Implementation Of Risk Management Process Research Articles

Risk Management and Performance of Microfinance Industry

Purpose: The purpose of this study was to understand the significance of the relationship between risk management and sustainability of the microfinance industry. Furthermore, how does effective risk management could be used towards sustainable growth in microfinance. The findings of the study revealed that there is a positive relationship between risk management and sustainability of microfinance industry.
 Design /Methodology/Approach: The study was conducted in three administrative districts in Sri Lanka, using 376 MF female borrowers, who represent from different businesses. The cluster sampling technique was selected for the survey. Primary data was collected using personally administered questionnaires and the sample frame was selected from two leading MFIs that consented to participate in the research. The conceptual frame work was developed based on the two variables risk management and sustainability of the microfinance industry. Simple liner regression analysis was taken to determine the significance of the relationship. 
 Findings: The study was able to find a positive relationship between effective risk management and industry sustainability. It was observed that that effective implementation of risk management process in the industry would certainly essential for long-term sustainability of microfinance institutions (MFIs). The findings showed that there were several strategic management measures that could have been put in place by key stakeholders in the industry.
 Research, Practical & Social Implications: The study found that although there has been potential growth in the industry vulnerability is very highly compared to other industries. Instead of the growth potential, MF is fighting for survival and sustainability. Mission drift, commercialization, and a lack of understanding among stakeholders, negatively impact the sustainability of the microfinance industry. It is significant to keep pace with the inculcating risk management culture among key stakeholders in the industry. Microfinance Institutes, Female Borrowers, Regulators. If not combined with the development of social capital, the financial programs have the possibility of creating a divided, dependent and unsustainable community.
 Implications/Originality/Value: To the best of the authors’ knowledge, no study has been conducted on uncovering and exploring the significance of the relationship of two key variables in microfinance industry. Most of the previous studies discussed these factors in isolation not as a collective wisdom to find a solution. This article is an industry contribution for inculcate risk management culture among stakeholders in microfinance and enhance different approaches to promote financial literacy levels of female borrowers who are key to sustainability in the industry.

Implementation and evaluation of a model-based risk management process and service enhancement for home-based community care services amidst COVID-19 pandemic in Hong Kong: A mixed-method approach.

The COVID-19 pandemic has greatly challenged all public social services, particularly home-based community care services (HBCCS). Aberdeen Kai-fong Association (AKA) is a non-government organization (NGO) in Hong Kong that systematically manages the challenges to HBCCS. This paper presents a practical example of the implementation and evaluation of the risk management process for HBCCS. Mixed-method design was used to evaluate the implementation of the risk management process in encountering the challenges from existing and potential problems to maintain and enhance HBCCS in four major areas amidst the pandemic. A cross-sectional questionnaire survey and three qualitative focus group interviews were conducted by AKA from 30 December 2021 to 12 March 2022 to collect staff feedback on the institutional risk management process in four areas. 109 HBCCS staff members (69% aged 40 years or above; 80% female) completed the questionnaire survey. For resource arrangement and staff training, over 90% of the participants agreed (including strongly agreed) that they had sufficient and reliable personal protective equipment and clear infection control guideline and effective training. Over 80% agreed they had safe working space and effective manpower allocation. However, only 75% agreed they had received emotional support from the organization. Over 90% agreed that the basic services were maintained for service continuation and enhancement, the service users and their families trusted the organization, and the provided services were adjusted according to users' needs. 88% agreed that the organization had obtained support from the neighborhood. For communication among stakeholders, over 80% agreed they had open discussions with the senior management team, and the senior management team was willing to listen. Twenty-six staff members joined the three focus group interviews. The qualitative findings corroborated the quantitative results. Staff appreciated the organisation's work to enhance staff safety and continue advancing services during this difficult period. Regular in-service training, updated information and guidelines to staff, and proactive phone calls to service users, especially the elderly, were suggested to enhance the quality of services. The paper could help NGOs and others encountering management challenges in community social services in diverse settings amidst the pandemic and beyond.

A Multilayer Perception for Estimating the Overall Risk of Residential Projects in the Conceptual Stage

The ability to foresee hazards early plays a critical role in estimating the entire cost of a project. Although several studies have established models to predict the total cost of a project at a conceptual stage, there remains a research vacuum in measuring the overall risk at this stage. Using artificial neural networks, this research provides a strategy for estimating the overall risk in residential projects at the conceptual stage. There are eight important components in the suggested paradigm. The model was created using data from 149 projects. In the first hidden layer in the model, there are five neurons, and in the second hidden layer, there are three neurons. The suggested model’s mean absolute error rate was 11.7%. In the conceptual stage of residential projects, the number of floors, the type of interior finishes, and the implementation of risk management processes are the significant aspects that influence the overall risk. The proposed model assists project managers in precisely estimating the project’s overall risk, which leads to a more accurate estimation of the contract’s entire worth at the conceptual stage, allowing the stakeholders to decide whether or not to proceed with the project.

Emphasizing on the Neglected Parts of Risk Management Process in Occupational Health and Safety Management, Using the European Statistics for Accidents at Work Codification, Communication – Human Information Processing Model and Management Standards

Occupational Health and Safety (OHS) management has been one of the first areas of implementation of Risk Management process. However, due to the extended application of OHS management in all organization and the requirements for compliance with relevant legislation, focus for standardization was set mostly on the technical aspects (risk identification and risk evaluation), whereas other aspects (risk treatment, risk communication, monitoring and reporting) were left to be treated ad hoc, intuitively or following regulated requirements. According to the Risk Management process, as described by the standard ISO 31000:2018, these aspects are equally important for effective management of risks. This paper aims to present the whole Risk Management process for OHS risks, emphasizing on these neglected aspects and presenting documented tools to effectively incorporate them in the structured application of OHS management. The importance of defining the scope, context and criteria of OHS management, as well as the selection of certain risk treatment strategy for each risk is emphasized. Use of ESAW (European Statistics for Accidents at Work) taxonomy for risk identification is proposed, an evaluation scheme for measures is presented, the C-HIP model is proposed to be integrated for communication, recording registry information is discussed and ISO 45001:2018 PDCA structure is proposed for continuous monitoring and review.

A critical success factors model for effective implementation of risk management process in the construction projects

Construction experts are aware of the risk associated with the construction industry. The uniqueness of the delivered projects represents one of the main challenges while conducting business in this industry. Therefore, to succeed construction organizations need to optimize the utilization of their resources and minimize the associated risks. Managing the anticipated risks may be implemented intuitively or systematically based on the construction organizations’ experience and awareness of the risks. Regardless of the existence of the diverse approaches towards dealing with the expected risks there is consensus on the need to eliminate its negative consequences to achieve project success. Moreover, it can be argued that to maximize the likelihood of achieving the promised rewards from applying the risk management process several factors must occur. These factors are recognized as the Critical Success Factors (CSFs) for effective implementation of risk management process in the construction projects. It is believed that without creating the adequate environment for the risk management process its effectiveness would be minimized if not eliminated. Although the literature is rich with studies that are dedicated to study risk and its management is the construction industry, there is a shortage in the researches that focused on the CFSs of the risk management in the construction industry, particularly during the construction phase. Therefore, the aim of this study is to review several available studies in literature that have discussed the CSFs for successful management processes and then to develop a CSFs model that is specifically designed for risk management success. The model is designed to deliver a framework that depicts the role of the considered factors in achieving the promised rewards from systematic implementation of risk management process in the construction industry.

Exploring the inclusion of risk in management accounting and control

PurposeThis paper aims to contribute to the construction of a framework that makes risk management (RM) more effective and visible. This is done by investigating how the concept of “risk” is included in various activities in the management accounting and control (MA&C) system.Design/methodology/approachA cross-sectional analysis of 72 Danish organisations extracted from an alumni database is conducted together with a factor analysis and a partial least squares structural equation modelling approach.FindingsThe authors find four latent variables, namely, expectation, attitude, subjective norms, processes and culture, which all have risk activities in MA&C as the depending variable. Attitude seems to be a powerful antecedent, whereas supporting processes and culture play a crucial partial mediator role for the inclusion of risk.Research limitations/implicationsThe findings add to the understanding of the interrelationships between risk and MA&C. An important caveat is that the authors use soft and self-reported data for the dependent variable and for the various independent variables.Practical implicationsThe authors propose a dynamic and holistic framework for the analysis of risk. This framework eliminates the limitations found in many prior studies that have neglected the interrelated importance of attitude and supporting processes and culture. The results of this study also provide valuable insights for managers who wish to consider and to explore the interrelations of a number of antecedent risk issues that influence different risk activities in MA&C.Originality/valueThis paper is one of the few papers that assess the impact of different risk issues on firms’ different MA&C activities by including the theory of planned behaviour. The potential key role that supporting processes and culture play as partial mediators for risk inclusion is particularly interesting. The research extends prior research by constructing a framework that makes that implementation of RM processes in the MA&C system more effective. It also proposes a validation process that can lessen the model risk possible.

GENESIS OF SCIENTIFIC CONCEPTS ABOUT PUBLIC ADMINISTRATION OF RISKS IN CONSTRUCTION

The article presents the characteristic of the scientific genesis of public risk management in construction in Ukraine, in global and local dimensions. The essence of the working organization of risk management in the construction and operation of buildings, taking into account the transformational processes in society, is disclosed. On the basis of the analysis of risks in construction and taking into account the current realities, scientifically grounded approaches to the formation of the risk system in the construction and operation of facilities in the system of public administration. It is noted that the risks and crisis phenomena in the construction complex gave a powerful impetus to understanding the causes of the problems of decentralization and finding mechanisms for their elimination, in general. The trilateral mission of the state in the conditions of decentralization is the regulation of the macroeconomic role of the construction complex, the mechanism of economic relations of its participants, and ensuring the effectiveness of design decisions in the construction sector, by extending their competences on prevention and risk reduction in the construction industry by the local self-government bodies. To form a state decentralization policy for construction is required on the basis of knowledge of objective regional macro- and microeconomic investment-construction processes in cities, economic mechanism and indicators of development of investment-building complex and dynamics of social and economic development of regions. The mechanism of the construction complex needs to be improved, using new sources and forms of financing, achieving the balance of the goals of decentralization and its financial support. In addition, taking into account the European integration course of the announced reforms, the European understanding of the essence of risk management in construction during decentralization becomes of paramount importance. Therefore, further research requires the study of the experience of European countries in the implementation of risk management processes in construction during the decentralization of power and the analysis of foreign systems of management mechanisms, in the context of their implementation in the national practice of public administration.

GENESIS OF SCIENTIFIC CONCEPTS ABOUT PUBLIC ADMINISTRATION OF RISKS IN CONSTRUCTION

he article presents the characteristic of the scientific genesis of public risk management in construction in Ukraine, in global and local dimen- sions. The essence of the working organization of risk management in the con- struction and operation of buildings, taking into account the transformational processes in society, is disclosed. On the basis of the analysis of risks in construc- tion and taking into account the current realities, scientifically grounded ap- proaches to the formation of the risk system in the construction and operation of facilities in the system of public administration. It is noted that the risks and crisis phenomena in the construction complex gave a powerful impetus to un- derstanding the causes of the problems of decentralization and finding mecha- nisms for their elimination, in general. The trilateral mission of the state in the conditions of decentralization is the regulation of the macroeconomic role of the construction complex, the mechanism of economic relations of its participants, and ensuring the effectiveness of design decisions in the construction sector, by extending their competences on prevention and risk reduction in the construction industry by the local self-government bodies. To form a state decentraliza- tion policy for construction is required on the basis of knowledge of objective regional macro- and microeconomic investment-construction processes in ci- ties, economic mechanism and indicators of development of investment-build- ing complex and dynamics of social and economic development of regions. The mechanism of the construction complex needs to be improved, using new sources and forms of financing, achieving the balance of the goals of decentralization and its financial support. In addition, taking into account the European integration course of the announced reforms, the European understanding of the essence of risk management in construction during decentralization becomes of paramount importance. Therefore, further research requires the study of the experience of European countries in the implementation of risk management processes in con- struction during the decentralization of power and the analysis of foreign systems of management mechanisms, in the context of their implementation in the na- tional practice of public administration.

Introduction of Risk Management into Municipal Offices Across Poland as an Example of Organizational Change

Purpose: The aim of this paper is to determine the factors that influence the process of implementation of risk management process into municipal offices across Poland.

Implementation of Risk Management in Malaysian Construction Industry: Case Studies

Construction industries are exposed to wide array of risks, such as financial, design, and contractual ones, which might have a direct impact on their performance toward achieving the desired objectives. Risk Management is a proactive decision-making process used to minimize and manage the risks in the most efficient and appropriate manner. However, most construction firms in Malaysia do not apply formal risk management in their projects. Thus, this study aims to identify the actual process of risk management that is being applied in the construction projects and to determine the effects of risk management implementation on the performance of the construction projects in terms of time and cost. The data were obtained from four case studies in Kuala Lumpur, Malaysia, through semistructured interviews. It was found that the implementation of risk management process in Malaysian construction industry is still at a low level, mainly due to the fact that most of the construction employees involved in risk management are not fully aware of the available risk management techniques that can be applied in construction projects.

Enhancing DotProject to Support Risk Management Aligned with PMBOK in the Context of SMEs

Many problems in software development projects are due to risks and could be avoided or minimized if identified and treated pro-actively. In this context, software tools to support risk management could be very helpful. However, it is difficult to find a project management tool, accessible to Small and Medium Enterprises (SMEs) that provides adequate support to risk management in conformance with best practices such as the PMBOK. Therefore, this paper has the objective to review support provided by popular project management tools with respect to risk management and to present enhancements made to the open-source tool – dotProject – in order to systematically support risk management aligned with the PMBOK. An initial evaluation identified benefits in the implementation of risk management processes in software SMEs, and, thus, contributing to their projects' success.

Foundations of Implementation of Risk Management Process within Project Management

Nowadays, most organisations are experiencing unprecedented levels of change. Change has become a way of life for organisations that need to remain effective and competitive in order to thrive. It is essential to manage the inherent risk associated with change and innovation. Project brings together resources, skills, technology and ideas to deliver business benefits or to achieve business objectives. Good project management helps to ensure that these benefits or objectives are achieved within budget, within time and to the required quality.Project management must control and contain risks if a project is to stand a chance of being successful and ensure the security of the project. Without an ongoing and effective risk management procedure it is not possible to give confidence that the project is able to meet its objectives. This paper covers the main aspects of the management of risk as they apply to project management and proposes the methodology, which is applicable in implementation of risk management within a project.