Non-financial Risk Management Research Articles

Risk Management Concept Development of Pondok Pesantren Educational Institutions

The concept of risk management has been widely studied in terms of finance in Islamic and conventional banking, government institutions, and insurance. While research on non-financial risk management in educational institutionsis still rarely done. This article aims to propose the development of the concept of risk management for Islamic educational institutions, especially pondokpesantrenor Islamic boarding schools. This research is a qualitative research/conceptual paper by conducting theoretical and empirical studies on articles that have been published. The data is secondary data. The results of the study found that risk exists in all organizations including pondokpesantren, so it is necessary to carry out risk management. Risk must be managed appropriately and correctly because failure to manage risk has serious consequences for the organization. The risk management process in pondokpesantrenis based on the implementation of Islamic values ​​sourced from the Qur'an and Hadith. The most important contribution of this paper is to develop the concept of risk management for pondokpesantren.

Risk Management Concept Development of Pondok Pesantren Educational Institutions

The concept of risk management has been widely studied in terms of finance in Islamic and conventional banking, government institutions, and insurance. While research on non-financial risk management in educational institutionsis still rarely done. This article aims to propose the development of the concept of risk management for Islamic educational institutions, especially pondokpesantrenor Islamic boarding schools. This research is a qualitative research/conceptual paper by conducting theoretical and empirical studies on articles that have been published. The data is secondary data. The results of the study found that risk exists in all organizations including pondokpesantren, so it is necessary to carry out risk management. Risk must be managed appropriately and correctly because failure to manage risk has serious consequences for the organization. The risk management process in pondokpesantrenis based on the implementation of Islamic values ​​sourced from the Qur'an and Hadith. The most important contribution of this paper is to develop the concept of risk management for pondokpesantren.

Sustainable Development and Risk Management

In the context of the increasing role of non-financial factors of company value creation, many organizations, when developing a development strategy, go beyond exclusively financial and economic goals and include workplace safety, energy efficiency, customer satisfaction and other non-financial goals in their performance targets. Achieving such goals involves risks, but today there is no common understanding of the composition of the relevant risks, their sources (factors of occurrence), approaches to assessing these risks, as well as universal corporate tools for managing them. In this article, we offer our vision of the place of the so-called “non-financial risks” in the risk management system and show the possibilities of integrating non-financial risk management into the risk management system and the management model of the organization.

Nonfinancial risk disclosure: The “state of the art” of Italian companies

AbstractThis research represents a preliminary analysis of the nonfinancial risk disclosure and the first after the introduction of the European directive. Using a content analysis, the level of nonfinancial risk disclosure after the introduction of the Directive 2014/95/EU on nonfinancial information has been investigated. Moreover, in order to understand the effectiveness of nonfinancial risk management, the outlook orientation (past, present, and future) and the approach to risk (positive, negative, and neutral) have been examined. The results show how the level of nonfinancial risk disclosure in Italian companies is better than before the introduction of the directive and also still based on the past and present perspective, rather than the future one.

ОЦІНЮВАННЯ РІВНЯ РОЗВИТКУ КОРПОРАТИВНОЇ СОЦІАЛЬНОЇ ВІДПОВІДАЛЬНОСТІ НА ПРИКЛАДІ ПрАТ «КАРЛСБЕРГ УКРАЇНА»

Corporate social responsibility (CSR) includes not only a variety of theories but also a number of controversial and difficult approaches. It has become an essential element of the business world over the last two decades. As a result, cooperation between business and society has strengthened. Earlier, enterprises were mostly concerned with economic results of their activities; today, on the contrary, enterprises have to consider ethical, moral, ecological and social consequences of their work. CSR and maintaining high ethical standards are not optional but compulsory for all enterprises. There exists a certain influence of a private sector on workforce, consumers, society, environment, business opponents, investors, stockholders and other interest groups. This article is devoted to methodological approaches for determining the influence of stakeholders on the functioning of enterprises and ensuring the level of corporate social responsibility. Based on our research, key stakeholders groups were identified for corporate social responsibility for individual enterprises and organizations, as well as their impact on shaping various aspects of corporate social responsibility for these groups. The research was based on the use of a stakeholder the matrix, which is used to display and identify key stakeholders in corporate social responsibility and to determine the levels of corporate social responsibility for specific groups. The process of globalization has intensified, competition has grown all over the world. The tendency of companies to be socially responsible and gaining competitive advantage is becoming an important factor for corporate social responsibility practices. Today there is a strong link between strategic management and CSR. Consequently, the concept of CSR becomes a part of the strategy of each modern company. CSR acts as the main principle of the company's activities, which is applied on a permanent basis in relations with the interested parties. At the moment, it should be associated with the system of strategic and corporate governance, which includes nonfinancial risk management, social investment, and stakeholder relations. Without such a strategic management tool as CSR, it will be difficult for business to stay ahead of the business and form a complete business model that is fully responsive to challenges of time. The purpose of the article is to study the methodological approaches for assessing corporate social responsibility and provide recommendations for their improvement. In the field of the study was also the impact of the strategy of corporate social policy on the activities of enterprises, as well as determining the factors and ways to increase the efficiency of the enterprise through the introduction of an integrated management system, taking into account CSR. CSR may turn into one of the most efficient instruments for practical realization of the stakeholder theory. Stakeholders provide organizations with necessary resources for achieving their business goals, influence corporate activity and productivity of enterprises. As a result of their relationships with these organizations, the stakeholders win or lose.

Exploring the role of non-financial risk management in strategy processes of large retail banks

The consideration of risk in the banking industry generally involves the understanding of credit and financial risks. However, the occurrence of high-profile, non-financial risk events (such as system downtime and fraud) have resulted in negative financial and reputational implications for banks globally. These events have provided an opportunity for stakeholders to reflect on the consideration of non-financial risk. Therefore, the objective of this research was to understand the incorporation of non-financial risk management into the strategy process at retail banks, including the related benefits and challenges and the initiatives that have been (and require to be) undertaken. To this end, a qualitative research approach was conducted, using an exploratory design. Twelve banking subject matter experts were interviewed to explore their unique insights and experiences into the research problem. The research identified several challenges related to the consideration of operational and business risk. Key findings emerged including: the need for increased awareness of non-financial risk concepts, the need to balance risk management and business development, and the dangers of over-confidence in existing internal processes.

Central Bank Governance and the Role of Nonfinancial Risk Management

This paper argues that nonfinancial risk management is an essential element of good governance of central banks. It provides a funnelled analysis, on the basis of selected literature, by (i) presenting an outline of central bank governance in general; (ii) zooming in on internal governance and organization issues of central banks; (iii) highlighting the main issues with nonfinancial risk management; and (iv) ending with recommendations for future work. It shows how attention for nonfinancial risk management has been growing, and how this has amplified the call for better governance of central banks. It stresses that in the area of nonfinancial risk management there are no crucial differences between commercial and central banks: both have people, processes, procedures, and structures. It highlights policy areas to be explored.

Central Bank Governance and the Role of Nonfinancial Risk Management

This paper argues that nonfinancial risk management is an essential element of good governance of central banks. It provides a funnelled analysis, on the basis of selected literature, by (i) presenting an outline of central bank governance in general; (ii) zooming in on internal governance and organization issues of central banks; (iii) highlighting the main issues with nonfinancial risk management; and (iv) ending with recommendations for future work. It shows how attention for nonfinancial risk management has been growing, and how this has amplified the call for better governance of central banks. It stresses that in the area of nonfinancial risk management there are no crucial differences between commercial and central banks: both have people, processes, procedures, and structures. It highlights policy areas to be explored.

Central Bank Governance and the Role of Nonfinancial Risk Management

Central Bank Governance and the Role of Nonfinancial Risk Management

Risk management disclosure

Purpose– The purpose of this paper is to examine the effect of voluntary risk management disclosure (VRMD) on firm value (FV).Design/methodology/approach– This study uses content analysis approach to collect the VRMD data. FV is represented by three variables: market capitalization, Tobin’sQand market to book value of equity ratio. Based on a sample of 395 firms listed on the main market of Bursa Malaysia in 2011, this study uses multivariate statistical tests to examine the association between VRMD and FV.Findings– Based on the regression analysis, this study found that the VRMD has a positive and significant relationship with FV. Even though the authors hypothesize that damaging voluntary risk management disclosure (DVRMD) will have a negative and significant relationship with FV, the regression analysis shows that the DVRMD is not significantly related to FV. As expected, the relationship between beneficial voluntary risk management disclosure (BVRMD) and FV is positive and significant. The findings provide evidence that should be of interest especially to firms in terms of deciding upon whether to provide or avoid disclosing voluntary risk management information to their stakeholders.Research limitations/implications– Notwithstanding the critical empirical findings, this study is limited to only focusing on a one year data. The authors acknowledge the fact that findings from a one year data might not be easily generalized to other time periods. The authors believe a stronger argument could be obtained from evidence based on a longitudinal study or data that incorporate multiple economic conditions. The study highlights the fact that risks management information is important to investors in Malaysia when they make their investments decisions.Practical implications– To date, regulatory bodies emphasize more on financial risk management disclosure through the enforcement of MFRS 7; while non-financial risk information is less emphasized in current guidelines such as Malaysian Code on Corporate Governance (MCCG) (2012) and Recommended Practice Guide 5 (Revised), which only requires firms to disclose information about non-financial risk management without specific details. As this study has provided evidence on the significance of non-financial risk management disclosures in the capital market, this study could be useful for the regulatory bodies to develop more detailed guidelines on non-financial risk management disclosure in the future.Originality/value– Most of prior literatures are found to focus on the study of factors that influence the VRMD (such as Linsley and Shrives, 2006; Abraham and Cox, 2007; Hassanet al., 2009; Ismail and Abdul Rahman, 2011). Studies about the effects of voluntary risk management information disclosure is however very scant. Miihkinen (2013) studied the effects of risk management disclosure on information asymmetry. This paper adds to Miihkinen (2013) by investigating the relationship between VRMD and FV. This paper is expected to be the first to investigate on the empirical usefulness of VRMD in a developing country.

Corporate sustainability through non-financial risk management

Purpose – This paper aims at highlighting the significance in developing non-financial risk management, emphasizing the need of managing environmental and social issues for enhancing corporate sustainability. Particularly, through discussing the implications of non-financial risk management, its benefits, opportunities and challenges will also be presented. Design/methodology/approach – Drawing on authoritative academic literature, reports of corporations’ studies, current articles and documents, the researcher has managed to examine and construe the development and implications of non-financial risk management. Findings – Several key findings are covered in this article. First of all, environmental and social concerns are usually being deemed as intangible issues that need to be properly articulated and managed by an effective non-financial risk management system for enhancing corporate sustainability. Second, through different interpretations of sustainability, links could be drawn for highlighting the significance of non-financial risk management and corporate sustainability. Third, by explaining the impacts from non-financial risk management to sustainable development and profits, the article has illustrated corporate sustainability as a clear business case for any corporation. Fourth, challenges are also portrayed for the effective management of non-financial risk management by corporations. Finally, and most importantly, the need of a systematic and strategic non-financial risk management system for helping businesses to be more competitive, thus, moving closer to sustainable development, is discussed in this paper. Originality/value – The contribution of the article is thought to be significant. Although there exists a wide body of research on sustainable development, risk management and corporate sustainability, there is limited insight into how the corporations can effectively conceptualize such intangible or non-financial risk in relation to sustainability. Integrating environmental and social risks is critical to the effective management of any corporation’s real risks, and to improve resources allocation in a sustainable fashion. This demands a systematic and strategic identification of issues through non-financial risk management. Most significantly, this article has shown the way this can be achieved by any corporation, and the concepts can be applied globally.

산업기밀 손실 방지를 위한 순환적 산업보안 관리과정 모델 구축에 대한 연구

This study is aims to present cyclical industrial security management process model as a non-financial risk management tool. First, the security management process of the international information security management certification system ISO/IEC 27001, KISA(Korea Internet & Security Agency) ISMS(Information Security Management System), PIMS(Personal Information Management System) were compared with their control items. The circulation system improvements are discussed. Based on this, `industrial secrets life cycle`, `BORaI(Building, Operating, Reviewing and Improvement) cycle` and controls of each cycle are derived. Industrial security professionals verify the validity by Delphi surveys conducted over two times. Completed industrial security management process model consists of three cycles (Industrial secrets life cycle, BORaI cycle, and Industrial secrets infringement risk management process). `Industrial secrets life cycle` is consist of industrial secrets creation, utilization, disposal stages. `BORaI cycle` is consist of industrial security policy building, policy operating, operation review, improvement stages. Each step will be implemented sequentially with the positive(+) reflux.

IS/IT Risk Management in Banking Industry

The paper makes a survey of current trends in business risk management focusing on IS/IT risk management in financial institutions. Special attention is paid to frameworks and regulations available for both financial and non-financial risk management and their relation to IS/IT risk management. The relationship and common and different features between IS/IT risk management and operational risk management are discussed on the basis of a short introduction to the specifics of risk management in financial institutions. The advantages and challenges of those different frameworks are summarized together with the possibility to incorporate some IT/IS risk management tools and methods into operational risk management in practice. Basel II is the main framework covering the area of operational risk management, therefore the paper focuses on the assessment of the impact and integration of the Basel II framework with IS/IT risk management ones.