Risk Management

2021 ◽  
pp. 206-225
Author(s):  
Eman A. Zabalawi ◽  
Abderazak Bakhouche ◽  
Randa El Chaar
Keyword(s):  
Risk Management ◽  
Organizational Culture ◽  
Business Processes ◽  
Financial Risks ◽  
Legal Compliance ◽  
Planning Stage ◽  
Operational Risks ◽  
External Events ◽  
High Level ◽  
Risk Managers

The chapter covers practical risk managers' points during the planning stage of entrepreneurship to integrate into decision making and core business processes. The chapter includes three risks and how to improve the integration of risk management into organizational culture grouped into three high-level objectives. First, strategic risks include the study of competitors, macroeconomics with its industry changes. Second, financial risks such as the business return of investment and forecasting, customer payments, loan interest charges, and liquidity. Access to finance featured prominently in several studies as a constraint on SME development. The third is the operational risks and internal analysis that includes legal compliance, breakdown of essential equipment, employee mismatch, partnership, information technology, external events, and supply chain reliability. It is vital to establish an organizational culture where risk management is a daily component activity.

scholarly journals Managing Risk Integration for Performance Orientation among Malaysian Firms

2018 ◽  
Vol 12 (1) ◽  
pp. 119
Author(s):  
Michael Tinggi ◽  
Shaharudin Jakpar ◽  
Ng Kim Hui
Keyword(s):  
Risk Management ◽  
Financial Crisis ◽  
Business Processes ◽  
Global Financial Crisis ◽  
Random Effect ◽  
Financial Risks ◽  
Performance Orientation ◽  
Managing Risk ◽  
Corporate Level

The study is potentially, to explore the effect of discounting for risk on performance of firms listed in Malaysian stocks’ market. Risk management has been part of the corporate philosophy in maximizing shareholders’ wealth and firms’ profit. Managing risk cannot be done in isolation. Too often common risks pertinent to operation, liquidity and financing may be taken for granted by many firms. Risks exist on stand alone, but its implication may negatively severe firms’ performance if not addressed or dealt with properly. Integrating and managing risks may potentially improve the quality of business processes, which may orientate towards attaining firms’ performance at the corporate level. The 2007 global financial crisis has incidentally highlighted the importance of integrating and managing risk and its effect on business. Empirical evidences from the Panel Random Effect (RE) analysis of the above companies showed that the firm’s ability to manage and integrate operating, liquidity, and financial risks steer the firms towards performance orientation.

scholarly journals FORMATION OF СREATIVE ORGANIZATION IN THE GLOBAL INFORMATION ENVIRONMENT

2017 ◽  
Vol 16 (2 (2017)) ◽  
pp. 184-196
Author(s):  
Vitalina Kurylyak ◽  
Bogdan Litovchenko
Keyword(s):  
Organizational Culture ◽  
Business Models ◽  
Virtual Organizations ◽  
Creative Economy ◽  
Risk Modeling ◽  
Business Units ◽  
Creativity Support ◽  
High Level ◽  
Strategic Perspective ◽  
Risk Managers

The concept of organization as an organistical system facing the challenges of the creative economy is considered. It is grounded that the ideal creative organization with a high level of information will represent a certain symbiosis between organic and anarchic culture in the future. It is identified that with the emergence of virtual organizations, traditional elements of the organizational culture lose their value, while the informational technologies create opportunities for communication and collaboration, regardless of distance and borders. Thus, the basis for the virtual organizations creates their adaptability and transferability. Key requirements regarding the creative industry management organization are singled out as following: proactivity, strategic perspective, innovation, initiation of risk, modeling, experimentation and creativity, support of the independent business units’ coordination. The model of organizations’ types, which should reflect their organistical nature, strategic perspective and attitude to risk is presented. The main barriers that limit the ability of organizations to creativity – the lack of the innovative organizational culture as well as the lack of professional risk managers and analysts are outlined. However, these features have not yet organically become peculiar by creative organizations, requiring the development of the appropriate business models culture.

scholarly journals Main directions of the development of the risk management system in corporations

2018 ◽  
Vol 212 ◽  
pp. 07012
Author(s):  
Natalia Rykhtikova
Keyword(s):  
Risk Management ◽  
Comparative Analysis ◽  
Management System ◽  
Business Processes ◽  
General System ◽  
Management Systems ◽  
Foreign Companies ◽  
Risk Management System ◽  
Management Procedures ◽  
High Level

Actuality and relevance of implementation of the risk management processes in the general system of management in organizations are justified in this article. Three major issues can be pointed out as referred to the implementation of the risk management system in modern organizations, such as 1) a high level of costs combined with relatively long payback period; 2) lack of the universal approach to the implementation of the risk management procedures; and 3) difficulties in identification of perspective directions of the systems under consideration. The basic directions of development of the risk management systems in the corporate structures are defined based on the results of comparative analysis of the experience of Russian and foreign companies. The activity in the field of risk management of such corporations as “Rusgidro”, “NMLK”, the Investment Company “RUSS-INVEST”, “Severstal”, “Gazpromneft”, “Metalloinvest”, “Philips”, “Nestlé”, and “Unilever” became the object of our research. Comparative analysis of practices of implementation of the risk management system has been performed based on the following criteria: organizational structure of management, register and prioritization of risks, structure and methods of risk management, and effectiveness of the risk management systems. The results of the study allowed identifying the following basic directions of development of the risk management systems in the corporations: amending register of prioritization of risks; increasing level of integration of the risk management procedures into the basic business processes of the corporations; expanding of use of the external assessments, credit rankings, etc. in the framework of implementation of the risk management procedures; increasing level of unification of methods of risk assessment and management that finally would be a prerequisite for improving effectiveness of the risk management systems in organizations.

scholarly journals Empirical Analysis of Financial and Non-Financial Risks of the Commercial Bank

2019 ◽  
Vol 8 (2) ◽  
pp. 101 ◽  
Author(s):  
Asie Tsintsadze ◽  
Vladimer Glonti ◽  
Lela Oniani ◽  
Tamar Ghoghoberidze
Keyword(s):  
Risk Management ◽  
Credit Risk ◽  
Operational Risk ◽  
Financial Risks ◽  
Operational Risks ◽  
Increase Risk ◽  
Method Approach ◽  
Selection Of ◽  
Regressive Analysis

Background: Activities of commercial banks are connected with numerous risks, the source of which is the internal and external processes of the bank. Objectives: Risk management science has been studying the origins of the risks, determining their impact quality and avoiding expected loss models from the 1950s. Method/Approach: Credit risk regressive analysis is based on the selection of effective factors, determination of their influence and prediction of future according to the correlation coefficient. Results/Findings: In the article, it is discussed the regressive analysis of operational risk. Conclusion: The effect of credit and operational risks on the financial results of the Bank is based on the results obtained and recommendations have been developed to increase risk management efficiency. Keywords: credit risk, operational risk, regressive analysis, risk management, forecasting.

Exploring innovative leadership in the financial sector: A case of risk management in banking

2019 ◽  
Vol 3 (2) ◽  
pp. 19-29
Author(s):  
Viwe Mrwebi ◽  
Yongama Cici
Keyword(s):  
South Africa ◽  
Risk Management ◽  
Service Providers ◽  
Financial Sector ◽  
Primary Data ◽  
Empirical Literature ◽  
Financial Risks ◽  
Operational Risks ◽  
Innovative Leadership ◽  
Constant Change

The study explores the issue of innovative leadership in the financial sector and opts to use a case of a bank in South Africa. The existing empirical literature delivers a detailed review of leadership pioneering with the issue of risk management. Due to the constant change in the global space and evolution in the needs of consumers, in the taste of financial service providers, innovation from human resources is now the key to sustainability. However, risk management plays a fundamental role in the operations of financial sectors, and particularly for banks as their operational risks are also frequently financial risks. Hence, to ensure that all is well balanced this study explores innovative leadership in the financial sector in South Africa. The research project was qualitative in nature, with primary data collected using email interviews and document analysis. The research found that the main problem is the operational structures that guide the financial sectors. To this end, the artifact that was produced to address the problem is a conceptual framework as a recommendation to be utilised by the bank to allow freedom to leaders and their team to be innovative within the confinements of the organisational structures.

scholarly journals Internal Financial Risk Management In Microfinance Companies: A Case Study Of Akuapem Rural Bank, Ghana

2018 ◽  
Vol 7 (5) ◽  
pp. 64
Author(s):  
Rebecca Davis ◽  
Elvis K. Donkoh ◽  
Bernard Mawah ◽  
Blessed Amonoo
Keyword(s):  
Risk Management ◽  
Financial Risk ◽  
Financial Analysis ◽  
Practical Knowledge ◽  
Financial Statements ◽  
Financial Risks ◽  
Microfinance Institutions ◽  
Operational Risks ◽  
Credit Risks

The operations of Microfinance Institutions (MFIs) in Ghana have recently come under serious public scrutiny. This position was fairly caused by Bank of Ghana’s (BOG’s) announcement regarding 70 microfinance companies whose provisional licenses were revoked BOG (2016). This led to the closure of DKM Diamond Microfinance and some other microfinance companies in the country. This worsening circumstance surrounding the microfinance industry calls for the need to provide practical knowledge on the use of financial analysis tools to manage internal financial risks of the microfinance industry. Data from Akuapem Rural Bank (AKRB) financial statements for the period of 2008 to 2015 (refer to appendix) was analysed using regression analysis, descriptive statistics, trend analysis and ratios. It was observed that the profitability of AKRB is greatly influenced by credit risks, bank size, interest income growth and debt-ratio. The study also revealed that AKRB had comprehensive and adequate risk management structures in place in managing its credit and other operational risks.

scholarly journals Assessing and Re-setting Culture in Enterprise Risk Management

2018 ◽  
Vol 85 (1-2) ◽  
pp. 131-172
Author(s):  
Harold Weston ◽  
Thomas A. Conklin ◽  
Kristen Drobnis
Keyword(s):  
Risk Management ◽  
Organizational Culture ◽  
Cultural Change ◽  
Enterprise Risk Management ◽  
Organizational Studies ◽  
Risk Manager ◽  
Enterprise Risk ◽  
Risk Managers

Among the tenets of enterprise risk management (ERM) is the need to instill a risk-aware culture throughout the firm. Yet, how to actually interpret and change organizational culture is generally missing from the ERM literature. Prior surveys found risk managers lacked useful information about organizational culture and cultural change to implement a “risk aware culture.” Our survey of risk managers found this gap persists. The disciplines of organizational studies, business anthropology and sociology provide guidance on organizational culture, which involves identifying and interpreting the embedded assumptions, values, myths, artifacts, rituals, and stories that communicate and perpetuate a culture. The risk manager can use this knowledge to apply change to the culture. Changing behavior without changing culture may simply result in compliance without adoption. This article seeks to bridge the studies of organizational culture and change to the risk manager.

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 Operational Risk Management in Financial Institutions: An Overview

2018 ◽  
Vol 8 (2) ◽  
pp. 11 ◽  
Author(s):  
Abdullah Aloqab ◽  
Farouk Alobaidi ◽  
Bassam Raweh
Keyword(s):  
Risk Management ◽  
Financial Institutions ◽  
Operational Risk ◽  
Risk Identification ◽  
Financial Risks ◽  
2008 Financial Crisis ◽  
Operational Risk Management ◽  
Operational Risks ◽  
International Regulations ◽  
The 2008 Financial Crisis

After the 2008 financial crisis, many attributed the crisis due to the inability of financial risks to manage operational risks. The period during and after 2008 was critical in providing insight on how vital operational risk management is essential to financial institutions and how best these risks can be managed. The study begins with an overview of the concept of risk and BASEL I, II and III and how they apply to financial institutions. Further, the paper discusses the growing need for operational risk management in the context of financial institutions taking into considerations various models and approaches used in the management of financial risks. Moreover, several pieces of literature discussed operational risks in the financial institutions. The paper also looks at the various methods of operational risk identification and management before concluding that for better management of operational risks in banks, there is the need to comply with both the national and international regulations and procedures.

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