scholarly journals Decentralized Enterprise Risk Management Issues under Rapidly Changing Environments

Risks ◽  
2021 ◽  
Vol 9 (9) ◽  
pp. 165
Author(s):  
Levente Bakos ◽  
Dănuț Dumitru Dumitrașcu
Keyword(s):  
Risk Management ◽  
Risk Identification ◽  
Enterprise Risk Management ◽  
Theory And Practice ◽  
Changing Environments ◽  
Operational Risks ◽  
Multidisciplinary Cooperation ◽  
Single Person ◽  
Enterprise Risk ◽  
Management Techniques

Under the growing complexity of manufacturing processes, supply chains, markets and stakeholder expectations, enterprise risk management (ERM) has become an extremely important, probably yet still underdeveloped, management function. Enterprise risk management theory and practice should keep pace with the changes of rapidly changing environments, through new, more adaptive approaches. The article presents some of the results of a longitudinal survey at Eastern-European manufacturing organizations made on risk management techniques. The goal of the research was the study of risk management techniques under rapidly changing environments in highly standardized industries (pharmaceutical and automotive). The research was focused on the role of human resources in handling technology-related/operational risks and to what extent a decentralized risk management is present. Multidisciplinary cooperation, the selection of the teams, communication and the decision making within the team was analysed. During our research few common risk analysis routines were identified at the studied organizations. Through an interview-based qualitative survey, possible weaknesses of common risk identification techniques were identified. The article presents three risk evaluation methods with the same features. The answers provided during the interviews indicate that risk assessment techniques are mostly centralized (coordinated by a single person/unit), linear (based on If-Then construct) and rigid, definitively not suitable when quick changes are in the organization environment.

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.

Management Accounting And Risk Management Practices In Financial Institutions

2012 ◽  
Author(s):  
Siti Zaleha Abdul Rasid ◽  
Abdul Rahim Abdul Rahman
Keyword(s):  
Risk Management ◽  
Financial Institutions ◽  
Management Practices ◽  
Management Accounting ◽  
Enterprise Risk Management ◽  
Chief Financial Officers ◽  
Operational Risks ◽  
Enterprise Risk ◽  
Budgetary Control ◽  
Contemporary Management

Tujuan kertas kerja ini adalah untuk melaporkan hasil kajian terhadap amalan perakaunan pengurusan dan amalan pengurusan risiko di institusi kewangan. Data dikutip menggunakan borang soal selidik yang dihantar kepada 106 institusi kewangan yang tersenarai di dalam website Bank Negara Malaysia, di mana Ketua Pegawai Kewangan atau pegawai terkanan di jabatan kewangan institusi–institusi tersebut dilantik sebagai responden kajian. Analisis amalan perakaunan pengurusan berdasarkan kerangka IFAC (1998) menunjukkan bahawa amalan yang lazim diguna pakai adalah amalan di peringkat pertama, diikuti dengan amalan selepas era 1995. Dapatan ini menunjukkan bahawa amalan perakaunan pengurusan tradisional masih diguna pakai secara meluas oleh institutsi-institusi kewangan di Malaysia walapun amalan–amalan kontemporari (peringkat ke 4 dan ke atas) telah diperkenalkan. Bagi amalan pengurusan risiko, kebanyakan institusi telah melaksanakan kerangka Enterprise Risk Management (ERM) secara menyeluruh atau sebahagian. Amalan perakaunan pengurusan berkaitan penyata kewangan dan analisis nisbah dianggap sebagai memberikan sumbangan utama kepada pengurusan risiko. Kawalan belanjawan, belanjawan dan pengurusan strategik juga dianggap penting dalam pengurusan risiko operasi. Kata kunci: Perakaunan pengurusan; pengurusan risiko; institusi kewangan The aim of this paper is to report the results of a study on management accounting and risk management practices in financial institutions. The research method involved administering a questionnaire to 106 financial institutions listed on the Malaysian Central Bank’s website and the respondents were the chief financial officers (CFO) or the most senior positions in the finance department of the institutions. Based on the IFAC’s (1998) framework, it was found that the most widely practiced were the management accounting practices at Stage 1, followed by practices of Post 1995. This finding shows that despite the emergence of contemporary management accounting practices (Stage 4 onwards), traditional management accounting that focuses on financial performance and budgetary control is still widely practiced by financial institutions in Malaysia. As for the risk management practices, most of the firms have either implemented a complete or partial Enterprise Risk Management (ERM) framework. The findings from the survey showed that management accounting practices related to financial statement and ratio analysis were perceived to contribute most towards risk management. Budgetary control, budgeting and strategic planning were also perceived to be important in managing operational risks. Key words: Management accounting; risk management; financial institutions

scholarly journals Implementation of a sustainable enterprise risk management framework: The Administrator on Duty model

2016 ◽  
Vol 5 (2) ◽  
pp. 80
Author(s):  
Linda L Vila ◽  
Vito Buccellato
Keyword(s):  
Health Care ◽  
Risk Management ◽  
Organizational Performance ◽  
Health Care Organization ◽  
Well Being ◽  
Safety Net ◽  
Risk Identification ◽  
Enterprise Risk Management ◽  
Care Organization ◽  
Enterprise Risk

Background: Today’s health care landscape requires a new standard of service delivery aimed at quality outcomes, cost-effective provisions of coordinated treatment, and access to equitable care. This standard has brought emerging risks that pose threats to the operational and financial well-being of health care organizations, especially safety net hospitals. The establishment of enterprise risk management (ERM) programs guided by the efforts of efficacious health care managers will promote deeper risk analysis, engagement of the entire health care organization, and structured, coordinated and cohesive mitigation responses to risk exposures.Objective: To establish and implement an ERM program using the Administrator on Duty (AOD) model that will promote a patient-centric paradigm of care while optimizing organizational performance and mitigating risk and exposure.Results: The AOD model significantly contributes to all phases of ERM, particularly risk identification, risk assessment, risk response and monitoring. The model, as perceived by both AODs and hospital senior leadership, provides tremendous benefits to a health care organization. These include, among many others, a substantial leadership presence, dynamic risk mitigation efforts, continuous education to staff and facilitation of problem solving and conflict resolution.Conclusions: The AOD program is a vital constituent of an ERM endeavor. AODs are pivotal to managing the global risk terrain of a health care organization and play a substantial role in promoting patient, staff and visitor safety while working to ensure potential and actual risk issues are addressed timely and appropriately.

OPERATIONAL RISK MANAGEMENT OF SURABAYA MAIN NAVAL BASE V REPAIR AND MAINTENANCE FACILITY BASED ON ISO 31000 FRAMEWORK

JOURNAL ASRO ◽  
2019 ◽  
Vol 10 (3) ◽  
pp. 111
Author(s):  
Yunus Patabang ◽  
Suprayitno Suprayitno ◽  
Erpan Sahiri ◽  
I Made Jiwa
Keyword(s):  
Risk Management ◽  
Phase 1 ◽  
Armed Forces ◽  
Risk Identification ◽  
Enterprise Risk Management ◽  
Phase 2 ◽  
Effective Prevention ◽  
Enterprise Risk ◽  
Iso 31000 ◽  
Naval Base

Surabaya Main Naval Base V Repair and Maintenance Facility is one of the work units under the auspices of the Indonesian Navy that is tasked with carrying out the maintenance and repair of all major weapons systems of the Indonesian Navy. In carrying out their duties Surabaya Main Naval Base V Repair and Maintenance Facility has a big challenge and even there are various kinds of risks to prepare all the Indonesian Armed Forces defense equipment in accordance with the demands of need. Therefore, in this research, risk management will be carried out at the Surabaya Main Naval Base V Repair and Maintenance Facility Operational based on the ISO 31000: 2018 framework. Based on this framework, risk management will be carried out, namely how to carry out risk assessments in the form of risk identification, risk analysis, and risk evaluation for all risks in the operational field. Enterprise Risk Management (ERM) is also used to carry out in-depth risk management processes. One method used to solve existing problems is to use the House of Risk (HOR) method, which is divided into two stages. Stage 1 HOR focuses on ranking the Aggregate Risk Potential (ARP) value and with the help of the Pareto diagram the cumulative ARP value is obtained to determine the risk event (risk agent) selected, which then requires treatment on a priority scale. The results of this HOR phase 1 are then included in HOR phase 2 to rank the most effective prevention measures based on costs and resources. From the results of the HOR phase 2, further brainstorming was carried out with the Surabaya Main Naval Base V Repair and Maintenance Facility in accordance with the actions chosen for preventive actions that could be immediately carried out.Keywords: House of Risk, Enterprise Risk Management, SNI ISO 31000: 2018.

scholarly journals The Challenges and Opportunities for ERM Post-COVID-19: Agendas for Future Research

2020 ◽  
Vol 13 (12) ◽  
pp. 323
Author(s):  
Don Pagach ◽  
Monika Wieczorek-Kosmala
Keyword(s):  
Risk Management ◽  
Risk Identification ◽  
Enterprise Risk Management ◽  
Additional Research ◽  
Future Research ◽  
Research Attention ◽  
Enterprise Risk ◽  
Challenges And Opportunities ◽  
The Impact

In this paper, we examine the impact that COVID-19 has had on enterprise risk management (ERM). Guided by the origins and philosophy of ERM, we suggest an agenda for future research on ERM in a “post-COVID-19” reality, by addressing its integrated, strategic, and value-enhancing orientation. To guide future research endeavors in ERM, which is still an evolving discipline, we present topics that would benefit from additional research attention within both risk identification and analysis, as well as the strategic dimension of ERM.

A framework for enterprise risk identification and management: the resource-based view

2019 ◽  
Vol 34 (2) ◽  
pp. 162-188 ◽  
Author(s):  
Birendra K. Mishra ◽  
Erik Rolland ◽  
Asish Satpathy ◽  
Michael Moore
Keyword(s):  
Risk Management ◽  
Online Survey ◽  
Risk Identification ◽  
Enterprise Risk Management ◽  
Sample Survey ◽  
Risk Exposure ◽  
Organizational Resources ◽  
Data Set ◽  
Content Type ◽  
Enterprise Risk

Purpose This study aims to examine the factors influencing enterprise risk management and propose a framework for identifying and explaining the components of enterprise risk management. To enable broader analytical thinking about risk factors, the framework utilizes the resource-based theory to link various classes of risks to an extended set of organizational resources. Design/methodology/approach The paper opted for an exploratory study using a sample from an online survey. The survey subjects were recruited from the membership database of the American Institute of Certified Public Accountants, focusing primarily on CFOs. The survey consisted of six sections: demographics, a section on each of the four risk types included in ERM: strategic risk, operational risk, financial risk and hazard risk, and exit questions (where very general questions about ERM were asked). The survey yielded a data set of 227 valid responses. Findings Using the associated sample survey data, the paper provides empirical validation of the proposed framework that managers in any organizations could use to identify and manage risks. Research limitations/implications The proposed model does have limitations that predominantly exist from the fact that human judgment in decision-making is not always data-driven, and hence, a proper risk exposure could be ignored based on pure arguments of cost and benefits from domain experts. Therefore, researchers and practitioners are encouraged to test the proposed framework further. Practical implications Risk exposure is not a snapshot event in an organization’s time horizon. Rather, risk identification is an ongoing process and the proposed framework allows organizations to handle increasing complex risks and/or identifying them based on how the organizational resources may be exposed over time. Managers could use a form of risk control analytics (monitoring dashboard of all identified risks under each interaction sets on a regular basis) to become more proactive in managing risk or exploiting opportunities across enterprise. Originality/value This paper fulfills an identified need to study how enterprise risks exposure can be proactively assessed and managed.

scholarly journals Operational Risk Assessment of an English Academy in Yogyakarta

2020 ◽  
Vol 9 (2) ◽  
pp. 5-12
Author(s):  
Anastasia Filiana Ismawati
Keyword(s):  
Risk Assessment ◽  
Risk Management ◽  
Data Analysis ◽  
Operational Risk ◽  
Enterprise Risk Management ◽  
Operational Risks ◽  
Long Run ◽  
Enterprise Risk ◽  
Operational Activities

This research was conducted for the risk assessment on the operational activities in order to assist PT. XYZ in managing the operational activities which leads to the goals of the firm. The use of Enterprise Risk Management (ERM) can help the organization to manage the risks holistically using the intergrated methods. This research focused on the risk assessment in PT. XYZ, especially for its operating, and provided a strategy of improvement from the existing risks. The methodology used in this research is a case study with triangulation of sources as the tool to conduct the data analysis. The informants of this research are the Operational Manager of PT. XYZ and five teachers. The data was obtained by conducting interviews and there were six operational risks found which would be best to respond and to manage as soon as possible for minimizing the risks. The result of this research is to hope that PT. XYZ shall be able to manage the risks by using the ERM methodology in order to have the business in the long run and to be successfully competing in the market.

scholarly journals Features of enterprise risk management associated with operational risks

2021 ◽  
Vol 10 (46) ◽  
pp. 9-19
Author(s):  
Andrey S. Boyar-Sozonovitch ◽  
Alexey Yu. Buikin ◽  
Kirill V. Pitelinskiy
Keyword(s):  
Risk Management ◽  
Business Processes ◽  
Enterprise Risk Management ◽  
Classification Systems ◽  
Corporate Risk Management ◽  
Economic Relations ◽  
Operational Risks ◽  
Sufficient Detail ◽  
Enterprise Risk ◽  
Corporate Risk

Purpose of the work: within the framework of the concept of corporate risk management Enterprise Risk Management (ERM) to study the basic types of risks, assess their role in the modern economy, analyze external and internal operational risks and propose approaches to their quantitative assessment. As a research methodology, it is proposed to use the developed tools of mathematical and numerical modeling, which allows one to obtain, in the key of interest to the decision maker, qualitative and quantitative characteristics of the dynamics of business processes. The operational and economic risks (as very often occurring in the activities of subjects of economic relations) and directly affecting their economic and information security are considered in sufficient detail. It is noted that the risks associated with disruption of business continuity (which enterprises face in their activities) can be included in various classification systems of risks, grouped according to various criteria. The need to identify the mismatch between the design and actual metrics of the organizational structure (establishment of its structure and operating schemes based on the needs of the enterprise/organization) is indicated for solving the optimization problem.

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