scholarly journals Effect of Risk Mitigation on Profitability of Insurance Industries in Nigeria

2021 ◽  
Vol 65 (3) ◽  
pp. 330-343
Author(s):  
Kehinde Olaiya ◽  
◽  
Kareem Arikewuyo ◽  
Ashim Shogunro ◽  
Lateef Yunusa ◽  
...  
Keyword(s):  
Risk Management ◽  
Risk Mitigation ◽  
Cost Minimization ◽  
Insurance Industry ◽  
Profit Maximization ◽  
Risk Identification ◽  
Insurance Companies ◽  
Control Mechanisms ◽  
Risk Monitoring ◽  
Strongly Agree

Risk management plays a critical part in every organization‘s profit maximization through risk cost minimization for wise protection, which cannot be overstated. Risk mitigation (rmt), risk monitoring (rmn), risk management environment, procedure, and policies (epp), and risk measurement (rme) in relation to the profitability of the insurance industry in Nigeria were randomly selected from a wellstructured 5-point Likert scale questionnaire ranging rom ‘5 strongly agree‘ to ‘4 agree‘, ‘3 undecided‘ to ‘1 strongly disagree‘. Using the StataSE 14 statistical software, one hundred and twenty (120) questionnaires were recovered from respondents, accounting for 83 percent of the total questionnaires sent using the multiple regression statistical methodology. Risk reduction and risk monitoring have a considerable impact on the profitability of insurance companies in Nigeria, according to the findings. As a result, it concluded that risk mitigation and monitoring are important factors in determining industry profitability, and those insurance regulators should work to ensure that risk identification, assessment, measurement, and control mechanisms are implemented in accordance with best global practices in order to avoid financial crises and improve insurance performance.

scholarly journals Credit Risk Management and Financial Performance of Microfinance Institutions in Kampala, Uganda

2018 ◽  
Vol 9 (1) ◽  
pp. 153
Author(s):  
Emenike O. Kalu ◽  
Bashabe Shieler ◽  
Christian U. Amu
Keyword(s):  
Risk Management ◽  
Credit Risk ◽  
Financial Performance ◽  
Risk Mitigation ◽  
Risk Identification ◽  
Microfinance Institutions ◽  
Credit Risk Management ◽  
Risk Appraisal ◽  
Risk Monitoring ◽  
Management Techniques

The objective of this study was to evaluate whether relationship exist between credit risk management techniques and financial performance of microfinance institutions in Kampala, Uganda. Specifically, the study examined whether there is a relationship between credit risk identification, credit risk appraisal, credit risk monitoring, credit risk mitigation and financial performance of microfinance institutions in Kampala using sample of 60 members of staff in finance and credit departments of three licensed microfinance institutions in Kampala, Uganda namely Finca Uganda Ltd, Pride Microfinance Ltd, UGAFODE Microfinance Ltd. Primary data was collected using questionnaires and it comprised of closed ended questions. Secondary data was collected from the microfinance institutions (MDI’s) annual reports (2011 - 2015).  Frequencies and descriptive statistics were used to analyse the population. Pearson linear correlation coefficient was adopted to examine relationship between credit risk management techniques and financial performance.  The findings indicate that credit risk identification and credit risk appraisal has a strong positive relationship on financial performance of MDIs, while credit risk monitoring and credit risk mitigation have moderate significant positive relationship on financial performance of MDIs. The study recommends, among others, that the credit risk appraisal process should identify and analyse all loss exposures, and measure such loss exposures. This should guide in selection of technique or combination of techniques to handle each exposure.  The study concludes that MDIs should continually emphasise effective credit risk identification, credit risk appraisal, credit risk monitoring, and credit risk mitigation techniques to enhance maximum financial performance.

Enterprise risk management and Solvency II: the system of governance and the Own Risk and Solvency Assessment

2020 ◽  
Vol 21 (4) ◽  
pp. 317-332 ◽  
Author(s):  
Pablo Durán Santomil ◽  
Luis Otero González
Keyword(s):  
Risk Management ◽  
Insurance Industry ◽  
Solvency Ii ◽  
Enterprise Risk Management ◽  
Insurance Companies ◽  
Legal Form ◽  
Content Type ◽  
Enterprise Risk ◽  
Solvency Assessment

Purpose The purpose of this paper is to analyze how enterprise risk management (ERM), the system of governance and the Own Risk and Solvency Assessment (ORSA) have been boosted with the entry of Solvency II. Design/methodology/approach For this analysis, the authors have undertaken a survey of chief risk officers (CROs) working in Spanish insurance companies. Findings The results show that Solvency II has definitely promoted ERM in the European insurance industry and improved the system of governance of the insurance companies, and that the perceived value of the ORSA for the companies is higher than the cost. It is clear that the quality of ERM implemented by companies is higher in those that face more complex risks and with greater interdependencies – that is, larger companies, foreign insurers and insurers with several lines of business – but is unaffected by the legal form of the entity (mutual/corporation). Originality/value This study conducts primary research with surveys of CROs and develops a measure of the quality of ERM implemented by insurance companies.

Control and Optimization of Development Risk of the High-Tech Manufacturing and Measuring Product

2014 ◽  
Vol 709 ◽  
pp. 503-508
Author(s):  
Yang Peng Liu ◽  
Jian Jun Ding ◽  
Xing Yuan Long ◽  
Zhuang De Jiang ◽  
Yue Rong Jiang
Keyword(s):  
Risk Management ◽  
Product Development ◽  
Development Process ◽  
Risk Identification ◽  
Product Development Process ◽  
High Tech ◽  
Control Mechanisms ◽  
Development Costs ◽  
Development Cycle ◽  
The Competitiveness Of Enterprises

This paper proposes the risk management strategy of the product design and development process. The process control mechanisms based on the risk management. Risk identification, assessment, migration, monitoring and reporting are applied in the product development process. Under the supervision and guidance of risk management, the risk point of product development cycle of measuring instrument is shortened about 30%, and the development costs are reduced too. The risk management improves the economic efficiency of enterprises and enhances the competitiveness of enterprises.

scholarly journals IMPLEMENTASI MANAJEMEN RISIKO UNDERWRITING PADA PT ASURANSI JASINDO SYARIAH

2020 ◽  
Vol 7 (5) ◽  
pp. 901
Author(s):  
Wahyu Rofikah ◽  
Dina Fitrisia Septiarini
Keyword(s):  
Risk Management ◽  
Secondary Data ◽  
Risk Identification ◽  
Primary Data ◽  
Management Process ◽  
Snowball Sampling ◽  
Descriptive Case Study ◽  
Risk Monitoring ◽  
Risk Management Process

This study purpose to how the risk management process in PT Asuransi Jasindo Syariah with a case study of vehicle insurance class of business. This research uses a qualitative approach with a descriptive case study strategic. The research data was obtained through primary data in the form of interviews and secondary data. The selection of informants in interviews through snowball sampling techniques and secondary data obtained from supporting data in the form of archives, reports and relevant document and literature reviews related to research. The results of this study indicate that PT Asuransi Jasindo Syariah has a significant role in the process of underwriting risk management, especially in vehicle insurance product, which have the highest loss ratio among other products. The underwriting risk management process carried out by PT Asuransi Jasindo Syariah is risk identification, risk measurement, risk monitoring, and risk control.Keywords: risk management, underwriting, syariah insurance

scholarly journals Risk management as increased corporate governance requirement in Italian banks and insurance companies

2019 ◽  
Vol 15 (3) ◽  
pp. 58-69 ◽  
Author(s):  
Rosaria Cerrone
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Financial Services ◽  
Risk Mitigation ◽  
Internal Audit ◽  
Governance Structure ◽  
Insurance Companies ◽  
Financial Intermediaries ◽  
Risk Governance ◽  
Regulatory Requirements

The paper explores how risk management and internal audit functions can be used effectively to strengthen governance frameworks and ensure compliance with new regulatory requirements in the financial services industry. The aim of the paper is the description of the regulatory framework which gives great relevance to risk management both in banks and in insurance companies. A right and efficient risk management scheme, in fact, is based on efficient corporate governance of the financial intermediary. Better corporate governance ensures the achievement of risk management principles. For this, the paper explores the organizational and governance structure of financial intermediaries. The paper is a timely addition to the current discussion around the relevance of sound governance for banks and insurance. It extends the effort to evaluate risk governance standards at these financial intermediaries against regulatory requirements. The paper comes to the conclusion that risk mitigation as the process of reducing risk exposure and minimizing the likelihood of an incident needs to be continually addressed to ensure the business is fully protected and this aim is reached by linking controls to risks, activities, policies, and procedures and to track their effectiveness.

scholarly journals Risk Management Based on NPV-at-Risk: A Case Study in Floating Solar Power Plant Project

2021 ◽  
Vol 22 (2) ◽  
pp. 245-254
Author(s):  
Octa Untoro ◽  
Fakhrina Fahma ◽  
Wahyudi Sutopo
Keyword(s):  
At Risk ◽  
Risk Management ◽  
Power Plant ◽  
Power Plants ◽  
Solar Power ◽  
Risk Mitigation ◽  
Risk Identification ◽  
Solar Power Plant ◽  
Investment Return ◽  
Solar Power Plants

There are some unpredicted factors in floating solar power plants that can affect the investment return value. This research aimed to develop an NPV-at-risk based risk management analysis on the floating solar power plant. This research proposed six-staged solutions: communication and consultation, context assignment, risk identification, risk analysis, risk evaluation, and risk mitigation. This study took place in a floating solar power plant in Indonesia. This research showed that some unpredicted risks, such as irradiation, operation and maintenance costs, inflation, and interest rate, could contribute to the investment return. This procedural proposal could be applied in the management of the income realization based on the income projection.

Impact of supply risk management on firm performance: a case of the Indian electronics industry

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ramesh KT ◽  
Sarada Prasad Sarmah
Keyword(s):  
Risk Assessment ◽  
Risk Management ◽  
Firm Performance ◽  
Electronics Industry ◽  
Risk Identification ◽  
Assessment Process ◽  
Supply Risk ◽  
Content Type ◽  
Risk Monitoring ◽  
Indian Electronics Industry

PurposeThe purpose of this research is to study and examine the influence of systematic supply risk management (SRM) on the buyer's firm performance, mainly focussing on the Indian electronics industry.Design/methodology/approachThe study has framed a set of hypotheses on the risk management model. A thorough literature review and experts' opinion were considered in framing constructs and hypothesis for the model. We adopted self-administration questionnaires mainly focusing on the Indian electronics industry. The derived hypothesis is tested using partial least squares (PLS) method from 140 survey data pertaining to small, medium and large scale industries.FindingsStudy justify that constructs with high loadings for risk identification, risk assessment, risk reduction, and risk monitoring supports all hypothesized relation to better risk management. The model captures superior risk identification, risk control and risk monitoring for overall firm performance, but fails to justify with organization supply risk assessment process on overall firm performance.Research limitations/implicationsThe study mainly focused on SRM process on firm performance. Study mainly focused on single survey responses and expert's perceptions on SRM practices in Indian electronics industry.Practical implicationsResearch empirically justifies the effects of SRM process on organization performance. Furthermore, effective SRM practices assist decision makers framing corrective strategies to mitigate risk occurrences and their negative impact.Originality/valueThis empirical work provides a deep understanding of SRM process on the Indian electronics industry and their perception towards firm performance. Moreover, this is one of the few empirical studies addressing SRM practices in the Indian electronics industry.

scholarly journals ОЦІНКА РІВНЯ ЗРІЛОСТІ УПРАВЛІННЯ РИЗИКАМИ В ПРОЦЕСІ ЗАБЕЗПЕЧЕННЯ ЕКОНОМІЧНОЇ БЕЗПЕКИ ПІДПРИЄМСТВА: АНАЛІТИЧНЕ ДОСЛІДЖЕННЯ

2019 ◽  
Vol 135 (3) ◽  
pp. 66-81
Author(s):  
Олена Михайлівна Герасименко ◽  
Наталія Володимирівна Зачосова
Keyword(s):  
Risk Management ◽  
Management Practices ◽  
Analytical Data ◽  
Profit Maximization ◽  
Optimal Solution ◽  
Risk Identification ◽  
Economic Security ◽  
Corporate Management ◽  
Management Actions ◽  
Oriented Approach

The article seeks to explore and evaluate the level of risk management maturity in Ukrainian enterprises in the process of ensuring their economic security. The study presents the results of an analytical survey on risk management practices to ensure enterprise economic security. To achieve the research objectives, the following methods have been employed: to obtain data for the analytical research, the method of questionnaire-based expert evaluation on the Google Forms platform; the method of comparison, the graphical method – to evaluate previously received analytical data on the risk management maturity level. The findings revealed that the implementation of a risk-based approach is perceived as a tool to increase the company value and achieve strategic goals. The survey results showed the distribution of expert opinions, indicating the willingness of Ukrainian companies to implement risk-oriented management approaches to ensure their economic security. It is demonstrated that the major objective of the risk-oriented approach is to ensure the effective and lawful business operation in the long run which may come into a conflict with the operational management priority, i. e. short term profit maximization. The analytical survey argues that a risk-oriented approach challenges the use of impartial methods to risk identification, taking risk management actions, and the search for an optimal solution between profit raising here and now, and the long-term sustainable development and protection of shareholders’ interests. The study on the latest tools for assessing the level of economic security using a risk-oriented approach is a critical instrument in enhancing corporate management practices at different management levels, providing further nation-wide implications on stabilization of domestic business performance to improve the overall national security indicators in the international economic and political arenas.

Enterprise Risk Management Maturity Levels of the Insurance Industry in Botswana

2021 ◽  
Vol 2 (Issue 1 (January to March 2021)) ◽  
pp. 23-32
Author(s):  
Moreblessing Ngwenya ◽  
Sam Ngwenya
Keyword(s):  
Risk Management ◽  
Insurance Industry ◽  
Continuous Process ◽  
Enterprise Risk Management ◽  
Insurance Companies ◽  
Maturity Model ◽  
Enterprise Risk ◽  
Term Insurance ◽  
Risk Maturity

Enterprise Risk Management (ERM) has become a necessity in the financial sector to fulfil stakeholder expectations. Studies confirm that ERM impacts positively on the performance of firms. The main objective of the study was to assess ERM maturity levels of the insurance industry in Botswana. This was achieved through first designing a framework to measure enterprise risk management maturity levels. The ERMMF incorporated elements from COSO’s ERM framework and the AON risk maturity model obtained through literature review. Data were sourced from four strata; 9 long term insurance companies (15 respondents), 11 short-term insurance companies (19 respondents), 3 reinsurers (5 respondents), and 44 brokerages (75 respondents). While all organisations in the population were used, a sample of 114 out of possible 134 respondents was used. Data were analysed using SPSS version 16. The findings revealed that the insurance industry in Botswana had somewhat implemented ERM. It is therefore recommended that the insurance industry in Botswana should take ERM as a continuous process for growth in ERM maturity levels as such an improvement is highly likely to enhance their performance.

scholarly journals Data-Driven Services in Insurance: Potential Evolution and Impact in the Swiss Market

2021 ◽  
Vol 14 (5) ◽  
pp. 227
Author(s):  
Carlo Pugnetti ◽  
Mischa Seitz
Keyword(s):  
Risk Management ◽  
Real Time ◽  
Structural Changes ◽  
Insurance Industry ◽  
Data Driven ◽  
Insurance Companies ◽  
Customer Data ◽  
Improvement Measures

Using real-time customer data holds great potential for the insurance industry. The frequency and relevance of interactions can be improved to provide assistance in real time. Better prevention and risk management can significantly improve pricing and reduce losses. These changes, however, hold the potential for structural changes in the industry. This research aims at understanding the potential path of the development of services in insurance and the challenges faced by insurers. A panel of industry experts provided the industry’s view, which was then compared with the responses of 1542 Swiss retail customers. We find that customers have high trust in insurance companies and are open to purchasing additional services, particularly for prevention and assistance. Insurance companies, however, are currently focusing on cost improvement measures. Customers are open to sourcing services from other providers, suggesting that insurance companies need to evolve their approach to take advantage of the current market window.

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