Organizational Risk Management Research Articles

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.

Credit Risk Management and Financial Performance of Savings and Credit Co-operative Organizations: A Case of Selected SACCOs in Makindye Division, Kampala Uganda

The purpose of this paper is to assess the effect of credit risk management on the financial performance of Savings and Credit Co-operative Organizations (SACCOs) in Makindye division, Kampala. Specifically, the paper looked at how credit risk identification, credit risk assessment and credit risk control affect the way that SACCOs perform financially. A cross-sectional field survey design that adopted both qualitative and quantitative approaches to collecting and analyzing data was adopted. Twenty (20) registered active SACCOs were purposively selected from Makindye Division for data collection using both questionnaires and interview guides. Data was collected from managers, treasurers or accountants, and secretaries of the registered SACCOs. Descriptive and inferential statistics were generated and interpreted to meet the study objectives. Findings showed that credit risk management has a positive and significant effect on the financial performance of SACCOs. This implies that the way a SACCO performs financially is influenced by the way credit risk is identified, assessed and controlled within that SACCO. SACCOs should train their members on strategies of identifying, assessing as well as controlling risks if they are to register and sustain good financial performance. This paper contributes to literature in regard to credit risk management strategies within SACCOs in Uganda.

The effect of environmental turbulence on cyber security risk management and organizational resilience

Even though there is a plethora of research on the role of environmental turbulence in organizational performance in general, little attention has been paid to the effect of environmental turbulence on cyber security risk management and further - organizational resilience. Drawing on the resource-based view and contingency theory, this study investigates how technological and market turbulence influence organizational cyber security risk management (CSRM) and then organizational resilience. Using a data set from 150 European companies, the study findings show how the two types of turbulence have different effects on CSRM in the companies studied. Technological turbulence directly impacts the firms’ cyber security risk maturity while market turbulence has a direct positive affect on firms’ cyber security risk perception. The study also determines the interplay between risk perception and risk maturity and subsequent resilience.

Knowledge risk management in banks - An area for improving organizational performance

Research on the topic of knowledge risks and their management in organizations is still very scarce, this also applies to empirical studies. However, to avoid the uncritical acceptance of empirical results, replication studies play a crucial role in science. Therefore, this study represents a replication study of the type of empirical generalization of the paper by Durst et al. (2019) which studied knowledge risk management (KRM) in private and public organizations. Considering the KRM and performance assumptions underlying the original study and the methodology used, the results at that time are reviewed using new data from 103 Italian cooperative banks. This paper contributes to the study of risks related to knowledge and its theoretical development by providing new empirical evidence from a different cultural, geographical and institutional context. Furthermore, it emphasizes the importance of replication studies for knowledge accumulation and theory development in management science.

Integrating cybersecurity risk management into strategic management: a comprehensive literature review

Purpose- This literature review aims to delve into the nexus between cybersecurity risk management and strategic management, comprehensively exploring how organizations weave risk management strategies into their broader strategies to safeguard digital assets and infrastructure against the backdrop of ever-evolving cyber threats. Methodology- The review employs a qualitative methodology, synthesizing insights from a diverse selection of scholarly works encompassing cybersecurity, risk management, and strategic management. These insights are analyzed to unveil patterns and trends that highlight the integration of cybersecurity risk management within strategic organizational frameworks. Findings- The review uncovers a critical interdependence between cybersecurity risk management and strategic management, showcasing how organizations formulate proactive measures to mitigate cyber risks while aligning them with overarching strategic goals. It also underscores the role of organizational culture, leadership commitment, and technological advancements in shaping effective cybersecurity risk management strategies. Conclusion- The synthesis of scholarly findings accentuates the pivotal role of cybersecurity risk management in modern organizations. The review underscores the importance of fostering a strategic mindset towards cybersecurity, with a proactive approach that integrates risk management efforts within the broader organizational strategy. This not only shields digital assets but also promotes resilience, enabling organizations to thrive despite an increasingly dynamic and hostile digital landscape. Keywords: Strategic management, cyber security, cyber risks, risk management, organizational strategy. JEL Codes: M00, M10, M15

Sectoral Analysis of Malaysian Companies’ CSR Initiatives for Organisational Risk Management

Sectoral Analysis of Malaysian Companies’ CSR Initiatives for Organisational Risk Management

A Review of Environmental, Social and Governance (ESG) Regulatory Frameworks: Their Implications on Malaysia

The increasing emphasis on sustainability has led many nations to introduce ESG-related regulatory frameworks. These frameworks aim to regulate and guide financial investments based on the ESG performance of companies while ensuring transparency to prevent the manipulation of sustainability-related information concerning investment products. This article reviews the regulatory and disclosure frameworks implemented in different nations and regions to identify their key components. The review reveals that these regulatory frameworks capture the environmental aspects encompassing climate change adaptation and mitigation, identification, evaluation and management of climate risks, circular economy practices, and pollution prevention. They also cover the social aspects, which include community development, employee welfare, and human rights. Additionally, governance aspects comprising anti-corruption measures, diversity within company boards and management, and the implementation of due diligence were included. The increased emphasis on transparency underscores the importance of disclosure. In this regard, the disclosure frameworks largely align with the recommendations of the Task Force on Climate-related Financial Disclosures, which cover governance, strategies for identifying and assessing risks and opportunities, their impacts on a company's finances and operations, resilience-building through scenario analyses, risk management integration with the overall organizational risk management, and the use of metrics and targets to measure performance. Malaysia could benefit from adopting comprehensive regulatory and disclosure frameworks that address ESG holistically, with elements related to the circular economy and dual materiality included in the frameworks. Future studies could focus on standardizing the development of metrics and targets to facilitate performance comparisons.

Organization of risk management at an enterprise during the war

The article discusses risk management, which is an important component of the successful operation of any enterprise, especially in times of war. War, as a complex and unpredictable situation, can lead to significant losses for an enterprise, including financial, human and material resources. These losses may affect the company’s operations, reputation and development prospects.The experience of developed countries shows that ignoring or underestimating risks inevitably hinders the development of business entities and causes stagnation of the entire economy. In such challenging times, it is especially important to have a well-organized risk management system in place to minimize potential losses and ensure the continuation of production and other business activities. This article discusses the organization of risk management at enterprises during the war, and also examines effective ways to prevent and eliminate risks that will help maintain the sustainability and development of enterprises in difficult conditions.

Do work-family conflict or family-work conflict mediate relationships between work-related hazards and stress and pain?

Previous research has identified associations between work-family conflict (WFC) and health outcomes (e.g., musculoskeletal pain). This study investigated whether WFC and family-work conflict explain relationships between exposure to work-related hazards and musculoskeletal pain and stress for workers undertaking some or all of their work at home. Possible differences by home workspace location were also explored. Longitudinal survey data were collected from workers in Australia engaged in work from home for at least two days per week. Data was collected at four timepoints approximately 6 months apart (Baseline [October 2020] n = 897; Wave 1 [May/June 2021] n = 368; Wave 2 [October/November 2021] n = 336; Wave 3 [May 2022] n = 269). Subjective measures of work-related psychosocial hazards, occupational sitting and physical activity, musculoskeletal pain, and stress were collected via an online questionnaire. Mediation analyses were conducted using the R package "mediation." Analyses were also conducted with the data set stratified by home office location, using R version 4.1.3. Both WFC and family-work conflict acted as mediators between psychosocial work-related hazards and musculoskeletal pain and stress. WFC mediated more relationships than family-work conflict. Location of home workspace was important, particularly for those working in a space at home where they may be subject to interruptions. Addressing WFC is a legitimate means through which musculoskeletal pain and stress can be reduced. Organizational risk management strategies need to address all work-related risks, including those stemming from work-life interaction.

Risk management in trade organizations

Risk management in trade organizations

Ensuring resilience: Integrating IT disaster recovery planning and business continuity for sustainable information technology operations

Information Technology (IT) Disaster Recovery Planning (IT DRP) and Business Continuity (BC) are essential components of an organization’s overall resilience strategy. IT DRP focuses on the recovery and restoration of IT systems, infrastructure, and services in the event of a disruptive incident or disaster, aiming to minimize downtime and data loss. BC, on the other hand, encompasses a broader perspective, addressing the organization's ability to maintain essential operations and deliver critical services during and after a disruption. This paper provides an overview of IT DRP and BC, highlighting their importance, challenges, and strategies. It also identifies the research gaps and future research scope in these areas. The findings indicate that both IT DRP and BC face challenges in their effective implementation. These challenges include the evolving nature of technology, increasing complexity of IT systems, budget constraints, organizational resistance to change, and the need for skilled personnel. Overcoming these challenges requires a comprehensive understanding of the organization’s IT infrastructure, risk assessment, and the development of robust recovery strategies and plans. It is also noted that despite considerable research on IT DRP and BC, there are several research gaps that deserve attention. These include the development of advanced technologies and tools for more efficient recovery and continuity, the integration of IT DRP and BC with overall organizational risk management, the impact of emerging technologies such as cloud computing and virtualization on recovery strategies, and the evaluation of the effectiveness and cost-efficiency of different IT DRP and BC strategies.

Risk Management in Private Companies and Public Sector Organizations: A Preliminary Comparative Study

Purpose – The effectiveness of risk management in an organization depends largely on its organizational culture as revealed in its governance structure and organizational process. The research question of this study is how to develop strategy to improve the effectiveness of risk management under the constraints of a given organizational culture. The objective of this study is to show that there are fundamental differences and similarities between the governance structure and organizational process that significantly influence the effectiveness of risk management in private companies and the one in public sector organizations. Methodology – To achieve the objective, legal documents of major public and private organizations are reviewed and key resource persons working for the organizations are interviewed. Findings – This paper reports preliminary results that identify several important dimensions of governance structure and organizational process in both sectors that crucially influence the effectiveness of risk management. Originality – Studies on the similarities and differences between public and private organizations in implementing risk management have been very rare. Very few studies explicitly address the effectiveness of risk management in the perspective of the comparative study. This study has never been carried out before, at least in the Indonesian context.

The regulation of and through information technology: Towards a conceptual ontology for IS research

This special issue addresses a largely neglected area of Information Systems (IS) research – the regulation of and through Information Technology (IT). As with other human technologies, IT artefacts present risks and can harm individuals, groups, organisations, economies, and society: However, this remains a largely unexplored topic in IS research. Nevertheless, regulators, social commentators, the media, and the public have voiced their concerns about such risks, particularly those related to artificial intelligence (AI), cybersecurity, privacy, digital assets (e.g. cryptocurrencies), and the market dominance of digital platforms. Accordingly, regulations have been instituted or proposed to regulate IT artefacts in and across several business sectors. Additionally, in response to the informational challenges posed by a complex web of laws and regulations, regulators and business organisations have implemented IT artefacts to transform regulatory and supervisory processes or to enhance organisational risk management and compliance reporting capabilities. This special issue addresses the research challenges related to emergent issues surrounding the regulation of and through IT. In this editorial, we take stock of where the field currently stands. We advance a conceptual ontology of IT regulation to guide future research by specifying several taken-for-granted core concepts. By rendering the concepts, categories, and their relationships explicit, the model and its related research questions provide a firm foundation to generate a cumulative body of research on the regulation of and through IT.

Risk management model for information security

A risk management model makes it possible to explore the organizational factors and risk management practices that affect or delay the achievement of the objectives that are considered strategic. The purpose of managing risks is to develop a detailed analysis of the organization, its operations, assets, processes and their existing interrelationships in order to establish a complete list of risks, which implies identifying, analyzing and providing alternative treatment to risks. actual and potential. Therefore, a risk management model obtains too much importance when focusing on the needs of the organization in a specific way, since it is not only about copying norms or policies of one organization to mitigate the risks of another, but each of these has different scenarios or contexts.

Risk Management in Organizations: An Examination of Audit Committee Determinants and Consequences

As a result of accounting and fraud scandals, the financial crisis, and the dot com bubble, corporate governance has gained popularity. Corporate governance practices' results and corporate governance's determinants are the two primary areas of governance study. Corporate governance is often measured using indicators, specific traits, or a composite index variable. This study looked at 69 non-financial KSE-100 indexed, Karachi Stock Exchange (KSE) listed firms to determine the reasons for and effects of risk management committee and audit committee presence. A statistical program such as STATA is used in this study to calculate the fixed effect and random effect. Hausman test is also applied to the data. Only board independence, leverage, and business size were shown to be significant predictors of the presence of a separate risk management committee, whereas firm size was discovered to be a significant predictor of the presence of a separate audit committee. According to the study's findings, to safeguard investors' interests, businesses should establish a separate risk management committee and strengthen corporate governance standards. The implications of the audit committee on other accounting and financial results should be the subject of future study.

A Systematic Review of Risk Management Methodologies for Complex Organizations in Industry 4.0 and 5.0

The large amount of information handled by organizations has increased their dependance on information technologies, which has made information security management a complex task. This is mainly because they cover areas such as physical and environmental security, organization structure, human resources and the technologies used. Information security frameworks can minimize the complexity through the different documents that contain guidelines, standards, and requirements to establish the procedures, policies, and processes for every organization. However, the selection of an appropriate framework is by itself a critical and important task, as the framework must adapt to the characteristics of an organization. In this paper, a general vision of the newest versions of the NIST CSF, ISO/IEC 27001:2022, and MAGERIT frameworks is provided by comparing their characteristics in terms of their approaches to the identification, assessment, and treatment of risks. Furthermore, their key characteristics are analyzed and discussed, which should facilitate the consideration of any of these frameworks for the risk management of complex manufacturing organizations.

Interviews with rail industry leaders about systems thinking in the management of organisational change and risk management

The rail industry in Great Britain has faced unprecedented demand for its services in the past decade, whilst addressing technological transformation, and with multiple objectives in relation to safety and performance. Systems theories seems to offer solutions for these challenges, but there has been little research on how rail organisations can establish processes and build resilience during periods of significant change that are complementary with this type of theoretical approach. This paper investigated senior business leaders’ perspectives of how systems thinking is, or could be, applied in organisational design, system change and risk management. Twenty-five interviews were carried out with senior executives and managers in the railway industry. These interviews were designed to explore the perceptions of these people in policy setting and senior management roles and what they see as barriers to change within a dynamic, fast moving, industry. This included exploring both the ‘work as imagined’ in the corporate strategy and company procedures, as well as their understanding of ‘work as done’. Two national change programmes that affect the frontline rail engineering workforce have been used as contexts to frame consultations within this study. The results identify some important points to consider for the design of change in a complex industry, and how a socio-technical system framework or model might be applied in practice.