Affect Risk Management Research Articles

The Influence of Sustainable Risk Management on the Implementation of Risk-Based Internal Auditing

Risk management exerts a significant influence on the competitiveness of an organization and its operational processes. It presents opportunities for expansion, foresight, and the need to promote sustainability. Many organizations have executed comprehensive risk management processes. Moreover, internal audit has increasingly attracted managers’ attention, forming the basis of modern governance methods. The aim of this study is to examine, from the viewpoint of the agency, the impact of the role of internal auditors, training in risk management, and management support on risk management. Following this, the work examines risk management in terms of the risk-based auditing implementation that is performed by Saudi public organizations. This study encompassed 234 completed and therefore valid questionnaires from the manager and assistance of the internal audit department, internal auditors, accountants, and managers employed in Saudi public organizations. The data collected have been analyzed utilizing Smart Partial Least Squares (SmartPLS). This study’s findings confirmed that there is a significant association between the role of internal auditors in risk management, training in risk management, and between management support and risk management. There is also a significant association between risk management and the implementation of risk-based internal auditing. This study’s findings have significant ramifications for those in charge of public-sector organizations, and sustainability, aiming to enhance the dependability and trustworthiness of the internal audit process and other aspects of financial reports and audits in general. Currently, there is a dearth of published research on the factors that influence risk management and also on risk-based internal auditing. This study contributes to the emerging literature on this subject by examining Saudi public organizations; it also establishes empirical variables through a thorough review of relevant research. Conducted here is an empirical investigation that identifies the factors that affect risk management and then its influence on risk-based internal auditing implementation in the economic system of Saudi Arabia. By focusing on Saudi public organizations, this article highlights other countries that have similar systems of governance rules and procedures in their government-operated entities.

Opinion of Women on Possession of Land and Risk Handling Capacity

Abstract: This study shows that and ownership affects women's risk management abilities. This study was conducted in the two upazilas (Sub-districts) namely Delduar, and Nagorpur of Tangail district in Bangladesh. In this study, data were collected during the period of February 2024 to March 2024 from the studies areas. We found a favorable correlation between women's land ownership and risk management. Larger landholding women were more confident and competent in managing financial, environmental, and social hazards. This higher risk handling capability is due to land assets' financial stability, the ability to invest in risk-reducing technology or practices, and community bargaining power. This study shows that property ownership gives women a greater buffer against economic uncertainty and allows them to take proactive risk mitigation strategies. Data also shows that landowner women are more likely to have diverse income sources, minimizing their market susceptibility. They also use support networks and community risk management efforts more. The study concludes that land ownership improves women's risk management. Women acquire economic stability and risk management leverage by obtaining land holdings. This shows that land access regulations might boost women's resilience and risk management. Future study should examine how land ownership affects risk management and how to give disadvantaged women land access.

The mediating role of risk management in the relationship between audit committee effectiveness and firm sustainability performance

Purpose This study aims to investigate the direct relationship between audit committee effectiveness and sustainability performance and the mediating role of risk management in the relationship between audit committee effectiveness and firm sustainability performance. Design/methodology/approach The Hayes Process regression mediation model was used in this study. The data included 2,590 firm-year observations from 518 publicly non-banking and finance companies on the Indonesia Stock Exchange from 2017 to 2021. Findings This study proves the important role of risk management in mediating the effect of audit committee effectiveness on firm sustainability performance. Audit committee effectiveness was found to positively and significantly affect risk management. However, the effect of audit committee effectiveness on firm sustainability performance was statistically insignificant. The robustness checks and additional tests support all the main regression results. Research limitations/implications Sample firms from Indonesia were used as representatives of developing countries. Further research may use more sample firms from multiple countries or provide a comparative study between firms in different countries. Practical implications The authority must enhance the audit committee’s role in risk management quality due to the indirect effect between the audit committee and sustainability disclosure. It should also expand the audit committee’s role to include sustainability disclosure. Social implications This study could increase community awareness of firm sustainability. Where a company is required to provide more eco-products, stakeholders are, therefore, expected to have more equal concerns. Originality/value To the best of the authors’ knowledge, this study is the first to examine risk management as a mediator of the effect of audit committee effectiveness on firm sustainability performance.

The Influence of Company Size on Risk Management Disclosure With Good Corporate Governance as a Moderation Variable in the Company Listed Property and Real Estate on the Indonesian Stock Exchange (IDX)

The purpose of this study is to examine how firm size affects risk management disclosure in property and real estate companies listed on the Indonesia Stock Exchange, using Good Corporate Governance (GCG) as a moderating factor. In this study, company size is the independent variable, risk management disclosure is the dependent variable, and GCG serves as a moderating variable. Associative, quantitative research methodology is employed, and linear analysis techniques are applied for analysis. Using a purposive sample approach, the study's population consists of property and real estate companies listed between 2018-2021 on the Indonesia Stock Exchange. The study's findings indicate that risk management disclosure is significantly impacted by a company's size. Nevertheless, in the context of property and real estate businesses listed on the Indonesia Stock Exchange for the examined period, GCG was not demonstrated to be able to control the relationship between company size and risk management disclosure

Factors Affecting Risk Management Practices of Microfinance Institutions in Ethiopia

Factors Affecting Risk Management Practices of Microfinance Institutions in Ethiopia

Enterprise Risk Management Practices in Malaysian Small and Medium-Sized Enterprises: An Overview

SMEs are crucial to the economic growth of many countries, particularly developing ones like Malaysia. SMEs have contributed significantly to economic growth but they also often struggle with problems related to poor management, which increases the risk of failure and closure. Effective risk management is essential in sustaining the long-term sustainability of SMEs and improving managerial performance. This study investigates the enterprise risk management (ERM) practices used by Malaysian SMEs in the manufacturing sector. The factors influencing the risk management behaviors and practices of SME manufacturing workers and their compliance with risk management protocols are examined in this study using a mixed-methods approach. This study focuses on employee behavior to better understand how organizational culture affects risk management techniques in SMEs. To design effective reward and recognition programs, this research also examines the psychological components of risk management while accounting for the organizational, societal, and financial challenges that followed the 2008 financial crisis. The study also examines the impact of organizational structure on the efficacy of risk management initiatives in small and medium-sized enterprises. The practical findings of the study are expected to demonstrate the extent to which ERM influences organizational effectiveness in Malaysia's SME manufacturing sector. This study intends to equip industry participants with the knowledge and confidence necessary to implement ERM successfully in their operations by offering insights into the factors that encourage and impede ERM adoption and its impact on organizational performance. This research advances ERM practices among SMEs and strengthens Malaysian businesses' resilience and risk awareness.

Research on Grain Futures Price Prediction Based on a Bi-DSConvLSTM-Attention Model

Grain is a commodity related to the livelihood of the nation’s people, and the volatility of its futures price affects risk management, investment decisions, and policy making. Therefore, it is very necessary to establish an accurate and efficient futures price prediction model. Aiming at improving the accuracy and efficiency of the prediction model, so as to support reasonable decision making, this paper proposes a Bi-DSConvLSTM-Attention model for grain futures price prediction, which is based on the combination of a bidirectional long short-term memory neural network (BiLSTM), a depthwise separable convolutional long short-term memory neural network (DSConvLSTM), and an attention mechanism. Firstly, the mutual information is used to evaluate, sort, and select the features for dimension reduction. Secondly, the lightweight depthwise separable convolution (DSConv) is introduced to replace the standard convolution (SConv) in ConvLSTM without sacrificing its performance. Then, the self-attention mechanism is adopted to improve the accuracy. Finally, taking the wheat futures price prediction as an example, the model is trained and its performance is evaluated. Under the Bi-DSConvLSTM-Attention model, the experimental results of selecting the most relevant 1, 2, 3, 4, 5, 6, and 7 features as the inputs showed that the optimal number of features to be selected was 4. When the four best features were selected as the inputs, the RMSE, MAE, MAPE, and R2 of the prediction result of the Bi-DSConvLSTM-Attention model were 5.61, 3.63, 0.55, and 0.9984, respectively, which is a great improvement compared with the existing price-prediction models. Other experimental results demonstrated that the model also possesses a certain degree of generalization and is capable of obtaining positive returns.

Effects of Profitability Leverage & Liquidity on Risk Management Disclosure

This study aims to analyze the effect of Profitability, Leverage, and liquidity on Risk Management Disclosure with the object of research, namely property and real estate companies listed on the Indonesia Stock Exchange for the 2019-2022 period. This primary research uses secondary data in the form of annual financial statements. The population in this study is 73 property and real estate companies listed on the IDX for the 2019-2022 period. Sampling in this study used purposive sampling and obtained research samples of 9 companies with a research period of 4 years of observation into 36 samples. The data analysis technique in this study uses IBM SPSS 26 with statistical analysis of the Classical Assumption Test, Multiple Linear Regression Test, and Coefficient of Determination. The results of this study show that Profitability does not affect risk management disclosure, while leverage and liquidity affect risk management disclosure.

Investors’ Perception of their Investment Decision on the Basis of ESG – A Case Study in Kolkata

Investors are pillar of any country’s economy. They are investing their hard-earned money for the development of the company as well as gaining profit for themselves. This study emphasized on the perception of investors based on Kolkata by considering ESG (Environmental, Social and Governance) before taking their investment decision. ESG consideration for investing decisions is becoming more common as a crucial aspect of sustainable development due to global financial crisis. ESG analyses the characteristics of investments that affect risk management, sustainable return, and accountability. Primary data has been collected with the help of Google Form with well-structured questionnaire by using Likert 5-point scale from 55 investors in Kolkata to do this research work. Descriptive statistics, reliability test, normality test and Mann Whitney U test have been done to justify the objectives of the study. Kolmogorov-Smirnov and Shapiro-Wilk test result suggest that the data are non-normal and it indicates performing of non-parametric test. Analysis of the study applied Mann Whitney U test to know the interdependency on the basis of gender and investment horizon as grouping variable. It reveals that there is no interdependency between gender and investment horizon with investors’ perception of their investment decision in Kolkata based on ESG performance of the company.

Internet of Things and Big Data Analytics for Risk Management in Digital Tourism Ecosystems

Participation and inclusion in the business ecosystem have emerged as a growing trend for company collaboration in areas such as innovation, product development, and research. Collaborations can take many forms, ranging from the traditional value chain to strategic alliances, corporate networks, and digital ecosystems. The Internet of Things (IoT) and Big Data Analytics (BDA) play key roles in developing smart tourism destinations by delivering efficient management solutions, increased public safety, and improved operational efficiency while managing different risks and challenges, while also being a source of such risks and challenges. The objective of this article was to investigate the potential of IoT and BDA to properly control the risks associated with participants in a tourism destination’s digital ecosystem. The authors used the systematic literature review (SLR) method to examine scientific and applied articles on this subject. As a result, the main risks of the digital tourism ecosystem (DTE) as a whole and of the IoT and BDA technologies used in it were identified and classified; the features of DTE that affect risk management in it were distinguished; IoT technologies and their applications used in DTE were outlined; and the roles of DTE participants and the possible IoT technologies that can successfully address the risks associated with a given role were defined.

How do We Assess Enterprise Risk Management Disclosure?

This study aims to empirically explore company size and corporate governance as determinants of risk management disclosure by investigating the effect of a combination of determinants on risk management disclosure practices in manufacturing companies. This study used a random sampling method. The sample for this research is 189 manufacturing companies (3 years of observation) listed on the Indonesia Stock Exchange for the 2019-2021 period. The COSO 2017 spreadsheet was used to measure the level of risk management disclosure. Panel data regression analysis using the Eviews program version 10 was used to examine the effect of company size and corporate governance on risk management disclosure. The results showed that company size, institutional ownership, and audit committee had a positive effect. In contrast, the size of the board of commissioners hurt risk management. The independent board of commissioners with managerial ownership shows results that do not affect risk management in manufacturing companies in Indonesia.

The Effect of Safety Philosophical Factors on Risk Management

Since Liquefied Natural Gas (LNG) is regarded as one of the cleanest fossil fuels, the primary goal of this study is to collect data concerning the bunkering of LNG in Maritime Industry. The purpose of the current research is to look into Safety Philosophical Factors and how it could affect risk management. To investigate this relationship, quantitative data are collected from questionnaires that are distributed among 200 seafarers. Finally, the findings of correlation analysis showed a significant relationship between safety philosophical factors and risk management, while the regression analysis showed a positive significant impact of safety philosophical factors on risk management. Keywords: Liquefied Natural Gas, Safety Philosophical Factors, Risk Management

Influence of corporate characteristics and Good Corporate Governance toward the risk management disclosure

This research study aims to obtain empirical evidence to the influence of company characteristics (firm size, profitability, leverage and liquidity) and good corporate governance (audit committee, board size, and public ownership structure) toward the risk management disclosure. This research study uses the Index of Enterprise Risk Management (IERM) as the parameter of risk management disclosure. This research study uses secondary data, the population of Property and Real Estate companies listed on the Indonesia Stock Exchange (IDX) in 2013-2015. The sampling technique was conducted using purposive sampling, which produces 70 listed companies’ samples during the years of observation. The analytical method of this study uses multiple regression analysis of Econometric views 8. This research study concludes that partial testing shows that firm size, audit committees and board size are positively and significantly related to risk management disclosure. Profitability, leverage, liquidity have no significant influence on risk management disclosure. Hypothesis testing uses multiple linear regressions. Data are obtained using Eviews version 8 software application. Data analysis model done with multiple regression model aiming to examine the influence of audit committee size, board of commissioner size, firm size, profitability, and leverage toward risk management disclosure Based on the research study result that has been analyzed statistically using multiple linear regressions, it can be concluded that variables of firm size, leverage, audit committee, and board of commissioner size positively and significantly affect corporate risk management disclosure. Meanwhile, variables of profitability, liquidity, and public ownership do not positively and significantly affect risk management disclosure.

How Corporate Characteristics and Good Corporate Governance Affect Risk Management Disclosure

Disclosure of risk is the provision of information about the risks encountered by the firm and how risk management is conducted. Disclosure of risks is essential for assisting stakeholders in obtaining risk profile information and management. This study aims to evaluate and assess the impact of firm factors (size, liquidity, profitability, leverage) and effective corporate governance (size of the board of directors and ownership structure) on risk management disclosures. For 2020-2021, the IDX has a quarterly listing of the research population for textile and apparel subsector manufacturers (quarterly). With a total of 64 observations, the sampling method is nonprobability with purposive sampling. Quantitative research and secondary data sources are categorized—as descriptive statistical data analysis methodologies. Before multiple regression analysis, all data were subjected to classical assumption tests (normality test, multicollinearity test, and heteroscedasticity test). According to the determination coefficient test results, all independent factors had an influence of 64.3% on risk management disclosure. The effects of research on business size, profitability, leverage, and ownership structure on risk management disclosure are beneficial. On risk management disclosure, liquidity has a negative influence, whereas the size of the board of commissioners has no effect. Future researchers are anticipated to expand their efforts so that test findings are more precise and reliable and to measure the ownership structure of various components.

Factors Affecting Risk Management in Industrial Companies in Jordan

This study aims to identify and rank the critical factors affecting risk management from the perspective of top and Lower Management in Jordanian industrial companies. Based on a rigorous literature review, critical factors affecting risk management are factors related to (1) flexibility and adaptation in the economic environment; (2) company characteristics; (3) external audit quality; (4) government rules and regulations; (5) top management and the board of directors; (6) organizational structure; (7) internal audit effectiveness; (8) trust; (9) human resources efficiency and training (10); communications (11); information technology (12); and the company’s culture. Quantitative research methods were used. A questionnaire was developed and distributed to a random sample of senior managers of industrial companies in Jordan. Kendall and Mann–Whitney tests, RII, and EFA were used to analyze the acquired data. The results show that all discussed factors have an effect on risk management, and there is no difference between top and Lower Management’s opinions regarding the ranking of the importance of those factors on risk management. This study provides an original perspective on the concept of risk management and the factors that impact it. These findings have important implications for Jordanian industrial companies’ decision makers. Companies should apply the results to their strategies and policies to reduce risks.

The connotation of digitalization for a company‘s risk management

Digitization is apparent. Due to this, business processes are transforming. Particularly for risk management, the digital revolution introduces amendment. Fresh chances are provided, while on the other hand, uncharted threats arise. Hence, risk management needs to actively adapt and change. The purpose of this paper is to understand if digitalization affects risk management. Subsequently, the focus is emphasized in innovations. In contrast to one another and concerning to one another, risk management facilitation and challenges are discussed. Twenty articles in financial journals provide the foundation of this paper and show that many companies are consulting firms such as the Big Four KPMG or Deloitte on the potential impact of technological advances. There are preparations and accompaniments for the implementation of new technologies. According to this, the premise is that the trend toward digitalization streamlines and expedites risk identification and subsequent risk assessment. Along with a case study on the current situation involving the company “Vienna Energy,” which is heavily covered in the media, a scientific literature search was conducted. The organization has been accused of poor risk management. The findings demonstrate that there is already adequate knowledge available, and many businesses are already aware of the advantages of new technologies. Digitalization has a huge impact on business processes and will result in risk management rationalization and change. Thus, this research can add new dimensions to the risk assessment process and, particularly, express the benefits and opportunities of non-analog methods.

Analysis of Factors Influencing Risk Management of Non-financial Companies Listed on the IDX

Risk management is the company's efforts to manage various risks that occur. Risk Management is very important for companies in managing and avoiding company risks. This study aims to analyze the factors that influence risk management in companies. Several factors that affect risk management are Profitability, Leverage, Company Size, Industry Type, and Business Complexity. This research was conducted on non-financial companies on the Indonesian Stock Exchange. The sample collection method used is purposive sampling in which the research sample is included in the predetermined criteria. This study uses a quantitative method with multiple linear regression analysis. The results of the study show that the factors that influence risk management, namely Profitability, Leverage, Company Size, Industry Type, and Business Complexity, have an effect on company Risk Management. It is important for companies to pay attention to and manage their risk management as a step to control and minimize the risks that exist in the company.

IMPROVEMENT OF RISK MANAGEMENT SYSTEMS OF TOURISM ENTERPRISES

The article analyzes the existing risk management systems of tourism enterprises. The need to identify risks and assess the riskiness of situations has been revealed, which in turn will help to make effective management decisions in a timely manner. The main sources of the origin of risks, their role, as well as the factors affecting risk management in the tourism industry are determined. Approaches to defining the concept of risk management at tourist enterprises are analyzed, as well as a set of methods, techniques and measures that allow to predict to a certain extent the occurrence of risky events and take measures to eliminate or reduce the negative consequences of the occurrence of such events. An efficient and effective system of risk management of the activities of tourist enterprises was built on the basis of the conducted research due to a balanced combination of identification, countermeasures and prevention of the occurrence of risks in the future, due to the use of intellectual capital of the management staff of the tourist enterprise. tourism enterprise, ways to minimize the consequences of future risk events, a multi-level concept of risk management based on the implementation of integrated risk management systems at the enterprise. It has been proven that an important stage of the implementation of the risk management system of tourism enterprises is the assessment of the risk at the time of implementation and forecasting its value for future periods in accordance with the given criteria of importance. This will make it possible to assess the trend towards a general reduction of the risk of the enterprise's tourism activity in the long term. It was determined that the implementation of an effective system of activity risk management will allow simultaneous analysis of a large number of individual risks and the degree of their influence on the development of the risk situation. It was concluded that the risk management system takes into account the specific features of the industry and can serve to increase the stability of organizations, primarily financial.

ФІНАНСОВІ ІНСТРУМЕНТИ ДЛЯ ЕФЕКТИВНОГО УПРАВЛІННЯ РИЗИКАМИ В УМОВАХ ГЛОБАЛІЗАЦІЇ

The article discusses key financial instruments for effective risk management in the context of globalization. The main focus is on portfolio diversification as a strategy to reduce potential losses and ensure stable income. Also covered are derivatives on commodity markets, including futures, options and swaps, which allow investors to hedge against price fluctuations. Insurance is considered as an additional tool for risk management. The article emphasizes the importance of a deep understanding of the market, analysis of risks and opportunities, as well as the need for a strategic approach to investing in modern conditions of globalization. In the constantly changing global economic landscape, investors face numerous challenges that require flexible and innovative approaches to risk management. Attention is focused on geographic and sectoral diversification as methods of reducing the risk associated with specific regions or sectors of the economy. In addition, the role of education and continuous learning in the process of making investment decisions is considered. It was determined that only a combined approach, which includes various financial instruments and strategies, can provide investors with the necessary protection against risks and help achieve longterm financial success in the conditions of globalization. The relationship between globalization and the growing complexity of financial markets is presented. Globalization means that local events in one country can have global consequences, which in turn affects risk management strategies. The importance of understanding the cultural, social and political characteristics of different regions becomes key to effective investing. There is also a focus on technological innovations that provide investors with new tools and opportunities for market analysis, risk forecasting and portfolio optimization. Artificial intelligence, blockchain and other advanced technologies can become decisive in providing competitive advantages in a globalized world.

PENGARUH TATA KELOLA PERUSAHAAN TERHADAP PENGUNGKAPAN MANAJEMEN RISIKO

Disclosure of risk management is a disclosure of the risks that have been managed by the company or disclosure of how the company will control risks related to the future. The purpose of this study was to determine the effect of corporate governance such as managerial ownership, institutional ownership, independent commissioners, audit committees and risk management committees on risk management disclosure. The population of this study are non-bank financial services companies listed on the Indonesian stock exchange in 2016-2019. The sample selection method was carried out by purposive sampling, namely the method of selecting samples with certain criteria. The sample according to the criteria is 31 companies with an observation period of 4 years so that the research sample is 124. Based on multiple regression analysis, the results of this study indicate that managerial ownership has an effect on risk management. Furthermore, institutional ownership factors affect risk management management. The independent commissioner factor has no significant effect on risk management. the audit committee has an effect on the assessment of risk management factors. Risk management factors affect risk management management.