Organizational Risk Management Research Articles

Understanding the significance of risk management in enterprise management dynamics

In the complex landscape of modern business, risk management is a critical factor in deciding whether organizations succeed or fail. This review delves into the significance of risk management in enterprise dynamics, exploring its evolution, conceptual framework and the categories of risks organizations face. The study emphasizes the importance of risk identification, assessment, response and continuous monitoring. Additionally, it categorizes enterprise risks, including financial, operational, strategic, compliance and reputational risks. This work highlights the pivotal role of risk management in strategic decision-making, stakeholder confidence, operational resilience, value creation, and innovation, as well as cost reduction. Furthermore, it investigates the emergence of Enterprise Risk Management (ERM) and its integration with management science. Empirical findings underscore the positive impact of ERM on organizational risk evaluation and management. The study concludes with thoughts on the objectives of ERM, risk assessment, group impacts, preference consistency, risk management frameworks and potential implementation obstacles that organizations may encounter. The integration of ERM with strategic management is emphasized, providing a comprehensive understanding of organizational dynamics and promoting long-term success.

Theoretical Aspects of Organizational Risk Management

Risk is multifaceted and complex, shaped by the industry-specific factors and inherent uncertainties. Risk assessment is a dynamic process that involves identifying, analyzing, and evaluating potential hazards to make informed decisions about risk mitigation. In industrial settings, this process is necessary to create a safe working environment and protect the overall well-being of the organization. Effective risk assessment involves the use of multiple factors and methods to address different types of risks. The article discusses the means, ways and methods used by enterprises to effectively assess risks. In addition, the strategies are studied - financial, operational, organizational, economic, credit and technical risks, which are used to assess different types of risks. Keywords: Risk, risk assessment, interest rate, financial, operational, organizational, credit risk.

Current Trends, Forecasts, and Risks of the Sports Industry in the World and in Slovakia

The essence of the paper is to present the results of the analysis of current trends, forecasts, and risks of the sports industry in the world and in Slovakia, which are the basis for the solution of a scientific project in Slovakia. The processed results are based on the analysis of different views on current changes, trends, and problems in the sports industry in the world. Other results represent the identification of strategic risks of the concept of sports development in Slovakia from the established six strategic pillars point of view. The benefit of the paper is to participate in the developing discussion about the direction of the sports industry not only in Slovakia but also in the world. The authors of the paper want to contribute to raising awareness about the effective management of sports organizations and their impact on the entire society. Also, increase interest in prevention and paying more attention to risk management in sports organizations.

The effect of bank organizational risk-management on the pricing of non-deposit debt

The effect of bank organizational risk-management on the pricing of non-deposit debt

Theoretical and methodological principles of risk management in trade organisations

Traders play a key role in meeting the country's household demand for goods and services. Given that these organizations operate in a competitive environment, the success of their business depends on their ability to respond quickly and effectively to changes in the market situation. The increase in competitiveness is an incentive for business organizations to search for and implement innovative methods of organizational management. The challenges of managing a trading organization can vary significantly depending on the type of business, the specifics of the products, and the company's position in the market. The main characteristics of the training organizations have been identified and have been classified according to the type of activity. The peculiarities of the activities carried out by commercial organizations have been identified and a classification of the typical risks faced by these companies has been presented. In order to increase the efficiency of the business of such organizations, it is considered advisable to apply a project approach. The issues of project management and implementation in trading companies have been analyzed and outlined. The basic principles of managing project risks according to international project management standards, in particular P2M, ICB IPMA, PMBoK PMI, PRINCE2, ISO 21500 and AGILE, have been presented. The main project risks faced by the trade organizations have been identified. It was found that the same risks can accompany both projects and the organization’s operational activities. Thus, the operational risks of the organization overlap with the project risks. To reduce the time and increase the efficiency of resource management, it is deemed reasonable to develop and apply tools for the integrated management of project and operational risks of trading companies.

Internal Audit versus External Audit: A Qualitative Perspective

This qualitative study examines the roles, methodologies, effectiveness, and challenges of internal audit versus external audit within organizational contexts. The research aims to provide insights into the distinct yet complementary functions of internal and external audit, shedding light on their contributions to organizational governance, risk management, and financial reporting integrity. The study employs a comprehensive literature review approach, synthesizing existing research to explore definitions, conceptual frameworks, methodologies, practices, and assessments of effectiveness in both audit functions. Key findings reveal that internal audit serves as a proactive advisor to management, focusing on enhancing operational efficiency, strengthening internal controls, and driving continuous improvement and innovation. Conversely, external audit acts as a safeguard for external stakeholders, providing assurance on the reliability and integrity of financial statements. Methodologies and practices vary between internal and external audit, with internal audit employing risk-based auditing, compliance auditing, and performance auditing approaches, while external audit adheres to auditing standards and regulations. Despite their distinct roles, both audit functions face challenges related to audit quality, independence, and relevance. The study underscores the importance of understanding and leveraging the multifaceted contributions of internal and external audit to navigate the complexities of the modern business environment effectively.

Business Process Outsourcing 14 Cybersecurity KPIs Towards a Strategic Information Security

In today’s rapidly evolving digital landscape, the Business Process Outsourcing (BPO) industry faces an ever-increasing threat of cyber-attacks and data breaches, underscoring the critical importance of robust information security practices. To address these challenges, organizations must develop effective strategic information security, supported by reliable performance measurement tools such as Key Performance Indicators (KPIs). This research aims to investigate the information security implemented by BPO companies and their utilization of the 14 cybersecurity KPIs to track and enhance their information security measures. A mixed-methods strategy is used in the study, integrating qualitative and quantitative techniques. The qualitative component involves thematic analysis of key informant interviews, while the quantitative component entails the analysis of Likert-scale questionnaires and numerical data. The findings of this research provide valuable insights into the significance of strategic information security in achieving effective information security management within the BPO industry. The study reveals the specific elements incorporated in these plans, such as risk assessment methodologies, security controls implementation, employee training, incident response strategies, and compliance measures. The implications of this study offer valuable insights for BPO organizations to develop robust strategic information security tailored to their specific context, ensuring effective alignment with organizational objectives and risk management strategies. Moreover, the research contributes to the existing literature on information security management frameworks, emphasizing the role of cybersecurity KPIs in evaluating security performance. Keywords: cybersecurity, information security, KPI, business process outsourcing industry, information security management

Employee perspectives on risk management in a construction company

In addition to the tools and techniques available, project risk management also depends on the attitudes of people in an organisation, how the available tools are used, and how the procedures are followed. Therefore, efforts to improve the project risk management capacity of organisations may fail if the diversity of people (characters, traits etc.) involved is neglected. Based on this argument, the aim of this study is to demonstrate that companies can improve project risk management using the perspectives of their key experts. In this context, an approach was proposed based on Q-Methodology and a case study has been conducted in a construction company in the Netherlands. The quantitative output obtained through Q-Methodology application was evaluated in conjunction with the qualitative data gathered from interviews conducted with the managers of different units within the company. As a result of this evaluation, three common perspectives were identified among the respondents under the names of ‘Experience and Belief’, ‘Procedures and Management’ and ‘Culture and Communication’, respectively. Then, a number of recommendations were made to the company. First, customized management approaches that integrate and balance the identified perspectives should be adopted. Second, a mature organisational risk management culture should be promoted. Project charters that specifically target risk management culture in projects can be used for this purpose. Third, risk management should be integrated into other activities, making it a normal part of employees’ daily work. Finally, but not exclusively, the employees should be instructed on the use of risk registers and guidance should be put in place on how often they are expected to update the risk registers. This study demonstrates the benefit of considering employee diversity and leveraging perspectives in unlocking the potential of construction companies in terms of project risk management.

CORRELATION OF RISK MANAGEMENT METHODS AND PROCEDURES WITH RISK MANAGEMENT AND ECONOMIC SECURITY SYSTEMS

Task. Issues devoted to the delimitation of methods and procedures of related scientific areas: risk management, economic security, management and risk management are studied and researched by many authors. This gives rise to thoughts about a single basic basis for the listed scientific movements. So, the author, in order to avoid constant repetition of listing the scientific directions under consideration in the article, calls them directions, economic categories, etc., but the problem raised by the author of the article is the differentiation of the main elements, in particular methods, procedures, goals, objectives, principles between the studied categories, namely risk management, economic security, management and risk management. The purpose of the article is to systematize the listed elements and consider their duplication in the scientific areas under consideration. Model. The author systematizes, on the basis of those reviewed by modern economists and analysts, as well as classic scientific works, the basic elements of risk management, economic security, management and risk management. An attempt was made to find an answer to the question «are there specific developed methods and techniques for risk management of an organization that would distinguish it from the risk management system and other scientific areas?» Conclusions. Economic categories: risk management, economic security, management and risk management are considered as a single process in economic research, and therefore economists do not have a clear opinion and understanding of the differences between these categories. Practical significance. A comparative analysis of the essence of the main elements of risk management, economic security, management and risk management allows us to determine the most appropriate methods and procedures for the practical application of risk management in organizations. Allows you to develop an understanding of the implementation of risk management principles in organizations to achieve their goals. Originality. The list of goals, objectives, procedures and principles of risk management, economic security, management and risk management has been clarified, expanded and systematized

RISK MANAGEMENT IN THE SYSTEM OF ENSURING ECONOMIC SECURITY OF ORGANIZATIONS

Task. Risk management, as an independent part of the science of «management», is actively studied by analysts and other researchers. The modern development of risk management is determined by the need for the practical implementation of optimal and effective procedures aimed at managing the risks of the organization. The problem is that risks directly affect the state of economic security of the enterprise, while the enterprise does not always have an understanding of «what risk management is, what is its connection with ensuring the economic security of the organization». The purpose of the study is to form such an understanding and clarify a number of existing statements in this area. Model. The author reveals the essence of the category «risk management» and conducts a study of the close connection with the concept of «economic security of an organization». Conclusions. Risk management seems to be an adaptation toolkit for enterprise risk management, including ensuring balanced and optimal business development in order to ensure a high level of economic security of the organization. Practical significance. Popularizing risk management in organizations as an effective tool in solving problems related to risk management will draw the attention of company management to the practical orientation of risk management procedures to ensure economic security and their effectiveness and efficiency in practice. Originality. The modern directions of development of risk management are clarified in order to ensure the economic security of the organization.

The impact of climate risk disclosure on financial performance, financial reporting and risk management: evidence from Egypt

Where Egypt stand with climate related-risk disclosures and why stakeholders and organizations require such information? This research aims to measure the climate risk disclosure level in Egyptian companies and to investigate its determinants. As unfavorable climatic circumstances create systemic risk for businesses throughout the whole global economy, this research examine how the disclosure of climate change risks affects the financial performance, financial reporting, and risk management. Few studies analyze how climate-related risk affects the financial performance of publicly traded companies in Egypt. This research applies regression models using both quantitative and qualitative methodologies. The information was gleaned from the 2019 through 2022 financial statements of 25 publicly traded companies. According to statistical analysis, there is a significant positive association between the financial performance, financial reporting, and risk management of industrial organizations and the disclosure of climate change. The findings show that the financial markets require precise, thorough, and high-quality information about the effects of climate change. This encompasses the threats and chances posed by increasing temperatures, climate-related legislation, and new technology in our rapidly evolving global environment.

Research on Risk Measurement in Chinese Stock Market - Based on GARCH-VaR Modeling

Chinese stock investors, whether he is an individual investor or working for a investment company, are always worried about the risk of their asset, it is difficult to measure the risk without a functional model, thus, using a model to solve it is of the pivot. The initial aim of this paper is to measure and predict the risk of Chinese stock market using GARCH-VAR model. By analyzing historical stock index return data, this paper develops a dynamic model to capture the volatility and risk correlation of the stock market. The comprehensiveness and accuracy of the results are ensured by using recent data, including stock indices that broadly cover different industries and market capitalization. The findings suggest that significant volatility and risk correlations exist in the Chinese stock market. This paper provides an effective methodology to measure and predict the level of risk in the stock market, which provides investors and risk management organizations with valuable references and decision-making bases and is important for understanding and managing the risk in the Chinese stock market, which helps stock investors to make informed optimal decisions on risk management and asset allocation.

The Importance of Continuous Organizational Project Risk Management and the Value of Project Management Certificates in the Customers’ Eyes

In an increasingly complex and volatile business environment, organizational project risk management plays a critical role in determining the chances of project success. Project management has become a common tool in the hands of large organizations for executing development and improving their production cycles in a more carefully planned way. However, the future is often hard to predict, and unexpected events may occur which could have been avoided with the use of the right tools and mindset. This comprehensive research study aims to showcase the importance of continuous risk management in organizations and highlight how risk management contributes to successful project outcomes. By synthesizing information from 59 high-quality publications from Scopus and Web of Science, the research describes various risk mitigation methodologies used across diverse fields, and explores potential obstacles faced by project managers when executing risk management strategies. The primary research of the study builds upon a survey conducted with 181 experienced project managers across various industries to gain deeper insights into their risk management approaches and the constraints they may encounter. Additionally, the study seeks to analyse the value of obtaining project management certificates in relationship with led projects’ length and budget. Employing SPSS, the research presents descriptive statistics, regression, and correlation calculations to further analyse the data gathered. The aim of the research is to draw attention to the significance of continuous risk management, propose effective methodologies, identify and mitigate potential challenges, and shed light on the potential benefits of having certifications in the field of project management. This study aims to present valuable knowledge for both researchers and organizations striving to better understand the field of project risk management strategies through the systematic literature review and quantitative research results presented.

Adapting to the Unpredictable: Building Resilience for Business Continuity in an Ever-Changing Landscape

In an age characterized by unprecedented socio-financial disruptions, businesses encounter a crucial mandate: to seamlessly incorporate organizational resilience, risk management, and business continuity strategies. This article navigates this complex landscape, offering insights into the essential interplay between resilience and risk mitigation. It explores the dynamic nature of socio-financial disruptions, emphasizing the inherent risks they pose. Drawing from real-world examples, we dissect key components of organizational resilience and delve into strategies that marry resilience with effective risk management. Proactive measures take center stage, guiding organizations to fortify their structures against uncertainties. From embracing technological innovations to fostering a culture of adaptability, it unveils practical tips for cultivating resilience while concurrently managing risks. Leadership's pivotal role in steering organizations through crises is highlighted, emphasizing risk-aware decision-making. Collaborative approaches and partnerships emerge as crucial elements, promoting collective resilience and shared risk management. The article advocates for a continuous cycle of monitoring, adaptation, and dynamic risk management to meet evolving challenges. As research concludes, it distills key takeaways, urging businesses to adopt an integrated approach to fortify their foundations. Proactive Invitation encourages readers to assess and improve organizational resilience, risk management, and business continuity practices, providing a roadmap for navigating tomorrow's uncertainties.

THE ROLE OF RISK MANAGER IN CONSTRUCTION ORGANIZATIONS: TOOLS AND METHODS FOR EFFECTIVE RISK MANAGEMENT AND THE IMPORTANCE OF RISK ACCOUNTING

This study explores how various tools and methods are used for effective risk management in construction organizations, discussing the need for creating a risk management department and the potential risks associated with ignoring risk accounting.

The impact of risk management on organizations: A literature review

Events in the early years of the 21st century, such as the Enron and WorldCom scandals and the financial crises, revealed significant deficiencies in existing control processes and the difficulties companies had in structuring robust risk management models. With the advent of COSO ERM, ISO 31000 and the Sarbanes Oxley Act –as the main frameworks for holistic risk management models– the aim was for organizations to improve their ability to achieve their strategic objectives through activities that manage uncertainty and, above all, create and sustain organizational value. The purpose of this paper is to review the research on the effectiveness of risk management in organizations by reviewing the literature in Scopus and Web of Science. This review shows that the research is not conclusive regarding the real impact generated by risk management systems and their contribution to value creation and increase in financial profitability. It also shows that there is an interesting gap for future research, considering that many of the studies that have been carried out have a special emphasis on the financial sector, neglecting other equally important economic sectors.

Некоторые аспекты разработки интеллектуальной модели для финансового риск-менеджмента нефинансовых организаций

в сложившихся условиях экономической среды для гармоничного развития и роста бизнеса нефинансовым организациям необходимо совершенствовать подходы к управлению финансовыми рисками, так как существующие средства и методы обработки информации и принятия решений в данной области не в полной мере отвечают современным требованиям. Активно применяемые банками их собственные разработки и технологические решения в указанном направлении в большинстве случаев являются недоступными для других компаний. В статье рассмотрены подходы и технологии в области искусственного интеллекта, применение которых возможно при оценке кредитных рисков, прогнозировании рыночных трендов, решении задач анализа большого объема данных и управлении инвестициями для нефинансовых компаний in the current conditions of the economic environment for the harmonious development and growth of business, non-financial organizations need to improve approaches to financial risk management, since the existing means and methods of information processing and decision-making in this area do not fully meet modern requirements. Although they are actively used by banks, their developments and technology solutions are mostly inaccessible to other companies. This paper discusses the approaches and technologies in the field of artificial intelligence, which can be used in assessing credit risks, forecasting market trends, solving problems of analyzing large amounts of data and investment management for non-financial companies

Is the Implementation of Risk Management Just a Formality? Evidence from a Public Sector Organization

This study aims to describe the implementation of risk management and explore the perceptions of risk owners about its impact. This research was conducted at the Ministry of Public Works and Housing, especially in the service unit for procuring goods and construction services, considering the large budget and the number of auction packages. The research was designed as qualitative research with a case study approach. Data collection uses in-depth interviews to explore phenomena related to implementing risk management in these public sector organizations—data analysis using the Interactive Data Model. The research results show that implementing risk management is not only seen as a mere formality but as a necessity for the organization. In these public sector organizations, the effectiveness in implementing risk management is, on average, in the defined category, which means it is effective in creating and protecting organizational value. Although risk management is still carried out partially, the overall risk management system has begun to be structured and realized. On the other hand, there are still obstacles in risk management infrastructure, such as the unavailability of a risk management information system, limited understanding of risk management, and the absence of a specific budget related to risk management. In overcoming this problem, the solutions offered are to build a risk management information system, conduct education and training, and allocate a specific budget for risk management.

A Bayesian network model for container shipping companies’ organisational sustainability risk management

Serving as the backbone of the international trade, the shipping industry is transforming towards sustainability or environmental, social, and governance (ESG). However, this transformation towards sustainability can cause new and complex challenges and risks to the shipping companies given that the shipping industry is a traditional B2B industry. This research identifies 45 sustainability risks confronted by container shipping companies comprising economic, social, and environmental perspectives. A Bayesian network model is developed to assess the container shipping company’s overall sustainability performance. Mitigation strategies are also designed. Theoretically, this research establishes a customised evaluation and mitigation framework for container shipping companies’ sustainability risks considering a decision maker’s risk appetite. The five most influential risks are ‘weak organisational governance’, ‘insufficient seafarer training & education’, ‘weak social sustainability culture’, 'maritime accident', and ‘weak environmental sustainability culture’. Managerially, this research shows that the most cost-effective solution for container shipping companies is to implement or improve internal control mechanisms.

Examining the Impact of Organizational Culture and Risk Management and Internal Control on Performance in Healthcare Organizations

Abstract In this volatile and challenging environment, global pandemics, extreme weather events, and the ever-changing global political and economic landscape continue to have a significant impact on the sustainability of organizations. This study presents a framework for measuring or assessing the nature of organizational culture and whether it is effective in influencing the competitive advantage of healthcare organizations in terms of operational performance through risk management and internal control. The results of the study demonstrate that effective consideration of the interaction of risk management and control systems with organizational culture is one of the best ways to prevent operational failure. JEL classification numbers: C10, G32, L25, M14. Keywords: Organizational Culture, Risk Management, Internal Control, Medical Institutions.