risk and have externalized their risk management process. Specialized banks of Bangladesh have a low risk exposure level, but still they have moderately externalized their risk management practices. Bangladeshi public commercial banks have a large deposit base and high risk exposure but are still internalizing their risk through risk management. The policy implication of this study is that derivative use by commercial banks is likely to increase the intermediary role of banks, i.e., the increase in advances growth rate rather than investment portfolio growth rate. Commercial banks with large deposit base could gain relatively by externalizing their risk management practices since this study reveals that interest rate risk exposure of derivative users is statistically lesser than non-users.

scholarly journals Financial risk exposures and risk management: evidence from european nonfinancial firms

2011 ◽  
Vol 12 (5) ◽  
pp. 65-97 ◽  
Author(s):  
Maria João da Silva Jorge ◽  
Mário António Gomes Augusto
Keyword(s):  
Risk Management ◽  
Firm Value ◽  
Financial Risk ◽  
Management Practices ◽  
Empirical Studies ◽  
Seemingly Unrelated Regression ◽  
Risk Exposure ◽  
Common Belief ◽  
Hedging Strategies ◽  
Nonfinancial Firms

Previous empirical studies concerning corporate risk management have attempted to show that the use of derivatives as a hedging mechanism can be value enhancing. Implicit to these tests has been the assumption that firms use derivatives solely for the purpose of hedging. There is substantial literature concerning nonfinancial firms that suggest that changes in financial prices affect firms' value. Furthermore, it is a common belief that financial price exposures are created via firms' real operations and are reduced through the implementation of financial hedging strategies. We use monthly returns of 304 European firms traded in Euronext over the period from 2006-2008 to analyse whether risk management practices are associated with lower levels of risk. We pursue Jorion (1990) and Allayannis and Ofek (2001) two stages framework to investigate, firstly, the relationship between firm value and financial risk exposures; subsequently, the risk behaviour inherent to firms' real operations and to the use of derivatives and other risk management instruments. So, we argue that hedging policies affect the firm's financial risk exposures; however, we do not discard the fact that the magnitude of a firm's exposure to risks affects hedging activities. The interaction between financial price exposures and hedging activities is tested by using the Seemingly Unrelated Regression (SUR) procedure. Our major findings are as follows: Firstly, we find evidence that the sample firms exhibit higher percentages of exposure to the three categories of risks analysed when compared to previous empirical studies. Secondly, we find that hedging is significantly associated with financial price exposure. Our results are also consistent with the idea that financial risk exposure and hedging activities are endogenously related, but only in what respects the exchange risk and commodity risk exposure.

scholarly journals The Quality of Risk Disclosure: Evidence from Infrastructure Industry in Indonesia

2017 ◽  
Vol 4 (2) ◽  
pp. 211-230
Author(s):  
Ira Geraldina
Keyword(s):  
Risk Management ◽  
Financial Risk ◽  
Stock Exchange ◽  
Three Dimensions ◽  
Risk Disclosure ◽  
Firm Risk ◽  
Future Performance ◽  
Strategic Role

The objective of this study was to analyze the quality of mandatory and voluntary risk disclosure in Indonesia during the period of 2011 and 2012. The risk disclosure quality is defined as the quality of risk information that are disclosed by firms in term of relative quantity (adjusted by type of sub-industry and firm size), depthness (the potential impact of risk disclosed on firm’s future performance), the coverage within every type of risk, and the outlook profile of firm’s risk management. This study used samples of 48 firm-years of infrastructure companies that were listed in Indonesia Stock Exchange. Infrastructure industry was chosen due to the strategic role of this industry to support the acceleration and expansion of Indonesia's economic development. By using a descriptive qualitative method, the result showed that firms were still emphasizing on relative quantity dimension compared to the other three dimensions: coverage, depth, and outlook profile of firm risk management. In addition, the quality of mandatory risk disclosure was better than voluntary risk disclosure either for depth, coverage, or an outlook profile of firm risk management dimension. In other words, financial risk items (mandatory risk disclosure items) have better quality rather than non-financial risk items (voluntary risk disclosure items).

scholarly journals Relationship between Corporate Governance and Risk Disclosure Practice from Malaysia Perspective

2019 ◽  
Author(s):  
Ag Kaifah Riyard Bin Kiflee ◽  
Mohd Noor Azli Bin Ali Khan
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Global Financial Crisis ◽  
Auditor Independence ◽  
Annual Reports ◽  
Risk Disclosure ◽  
Accounting Scandals ◽  
The Relationship ◽  
Disclosure Practice

Past accounting scandals (Transmile and Megan Media) and recent 2007/2008 global financial crisis have triggered the need for vibrant risk management and high quality of risk reporting through sound corporate governance. This study will measure risk management through the disclosure in the annual reports. It wishes to determine the presence of risk information within the annual report of non-financial companies in Malaysia. The objective of the study is to examine the relationship between corporate governance characteristics and risk disclosure practice. The corporate governance characteristics examined include board independence, the board size, board gender, auditor independence and auditor tenure. A total of 721 companies are expected to be analyzed based on the Bursa Malaysia list from 2008 to 2017. To determine the level of risk disclosure, this study will employ content analysis. Descriptive statistics and multiple regression will be used in this study to examine this relationship.

scholarly journals Risk Management Practices by South African Universities: An Annual Report Disclosure Analysis

2021 ◽  
Vol 14 (5) ◽  
pp. 195
Author(s):  
Inga Sityata ◽  
Lise Botha ◽  
Job Dubihlela
Keyword(s):  
Risk Management ◽  
South African ◽  
Management Practices ◽  
Qualitative Content Analysis ◽  
Annual Reports ◽  
Risk Governance ◽  
Exploratory Research ◽  
Risk Disclosure ◽  
South African Universities ◽  
The Impact

This paper assesses risk management practices at South African universities by analyzing the extent of risk management disclosure recommended by King IV and the level of risk governance maturity. This study was motivated by #Feesmustfall disruptions, which pointed to the lack of effective risk management, preparedness for volatility and increased scrutiny by stakeholders. A qualitative content analysis using a risk disclosure checklist was conducted on 18 annual reports and analyzed using an exploratory research design. The results revealed that over 80% of the sampled South African universities have disclosed most of their risk management practices, showing an improved disclosure due to King IV’s “apply and explain” philosophy as introduced in 2016. However, there were areas of improvement identified, such as: defining and approval of risk appetites and tolerance; development and implementation of business continuity plans; confirming the unpreparedness for volatility; annual revision of policies; and integration of risk management into the culture and daily activities of the university. This paper builds upon previous studies that highlighted a lack of detailed disclosures in South African organizations’ annual reports. This study also provides interesting insights into the impact of social events on organizational practices and supports the notion that legislative accounting practices should echo stakeholders and societal expectations.

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