Organizational Risk Management Research Articles

Compliance With Legal and Other Requirements Related to the Environmental Licensing Processes in Companies Located in Rio De Janeiro - Brazil

Purpose: This work aims to analyse the compliance with legal and other requirements related to the environmental licensing processes in some Brazilian companies. The work also aims to assess the degree to which these companies define and execute action plans to address unmet requirements as well as their risk management. Theoretical framework: The article presents an overview of the legal questions related to the theme. In addition, a literature review was conducted on works related to the Environmental Impact Assessment Process and environmental risk management in organizations in Brazil and worldwide. Method/design/approach: Based on a qualitative-quantitative and descriptive approach, six medium and large-sized companies located in the state of Rio de Janeiro were analysed. The companies operate in the chemical, pharmaceutical, hospitality, engineering, and metallurgical segments. The following data was collected: number of legal and other applicable requirements, which were assessed, met and unmet; number of risks identified; number of action plans drawn up to mitigate risks; number of action plans overdue, completed and on time. Results and conclusion: Results indicate significant amounts of non-assessed and unmet requirements, weak identification of risks by companies and a considerable number of overdue action plans. It can be concluded that environmental control bodies did not demonstrate effectiveness in the execution of their attributions. Furthermore, the main stakeholders involved in the licensing process have not played their roles and fulfilled their responsibilities adequately. Research implications: It is believed that this work presents relevant information about the behaviour of Brazilian companies regarding their environmental licensing processes, compliance obligations and risk management. Thus, it can contribute to the reflection and proposition of initiatives that bring positive results for organizations and, especially, for the environment and society. Originality/value: Similar studies generally focus on specific companies in specific industries. The main differential of this study is its broad analysis, carried out in different segments of activity and involving companies of different sizes and levels of environmental risk.

Assessing The Impact Of Cost Inflation On Building Construction Material: A Study In Wolaita Zone, Southern Ethiopia

Inflation is the process of continuously rising prices, or equivalently, of a continuously falling value of money. Price Escalation is an increase in the cost of any construction elements of the original contract and base cost of a project due to passage of time. The methods that used for this thesis were by collecting the data require for this study through preparing questionnaires. The investigation of factors that might contribute to cost inflation on construction material is significant in order to notice attention to specific areas of improvement for building construction projects in Wolaitasodo. Accordingly, this research attempts to assess the impact of cost inflation, to identify problems of cost inflation on construction material and adjustment and methods to manage/administer cost inflation on construction material in Wolaitasodo building construction projects, which can serve as the way forward for future work in coping with this inflation.Findings revealed that the major impacts of cost inflation on construction materials which have been occurring on the projects are improper risk management and improper team organization. Quality of workman ship, risk of project abandonment and Lack of firm price quotes are the factors that cause the cost inflation on construction material and adjustment problems on Wolaita sodo building construction projects. [5] Cited [11]

Cooperative Behavior and Knowledge Sharing: Interaction of Risk Management

Purpose – This study analyzes the influence of cooperative behavior and organizational risk management on knowledge sharing in Brazilian agricultural cooperatives. Complementarily, it analyzes the interaction of organizational risk management in the relationship between cooperative behavior and knowledge sharing. Theoretical framework – The research is based on the literature on cooperative behavior, organizational risk management, and knowledge sharing with variables derived from previous literature. Methodology – A survey was conducted with strategic level managers in Brazilian agricultural cooperatives, with the sample being composed of 104 valid responses. To test the hypotheses, the structural equation modeling technique was applied. Findings – The results show that cooperative behavior positively and significantly influences risk management and knowledge sharing; however, no statistical significance was found in the relationship between risk management and knowledge sharing. This indicates that higher levels of cooperative behavior are reflected in greater risk management, which helps to mitigate risks, and in greater knowledge sharing in the cooperatives studied. Practical & social implications of research – It presents new information relating to cooperative behavior and risk management in knowledge sharing in cooperatives that integrate strategic alliances. As practical implications, it is highlighted that knowledge sharing should not be perceived as an immediate risk, but as being inherent to cooperation and collaboration between parties. Originality/value – It contributes to the literature by presenting new implications of cooperative behavior and risk management, perceived as enablers of knowledge sharing. Keywords – cooperative behavior; risk management; knowledge sharing; cooperatives.

Organization of risk management in a commercial bank based on a fuzzy cognitive map

Any commercial bank tries to determine the degree of acceptable risks of material and/or repu-tational losses, believing that its potential losses are inversely proportional to the volume of its capital. Therefore, the basis of successful banking is the presence of a Risk Management Sys-tem in the commercial bank structure, the main task of which is to determine the best (or ra-tional) strategy for concluding contracts and ensuring maximum profit growth. Within the Risk Management System, there are used statistical analysis tools allowing evaluating and compar-ing the consequences and expediency of certain transactions by establishing a quantitative measure of banking risk from any transaction. Moreover, these tools make it possible to formal-ize various transactions and, thereby, ensure the accumulation of commercial bank experience. To form heuristic knowledge from the history of the conclusion of various contracts, it is neces-sary to use and accumulate expert opinions, and, as a result, fuzzy methods of analysis and deci-sion-making regarding banking transactions on each localization point. The paper considers a fuzzy cognitive map for assessing internal and external banking risks. This approach involves the use of a fuzzy cognitive model, based on which cause-effect relationships for assessing banking risks at all levels of the hierarchy of their detailing are described using the Fuzzy Infer-ence Systems. Qualitative evaluation criteria for the areas of localization of banking operations and external influences are used as input and output characteristics. For the formal description of these weakly structured characteristics, there are used appropriate fuzzy sets which are re-stored on the corresponding universes by corresponding membership functions. At the same time, the method of point estimation of fuzzy sets is applied for the defuzzification of fuzzy conclusions relative to the risk levels on all nodes of the localization of banking operations.

Transformation of the organization's risk management system in the conditions of increasing uncertainty of the operating environment

Transformation of the organization's risk management system in the conditions of increasing uncertainty of the operating environment

Development of methodological approaches to risk management within the system of internal control of agricultural organizations

In order to form methodological approaches to risk management of agricultural organizations, the article considers the grouping of risks according to various criteria, which allows them to predict them in a timely manner and minimize possible damage. A model of risk-oriented internal control is offered, the main purpose of which is to correctly identify risk factors that affect the production and financial results of an agricultural organization. Timely identification and assessment of potential risks will reduce losses caused by the impact of negative natural and climatic risk factors, and ensure the further stable functioning of agricultural production. The developed model of risk-oriented internal control will help to identify existing problems in the organization in risk management to ensure the efficient and continuous operation of an agricultural organization.

Organizational Learning and Risk Management Maturity: Systematic and Meta-Analyses Approach

This paper summarizes the arguments and counterarguments within the scientific discussion on the issue of investigating the role of developers in the economic development of the country. The relevance of this scientific problem decision is that the risk management maturity on the part of developers is often underestimated when researching developing real estate markets. Systematization of the literary sources and approaches for solving the problem of risk management proved the presence of a significant number of studies that confirm the hypothesis that some of the developers have not reached the normalized risk management maturity scale. The main purpose of the paper is to explore the role of organizational learning in enhancing risk management maturity, as a means of setting research agenda for its empirical evaluation in emerging economies. Using the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) approach, the article systematizes the scientific literature on the importance of organizational learning in managing real estate investment maturity risks in emerging economies like Nigeria. The object of the research was indexed studies on Web of Scholar, Google Scholar, Emerald and Pubmed databases. Qualitative analysis methods have become a methodical toolkit for determining the parameters of organizational learning that contribute to the achievement of risk management maturity. The paper confirms and theoretically proves that risk knowledge acquisition, integration and transformation had potentials of respectively leading to sustainable risk identification, assessment and mitigation in property development projects. The results of the study form the basis for the understanding by scholars, practitioners and policy makers of their contribution to scientific research on the issues of a risk management mature property development sector in emerging economies. The strengths of this study are that it aims to identify the importance of organizational learning in risk management mature property investment in emerging markets.

МАРКЕТИНГОВІ РИЗИКИ ТОРГОВЕЛЬНИХ ПІДПРИЄМСТВ В УМОВАХ ЦИФРОВОЇ ЕКОНОМІКИ

The article is devoted to the study of trends in the development of electronic commerce and the development of proposals for improving the management of marketing risks of a trading enterprise through the use of the latest tools that provide economic and social effects. Modern approaches to the interpretation of the term "marketing risk", methods of classification, and possible management methods are considered. The term "marketing risk" is given its definition as potential failures and losses that may arise as a result of the lack of internal resources for the integration of marketing channels, insufficient general business understanding of the value of individual customers, and improper coordination of communication or coordination of actions by business lines or sales channels. The development trends of the international e-commerce market have been analyzed. The rapid growth of the digital economy is determined based on statistical data. It has been proven that the transition from the traditional organization of risk management of a trading enterprise to a digital one is a fundamental challenge in the modern conditions of digitalization of the economy. The need to ensure the dynamic competitiveness of trade enterprises using digital marketing technologies is being updated. A retrospective analysis of consumer behavior in e-commerce was conducted. Based on the results of surveys of online buyers, the types and causes of risks in e- commerce were determined. Key concepts for effective marketing have been clarified - in particular, marketing risks and the selection of tools for managing them in the field of electronic commerce. It has been proven that the development of marketing innovations, the use of advanced data analysis tools, and in-depth analytics will enable the development of new risk management techniques, which will contribute to making better decisions at reduced costs.

ORGANIZATIONAL STRUCTURE ENHANCING AIRLINES EFFIECEINCY AMID THE PANDEMIC: LOW-COST CARRIERS IN THAILAND AS A CASE

The pandemic of COVID-19 has extreme impact than the intense competitors in airlines industry that never turn up in history. It derailed all airlines’ operations, company’s structure, strategy, and its markets which is highly impact to Thailand’s tourism industry. The purpose of this study is to assess the managerial practices of low-cost carriers (LCCs) to enhance the organization’s performance during COVID-19. The managerial practices concern with strategic human resources management, organizational culture, high competence personnel, and risk management affect to organizational structure. The quantitative was administered to four anonymous low-cost airlines operating in Thailand. Questionnaires were used to collect data from 150 person of each airline, hence there were 600 samples in total. The descriptive statistic and path analysis were applied. The results found that LCCs stressed greatly on the high competence personnel, followed by organizational culture, risk management, and strategic human resource management affecting organizational structure that led to efficiency and competitiveness of organization. To investigate the effect of management issues of strategic human resources management (SHRM), organizational culture (OC), high competence personnel (HQP), and risk management (RM) on low-cost carriers (LCC) in Thailand toward organizational structure (OS) which result to the competitiveness of high-performance organization (CHPO). The quantitative approach was employed by using structural equation modelling for path analysis. The data was collected by using questionnaires. There were 600 samplings from four anonymous low-cost airlines. The results found that LCCs stressed greatly on the high competence personnel, followed by organizational culture, risk management, and strategic human resource management affecting organizational structure that led to competitiveness of organization. The authors would recommend LCCs to refocus its practices to strategic human resource management during the crisis. Since, the human resource management is dealing with organization changes through the leadership and organizational culture. Finally, researchers have developed the model creating organizational structure.

Community-driven disaster risk reduction: a case study of flood risk management in Brandon, MB, Canada

ABSTRACT Recurrent disaster experiences can motivate communities to initiate risk management as part of their resilience mechanism if there is appropriate support to assist their shared commitment and goals. This scenario was evident in the City of Brandon's (Manitoba, Canada) response to the 1-in-300-year high-water event during the spring of 2011. This study examined how this small prairie city/community achieved the creation and preservation of locally driven flood risk management practice, and the critical role of the Brandon Emergency Support Team (BEST), a community-based disaster risk management organization, in facilitating enhanced risk awareness towards protecting the city from flooding.

Are the Competency-Based Risk Management Certificate Holders Ready for Change? A Descriptive Study of Readiness for Change

Organizations need to make effective changes to address VUCA conditions to survive and be sustainable. The readiness of members of the organization to make changes plays an essential role in ensuring the effectiveness of organizational's change. As a member of an organization, the risk management certificate holder is expected to be capable of ability and psychologically ready for organizational changes in implementing risk management. This study aims to provide empirical evidence regarding the readiness of competency-based risk management certificate holders to make changes, especially to implement more mature risk management in organizations. This study used a quantitative descriptive approach with a survey method. The survey was conducted online using a self-administered questionnaire modified and adapted from the Organizational Readiness for Implementing Change measurement tool. The sample in this study focused on individuals who have a general competency-based risk management certificate—the sampling technique conducted by convenience sampling technique.
 Regarding data analysis, the researcher used descriptive statistical analysis. This study indicates that 54.5% of competency-based risk management certificate holders have a high level of readiness compared to individuals in their group. It shows that risk management certificate holders have high readiness to make changes to implement risk management in their organization. The findings of the two dimensions also form the variable, namely, change commitment and change efficacy. The results show that the competency-based risk management certificate holders' change commitment impacts their readiness to make changes than their change efficacy. It indicates that the certificate holders have a higher share resolved to pursue the action than their shared belief in the collective capabilities to organize and execute the change in the organizations. From the findings of this study, organizations can develop strategies to further increase the confidence of their shared capabilities in organizations, especially for individual risk management certificate holders, so that the effectiveness of changes made by the organization in implementing risk management will be higher.

Fundamental approaches to the preparation of a risk-based internal audit work plan

The article discusses the fundamental approaches to planning the work of internal audit based on a risk-based approach, taking into account the requirements of international auditing standards, the updated concept of three lines of defense, recommendations for the organization of risk management and internal control. The problems of the article are relevant in the conditions of rapid changes in the business environment, the emergence of new risks, the increasing complexity of business processes of organizations and the regulatory framework, the development of corporate governance practices, leading to the need for rapid adaptation of the internal audit function to the changes taking place. The material of the article is presented taking into account the current regulatory framework, international standards of auditing, International foundations of professional practice of internal audit.

Organization's risk management

Organization's risk management

Systemic failures and organizational risk management in algorithmic trading: Normal accidents and high reliability in financial markets.

This article examines algorithmic trading and some key failures and risks associated with it, including so-called algorithmic ‘flash crashes’. Drawing on documentary sources, 189 interviews with market participants, and fieldwork conducted at an algorithmic trading firm, we argue that automated markets are characterized by tight coupling and complex interactions, which render them prone to large-scale technological accidents, according to Perrow’s normal accident theory. We suggest that the implementation of ideas from research into high-reliability organizations offers a way for trading firms to curb some of the technological risk associated with algorithmic trading. Paradoxically, however, certain systemic conditions in markets can allow individual firms’ high-reliability practices to exacerbate market instability, rather than reduce it. We therefore conclude that in order to make automated markets more stable (and curb the impact of failures), it is important to both widely implement reliability-enhancing practices in trading firms and address the systemic risks that follow from the tight coupling and complex interactions of markets.

Methodical Approaches to the Organization of Risk Management System for the Use of Electronic Payment Systems in Modern Conditions

The aim of the study is the formation of scientific and methodological aspects of the organization of the enterprise risk management system in modern conditions. Achievement of this goal is ensured by the use of tools of economic and mathematical modeling and parametric forecasting of financial indicators, taking into account risk factors. Functioning of enterprises in the minds of enhancing volatility and insignificance is unwise without an effective system and risk management. It is grounded, that the activity of the enterprises needs to be examined, as an integral system for reaching the strategic goals in the context of the elements of this system. Methods for the formulation of scientific-methodical ambushes, the organization of risk-management at the enterprises has been refined, the management system has been broken up with the use of innovative methods and tools in management, objects, subject of the system. The structural-logical block diagram of the control of the risers was grounded in the boundaries of which the groups of risks were formed: financial, operational, and functional. It has been brought to the point that the key tools for managing the representations of groups in the form of parametric economics and mathematics models. For the value of the significance of the risk factors and the efficiency of the financial inputs of the processes in the current minds, the extrapolation forecasting tools are stuck. Based on the analysis and assessment of key risk factors in Ukrainian banks, it has been brought to the attention that it is necessary to control the indicators of efficiency and sensitivity to the change of high rates and the change in the form of management of the system and the hour of development. The interrelation of the effective indicators of the efficiency of banks and the efficiency of financial inputs in the case of variations in the risk factors has been established. It is intended that, in order to ensure the efficiency of enterprises, it is necessary to establish all the risk factors and scenarios of their behavior for the future in the minds of continuous volatility.

Risk management system in Russian design organizations: rationale for implementation

The article discusses the specific features of risk management in Russian design organizations. The advantages of implementing a risk management system in such structures in the short and long term have been shown. A review of the methodological base of project risk management, formed by the efforts of Russian and foreign scientists, has been performed. The article presents typical problem situations caused by the implementation of risks inherent in design organizations that threaten its stable operation. The key reasons for the formation of risk factors have been considered. The negative consequences of passive risk management have been diagnosed. Prerequisites for the deployment of a risk management system in design organizations have been presented. The stages of implementation of the risk management system have been described. It has been concluded about the effectiveness and efficiency of the risk management system in the design organization.

Financial Performance of the Firms and the Enterprise Risk Management: A Sri Lankan Perspective

Risk management and financial performances in organizations had been of mounting importance when it comes to the research arena during the past few decades and is still heavily discussed globally nowadays. The tendency is to take an all-risk encompassing overview of risk management instead of considering risk management from a narrow-based overview. This all-risk encompassing approach to risk management is usually mentioned as Corporate Risk Management. A noticeable dearth of research is there in the studies that have been done on the relationship between corporate risk management and financial performance in organizations. There are so many shreds of evidence for the statement that organizations will enhance their performance by using the corporate risk management concept. The main objective instigated during this study is that the proper match between corporate risk management and, therefore, the firm factors: namely, industry competition, firm size, firm complexity, and monitoring by the board of directors and the relationship among corporate risk management and firm performance. This study identifies the impact of corporate risk management on financial performances of Banks, Diversified Financials, Insurance, Energy, and Retailing sectors in the Colombo Stock Exchange, which include 86 companies, were considered as the population and supported a sample of 60 firms. The research began with a search for companies that indicated they were utilizing the corporate risk management concept in their annual reports covering their fiscal year 2018. The findings indicate that firms should consider the implementation of a corporate risk management system following structural variables affecting the firm. These findings will be interesting to the policymakers, future researchers, as well as to the general public and any third party who are keen on corporate risk and financial performance of Banks, Diversified Financials, Insurance, Energy, and Retailing sectors in Sri Lanka.
 Keywords: contingency theory, corporate risk management index, firm performance, Sri Lanka

Developing a vulnerability-based conceptual model for managing risk in non-profit projects: a multicase study in a European country

This study examined theories and concepts related to the enactment of strategic project risk management in non-profit organizations. A vulnerability-based conceptual model VBCM was developed that shows how risk management behaviours can help non-profit managers deal with complex interorganizational factors and uncertainty in projects’ contexts for ensuring the desired social impacts stakeholders expect. Three main vulnerabilities – finances, human relationships and alliances – arise from the challenges non-profits face when attracting and retaining human and material resources and building cooperative relationships within local contexts in order to achieve projects’ social goals.

Applying DEFCON and the Homeland Security Advisory System in organisational risk management

Many businesses face avoidable strategic and external risks that can be addressed by accepting, relocating, reducing, or eliminating them. Companies of all sizes should predict and prepare for the risks that come with doing business. When a scenario becomes a reality, a well-prepared organisation can mitigate sales, lost time and productivity, and negative impact on customers. They can assist in the safety of an organisation and its employees by offering a fully integrated threat management system that offers real-time threat impact assessments that the corporation can use to fulfil its duty of care obligations and keep employees safe. These systems are based on robust systems such as DEFCON, HSAS, and NTAS. In analogy to the application in Military and Anti-Terrorism, the systems DEFCON, HSAS or NTAS to the specific application, define the comprehensive explanations and define corresponding actions at each threat level. This article deals with the question, if the deployment of DEFCON, HSAS/NTAS is a suitable approach to meet the requirements of the ISO 9001:2015. To answer the given research-question the method of qualitative content analysis was used as outlined by Mayring. Six main codes and twelve subcodes were defined inductively and deductively, and the present literature was encoded according to the method of structured content analysis. To this end, 765 codings were carried out and then analysed in the context of the research questions. As a result, the research question was confirmed by the present study.

Risk management and management accounting control systems in public sector organizations: a systematic literature review

ABSTRACT While it is becoming pervasive and unavoidable in every organization, risk management (RM) interacts with control systems in public sector organizations (PSOs). This article presents a literature review showing that PSOs design and implement risk-based control systems arbitrarily. This leads to the issue of appropriate integration of RM in management accounting and control systems (MACS). Despite the importance of integrated RM, the existing literature shows that issues of RM are not well integrated at the MACS level, and that a radical cultural shift is still required in PSOs. Future RM studies must provide empirical data about integration in practice.