Current Risk Management Practices Research Articles

Cascade processes of induced and triggered earthquakes-Case study in the Weiyuan shale gas development area in Sichuan Basin, China

Identifying accurate seismogenic faults is critical for studying the mechanisms of induced earthquakes. On February 24th and 25th, 2019, three moderate earthquakes with magnitudes of MS 4.7, MS 4.3, and MS 4.9 occurred successively in the shale gas development area of Weiyuan, China. We utilized high-resolution three-dimensional (3D) seismic data to identify two pre-existing faults (F1 and F2) that were responsible for the three moderate earthquakes. InSAR data were used to validate the rationality of the two seismogenic faults. Furthermore, we analyzed the impact of fluid diffusion on fault F1 near the fracturing well and calculated the Coulomb failure stress (CFS) generated on fault F2 by the MS 4.7 and MS 4.3 earthquakes to analyze the interactions between these events. The results indicated that fluid diffusion caused by hydrofracturing induced the MS 4.3 and MS 4.7 earthquakes on F1. The static Coulomb stress changes from these two earthquakes subsequently triggered the larger MS 4.9 earthquake on F2. This study provides a case of a cascading process in which induced earthquake events triggered a more distant and higher-magnitude earthquake. This triggering scenario reminds us that earthquake-to-earthquake interactions may be more hazardous than a “typical” inducing mechanism and challenges current risk management practices.

أثر تطبيق معايير إدارة المخاطر ISO 31000 على فعالية إدارة المخاطر في الشركات السعودية البتروكيماوية

This study investigates the impact of implementing ISO 31000 risk management standards on the effectiveness of risk management at Saudi petrochemical companies, a leading company in the petrochemical industry. ISO 31000 is a globally recognized framework that provides principles and guidelines for managing risks systematically and effectively. The study begins with an overview of the importance of risk management in large organizations, highlighting the challenges and risks faced by companies in a complex and dynamic environment. It then reviews ISO 31000 standards, including its core principles and framework aimed at improving the risk identification, assessment, and treatment processes. Additionally, the study examines the current risk management practices at Saudi petrochemical companies and evaluates how the application of ISO 31000 standards has influenced these practices. The research employs a methodology that includes collecting data through surveys and interviews with employees and risk management officials at the company, as well as analyzing relevant documents related to processes and policies. The findings indicate that the implementation of ISO 31000 has significantly enhanced the effectiveness of risk management at Saudi petrochemical companies. Notable benefits include improved risk identification and assessment accuracy, as well as the development of more effective risk treatment strategies. The standards also contributed to raising risk awareness within the company and fostering a more adaptive organizational culture capable of addressing new challenges. The study also identifies some challenges encountered during the application of the standards, such as the need for ongoing training and the development of advanced analytical tools. However, the benefits achieved outweigh these challenges, suggesting that investing in ISO 31000 implementation can be highly valuable for leading companies. Based on the results, the study recommends continuing to enhance the application of ISO 31000 across all departments within the company, developing regular training programs to ensure employee adherence to the standards, and further improving the tools and methods used in risk management to achieve optimal effectiveness. This study provides valuable insights into improving risk management in large organizations and offers practical models that other companies across various sectors can benefit from.

Dynamic risk early warning system for tunnel construction based on two-dimensional cloud model

Due to the uncertainty of geological conditions and construction status during tunnel construction, the risk of tunnel construction will vary with updates to environmental information. The current risk management practice for tunnel construction projects in China is static and relies on the subjective judgment of experts and practitioners, so it is necessary to propose a risk assessment methodology that takes into account dynamically updated risk information and uncertainty. This paper proposes a dynamic risk warning system for tunnel construction that integrates knowledge-driven consequence datasets and data-driven likelihood datasets of risk events, using a probability algorithm based on a two-dimensional cloud model for risk decision-making. The algorithm quantifies the risk probabilities by randomly simulating the risk discrimination results under the influence of uncertainty multiple times and statistically analyzing the distribution pattern of a large number of simulation results within the constructed quantitative risk matrix. Decisions on risk level and warning state are made based on risk probabilities. Moreover, this study conducts extensive simulation tests to determine the optimal number of simulated cloud droplets and develops a software toolbox to facilitate rapid feedback on tunnel construction risk. The proposed algorithm is applied to the construction of Guiyang Metro Line 3. The results show that the standard deviation of the simulation results is less than 0.025 and the algorithm has good stability. The two-dimensional cloud model offers a superior reflection of risk uncertainty compared with its one-dimensional counterpart, making it more appropriate for assessing the risks associated with tunnel construction—a complex scenario characterized by intricate index relationships and significant uncertainty.

The Assessment of Risk Management in Human Resources Practices in the Public Sector

HR-related risks can disrupt operations and cause significant problems for organizations. Effective HR risk management is essential for mitigating these risks. A strong HR risk management plan ensures adherence to labour laws, prevents costly legal issues, and safeguards public trust. Public sector organisations can proactively address potential HR risks and attract and retain top talent, improve employee morale, and achieve their goals more effectively. The primary purpose of this research was to critically investigate and analyze current HR risk management practices—justification of the choice of the research object. A questionnaire survey was conducted with 30 Erongo Regional Council staff members to explore HR risk management practices in a public sector organization. Justification of the choice of the research and research period: Informational and statistical basis of research. A descriptive research design was used to collect and analyze data. Descriptive statistics, hypothesis testing, and regression analysis were employed. A questionnaire survey was used to collect data from 30 Erongo Regional Council staff members. The main results of the research. The study found that the respondents understand HR risk management practices and the organization manages HR risks. A positive correlation was found between HR risk management and organizational performance. However, the study also revealed challenges in HR risk management implementation. Questionnaires are cost-effective and can reach many respondents within a short time frame. It allows you to gather data from a more comprehensive range of public sector organizations and get a broader perspective. This study recommends increased employee awareness of how HR risks can disrupt operations. By fostering awareness, organizations can minimize the likelihood of overlooking potential risks. These programs can equip them with the knowledge and skills to implement effective risk management strategies.

Changes needed to reduce risk of musculoskeletal disorders.

Musculoskeletal disorders (MSDs) are the main contributor to disability levels, which are rising as populations age. Workplace hazard exposures are a major source of this problem, and current workplace risk management practices require substantial changes to tackle it more effectively. Most importantly, the current focus of risk management on "manual handling"tasks must broaden to encompass the whole job. This is necessary because a wide range of psychosocial hazards, most of which operate across the whole job rather than particular tasks, are significant contributors to risk. To ensure that risk-control actions are effective, a recurring risk management cycle that includes worker participation and addresses risk from both biomechanical and psychosocial hazards will be essential. Legislation that mandates workplace management of psychosocial hazards would be helpful. Amendment by regulatory bodies of MSD-related guidance and codes of practice so that they reflect current research evidence would also be helpful in communicating the need for change to workplace stakeholders.

Exploring maritime safety and risk management practices among STIP Jakarta graduates

This qualitative study addresses the urgent need to enhance safety and risk management practices among graduates of the Maritime Institute Jakarta (STIP Jakarta), including deck officers, engine officers, and shipping professionals. The research objectives are to investigate current safety and risk management practices, examine factors influencing safety culture and risk perception, and assess implications for organisational safety and sustainability. The study employs a qualitative approach, utilising semi-structured interviews and documentary analysis. The sample comprises 70 graduates of STIP Jakarta, with data analysed thematically. Results indicate a strong commitment to safety culture and high compliance with IMO-STCW standards. The study highlights the importance of safety culture, regulatory compliance, and professionalism for ensuring the safety, competence, and sustainability of maritime operations. The findings have significant implications for organisational practice, education, and future research in the maritime industry.

The Scope of Risk Management Policies and Practices Within Collegiate Recreational Sports: Reinvigorating the Conversation

Risk management is an essential component of effective campus recreational sport programming. However, research on risk management policies, procedures, and practices within recreational sports is both limited and outdated. As such, this study provides an overview of current risk management policies, procedures, and practices across North American collegiate recreational sports departments. Specifically, the results emphasize current training practices for both part-time and full-time staff, practices in establishing and updating emergency action plans, and contents covered in emergency action plans. The results suggest that while the vast majority of recreational sport programs have established risk management procedures and engage in risk management training, they diverge in best practices related to emergency action plans and in terms of contents covered in such plans. Applications of these results for practitioners and institutions are emphasized, including discussions around best practices in risk management.

Methodological aspects of assessing the level of risk resistance of retail trade enterprises

The article aims to improve the scientific and methodological approach to assessing retail enterprises' risk tolerance levels. The research process used the following methods: analysis, synthesis, structuring, systematization, graphic modeling, multidimensional analysis, and integral assessment. The article describes the main features of the modern external environment. Risk management is developing forward-looking thinking and forming readiness for risky situations. The essence of the "risk resistance" concept is revealed, and the main concepts that define it are characterized. A three-dimensional graphic model has been developed, and a methodological toolkit for assessing the level of risk tolerance of retail trade enterprises has been substantiated. An economic-mathematical model is proposed to estimate the probability of achieving a retail enterprise's target level of risk tolerance. A system of system-forming factors that influence the provision of the retail trade enterprise's target level of risk resistance has been formed. The scientific-methodical approach to assessing the level of risk resistance of a retail trade enterprise has been improved, considering the ability to resist external risks and the level of internal risks. It allows the formation of a system of management decisions to ensure a timely response to a wide range of resource and time constraints risks while contributing to achieving target indicators of activity retail trade enterprises. The graphic model of the values of the concepts of risk resistance of a retail trade company, developed based on the results of the study, focuses attention on the dynamics of the concept over time and creates an opportunity to ensure the control of the actual values of the concepts of risk resistance and determine their compliance with permissible, nominal, and critical values. Further research is planned to be devoted to conducting studies of current practices of external and internal risk management in Kharkiv's retail trade enterprises. Keywords: risk, risk resistance, level, risk-generating factors, concepts, integral assessment, integral indicator.

Sustainable Enterprise Risk Management Paradigm for Enhancing Nigeria’s Road Transport Sector Performance

This paper proposes the development of a Sustainable Enterprise Risk Management (SERM) as a paradigm for enhancing transportation agency’s performance in the Global South (GS) with a focus on the Nigerian Road Transport Sector. Sustainable transport has a key part to play in fostering sustainable economic growth and expanding access to essential services as a vital driver of economic and social development. However, transport sector faces an evolving landscape of sustainability (ESG) risks that can impact their success and even survival. It has been evidenced that current risk management practices are not adequately addressing sustainability risks. Preliminary findings have shown various organisational/institutional challenges in the Nigerian Transport sector driving the breakdown in sustainable ERM. Literature has established that organizational resilience starts at the top with the use of ERM paradigm to achieve good risk governance and organisational objective in normal, volatile and crisis situations. However, there have been a very limited literature regarding alignment of ERM with transportation sector. This paper explores Systems Thinking/Systems Dynamics (ST/SD), Transport specific ERM frameworks in the GN and the two dominant ERM frameworks with a view of adapting their standards and articulating the practices in the Global North (GN) to develop implementation guidance that could enhance the Nigeria road transport sector performance with reduced risk. It aims to provide a better understanding to help policy makers with decision making on sustainable Transportation. Keywords: Enterprise Risk Management (ERM), Global North (GN), Global South (GS), Sustainability Concept, Sustainable Transportation, Systems Thinking/Systems Dynamics (ST/ SD). Proceedings Citation Format Abraham Rasheed Adeyemi (2023): Sustainable Energy Planning and Modelling for Global South: A Case Study of the Federal Republic of Nigeria. Proceedings of the 37th iSTEAMS Multidisciplinary Cross-Border Conference. 30th October – 1st November, 2023. Academic City University College, Accra, Ghana. Pp 107-140. dx.doi.org/10.22624/AIMS/ACCRACROSSBORDER2023 V2P9

Risk Prevention and Effective Control of Enterprise Financial Accounting

In modern enterprise management, financial accounting plays a vital role, and its risk control and prevention mechanism has a far-reaching impact on the stable operation and long-term development of enterprises. This study focuses on the analysis of the risk factors existing in the field of corporate finance and accounting, and reveals the key defects in the current risk management practice, including the lack of risk awareness, outdated management mode, backward control means and the imperfection of internal control system. These issues not only limit the flexibility of companies to respond to market changes, but also increase the risk of financial instability. To this end, the study puts forward a series of practical strategies to strengthen the awareness of risk prevention, promote the modernization of financial accounting supervision mode, optimize the internal control system, and establish an effective risk early warning mechanism.

Assessment of associated credit risk in the supply chain based on trade credit risk contagion.

Assessment of associated credit risk in the supply chain is a challenge in current credit risk management practices. This paper proposes a new approach for assessing associated credit risk in the supply chain based on graph theory and fuzzy preference theory. First, we classified the credit risk of firms in the supply chain into two types, namely firms' "own credit risk" and "credit risk contagion"; second, we designed a system of indicators for assessing the credit risks of firms in the supply chain and used fuzzy preference relations to obtain the fuzzy comparison judgment matrix of credit risk assessment indicators, on which basis we constructed the basic model for assessing the own credit risk of firms in the supply chain; third, we established a derivative model for assessing credit risk contagion. On this basis, we carried out a comprehensive assessment of the credit risk of firms in the supply chain by combining the two assessment results, revealing the contagion effect of associated credit risk in the supply chain based on trade credit risk contagion (TCRC). The case study shows that the credit risk assessment method proposed in this paper enables banks to accurately identify the credit risk status of firms in the supply chain, which helps curb the accumulation and outbreak of systemic financial risks.

Assessment of Physical Vulnerability and Uncertainties for Debris Flow Hazard: A Review concerning Climate Change

Global climate change has increased severe torrential hazards, particularly debris flows in mountainous regions. After floods and earthquakes, debris flows are the most devastating natural hazard in the world. The effects of debris flow on human life and built environments necessitate reconsidering current infrastructure planning, engineering, and risk management practices. Hence, the vulnerability of elements at risk is critical for effective risk reduction systems. Therefore, this article reviews the existing physical vulnerability approach of infrastructure, particularly building toward debris flow hazards in the last 20 years. Furthermore, uncertainties associated with the vulnerability assessment and their quantification techniques have also been discussed in detail. It was found that matrices, curves, and indicators have been extensively used for vulnerability assessment approaches in the last two decades. However, if aleatory and epistemic uncertainties are not quantified or conserved in the vulnerability assessment process, it makes the system inefficient and unreliable. Moreover, data requirements, strengths, and weaknesses of approaches presented herein are highlighted with case studies. Finally, a thorough discussion on future needs in the field of risk assessment methodologies is highlighted by considering uncertainties into account.

Understanding and Improving Current Risk Management Practices in Hospital Settings

A large number of patients in the healthcare industry have adverse events. Risk management has been implemented in hospitals to ensure patient safety. However, there is still a lot of room for improvement in current risk management practices. As a result, the purpose of this research is to better understand risk management practices in hospital settings and to make recommendations to improve them. While a questionnaire survey was created to understand current risk management applications, risk management literature was reviewed in order to comprehend and improve these risk management applications. The findings show that over 70% of practitioners and managers regard risk management as defining threats to patients, while only a minority agree on the ISO definition of risk. Furthermore, nearly half of practitioners and managers agree that risk assessment is more important than risk mitigation. To manage risks, participants mostly used Failure Mode and Effect Analysis (FMEA), brainstorming, and risk matrix techniques. Based on the results of the questionnaire and the literature review, risk management practices could be advanced by emphasizing safety culture, staff involvement, safety training, risk reporting systems, and risk management tools.

Understanding and Improving Current Risk Management Practices in Hospital Settings

Understanding and Improving Current Risk Management Practices in Hospital Settings

Robust supply chain design with suppliers as system integrators: an aerospace case study

ABSTRACT Original Equipment Manufacturers (OEMs) have sought new supply chain paradigms that allowed them to focus on core activities, i.e. overall product design and commercialisation. This pursuit led to partnerships with a new generation of tier-1 strategic suppliers acting as integrators. Integrators are not only responsible for system supply, but also for system design. However, critical integrators were not able to live up to their new roles, which led to costly delays in development and production. These failures highlight the ineptitude of current risk management practices employed by OEMs. To support OEMs in implementing a more differentiated and suitable approach to the use of integrators, this paper proposes a mathematical programming model for Supply Chain Design (SCD). Instead of looking at the introduction of integrators as a dichotomous decision, the model suggests the optimal number of integrators, i.e. systems, and individual part suppliers. We propose new measures for integration risk, which build upon current risk assessment practices. Robust optimisation is used to study the effect of uncertainty over baseline risk values. All approaches were tested using both randomly generated instances and real data from a large European OEM in the aerospace industry.

Assessment of the Relationship between Land Use and Flood Risk Based on a Coupled Hydrological–Hydraulic Model: A Case Study of Zhaojue River Basin in Southwestern China

As an ecological consequence of intensified anthropogenic activities, more frequent extreme rainfalls have resulted in significant increases in water levels and discharge in southwestern China. This phenomenon presents a significant challenge in flood risk and ecological management. Land use is one of the major factors significantly affecting the flooding process, and it is inextricably tied to the ecological risk of floods. Hence, flood risk estimates based on land use are essential for flood control and land use planning. In this study, a coupled hydrologic–hydraulic model was developed to analyze the relationship between flood ecological risk and land use in order to provide new insights into current flood risk management practices. Ten real flood events (of different magnitudes) in the Zhaojue river basin (650 km2) were chosen to evaluate the credibility and performance of the coupled model’s application. Promising results were obtained, with sufficient reliability for flood risk assessment purposes. The results of our flood risk analysis also indicated that the model effectively reproduced overland flow and competently accounted for flood evolution. This work is significant in the understanding of the mechanism of the flood process and its relationship with land use, and it can be used in decision support for the prevention and mitigation of flood disasters and for land use planning.

The Current Risk Management Practices and Knowledge in the Construction Industry

Construction is a critical sector of any economy in terms of value production, labor, and contributing to the gross national product. Managing risk is a relatively young area in Yemen’s construction sector, but it is gaining traction as building activity and competition rise. Construction firms mitigate risk by using a variety of risk management methods. Therefore, there is a need to assess these procedures in order to detect shortcomings. This research aims to establish the existing risk management strategies used in Yemeni building projects. Survey questionnaires were used to collect data. Respondents were drawn from Yemeni construction businesses. Risk management is not executed systematically, intentionally, or continuously, and most firms’ risk management procedures are reactive, semipermanent, informal, and unstructured, with no or few dedicated resources to address risks. This strategy is inconsistent with generally accepted risk management principles. Nonetheless, the findings suggest a general understanding of risk management and a willingness to learn from previous errors. The study of the findings suggests that risk identification approaches such as judgment and historical data are employed for risk analysis, and that the industry typically attempts to avoid or transfer risks in Yemeni building projects. The results shed light on the shortcomings of Yemen’s project management practices. To guarantee that construction projects obtain maximum value for money, project managers of big construction businesses in Yemen need a strong understanding of and training in globally accepted systematic risk management procedures. Finally, this study can help future stakeholders determine how to work together to manage risk.

Towards patient engagement in violence risk assessment and management: a patient perspective

IntroductionIn current clinical practices, there exist very few methods that allow patients to be truly engaged in violence risk assessment and management. This may hinder an individual’s experience of basic psychological needs; autonomy, competence, and relatedness.ObjectivesTo describe patients’ ideas on how they would develop current violence risk assessment and management practices.MethodsThe data collection took place as part of a larger project in one PICU unit specialized in the treatment of patients with psychosis and violent behavior in Finland. Individual interviews were conducted with patients (n=13) and were guided to focus on the development of violence risk assessment and management. The data were analyzed using inductive content analysis.ResultsPatients’ ideas focused on themes related to developing patient engagement and violence risk management methods. Developing patient engagement involved noticing patient’s individuality and collaboration between a patient and staff: for instance, by shared risk assessment and individualized risk management. Developing violence risk management methods included themes about providing alternative risk management methods and developing nursing staff’s work. Suggestions were, for example, related to providing ways how to calm down, having meaningful activities during treatment days, and ensuring the realization of patient’s rights.ConclusionsPatients having treatment in the PICU unit have clear and concrete ideas on how violence risk assessment and management methods could be developed further. These findings indicate, that patients need to be given a more active role in their care and thus ensure that basic psychological needs are promoted. Funding by Academy of Finland (316206 ) and TYKS foundation.DisclosureNo significant relationships.

Risk Management Failures: What Are They and When Do They Happen?

The losses experienced by financial institutions during the Global Financial Crisis convinced many observers that current corporate risk management practices are deeply flawed, and that such flaws contributed greatly to the crisis. The author challenges this view by calling for and demonstrating the need to distinguish between flawed assessments by risk managers and corporate risk‐taking decisions that, although resulting in losses, were reasonable at the time they were made.In making this distinction, the author also identifies a number of different ways that risk management can fail. In addition to choosing the wrong risk metrics and misidentifying or mismeasuring risks, risk managers can fail to communicate their risk assessments and provide effective guidance to top management and boards. And once top management has used that information to help determine the firm's risk appetite and strategy, the risk management function can also fail to monitor risks appropriately and maintain the firm's targeted risk positions.But if risk management has been mistakenly identified as the culprit in many cases, current risk management practice can be improved by taking into account the lessons from financial crises past and present. In particular, such crises have occurred with enough frequency that crisis conditions can be modeled, at least to some extent. And when models reach their limits of usefulness, companies should consider using scenario planning that aims to reveal the implications of crises for their financial health and survival. Instead of relying on past data, scenario planning uses forward‐looking economic analysis to evaluate the expected impact of sudden illiquidity and the associated feedback effects that are common in financial crises.

Evaluation of associated credit risk in supply chain based on trade credit risk contagion

The evaluation of associated credit risk in supply chain is a difficult problem in the current credit risk management practice. Based on graph theory and fuzzy preference theory, we put forward a new evaluation method of associated credit risk in the supply chain. First, the credit risk of enterprises in supply chain are divided into “self-own credit risk” and “credit risk contagion”. Second, the indicator system of self-own credit risk evaluation of enterprises in the supply chain is designed, and the fuzzy comparative judgment matrix of self-own credit risk evaluation indicator is obtained by using fuzzy preference relation, and the evaluation basic model of “self-own credit risk” is established. On the basis, the evaluation derivative model of “credit risk contagion” is established. Furthermore, by integrating the two kinds of evaluation results, the credit risk of enterprises in supply chain is evaluated comprehensively, and the contagion effect of associated credit risk in supply chain based on trade credit risk contagion (TCRC) is revealed.