Development Of Risk Management Strategies Research Articles

Quality Risk Assessment of Prefabricated Steel Structural Components during Production Using Fuzzy Bayesian Networks

This study aims to address quality issues in the production of prefabricated steel structural components for buildings by investigating challenges in quality risk assessment. It identifies key factors contributing to quality problems and establishes an evaluation index system. Traditional methods encounter limitations in handling uncertainty and conducting quantitative analysis. Therefore, the fuzzy Bayesian network (FBN) theory is utilized to perform a probabilistic analysis of quality risks during the production phase. This research achieves a more accurate and dynamic risk assessment by integrating the strengths of fuzzy logic and Bayesian networks (BNs) and by utilizing expert knowledge, the similarity aggregation method (SAM), and the noisy-OR gate model. The study reveals that factors such as the “low professional level of designers”, “poor production refinement”, and “poor storage conditions for finished products” have a significant impact on quality risks. This study offers a scientific risk assessment tool designed to address the quality control challenges commonly experienced in the manufacturing of steel structural components. Identifying the critical risk factors that influence quality empowers actual production enterprises to develop risk management strategies and improvement measures in a more focused manner, thereby facilitating more effective resource allocation and risk prevention and control. Consequently, this approach has a significant impact on enhancing the overall production level and quality within the industry.

Photochemically induced aging of polystyrene nanoplastics and its impact on norfloxacin adsorption behavior

The co-occurrence of nanoplastics (NPs) and antibiotics in the environment is a growing concern for ecological safety. As NPs age in natural environments, their surface properties and morphology may change, potentially affecting their interactions with co-contaminants such as antibiotics. It is crucial to understand the effect of aging on NPs adsorption of antibiotics, but detailed studies on this topic are still scarce. The study utilized the photo-Fenton-like reaction to hasten the aging of polystyrene nanoplastics (PS-NPs). The impact of aging on the adsorption behavior of norfloxacin (NOR) was then systematically examined. The results showed a time-dependent rise in surface oxygen content and functional groups in aged PS-NPs. These modifications led to noticeable physical changes, including increased surface roughness, decreased particle size, and improved specific surface area. The physicochemical changes significantly increased the adsorption capacity of aged PS-NPs for norfloxacin. Aged PS-NPs showed 5.03 times higher adsorption compared to virgin PS-NPs. The adsorption mechanism analysis revealed that in addition to the electrostatic interactions, van der Waals force, hydrogen bonding, π-π* interactions and hydrophobic interactions observed with virgin PS-NPs, aged PS-NPs played a significant role in polar interactions and pore-filling mechanisms. The study highlights the potential for aging to worsen antibiotic risk in contaminated environments. This study not only enhances the comprehension of the environmental behavior of aged NPs but also provides a valuable basis for developing risk management strategies for contaminated areas.

Trade Policies and Livestock Exports

Purpose: The general objective of the study was to examine the trade policies and livestock exports.
 Methodology: The study adopted a desktop research methodology. Desk research refers to secondary data or that which can be collected without fieldwork. Desk research is basically involved in collecting data from existing resources hence it is often considered a low cost technique as compared to field research, as the main cost is involved in executive’s time, telephone charges and directories. Thus, the study relied on already published studies, reports and statistics. This secondary data was easily accessed through the online journals and library.
 Findings: The findings reveal that there exists a contextual and methodological gap relating to trade policies and livestock exports. Key findings emphasize the significance of trade agreements and regional integration initiatives in boosting livestock exports, with participating countries benefiting from increased trade volumes and streamlined regulatory standards. Additionally, the study highlights the impact of non-tariff measures, particularly stringent sanitary and phytosanitary regulations, on market access, underscoring the need for capacity-building and regulatory harmonization efforts. Moreover, trade disputes and policy uncertainties are identified as disruptors, necessitating transparent policy frameworks and risk management strategies to mitigate market volatility. Overall, the study underscores the importance of coordinated efforts to address trade barriers and enhance market access, paving the way for sustainable development and economic growth in the livestock sector.
 Unique Contribution to Theory, Practice and Policy: Theory of Comparative Advantage, Political Economy theory and Institutional theory may be used to anchor future studies on trade policies and livestock exports. One key recommendation was to diversify export markets for livestock products, aiming to reduce dependence on specific markets and mitigate trade disruptions. This strategy involved proactive market research, targeted marketing campaigns, and strategic alliances with trading partners to access new markets. Another recommendation was to invest in quality assurance systems and standards compliance to meet sanitary and phytosanitary requirements, crucial for enhancing the credibility of livestock exports. Promoting sustainable production practices was also advised, aligning livestock production with sustainability goals to enhance market competitiveness. Improving trade facilitation measures, strengthening policy coordination and stakeholder engagement, and developing risk management strategies were highlighted to safeguard the stability and competitiveness of livestock export sectors in a volatile global economy.

The Effects of Natural Disasters on Art Through the Eyes of Art Students

Natural disasters are events with devastating effects that cause significant damage to people, the environment or economic systems as a result of natural events. These events are phenomena that are not usually under the control of humans, and take place in the natural balance of nature. These events not only affect human life, the environment and society, but also have both negative and positive effects on art, artists and works of art. However, these effects are not always limited to material damage or changes. Disasters can cause the destruction of works of art, which are our cultural heritage, as well as nourish art. Art has such a wide spectrum that it can reflect all kinds of experiences people have. This research is about how art students see the positive and negative effects of natural disasters on art. With the answers given to the semi-structured questions, the opinions of the university students receiving art education about the effects of natural disasters on art were determined and interpreted. As a result of these comments, it was aimed to determine the awareness level of the youth as natural disasters are expected to increase gradually due to factors such as climate change, depletion of natural resources, and increase in human population. Therefore, it is necessary to be prepared for natural disasters, develop risk management strategies, mitigate the negative effects of disasters, and most importantly raise awareness among young people.

Asymmetry risk and herding behavior: a quantile regression study of the Egyptian mutual funds

PurposeThis paper deeply investigates the herd behavior of the Egyptian mutual funds under changing and different conditions of the market pre- and post-events and compares the impact of asymmetric risk conditions on the herding behavior of the Egyptian mutual funds in both up and down markets.Design/methodology/approachWe test for the existence of herding for the whole period from 2003 to 2022, as well as for the pre-and post-different Egyptian uprising periods. We employ two well-known models, namely the cross-sectional standard deviation (CSSD) and cross-sectional absolute deviation (CSAD) models. Additionally, we use the quantile regression approach.FindingsWe find that the behavior of mutual funds does not change following the different political and social events. For the whole period, we find evidence of herding behavior using only the model of CSAD in down-market conditions. We generalize our finding to be evidence of the existence herding behavior in different quantiles, under only the down market in specific points’ pre, post or both given events throughout the whole series. Conversely, during the upper market, we show a full absence of herding behavior considering all different quantiles. When the market is down, managers are afraid of the condition of uncertainty, neglecting their own private information, avoid acting independently and consequently, following other mutual funds. When the market is up, managers become rational and act fully independent.Research limitations/implicationsFuture research should delve deeper into the drivers of herding behavior, assess its longer-term effects, develop risk management strategies and consider regulatory measures to mitigate the potential negative impact on mutual fund performance and investor outcomes.Practical implicationsThe study reveals that the behavior of mutual funds remains consistent despite various political and social events, suggesting a degree of resilience in their investment strategies. The research uncovers evidence of herding behavior in both high and low quantiles, but exclusively in down markets. In such conditions of market decline, fund managers appear to forsake their private information, exhibiting a tendency to follow the crowd rather than acting independently.Social implicationsThe study reveals that the behavior of mutual funds remains consistent despite various political and social events, suggesting a degree of resilience in their investment strategies. The research uncovers evidence of herding behavior in both high and low quantiles, but exclusively in down markets. In such conditions of market decline, fund managers appear to forsake their private information, exhibiting a tendency to follow the crowd rather than acting independently. Future research should delve deeper into the drivers of herding behavior, assess its longer-term effects, develop risk management strategies and consider regulatory measures to mitigate the potential negative impact on mutual fund performance and investor outcomes.Originality/valueThe paper investigates the herd behavior of the Egyptian mutual funds under asymmetric risk conditions, the study follows the spectrum of the herding behavior analysis and Egyptian mutual funds, extending the research with imperial analysis of market conditions pre- and post-events including currency floating, COVID-19 and political elections. The study gives substantial recommendations for policymakers and investors in emerging markets mutual funds.

Risk Management of Coastal Ring Roads to Rate Abrasion on The Lhokseumawe City

This paper presents an approach for developing risk management strategies for ring roads in coastal abrasion Lhokseumawe ring roads. Currently, management strategies in these regions are designed to rubble mount breakwaters on coastal performance under traffic loads. However, recent large-scale waves and their associated damage to coastal areas have demonstrated the need to consider the height when making coastal management decisions. This paper aims to develop a risk management strategy that includes handling/controlling accelerated beach abrasion which damages coastal infrastructure buildings and the application of the ALARP scheme as an acceptable risk control limit for decision makers in risk management so as to minimize the potential impact at any given time... The methods consider the rate of coastal abrasion associated with hazards and the economic, social, and environmental consequences of collapse under high tide. The data were collected from the satellite Landsat range of the 1995-2021 year. The analysis adopted Digital Shoreline Analysis System with Enhanced Thematic Mapper (ETM). The risk management strategies are achieved by formulating and solving a multi-objective optimization problem. This problem's findings include abrasion -2.11 m/year and accretion maximum at 111.34 m or 4.45%. The height of the wave was found approximately range 2.33-10.25 sec, and the period average 4.57 m/year. In addition, the periods of the wave were in the range of 2.33-10.25 sec, and the average period was 4.57 sec. The topography characteristics were found between 0 and 8.60 meters, with an average level, is 4.30 meters. The percentage of the slope of the shoreline was found to be 2.90 to 4.47%, and the average beach slope was 3.76%. The risk management achieved in ring roads was relevant to the application scheme ALARP zone to solve the problem from very high to hight risk. The rubble mound breakwaters along the coast were believed to minimize abrasion and mitigate disasters to protect infrastructure ring roads for a long time.

АНАЛІЗ НАУКОВО-ПРАКТИЧНИХ ПІДХОДІВ ПОПЕРЕДЖЕННЯ НЕПЛАТОСПРОМОЖНОСТІ БАНКІВ

The aim of the study was to investigate the mechanisms of bank insolvency and explore the possibilities of applying technological innovations for risk management and ensuring financial stability of banks. The relevance of this research lies in its focus on understanding the causes and mechanisms of bank insolvency, as well as identifying possible ways to prevent this phenomenon and maintain financial stability in the banking sector. Given the dynamics of the economic environment, changes in legislation, and technological innovations, understanding risks and mechanisms of their management becomes extremely important for ensuring the stability of the banking system and protecting the interests of financial market participants. Such research can serve as a basis for developing risk management strategies in the banking sector and contribute to strengthening trust in banks and the financial system as a whole. The study employed the following research methods: specification – the research refined the terminology and definitions of bank insolvency to understand which criteria determine this status; systematization – various aspects of bank insolvency were structured, such as causes and indicators; literature review with analysis of the material found; theoretical modeling – development of theoretical models of causes and consequences of bank insolvency; classification. The obtained results of the research provide a comprehensive understanding of the causes of bank insolvency, determine the parameters of this phenomenon, and consider possible ways of regulation and risk management. The importance of using technological innovations, such as machine learning and data analytics, to improve the efficiency of risk management and ensure financial stability of banks is also emphasized. This article makes an important contribution to the study of financial stability of banks through its systematic analysis and scientific approach to the issue of insolvency. It examines various aspects of this phenomenon, from conceptual foundations to practical applications, focusing on economic, legal, and technological aspects. The article introduces innovative approaches to risk analysis in the banking sector, using advanced research methods.

Forecasting cryptocurrencies volatility using statistical and machine learning methods: A comparative study

Forecasting cryptocurrency volatility can help investors make better-informed investment decisions in order to minimize risks and maximize potential profits. Accurate forecasting of cryptocurrency price fluctuations is crucial for effective portfolio management and contributes to the stability of the financial system by identifying potential threats and developing risk management strategies. The objective of this paper is to provide a comprehensive study of statistical and machine learning methods for predicting daily and weekly volatility of the following four cryptocurrencies: Bitcoin, Ethereum, Litecoin, and Monero. Several models and forecasting methods are compared in terms of their forecasting accuracy, i.e., HAR (heterogeneous autoregressive), ARFIMA (autoregressive fractionally integrated moving average), GARCH (generalized autoregressive conditional heteroscedasticity), LASSO (least absolute shrinkage and selection operator), RR (ridge regression), SVR (support vector regression), MLP (multilayer perceptron), FNM (fuzzy neighbourhood model), RF (random forest), and LSTM (long short-term memory). The realized variance calculated from intraday returns is used as the input variable for the models. In order to assess the predictive power of the models considered, the model confidence set (MCS) procedure is applied. Our experimental results demonstrate that there is no single best method for forecasting volatility of each cryptocurrency, and different models may perform better depending on the specific cryptocurrency, choice of the error metric and forecast horizon. For daily forecasts, the method that is always found in a set of best models is linear SVR, while for weekly forecasts, there are two such methods, namely FNM and RR. Furthermore, we show that simple linear models such as HAR and ridge regression, perform not worse than more complex models like LSTM and RF. The research provides a useful reference point for the development of more sophisticated models.

The Impact of Macroeconomic Factors on Bank Credit Risk

Credit risk has become one of the main risks faced by banks under the background of increasing loan demand. Meanwhile, bank credit risk may be affected by a number of factors, including the expansion rate of Gross Domestic Product (GDP), changes in interest rate, unemployment rate and even more. These macroeconomic factors are crucial in determining how credit risk for banks is shaped. This paper concludes the different impacts of different macroeconomic factors discussed in several papers on the risks of bank credit, and illustrates how changes in GDP growth rate and rate of interest affect credit risks. Through comprehensive literature review and empirical research, this paper finds that macro factors, including the expansion rate of GDP and the rate of interest, have considerable impacts on banks' credit risk. Bank credit risk will decrease as GDP growth rate increases; however the risk of bank credit will increase as interest rates rise. At the end, the paper provides several suggestions for the development of risk management strategies, including the monitoring of macroeconomic factors and the adjustment of credit policies under different economic situations. The research results are intended to help researchers in related fields understand current research findings and patterns of development in the research field, to give a theoretical foundation and backing for their investigations, and to offer important guiding significance for banks and relevant regulators to formulate risk management strategies.

Планування експортної діяльності в умовах виходу на нові ринки

Today, the concept of raising business efficiency to a higher level is a critically important direction of development of the modern Ukrainian economy. Building a sustainable and competitive economy contributes to the creation of healthy competition between various market participants, which has a significant impact on the relationship between producers and consumers. This forces manufacturers to focus their attention on the development and modernization of their products. In the long term, it plays a key role for the country as a whole. Companies all over the world develop a business plan taking into account all possible risks and force majeure circumstances. This has long since become the so-called trend of business transformation in Ukraine to determine and use their full potential. Since there is a war going on in Ukraine now, businesses have to reckon with and struggle with the new realities that it puts before us in order to develop and work to strengthen Ukraine, for the sake of defeating the common enemy. Strong government support and assistance is also critical to successful business development in wartime. The authorities should create favorable conditions for enterprises, including a simplified bureaucratic process, support in export initiatives, as well as ensuring security and stability in the regions of our country. It is important to emphasize that in wartime Ukrainian companies must be ready for a wide variety of challenges and crisis situations. They must actively develop risk management strategies to ensure the sustainability of their business and protect the interests of consumers. In addition, it is important to focus on the development and application of new technologies and innovations that can contribute to increasing the productivity and competitiveness of enterprises and business planning as a whole. This includes the use of Internet resources and various software, artificial intelligence, data analysis and other modern tools to optimize production and business management or create a business plan. That is why business planning is now a very important aspect in such a difficult period, but at the same time it is an opportunity when Ukrainian companies can become international and enter new markets.

Opportunities and risk management of peat restoration in Indonesia: lessons learned from peat restoration actors

Significant efforts have been invested to restore degraded peatlands in Indonesia considering the high mitigation potential as an effective natural climate solution. However, peat restoration in Indonesia faces challenges such as suboptimal planning and risk management. In this study, we assessed the national potential peat restoration area using spatial analysis and identified the associated risks based on lessons learned from past restoration efforts. We estimated the extent of potential restoration areas by analyzing canal networks, burnt areas, and critical land maps at the national scale. We conducted focus group discussions (FGD), in‐depth interviews, followed by a national workshop with relevant stakeholders to assess the potential risks and develop risk management strategies for peat restoration. Our analysis estimated 6 Mha, or 45% of Indonesia's total peatland area, as potentially restorable areas for rewetting and/or revegetation efforts. Of this potential area, 50% falls under concession holder management. The identified risks consisted of technical (39%), management (38%), social (17%), and economic (6%) factors, with 15 and 22% classified as extreme and high risk, respectively. Policymakers can use these findings to strengthen regulations and improve the chances of successful restoration implementation, supporting Indonesia's emissions reduction target and providing economic benefits for restoration actors.

In the midst of the COVID-19 pandemic: Perceived risks, management strategies and emerging opportunities for small and medium agri-food enterprises in a developing country

The Covid-19 pandemic has posed unprecedented challenges to small- and medium-sized agrifood enterprises (SMAEs) in developing countries. However, research investigating what risks Covid-19 posed to these firms, how they responded, and what business opportunities emerged to SMAEs from the pandemic remains scanty. Drawing on a sample of 166 specialist SMAEs in Egypt, this study addressed these entwined questions by using multiple indicators and multiple causes (MIMIC) and mediation analysis. Our results point out that the Covid-19 pandemic exposed Egyptian SMAEs to complex and multidimensional risks, and caused profound effects on both upstream and downstream stages of their supply chains. In general, Egyptian SMAEs adopted a ‘wait-and-see’ approach to cope with such Covid-19 risks and impacts, which was attributed to their lack of sufficient financial resources to develop risk management strategies and formalize structures to deal with unexpected events. Interestingly, the results showed that several business opportunities emerged from pandemic; but SMAEs' resource disadvantages constrained their capacity to seize and exploit these opportunities. Moreover, we found that mitigation strategies adopted by SMAEs present a mediating factor between perceived Covid-19 risks and perceived business opportunities. Overall, our findings call for a paradigm shift in relation to enterprise risk management in developing countries' SMAEs toward more holistic frameworks to enhance their preparedness to future shocks, make mature operational and strategic management decisions, and exploit strategic opportunities.

ІННОВАЦІЙНИЙ МАРКЕТИНГ ЯК УМОВА РОЗВИТКУ ПІДПРИЄМСТВ ФАРМАЦЕВТИЧНОЇ ІНДУСТРІЇ В КОНТЕКСТІ ЦИФРОВІЗАЦІЇ

Developing innovative potential in pharmaceuticals requires a comprehensive approach that includes investment in education and research, development of risk management strategies, and effective interaction with regulatory authorities. The article reveals the key principles on which pharmaceutical marketing is based and which take into account the specifics of the industry. These principles help pharmaceutical companies develop effective marketing strategies that contribute to their growth and success in a competitive environment. It has been established that the innovative potential of the pharmaceutical industry depends on the ability of individual enterprises to generate new ideas and solutions. The criteria of innovativeness for enterprises of the pharmaceutical industry have been revealed. These criteria help to assess the extent to which the enterprise is innovatively active and ready to introduce innovations, which is critically important for maintaining competitiveness in the dynamic pharmaceutical market. It has been proven that the development of a marketing strategy involves the establishment of a long-term perspective, which covers the planning of innovations and actions in the market, which will continue even after the innovation has been introduced and started to be used. The key tasks that must be performed with clear quantitative and qualitative metrics for the effective implementation of the company's digitalization strategy have been identified. Concepts of digitization and automation are bringing significant changes to traditional pharmaceutical production methods, allowing companies to accelerate the process of releasing products to the market and more efficiently deliver medicines to consumers.

Spatio-Temporal Evolution of Rainfall over the Period 1981–2020 and Management of Surface Water Resources in the Nakanbe–Wayen Watershed in Burkina Faso

Spatio-temporal analysis of rainfall trends in a watershed is an effective tool for sustainable water resources management, as it allows for an understanding of the impacts of these changes at the watershed scale. The objective of the present study is to analyze the impacts of climate change on the availability of surface water resources in the Nakanbe–Wayen watershed over the period from 1981 to 2020. The analysis was conducted on in situ rainfall data collected from 14 meteorological stations distributed throughout the watershed and completed with CHIRPS data. Ten precipitation indices, recommended by the ETCCDI (Expert Team on Climate Change Detection and Indices), were calculated using the RClimDex package. The results show changes in the distribution of annual precipitation and an increasing trend in annual precipitation. At the same time, a trend towards an increase in the occurrence and intensity of extreme events was also observed over the last 4 decades. In light of these analyses, it should be emphasized that the increase in precipitation observed in the Nakanbe–Wayen watershed is induced by the increase in the occurrence and intensity of events, as a trend towards an increase in persistent drought periods (CDD) is observed. This indicates that the watershed is suffering from water scarcity. Water stress and water-related hazards have a major impact on communities and ecosystems. In these conditions of vulnerability, the development of risk-management strategies related to water resources is necessary, especially at the local scale. This should be formulated in light of observed and projected climate extremes in order to propose an appropriate and anticipated management strategy for climate risks related to water resources at the watershed scale.

Achieving risk resilience in an environment of mistrust: supply chain piracy of physical goods

PurposeThis paper investigates how companies become resilient to supply chain (SC) piracy through using transactional and relational governance mechanisms to develop strategies effective in environments characterized by weak regulative institutions and mistrust.Design/methodology/approachThis study developed case studies of nine large manufacturers with operations in Brazil.FindingsThe companies employed transactional and relational governance mechanisms to learn from past incidents, anticipate, and respond to the threat of SC piracy, becoming more resilient over time. Transactional governance mechanisms reduced risk triggers through technology, while relational governance mechanisms enhanced trust between SC and non-SC members, allowing the members to build social capital.Practical implicationsThe authors provide practical guidance for managers and policymakers in developing risk management strategies based on technology and collaboration to reduce SC piracy in environments characterized by mistrust.Social implicationsSC piracy is a serious problem for global operations and SCs in many low-cost manufacturing locations. Besides the cost and service level consequences, the authors also highlight worker safety consequences, including the potential for kidnapping, psychological trauma, injuries, and death.Originality/valueThis study focuses on the little-researched topic of SC piracy. The authors examine the negative effects of a weak institutional environment, while most prior research focuses on the positive effects of a strong institutional environment. The authors position transactional and relational governance mechanisms as essential elements of SC risk resilience.

ЕКЗОГЕННІ ДЕТЕРМІНАНТИ ЕКОНОМІЧНОЇ БЕЗПЕКИ КРАЇНИ В УМОВАХ ГЛОБАЛЬНОЇ ВОЛАТИЛЬНОСТІ

The article focuses on examining specific factors that influence the economic security of countries in the face of increasing global volatility. It explores the essence of exogenous factors, such as international trade, foreign investments, and international financial markets, and their impact on the state of economic security. The analysis considers the effects of current geopolitical changes, macroeconomic shocks, and crisis situations on a country’s economic stability. The importance of developing risk management strategies and diversifying risks to maintain an appropriate level of economic security in an unpredictable global environment is emphasized. The article also highlights the significance of developing adaptation and reserve mechanisms, as well as implementing prudent risk management practices, to ensure the stability of a country’s economic system. Based on the identified determinants, several proposals are put forward regarding the need for regulatory political and economic measures that can enhance a country’s economic security in modern conditions. The constant growth of interdependence in international markets, capital mobility, and the expansion of foreign trade volumes present new challenges and threats to the economic stability of countries. Exogenous determinants, which are external factors beyond the direct control of the state, have a significant impact on economic security. The current environment of global volatility, including financial crises, trade conflicts, unpredictable changes in global commodity markets, and major shifts in the geopolitical sphere, greatly affect economic security. These factors can lead to economic disruptions, reduced production, increased unemployment and inflation, disruptions in financial stability, and generate additional threats to socio-political stability. Therefore, understanding exogenous determinants and their influence on economic security is crucial for developing effective risk management strategies and ensuring the stability of a country’s economy.

Risk management in business: strategies and techniques for preventing losses and ensuring sustainable development

This scientific article provides an analysis of various types of risks that organizations encounter in the business fi eld and explores strategies and methods for managing these risks. The article thoroughly examines fi nancial, operational, reputational, and legal risks, with a focus on detailed descriptions of each type and their associated consequences. The author analyzes various methods for risk analysis and management, such as developing risk management strategies, establishing monitoring and control programs, utilizing insurance and diversification, managing human resources, implementing technology, and other approaches. Each method is studied with the inclusion of practical examples of successful implementation and a detailed discussion of their advantages and limitations. The research also includes an analysis of statistical data related to each type of risk, aiming to provide an objective understanding of the likelihood and impact of each risk type on business processes. Based on the analysis conducted, conclusions are drawn regarding the necessity of a comprehensive approach to risk management in business and the signifi cance of each risk type in ensuring the success and sustainability of an organization. The article off ers valuable scientifi c foundations and recommendations for managerial practice, emphasizing the importance of effective risk management and the need to take appropriate measures for risk minimization and control within the context of the modern business environment. As a result of the research presented in the article, the necessity of a comprehensive approach to risk management in the business field is emphasized. The author has discovered that each type of risk — financial, operational, reputational, and legal — has its unique characteristics and potential implications for an organization.

Assessment of the Urban Extreme Precipitation by Satellite Estimates over Mainland China

The accurate estimation of urban extreme precipitation is essential for urban design and risk management, which is hard for developing countries, due to the fast urbanization and sparse rain gauges. Satellite precipitation products (SPPs) have emerged as a promising solution. Not only near real-time SPPs can provide critical information for decision making, but post-processed SPPs can also offer essential information for climate change adaption, risk management strategy development, and related fields. However, their ability in urban extreme precipitation estimation has not been examined in detail. This study presents a comprehensive evaluation of four recent SPPs that are post-processed, including IMERG, GSMaP_Gauge, MSWEP, and CMFD, for their ability to capture urban extreme precipitation in mainland China at the national, city, and inner-city scales. The performance of the four SPPs was assessed using daily observations from the 821 urban gauges from 2001 to 2018. The assessment includes: (1) the extreme precipitation estimates from the four SPPs in the total urbanized areas of mainland China were evaluated using correlation coefficients (CC), absolute deviation (AD), relative deviation (RB), and five extreme precipitation indices; (2) The extreme precipitation estimates over 21 Chinese major cities were assessed with the two most important extreme indices, namely the 99th percentile of daily precipitation on wet days (R99) and total precipitation when daily precipitation exceeding R99 (R99TOT); and (3) Bivariate Moran’s I (BMI) was adopted to assess the inner-city spatial correlation of R99 and R99TOT between SPPs and gauge observations in four major cities with most gauges. The results indicate that MSWEP has the highest CC of 0.79 and the lowest AD of 1.61 mm at the national scale. However, it tends to underestimate urban precipitation, with an RB of −8.5%. GSMaP_Gauge and IMERG performed better in estimating extreme values, with close extreme indices with gauge observations. According to the 21 major cities, GSMaP_Gauge also shows high accuracy in estimating R99 and R99TOT values, with the best RB and AD in these cities, while CMFD and MSWEP exhibit the highest CC values for R99 and R99TOT, respectively, indicating a strong correlation between their estimates and those obtained from gauge observations. At the inner-city scale, MSWEP shows advantages in monitoring the spatial distribution of urban extreme precipitation in most of cities. The study firstly provided the multiscale assessment of urban extreme precipitation by SPPs over mainland China, which is useful for their applications.

Message matters: Correcting organisational fake news

Misinformation and fake news represent significant strategic and financial risks to organisations. To dispute or manage fake news, organisations are often compelled to respond. However, the most effective responses to organisational fake news are not well understood. Using an experimental design (N = 501), this research explored two common approaches organisations may employ when responding to fake news and examined their effects on consumer perceptions. Specifically, this research experimentally varied who delivers a correction to organisational fake news (i.e., correction source; CEO or Celebrity ambassador) and how the message is delivered (i.e., correction message; Factual or Narrative). The results indicated that consumer perceptions were not substantially altered when a correction was delivered by either the CEO or a Celebrity ambassador. However, corrections delivered using a narrative style were significantly more effective at enhancing consumer perceptions compared to factual corrections. Analyses indicated that the beneficial effects of a narrative corrective message on consumer perceptions was mediated by consumer's enhanced impressions of the source and message credibility. These findings suggest that organisations should develop risk management strategies that detail how corrections to fake news should be delivered to consumers, and particular attention should be devoted to the framing of the message.

Why is the Bond Market Useful? Evidence from Risk Management

The bond market is crucial for the financial market, because as long as a public company is faced with the birth of the bond market through the decentralization of shares at the same time. And risk management strategies are equally important for a company. A business can be exposed to significant risks causing losses within the business during the course of operations. It is then necessary for the managers of the company to develop risk management strategies to reduce the risk of the company. The topic of this paper is Why is the bond market so useful? What contributions can it make to risk management strategies? Through this analysis, we know that understanding the bond market can help managers to develop risk management strategies. In addition, the significance of this research paper is also shown in theprovide implications for investors.