Risk Management In Companies Research Articles

Building Investor Trust in Net Zero

In the past five years, a growing number of investors have been taking more serious account of climate change in their investment decision‐making. Meanwhile, companies have been responding by making bold net zero commitments. But if it seems reasonable to expect that companies making such commitments would see a subsequent market reaction, the authors' recent analysis found no significant abnormal stock price reaction in the days immediately following a corporate net zero announcement.One interpretation of this lack of investors' response is that it reflects their skepticism and desire to see more evidence of planning and execution, including details of changes in capital allocation plans. Climate transition planning could be the missing piece in this puzzle.In 2019, FCLTGlobal issued a report called “Driving the Conversation: Long‐term Roadmaps for Long‐term Success,” which provided a tool to help corporations when building long‐term strategic plans. In this article the authors extend that reporting framework by presenting the outlines of its new “Climate Transition Conversation Guide.” Designed to help companies develop a robust climate transition plan that is integrally linked with their long‐term strategy, the Guide addresses a number of important questions about how key pillars of the business are likely to affect—and be affected by—climate change: How does climate change affect the way that the company intends to create value now and in the future? How does climate change impact the company's core drivers of growth, competitive environment, and management's view of the market? What goals and KPIs would best showcase the integration of climate into the company's strategic plan? How does climate change affect the company's capital allocation plans? How has climate change been reflected in the company's risk management efforts? Is the company structured to allow for the integration of climate change into its strategic plan at all levels? By integrating climate change into their long‐term strategic plans—and perhaps drawing inspiration from some of the corporate best practices showcased in this article—companies are urged to begin the process of making good on their bold climate commitments with plans for action, thereby helping investors to move past their skepticism and recognize and support the plans.

Research on Stock Pledge Risk Control in Securities Companies

<p>Securities companies have their own unique advantages in carrying out stock pledge financing business, and are also in a leading position in stock pledge financing business. However, it should also be noted that with the expansion of the stock pledge financing business, stock pledge risks are also gathering. In this case, it is very necessary to study the stock pledge risk of securities companies. This paper first analyzes the risks existing in the stock pledge financing business of securities companies, and then puts forward measures to strengthen stock pledge risk management in securities companies.</p>

Adakah Korelasi Enterprise Risk Management (ERM), Profitabilitas Dan Leverage Keuangan Terhadap Return Saham?

Disclosure of Enterprise Risk Management, Profitability and Financial Leverage is an important instrument to provide information to investors, thereby attracting interest in investing in companies that affect the company's stock returns. This study examines the effect of Enterprise Risk Management Disclosure, Profitability, Financial Leverage on Stock Return. The sample in this study using the purposive sampling method was obtained as many as 65 companies from the Manufacturing Sector listed on the Indonesia Stock Exchange in 2020. The data analysis techniques used were descriptive analysis and multiple linear regression analysis. The results of this study indicate that ERM disclosure has no effect on Stock Return, while Profitability and Financial Leverage has an effect on Stock Return. The results of this study indicate that investors in making investments do not pay attention to whether the company's risk management has been managed properly or not. Investors are more concerned with financial information, such as profitability and leverage. Financial information such as profitability and leverage can provide confidence for investors in placing their capital.

Efek Good Corporate Governance Dan Rasio Keuangan Terhadap Pengungkapan Enterprise Risk Management

The purpose of this study is to clarify how good corporate governance and financial ratios affect a company's risk management. Data and information on ERM, obtained from annual reports, management reports and annual corporate governance. The purposive examining method turned into applied in determining the take a look at gotten through 34 groups from fifty seven basis department groups recorded at the Indonesia Stock Exchange with six years of remark from 2015 to 2020, in order that 204 look at take a look at had been gotten. The findings of this look at found out that Good Corporate Governance, particularly the Independent Board of Commissioners, Audit Committee, Risk Management Committee, and Leverage, had no giant effect at the Company`s Risk Management, while Profitability had a giant high quality effect at the ranges of company threat control in infrastructure groups indexed at the Stock Exchange. Indonesian Securities for the 2015-2020 period. However, as a whole, the ERM chart for the 2015-2020 period, when companies participate in the Enterprise Risk Management Index, combines the presence of independent, audit and risk Management committees, leverage and profitability factors. Affects the index. Measures infrastructure companies listed on the Indonesia Stock Exchange. Another result of this study is that the most common type of risk is financial risk.

기업의 위안화 파생상품 사용에 대한 연구

This study examines that derivatives play moderating role between globalizaion and firm value period from 2011 to 2020. As Korean companies have a high level of globalizaion, exchange risk management of Korean companies is more essential. It .has a direct impact on corporate value. In order to examine whether the use of derivatives is efficient, we predicted that the use of currency derivatives as a means of risk management will contribute to an increase in corporate value. We also predicted the nonlinearity of the level of globalizaion. Results show that globalizaion has a non-linear relationship (U-shaped) with respect to the corporate value, and the appropriate use of currency derivatives strengthens the positive relationship between globalizaion and firm value. It proved that the use of currency derivatives play a moderating role between globalization and firm value.

Implementing Enterprise Risk Management in Life Insurance

This paper discusses a framework for ERM with particular emphasis on the life insurance industry. The ERM framework involves eight key features ranging from governance aspects to risk management policy, risk tolerance, own risk and solvency assessment, capital assessment on economic and supervisory basis and continuity analysis. Given that the life insurance industry is a regulated industry the supervisory role is an important feature of the ERM framework. The paper highlights the different stages of ERM maturity starting with a compliance orientation and the highest stage with linkage to strategy and value creation. The insurance industry is currently somewhere in between but there are a lot of dijferences in the maturity of ERM within the industry. Embedding ERM is a significant challenge for the industry with quantification of economic capital, embedding risk management into decision making and dealing with operational risk being some of the primary ones that the life insurance industry is facing. Actuaries have played an important role in risk management of insurance companies for several years and their skills are well suited to take leading roles in ERM. This will however require them to not only possess technical skills but also rise to the challenge of dealing with non-quantifiable risks, change management and communication with senior management and board. ERM combines the three key elements of insurance risk, capital and value. By integrating these elements insurers are able to enhance performance assessment at a more granular level reflecting the risks underlying the business and identifying opportunities of taking more risk to create shareholder value.

Firm Value: CSR Disclosure, Risk Management And Good Corporate Governance Dimensions

This study aims to examine the effect of Corporate Social Responsibilty(CSR) disclosure and risk management on firm value with Good Corporate Governance(GCG) as a moderating variable. The research sample was conducted on mining companies listed on the Indonesia Stock Exchange for the 2015-2019 period of 27 companies with a total of 120 observed data . The data were analyzed by panel data regression processed with Stata 15 software. The results showed that CSR disclosure had a negative effect on firm value. Meanwhile, risk management has no effect on firm value. Furthermore, GCG as a moderating variable, proven to be able to streng then the relationship of CSR disclosure to firm value. However, GCG cannot be a moderating variable between risk management and firm value. Financial performance and firm size proved unable to be control variables in relation to the effect of CSR and risk management on firm value. The limitation of this research is that it is limited to mining companies listed on the IDX so that it can give different results if carried out in different industries. This research can contribute to the accounting literature related to firm value, especially with regard to CSR disclosure, risk management and GCG in companies in Indonesia.

Economic Analysis Positioning of Risks at the Stages of Company Development

The purpose of the article is economic analysis and compare the organization's risks to the stages of the life cycle according to I. K. Adizes. This paper uses risk classifications of V. S. Romanov and Microsoft. Based on the description of each stage of the organization's development, an attempt is made to systematize risks at each stage of the company's life cycle according to the model of Yitzhak Adizes. In addition, risk maps have been drawn up for the company's development stages. The authors of the article argue the need for this research by the fact that at the moment risk management in companies occurs without taking into account the life cycle, respectively, those groups of risks that are characteristic of the stage of development of the company are overlooked. This is why life-cycle risk management is necessary: companies will have a list of risks that are specific to the stage of development of the organization.

Measuring And Improving The Effectiveness Of ISO 31000 Based Erm In State-Controlled PSO - A Case Study Of Toll Road Operators In Indonesia

Toll road operators need to implement effective risk management. This study focuses on how a State-Owned Enterprise (SOE) toll road operator assesses the maturity of their ISO 31000-based risk management practices by using an ISO 31000-based risk management maturity model, ERMA ISO31000 RM3. The study is predominantly based on a qualitative approach through document reviews, questionnaires, and interviews. The assessment result shows that the company's risk management maturity score reaches 3.62 (a scale of 0.00 – 5.00) or at the DEFINED level of the risk management maturity. The study also shows that the company's risk management process gets the highest score, 4.45, while the lowest score, 3.22, is for the company's performance management. By using the maturity assessment result, the company's management can develop a risk management improvement road map to assist their efforts in increasing the effectiveness of their existing risk management practices. Referring to the assessment result, the management can prioritize the improvement on low-score maturity attributes, such as their performance management, risk culture, resilience and sustainability, risk management framework, and management process, while maintaining their current practices of the risk management process, which has already reached a considerably high maturity level.

The Mediation Effect of Carbon Accounting in Relation to Carbon Risk Management and Carbon Performance of Malaysian Companies

This paper enhances the knowledge on carbon management among organizations certified by the Malaysian International Organization for Standardization (ISO) 14001. Specifically, the study investigated the impact of carbon risk management on carbon performance through the mediation of carbon accounting. This research adopts a quantitative method with a final sample size of 136 and structural equation modeling (SEM) was employed to analyze the data. The findings suggest that carbon risk management and carbon accounting have a significant positive effect on carbon performance. Notably, carbon accounting exerts a full mediating effect on the relationship between carbon risk management and carbon performance.

Rethinking Risk Management

This paper presents a theory of corporate risk management that goes beyond the “variance‐minimization” model that long dominated academic discussions of the subject. It argues that the primary goal of risk management is not to dampen swings in corporate earnings, cash flows, or value, but rather to provide protection against the possibility of costly lower‐tail outcomes—situations that would cause financial distress or make a company unable to carry out its investment strategy. In the jargon of finance specialists, risk management can be viewed as the purchase of “well‐out‐of‐the‐money put options” designed to limit downside risk.By eliminating downside risk and reducing the expected costs of financial trouble, risk management can also help a company to achieve both its value‐maximizing capital structure and its optimal ownership structure. For besides increasing corporate debt capacity, the reduction of downside risk also encourages larger equity stakes for managers by shielding their investments from “uncontrollables.”The paper also departs from standard finance theory in suggesting that some companies may have a comparative advantage in bearing certain financial market risks—an advantage that derives from information acquired through their normal business activities. Although such specialized information may lead some companies to take speculative positions in commodities or currencies, it is more likely to encourage “selective” hedging, a practice in which the risk manager's “view” of future price movements influences the percentage of the exposure that is hedged.But to the extent that such view‐taking becomes an accepted part of a company's risk management program, it is important to evaluate managers’ bets on a risk‐adjusted basis and relative to the market. If risk managers want to behave like money managers, they should be evaluated like money managers.

The critical factors for implementing enterprise risk management in Vietnamese construction companies

This paper was carried out to identify critical success factors (CSFs) for enterprise risk management (ERM) and assess the important level of these factors by making a questionnaire survey. The result shows that CSF01 – “commitment of board and senior management” get the first position in the ranking list, followed by CSF02 - ERM ownership with the mean value of 4,38. Additionally, the group of CSF8 – “leveraging risks as opportunities”, CSF9 – “risk management system” and CSF13 – “formalized key risk indicators” are seen as less important factors for ERM implementation in VCCs. Furthermore, the p-value of the T-test method indicates that academic and professional experts seem to have similar point of view regarding the important level of identified factors.

Internal controls for risk management: perception of auditors and managers

Purpose: This article aims to analyze the perception of auditors and managers in relation to internal controls in risk management in companies.
 Methodology: The research is descriptive and qualitative. Two identification scripts were carried out, divided into two parts: the first containing 05 closed questions about the characterization of the professionals and the second the questions directed to the research area. The first script was addressed to independent auditors and contains 08 open questions. The second was directed to the managers and contained 10 open questions, 07 of which were elaborated based on the theoretical framework of the research and the others were taken from the study by Peleias et al. (2017). Data processing took place through content analysis using the Atlas / TI software.
 Results: Based on the research findings, the managers claim to have an internal control that collaborates with risk management, in this sense they always invest in programs, as they claim that they help in the prevention of errors. In the view of independent auditors, Mossoró organizations have internal control and programs that collaborate for risk management, however, employees are not qualified to operationalize the actions in the systems. What compromises the performance of the results. In view of the analyzes carried out, it is possible to understand the different conceptions in relation to the internal control of companies.
 Contributions of tihis Study: The contribution of research in the theoretical aspect is to confront the different perceptions of auditors and managers, regarding the use of internal control in risk management in a practical reality. With regard to the practical aspect, this study aims to observe what is seen by auditors and what is not perceived within organizations, in this sense the operationalization of internal control is evaluated as effective, but in different angles that have a specific reality of the city of Mossoró, so the research shows that it is possible to solve problems of execution of internal control, providing a better performance and effectiveness of risk management.

The Mitigating Effect of Supply Chain Risk Management in Marginal Field Oil and Gas Companies in Nigeria

Historically, oil and gas was discovered in Nigeria in 1956 by Shell petroleum at Oloibiri now Bayelsa state. The oil and gas industry is divided into upstream, downstream and mid-stream respectively in Nigeria. Each of the petroleum sectors performs different functions in terms of exploration, refining and distributions and with respective supply chains. In course of the supply chain distribution, distractions in form of turbulence and disruption can occur which could have serious effects on operations and performance. Hence this study focused on the mitigating effect of supply chain risk management in marginal field oil and gas companies in Nigeria. It is field survey and case type of research. A total of 687 Management and Senior staff of nine marginal filed oil and gas companies constituted that population while 325 formed that sample size. The main instrument was questionnaire administration and analysed using descriptive statistics. The study found that application and proper management of supply, demand, information, transportation and monitoring risk mitigation strategies are critical factors enhancing reduction of risks in marginal field oil and gas in Nigeria. It therefore recommended that there should proper coordination of information, monitoring, demand and supply chain risk management in order to reduce vulnerability of disruptions and distraction in operations.

ДІЯЛЬНІСТЬ СТРАХОВИХ КОМПАНІЙ В УМОВАХ РИЗИК-СЕРЕДОВИЩА ВОЄННОЇ ЕКОНОМІКИ

The article investigates the peculiarities of the activity of domestic insurance companies in the risk environment of the war economy, the key task for which is to maintain the confidence of consumers of insurance services to the companies of the insurance sector and to develop a system of practical actions for the timely identification and response to the risks of disruption of the stability of their financial condition. The trends in the functioning of the insurance market of Ukraine during the period of full-scale russian invasion were analyzed. The assessment of indicators characterizing the processes of restoration of insurers' activities in the face of a number of threats from the external environment has been made. Conclusions were made about the types of insurance that became a priority in the portfolios of insurance services of insurers during the period of military operations. The role of flexible regulatory requirements of the NBU at different stages of martial law was assessed, which created an opportunity for insurers to organize their work during the period of their simplification, taking into account the peculiarities of an extremely threatening risk environment, which led to a slowdown in the decline in the functioning of the insurance market in the third quarter of 2022. The risks that accompany the activities of insurance companies in a war economy were analyzed and a mechanism for improving risk management in companies was proposed to maintain their solvency and fulfill their obligations to consumers of financial services. The peculiarities of the functioning of the insurance market in the postwar period, the problems that may arise for insurers in the context of reduced demand for insurance products against the background of the growing need to meet the more pressing needs of individuals and legal entities were considered. It is revealed that further activities of insurance companies after the end of hostilities should be carried out: 1) with an understanding of the need to use the experience gained to improve the risk management mechanism in companies; 2) based on the use of modern technologies for processing and storing information; 3) revision of the types of insurance services provided from the point of view of their actualization, primarily related to military risks; 4) participation in the processes of restoring the economic life of the country, primarily in construction, energy, logistics, and the agricultural sector. The role of the state in supporting the sustainable functioning of the insurance sector in the period after the end of martial law were assessed.

Risk management in transport and logistics companies

Risk management in transport and logistics companies

An exploratory study on procurement risk management in Japanese manufacturing companies

An exploratory study on procurement risk management in Japanese manufacturing companies

АНАЛИЗ ОСОБЕННОСТЕЙ ПРОЦЕССИНГА РИСКОВ НА ПРЕДПРИЯТИЯХ МАЛОГО И СРЕДНЕГО БИЗНЕСА: ПСИХОЛОГИЧЕСКИЕ АСПЕКТЫ

Risk management or risk processing is one of the most popular areas in modern management science. There is a perfectly reasonable explanation for this. The current situation in the economy and socio-political sphere has no historical analogues: the complexity of problems, the level of uncertainty and risks are challenges that the business community has never faced. Under these conditions, not only commercial success, but also their very survival directly depends on the processing of risks that this or that enterprise uses. Modern business practices offer a fairly large range of solutions aimed at managing risks in a wide range of business activities. At the same time, the psychological aspects of working on a risky agenda often remain behind the scenes. At the same time, it is obvious that the readiness of the management core of the organization to responsibly and reasonably carry out risk processing very much depends on the likelihood of the overall success of its activities. This trend is especially clear for small and medium-sized businesses. For them, in the current conditions, the identification, assessment and management of risks becomes a key task, and the role of managers in this activity becomes absolutely decisive. As part of this study, the case of the company Business Circle LLC was considered. The main objectives of the study were to review the most critical risks for domestic business and approaches to risk management, which should be recognized as the most effective and successfully proven, to analyze the role of the managerial core in the risk management process, to identify key psychological aspects that affect the attitude towards risks, to develop recommendations for more effective risk management for companies belonging to the cluster of small and medium-sized businesses. The authors believe that the solutions that were developed and implemented at the object of study are quite universal and can increase the efficiency of risk processing at enterprises similar to Business Krug LLC in terms of scale of activity.

Impact of Audit Committee Characteristics on Dividend Yield of Jordanian Listed Financial Companies

The Audit Committee is responsible for overseeing the Board's corporate governance and oversight obligations, including the company's risk management system, internal control system, financial reporting, and internal and external audit tasks. The impact of Audit Committee features on Dividend Policy in financial companies listed on the Amman Stock Exchange was investigated in this study. Dividend Yield per Share was taken into account as part of Dividend Policy in the study, which was based on Jordanian financial enterprises' public financial reports. Multiple regression analysis was employed to examine the impact of AuditCommittee characteristics on DividendYield in Jordanian companies. The results indicated that AuditCommittee characteristics showed a significant effect on DividendYield per Share.

An Exploratory Study On Rısk Management Dısclosure On Conventıonal Commercıal Banks In Indonesıa

In the last few years of The Global Risks Report 2020 made Covid-19 ranked 10th as a risk that has a big influence on the world and it can be classified into the relevant type of risk management disclosure. This type of risk is very influential on operational risk because it can interfere with all aspects to the running of the company. Therefore the researchers interest in this phenomenon that related to conventional commercial banks on the Indonesia Stock Exchange (IDX) and reviewed on aspects of internal factors that are sensitive to the rise and fall of the company's risk management disclosure figures, such as company size, profitability, and leverage. The study examined the disclosure of conventional commercial bank risk management with saturated sampling methods and used data from forty-one companies during the period from 2017 to 2019. The results showed that the size of the company has an influence on the rise and fall of risk management disclosure. The study also concluded that profitability does not have enough influence on all aspects of risk management disclosure. Similarly, in terms of leverage, this study obtained results that had no effect on risk management disclosure.