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.

scholarly journals Peran Internal Audit dalam Implementasi Enterprise Risk Management berupa Pelaporan Kerusakan Prosedur Risiko.

2020 ◽  
Vol 14 (2) ◽  
Author(s):  
Indarti Indarti
Keyword(s):  
Risk Management ◽  
Internal Audit ◽  
Enterprise Risk Management ◽  
Audit Committees ◽  
Corporate Risk Management ◽  
Internal Auditor ◽  
Internal Auditors ◽  
Enterprise Risk ◽  
Management Procedures ◽  
Corporate Risk

Implementation of Enterprise Risk Management (ERM) by Internal Audit in an orga-nization or company becomes important because Internal Audit is expected to help the organization achieve its objectives by approaching systematic and discipline to evaluate and improve the effectiveness of risk management, control, and governance process. As for which affects it is the involvement of internal auditors, the relation-ship of the audit committee with the internal auditor, and ERM.This study aims to analyze the involvement of Internal Audit in Enterprise Risk mana-gement implementation. Internal auditors should assist both management and audit committees in risk management responsibilities and supervisory roles by examining, evaluating, reporting and recommending improvements to the adequacy and effec-tiveness of risk management processes. An interesting issue is whether internal auditors involved in corporate risk management have a link to the willingness of internal auditors to report to the audit committee.The population in this study are the internal auditors and audit committees who working in companies manufacturing and financial services. The reason for determining the company is because the researcher wants to know how internal audit is involved in ERM implementation on that entity. The sample used in this research is internal auditor at private company and at Banking in this case internal auditor at local bank.The analytical method used is multiple regression analysis with SPSS version 23 pro-gram. The analysis technique used in this research is descriptive statistical analysis, classical assumption test, F-statistic hypothesis test to test influence together with 5% confidence level and use t-statistics to test partial regression coefficients. This re-search was conducted to analyze how much influence the role of Internal Audit in applying Enterprise Risk Management in the implementation of Audit.The result of this research is that the high level of internal auditor involvement in Enterprise Risk management implementation has no significant and significant im-pact on reporting of damage to risk management procedures. This indicates that the role of internal auditors in corporate risk management does not affect the reporting of damage to corporate risk management procedures. While the characteristics of strong relationships between internal auditors and audit committees positively and significantly influence the reporting of risk procedures, this indicates that internal audits that have strong internal audit-audit committee relationships strongly support internal auditors who have high involvement to report damage Greater risk procedures.

scholarly journals Recente ontwikkelingen in financieel risicomanagement

2002 ◽  
Vol 76 (4) ◽  
pp. 138-149
Author(s):  
Piet Duffhues
Keyword(s):  
Risk Management ◽  
Enterprise Risk Management ◽  
Corporate Risk Management ◽  
Enterprise Risk ◽  
Corporate Risk

Financieel risk management (frm) maakt deel uit van het meer algemene risicomanagement dat de regulering van risico’s en de financiering van verliezen die kunnen voortkomen uit het lopen van risico’s, bestudeert. Als invalshoek is gekozen voor het ‘corporate’ risk management. De theoretisch ideale benadering is de geïntegreerde of ‘holistische’ benadering, ook wel aangeduid als ‘enterprise risk management’. Naast belangrijke bijdragen aan de waarde van de onderneming heeft risk management ook als belangrijk nadeel dat het kan leiden tot een overmatige toeneming van de financiële autonomie van het management, waaruit een gebrek aan transparantie kan voortvloeien. Ter verbetering van de inzichtelijkheid in de prestaties van ondernemingen wordt een model van een ‘gesegmenteerde marktwaardebalans’ voorgesteld.

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 The risk-management theory in modern economic conditions

2019 ◽  
Vol 110 ◽  
pp. 02040 ◽  
Author(s):  
Ajdar Ajupov ◽  
Anna Sherstobitova ◽  
Svetlana Syrotiuk ◽  
Alexey Karataev
Keyword(s):  
Risk Management ◽  
Financial Risk ◽  
Enterprise Risk Management ◽  
Management Theory ◽  
Economic Conditions ◽  
Economic Relations ◽  
Risky Investment ◽  
Enterprise Risk ◽  
Modern Economic ◽  
The Subject

The article reveals features of risk-management theory in environmental enterprise. Risk management is considered according to the system approach. The interaction of the managed and managing subsystems and their cooperation with the external environment are being studied and analyzed. The object of management is a risky investment in the implementation of economic relations between economic entities. The subject of management is a team of specialists. They provide purposeful action on the controlled objects through various techniques and methods of financial risk management.

scholarly journals Firm Ownership and Enterprise Risk Management Implementation: Evidence from the Nordic Region

2020 ◽  
Vol 13 (9) ◽  
pp. 210
Author(s):  
Naciye Sekerci ◽  
Don Pagach
Keyword(s):  
Risk Management ◽  
Quantitative Methods ◽  
Agency Cost ◽  
Enterprise Risk Management ◽  
Corporate Risk Management ◽  
Firm Ownership ◽  
Nordic Region ◽  
Enterprise Risk ◽  
Governance Tools ◽  
Dual Class

The purpose of this paper is to investigate whether firm ownership characteristics can explain demand for Enterprise Risk Management (ERM) implementation. Specifically, we examine the relationship between the presence of large shareholders, multiple blockholders and a dual-class share structure, and ERM implementation. To our knowledge we provide the first evidence on the effect of multiple blockholders and dual-class share structures on the implementation of ERM. ERM best practices can be considered as governance tools, used to monitor managerial discretion in risk management, ultimately reducing the agency cost of risk management. Accordingly, we analyze the demand for ERM in certain governance (e.g., ownership) settings. We use quantitative methods in our study: survey and regressions (tobit and logit models). Ownership data is hand-collected while ERM data comes from a survey conducted in the Nordic region. We find that ERM is implemented less frequently in firms where there are multiple blockholders, and where large controlling owners hold dual-class shares. These findings indicate that there is less demand for ERM’s monitoring role in firms that are associated with high agency costs. Given the increasing use of dual-class share structures, we believe further examination of ownership characteristics and corporate risk management is warranted.

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 A Comparison of the Main ERM Frameworks: How Limitations and Weaknesses can be Overcome Implementing IT Governance

2018 ◽  
Vol 13 (12) ◽  
pp. 203 ◽  
Author(s):  
Michele Rubino
Keyword(s):  
Risk Management ◽  
Business Strategy ◽  
Business Processes ◽  
It Governance ◽  
Enterprise Risk Management ◽  
Professional Literature ◽  
Policies And Procedures ◽  
Enterprise Risk ◽  
Risk Management Process ◽  
Successful Business

The significance of the Enterprise Risk Management (ERM) is widely recognized by the academic and professional literature. Knowledge and management of business risks are an integral part of every successful business strategy and are increasingly becoming a primary factor of competitiveness. Although several risk management frameworks have been published and updated over time, these standards still have limitations. The advent of IT helped companies to better manage business risks. The rise of the IT governance has improved the management and the monitoring of business processes as well as the implementation of policies and procedures. The aim of this paper is twofold. First, a comparative analysis of the main risk management frameworks was carried out, highlighting their limits and weaknesses. Second, it was highlighted how the IT governance and the related frameworks as COBIT could contribute to a better implementation of the risk management process that allows to overcome the limitations of the examined standards.The significance of the Enterprise Risk Management (ERM) is widely recognized by the academic and professional literature. Knowledge and management of business risks are an integral part of every successful business strategy and are increasingly becoming a primary factor of competitiveness. Although several risk management frameworks have been published and updated over time, these standards still have limitations. The advent of IT helped companies to better manage business risks. The rise of the IT governance has improved the management and the monitoring of business processes as well as the implementation of policies and procedures. The aim of this paper is twofold. First, a comparative analysis of the main risk management frameworks was carried out, highlighting their limits and weaknesses. Second, it was highlighted how the IT governance and the related frameworks as COBIT could contribute to a better implementation of the risk management process that allows to overcome the limitations of the examined standards.

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.

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