Role and Significance of Data Protection in Risk Management Practices in the Insurance Market

Unlike the banking industry, the insurers’ risk management framework (RMF) is not governed internationally. For this reason, their risk management (RM) practices are not comparable. We surveyed insurance personnel regarding understanding risk and risk management (URRM), risk identification (RI), risk assessment and analysis (RAA), risk monitoring (RMON), and risk management practices (RMP). These insurance personnel were working at various hierarchical levels in life and non-life insurance. These insurers were operating in developed and emerging insurance market. We took USA and UK insurers as a proxy for developed insurance market. Meanwhile, Chinese, and Pakistani insurers were substituted for emerging insurance market. We analyzed the data through descriptive statistics and an ordered logit model. Our results showed that insurers’ RM is stronger, but large differences exist at the hierarchical, insurer type and country levels. Apart from policy implications, our findings suggest that to achieve sustained competitive advantage insurers should minimize these differences.

This study aims to determine links and impacts of risk management practices of financial performance on commercial banks in Ethiopia. The sample banks included in this study consisted of eight commercial banks operating in Ethiopia. The study was used secondary data source and collected from audited financial statements reported by National Bank of Ethiopia and commercial banks from 2004-2013 fiscal periods to determine indicators of risk management practice. Then, the collected panel data was analyzed and described by basic statistical techniques such as descriptive analysis, trend analysis, Pearson correlation analysis and GLS fixed effect regression analysis was employed by using STATA version 12.0 Risk management practice surrogate by banks specific risk selected indicators on credit risk (non-performing loan ratio), operational risk (efficiency on assets utilization, bank size and cost ratio’s ) , liquidity risk (liquidity ratio’s) ,capital risk (capital adequacy ratio) and insolvency risk(total equity to total debt ratio) as explanatory variables while financial performance proxy by return on assets(ROA) used as dependent variables of the study. The findings of the study reveal that, credit and Liquidity, risk management practices have a negative and significant statistical impact on commercial banks’ performance Similarly, capital and insolvency risk management practice have negative and insignificant impact on commercial banks’ performance due to underinvestment or excessive holding of assets. Despite the fact that, operational risk management (efficiency and cost) practices have a positive and significant statistical impact on banks’ performance which, means that these banks not suffered managing this type of risk during the study period. On the other hand, operational risk management proxy by bank asset size ratio has positive and insignificant impact on financial performance of commercial banks’. Therefore it is suggested that, prudent risks management practices are required for banks on (credit risk, liquidity, capital risk, insolvency and operational risk) in order to protect the interests of investors as well as to maintain regulated healthy financial system all over the economy of the country by enhancing public trust.

The purpose of this study is to assess the behavior of Islamic and conventional banks towards the improving risk management. This study is focused on survey and comparative of risk management practiced by Islamic and conventional banks in Pakistan. The study also examines the adequacy level of risk management and managerial practices by these banks. Five types of risks faced by both Islamic and conventional banks including market risk, liquidity risk, credit risk, operational risk and risk management practices have been taken into the scope of this study. In order to assess the behavior of these banks towards the attentiveness of minimization of operational risks and following the aforementioned tools, exploratory approach has been adopted by developing a questionnaire for data collection. For this purpose, the concerned managerial level employees of 5 Islamic and 5 conventional banks have been selected. By the analysis of data collected, it is concluded thatcompared to conventional banks, Islamic banks in Pakistan place a greater emphasis on risk management practices to reduce operational risks.However, conventional banksare more focused on credit risk, liquidity risk and risk management practices than Islamic banks while the focus on risk management practice is shared by both types of banks. A conducting of survey and comparative analysis of risk management practices has important implications for improving organizational risk resilience, guiding policy and regulatory decisions, fostering best practices, and promoting overall market stability. Organizations can use the insights to refine their risk management processes, while regulators and policymakers can leverage the findings to enhance industry standards and safeguard public interests.

The primary objective of this paper is to examine the market risk and liquidity risk management techniques and practices followed by the Indian scheduled commercial banks (SCB) consisting of public sector banks (PSBs) and private sector banks (PVSBs) for five years from 2016-17 to 2020-21. The other objective is to compare market and liquidity risk management practices between the public sector banks (PSBs) and private sector of banks (PVSBs). The other purpose of the study is to review the strategies adopted by the SCBs in risk management practices. To study the risk management practices, six largest banks each from PSBs and PVSBs are taken for sample study. This study finds that the SCBs are facing credit risk, market risk (Interest rate risk, foreign exchange risk, commodity price risk and equity price risk,) liquidity risk and operational risk. It also finds that the PSBs are better reporting and presenting their risk management practices in their annual reports than that of PVSBs in risk identification, risk assessment and risk analysis. The results indicate that there is no significant difference between the PVSBs and PSBs in the policies and practices of market risk and liquidity risk assessment, evaluation, monitoring risk controlling and risk taking. This paper will be relevant and value to those interested in research in the risk management banking industry. This is a descriptive research based on secondary data.

An in-depth interviewing approach was used to explore the risk thinking of entrepreneurs in small firms and their risk management practices. Five aspects of personal explanatory style and general concern for measurement were assessed. The following risk management practices were considered: the extent to which they adopted risk identification and risk evaluation processes; the degree to which they practised retained risk management practices of ignoring risk, risk avoidance and catastrophe planning; and the balance of proactive vs reactive and control vs knowledge-based styles of risk management in their businesses. Significant statistical relationships were found between the decision tendencies of the entrepreneurs and the risk management practices in their enterprises. The need for risk management theory and practice to recognise small business practices is highlighted.

This study examines the impact of risk management and compliance practices on the financial performance and corporate reputation of financial institutions in Indonesia. Utilizing a quantitative approach, data were collected from 160 financial institutions through a structured questionnaire and analyzed using Structural Equation Modeling-Partial Least Squares (SEM-PLS 3). The results indicate that both risk management and compliance practices significantly enhance financial performance and corporate reputation. Specifically, risk management practices have a stronger positive impact on both outcomes compared to compliance practices. These findings underscore the necessity for financial institutions to integrate comprehensive risk management and compliance strategies into their operations to achieve financial stability and bolster their reputation. The study provides valuable insights for practitioners and policymakers, highlighting the critical role of these practices in fostering long-term sustainability and success in the financial industry.

This study assessed the effect of enterprise risk management on the firm financial performance of Micro, Small and Medium-scale Enterprises in Osun state Nigeria. Precisely, the risk encountered, the adoption of risk management practices, the implementation of Enterprise Risk Management (ERM) practices, and the financial performance of micro, small and medium scale enterprises in Osun state Nigeria. Primary data was used for this study; a well-structured questionnaire was used to elicit data from 273 respondents. The study population consists of owners and managers of small and medium businesses in Osun state, Nigeria. Data were analyzed using descriptive analysis and was the inferential statistic used to test the hypotheses. The results showed that market (33.7%), strategic (57%), financial (46.9%), operational (34.2%), management (47.6%), and technological (45.4%) are risks prevalent to micro and small businesses, but most of the respondents disagreed that the relationship of their staff to the customer is poor. Risk acceptance with a mean score of (2.27 ± 1.21) is the most utilized risk management practice adopted by the MSMEs. The implementation of ERM practices shows that MSMEs more utilized setting of objectives (43.6%), risk identification (38.3%), risk assessment (36.2%), and control activities (31.2%) and the financial performance of the businesses was moderate (69.7%). The correlation analysis shows no significant relationship between the scale of business and the adoption of risk management practices. Also, the regression analysis shows that Risk identification (? = 0.388, p ?0.01) and Control activities (? = 1.096, p ?0.01) are the only ERM variables that significantly affect financial performance. The study concluded that the implementation of enterprise risk management practices has a significant effect on the financial performance of Micro, Small and Medium enterprises in Osun State, Nigeria.

Purpose: MFIs are subject to financial risks, just like all other financial institutions. This is intimately tied to their primary businesses of managing credit and accepting deposits. Therefore, risk management is crucial for MFIs in order to maximize their return on investment. The current study sought to establish the effect of financial risk management practices on financial performance of microfinance institutions in Kiambu County, Kenya. The study focused on establishing the effect of liquidity risk management practices, operational risk management practices, credit risk management practices, and market risk management practices on financial performance of microfinance institutions in Kiambu County, Kenya. The theories anchoring the study comprised of Risk Management Theory, Extreme Value Theory, Credit Risk Theory, and Capital Market Theory.
 Methodology: A descriptive survey research design was adopted in the study. The target population comprised of 31registered microfinance institutions operating in Kiambu County. The unit of observation comprised of Risk and Compliance Manager, Finance Manager, Operations Manager, Credit Manager, and Business Development Manager from each of the microfinance institution making a total of 155 respondents. A census approach was adopted in the study where all the registered microfinance institutions were involved in the study. Both primary and secondary data was employed in the study where 5-point Likert scale questionnaires were employed to gather primary data while a secondary data collection sheet was utilized to gather secondary data. Both descriptive and inferential statistics were used to analyze the collected data. The statistics were generated by help of Statistical Package for Social Scientist and MS Excel.
 Findings: The results of the analysis revealed that Liquidity Risk Management Practices, Operational Risk Management Practices, Credit Risk Management Practices, and Market Risk Management Practices positively and significantly affects financial performances of microfinance institutions in Kiambu County, Kenya as shown by beta values of 0.401, 0.309, 0.497 and 0.351 and significant values of 0.000. 0.001, 0.000 and 0.006 respectively.
 Unique contribution to theory, practice and policy: The results implies that when each of the independent variable is increased with one unit, financial performance of the microfinance institutions increases with the respective beta value of the independent variable. The results led to conclusions that liquidity risk management practices, operational risk management practices, credit risk management practices, and market risk management practices bears appositive and significant effect on financial performance of microfinance institutions in Kiambu County. The study provided recommendations to the management of the microfinance institutions to enhance their practices in areas of liquidity risk management, operational risk management, credit risk management, and market risk management to improve financial performance to a positive and significant level.

This study evaluated the compliance of Philippine cooperative banks with the governance, internal control, and risk management standards established by the Bangko Sentral ng Pilipinas (BSP). A comprehensive assessment was conducted to examine corporate governance practices in terms of governance structure, board-level committees, and related party transactions; internal control mechanisms focusing on compliance frameworks, internal control frameworks, and internal audit functions; and risk management strategies and practices related to risk identification, risk assessment, and risk management evaluation. Furthermore, the study examined the relationship between corporate governance, internal control, and risk management, proposing a strategic improvement plan based on the findings. The findings revealed that cooperative banks generally adhere to BSP’s governance standards, demonstrating strong practices in governance structures, board-level committees, and related party transactions. Additionally, the banks maintain robust internal control frameworks and rigorous internal audit procedures. While risk management practices are generally effective, areas such as IT and social media risk management require further attention. A significant correlation was observed among corporate governance, internal control, and risk management practices, suggesting that improvements in one area can positively impact the others. Based on these findings, a strategic improvement plan is proposed to enhance the overall effectiveness of cooperative banks. The study recommends continuous improvement of governance structures, investment in advanced monitoring systems for internal controls, and prioritization of risk management improvements, particularly in IT and social media. Future research is suggested to explore the long-term impact of these recommendations on the sustainability and growth of cooperative banks in the evolving regulatory and technological landscape.

PurposeThe purpose of this paper is twofold: first to add to the debate on good governance and ethics of enterprise risk management (ERM) and second to describe an ethical maturity scale based on duty and responsibility for practical implementation to ensure better governance.Design/methodology/approachThe methodology has centred on risk governance as a way for many organisations to improve their risk management (RM) practices from an ethical perspective based on responsibility and on fulfilling one's duty within the organisation.FindingsWhile companies in Australia, for example, are more mature than those in Russia in terms of governance systems life cycle, there are a number of common international challenges in risk governance implementation. These relate to a link between risk framework, enterprise value model and strategic planning; to a definition of risk appetite, the embodiment of RM in organisational culture, internal audit and ERM function, the evolving role of a chief risk officer (CRO) and senior management buy‐in and sponsorship of the integrated ethical RM from a chief executive officer.Practical implicationsERM – a way for many organisations to improve their RM practices – is a key component of the applied ethics of corporate governance. It has developed into a philosophy to assist organisations with the process of protecting shareholders' value while also increasing the bottom‐line profitability. Effective ERM is based on ethical risk governance. Internal audit needs to be involved in the process of integrating RM and compliance. It should maintain a degree of independence when assisting with ERM establishment. CRO is most effective when reporting to the board.Originality/valueGlobal companies are becoming more accountable to multiple stakeholders. It is the adoption of an ethical code to arrest the lack of clarity of roles ascribed to the audit committee and risk committee and management's accountability or lack thereof that remains the challenge across different jurisdictions. In attempting to implement good governance and meet the challenges, the paper introduces an ethical maturity scale as an internal measure that could be embedded in an organisation's strategy.

PurposeThis paper aims to explain the implementation process of risk management (RM) practices as a trade facilitation initiative in a public organization undergoing public sector reform and modernization processes in Jordan.Design/methodology/approachThe paper draws on the institutional theory and presents a qualitative case study of Jordan Customs (JC). It synthesizes an institutional isomorphism framework to interpret the interplay between the JC institutional environment and the JC RM practices. The data were collected and analyzed by using the triangulation of interviews, observations and documents.FindingsThe study findings reveal that JC has experienced institutional pressures that mobilize the emerging of RM as a managerial tool that contributes to facilitating international trade, improving state revenues and reducing the public budget deficit. To be internationally recognized, JC benchmark its RM practices with international practices recommended by International Agencies such as World Customs Organizations (WCO). The study concludes that RM practices have been tailored and aligned with the JC’s external and internal context and role and RM has been embedded as an integral part of all organizational processes including strategic and business planning, as well as all accounting change and management activities. The study finds that coercive, normative and mimetic pressures are the driving forces with coercive mechanisms being the most influential.Research limitations/implicationsThis paper has important implications for practitioners, academics and students, as well as international donors especially U.S. Agency for International Development. It mainly depends on the analysis of documents and records to elucidate the development of RM, yet corroborated by interviews. It also uses a retrospective approach with interviewees being asked to describe, explain and reflect upon the events they had experienced during the JC change processes.Practical implicationsThis paper significantly contributes to the scarce of knowledge that currently exists about RM in the public sector of developing countries and in particular “customs administrations.” It recognizes how the public sector in Jordan responded to the international community and WCO’s recommendation in implementing RM.Originality/valueThis study shows that JC’s experience of institutional pressures mobilized by the enactment of RM as a managerial tool that enabled a higher quality of custom services, trade facilitation, improvement of state revenues and a reduction of the state’s budget deficit.

The focus of this study is to examine the effectiveness of the risk management process (understanding risk management, risk identification, risk assessment and analysis, and risk monitoring) on risk management practices among Islamic banks in Malaysia and Pakistan. The study also compares the risk management process and practices between the banks in both countries. The study found that Islamic banks in Malaysia and Pakistan are somewhat efficient in managing risk and that there is a significant difference between the banks in Malaysia and Pakistan in the practice of understanding risk management and risk identification. The results also indicate that risk identification and risk assessment and analysis are the most influencing factors in risk management practices in both countries.

Managing country disruption risks and improving operational performance: risk management along integrated supply chains

The primary objective of this paper is to examine the risk management techniques and practices of credit risk management followed by Indian commercial banks for the period from 2021-17 to 2020-21. The other objective is to compare risk management practices followed by the public sector banks (PSBs) and private sector of banks (PVBs). The study uses a sample of twelve banks consisting of six largest public sector banks (PSBs) and six largest private sector banks (PVBs) for the study. The sample accounts for 78 per cent of the banking business of the country. The study finds that the scheduled commercial banks (SCBs) are facing credit risk, market risk and operational risk. The study finds that the credit risk management process and practices include risk identification, risk assessment, risk analysis, risk evaluation, risk monitoring and risk control. The study finds that private sector banks (PVBs) have better credit risk management practices as compared to that of public sector banks (PSBs). The PSBs have more NPAs than PVBs whereas PVBs have better asset quality and better profitability ratios than PSBs during the study period.

Local utility services deeply affect the overall quality of life of a country's population. For this reason service providers should pay strong attention to risk management practices, but also to the external communication of both the risk exposure and the risk responses. Following a qualitative methodology, this paper aims at exploring the risk management and risk disclosure practices of five Italian listed local utility companies combining two research methods: questionnaire and document analysis. Results show that these Italian listed local utilities are characterized by different maturity levels of risk management practices, which are not extensively disclosed in public reports and documents. Interestingly, the link between the level of disclosure and maturity of risk management practices is confirmed just for those companies that seem to be the most mature in terms of risk management.