Abstract
Financial institution within the USA is faced with great challenge of risk management, hence the pursuit of every financial institution to come up with better innovative ways of managing risks. However, the emerging innovation in risk management in financial institution has an underlying negative implication which is yet to be studied. The aim of this research was to explore emerging innovation in risk management in financial institutions. The research utilized qualitative research design, through an intensive literature review that involved deep research and reviewing of academic scholarly academic articles. This type of approach ensures that the research includes wide variety of sources that support this research and making it viable for future reference. Results showed that the emerging innovation in risk management in financial institutions is digital financing. Owing to the associated implication of excessive technology use, the research suggests that financial institutions should be very cautious, particularly with the associated risk of cybercrime.
Highlights
Innovation is commonly considered to be an important factor in economic activity
This indicates either that the banking industry is relatively adverse to risky loans or that innovative firms are adverse to this type of financing, Graph 4: CONTRIBUTION OF INNOVATIVE COMPANIES TO TOTAL TURNOVER
In view of the specific nature of the information and communication technologies (ICT) industries in terms of technological advances, it is likely that noninnovative companies without financial constraints may be excluded from this market as they do not have a sufficiently solid financial structure
Summary
Innovation is commonly considered to be an important factor in economic activity. At the micro level, it impacts corporate performances (Crépon and Iung (1999)) and has a bearing on the survival of firms, especially start-ups (Gharbi and Pradel (2001)). Few empirical studies on the issue of innovation financing have been devoted to a detailed investigation of the data produced in the most recent surveys. Start-ups are excluded from the scope of this study, because they were not covered by the innovation survey from which we are drawing our data 4 To achieve these objectives, this paper analyses the data from the most recent survey, conducted by SESSI for the manufacturing industry and by INSEE 5 for services. This paper analyses the data from the most recent survey, conducted by SESSI for the manufacturing industry and by INSEE 5 for services These data are supplemented with accounting and financial information from the Central Balance Sheet Office (CBSO) 6 of the Banque de France. We assess whether the results obtained for companies in other industries hold true overall or whether they show significant differences
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