Risk Management Research Research Articles

What drives reputational risk? Evidence from textual risk disclosures in financial statements

The drivers of reputational risk are still far from explicit, making proactive risk management and quantitative research rather difficult. The Basel Committee on Banking Supervision encourages financial institutions to systematically identify reputational risk drivers; however, such drivers still represent an unsolved problem. Therefore, the objective of this paper is to systemically identify reputational risk drivers from textual risk disclosures in financial reports. We find that textual risk disclosures in financial reports contain abundant information about the causes of reputational risk, thus indicating the possibility of systematically identifying the reputational risk drivers. To accurately extract reputational risk drivers from massive and unstructured textual risk disclosure data, we modify a text mining method to make it more suitable for this type of textual data with noise words. Based on 352,326 risk headings extracted from 11,921 annual reports released by 1570 U.S. financial institutions from 2006 to 2019, a total of 13 reputational risk drivers are identified to extend upon existing studies. The importance of reputational risk drivers and their dynamic evolutions are also quantified to discover the drivers of greatest concern. This paper can clarify the sources of reputational risk to help companies realize proactive reputational risk management and provide a theoretical basis for further quantitative studies, especially the measurement of reputational risk.

Comparison of Safety Risk Identification of Bridge and Tunnel Engineering

With the development of science and technology and the changes of the times, the transportation industry is developing rapidly all over the world. As a key and difficult project in the transportation industry, the bridge and tunnel project has many problems, such as complex engineering structure, large building scale, long construction period and changeable construction environment, which leads to frequent bridge and tunnel construction accidents. Based on the domestic and international theoretical research of risk management and safety risk , this paper adopts LC risk identification method to identify and horizontally compare safety risk accidents of bridges and tunnels in the same project. The aim is to figure out the difference of construction safety risk types between bridge and tunnel projects. It is significant to improving the efficiency of construction safety management via refining the evaluation indexes and comparing and analyzing the evaluation results from multiple angles.

How to Select the Best Risk Management Techniques for Different Projects

From its inception, project management has received a lot of attention from companies. Researchers have found that risk management has an important impact on project management, however, the current scope of risk management research is relatively narrow, and there are still research gaps for the various risks encountered in projects. Therefore, the research theme of this paper is to study the risk management approach to various risks. The research methodology of this paper is as follows: first, we collect data on the impact of risks on the project, then we analyze the data and propose solutions. This paper identifies three possible risks in projects and finds ways to address them. The first is a high-cost risk, for which this paper proposes three solutions. The second is the risk of quality, which can be eliminated by quality risk management. The third is the risk of schedule. The manager should redesign the project duration. This paper provides a new way of thinking that will help future researchers broaden the scope of their research.

Risk management in sustainable supply chain: a knowledge map towards intellectual structure, logic diagram, and conceptual model.

The global spread of COVID-19, international trade protectionism, geopolitical conflicts, and climate change presents challenges and risks to sustainable supply chains (SSCs). In recent years, scholarly interest in sustainable supply chain risk management (SSCRM) has continued to rise. A helpful literature review is necessary to enable supply chain practitioners to apply empirical findings from academic research or conceptual frameworks to their operations to maintain the stability and competitiveness of sustainable supply chains. The knowledge map of SSCRM is explored in this study using both quantitative and qualitative analysis. A total of 793 articles were retrieved to reveal the knowledge map of SSCRM. Scientometric and context analysis are combined in quantitative analysis to identify the intellectual structure of risk management research related to SSC. Then, a critical review is conducted in qualitative analysis to summarize and analyze the motivations, strategies, approaches, and tools of SSCRM. Combining the quantitative and qualitative analysis results, a conceptual model is constructed for SSCRM from three aspects: (1) risk identification, (2) risk assessment, and (3) risk mitigating and responding. Finally, future research directions are suggested based on the conceptual model for guiding the theories and practice of SSCRM. This study can work as a roadmap for providing appropriate risk management policies and toolkits to SSC, which could advance theoretical thinking on how to mitigate SSC risks.

Disease Information Dissemination Prevention and Risk Management Methods in the Blockchain Environment

With the advancement of technology and the arrival of the era of integrated media, big data, artificial intelligence, cloud computing, and virtual reality are gradually changing the ecology of public opinion. This will bring new challenges to the technical discovery, data analysis, and response of network disease dissemination to public opinion. Internet data barriers are still widespread. The specific requirements are to explore the application mode of blockchain technology to bring a better service experience to the people. Therefore, this paper focuses on the dissemination of disease public opinion information and risk management research in the blockchain environment. Furthermore, the application of advanced blockchain technology is used to seek breakthroughs in the field of risk management of network disease transmission and public opinion in terms of technology and data. This paper systematically sorts out the research results of domestic and foreign disease transmission network public opinion, public opinion risk management, and blockchain through comprehensive use of literature analysis, grounded research, empirical research, simulation research, and other research methods. Based on theories of the disease transmission network, public opinion, risk management, blockchain, and system dynamics, we conduct research on network public opinion and risk management of disease transmission in the block chain environment. At the theoretical level, the research in this paper can promote the risk management of disease transmission network public opinion in the blockchain environment and carry out the construction of the theoretical system to deepen the application of blockchain technology in the field of disease public opinion risk management. At the practical level, the research in this paper can guide the improvement of the effect of public opinion risk management. Then, blockchain technology is applied to manage the risk of disease public opinion. In future research, the theory of public opinion risk management will be further enriched. We will apply blockchain technology to develop the evolution of the risk of disease public opinion transmission, carry out research on public opinion management and other aspects, and at the same time, try the design and development of a blockchain public opinion system. In this way, the innovation of blockchain in the development and application of disease network public opinion research will be promoted.

Investigating the effects of stakeholder collaboration strategies on risk prevention performance in a digital innovation ecosystem

PurposeThe risks associated with digital innovation increasingly challenge value co-creation among stakeholders within the innovation ecosystem. Stakeholder collaboration is helpful in preventing risk occurrence. This study intends to explore the effects of different stakeholder collaboration strategies on risk prevention performance in a digital innovation ecosystem context.Design/methodology/approachA systematic literature analysis was first conducted to identify risk factors of digital innovation based on the technology–organization–environment (TOE) framework. Then, a bidimensional network model was constructed to visualize the collaborative relationships among stakeholders and the identified risks by focusing on a digital innovation case. The social network analysis method was applied to design stakeholder collaboration strategies from the ego and global network perspectives, and a simulation approach was conducted to evaluate the effects of the strategies on risk prevention performance.FindingsThe results validate the positive effect of stakeholder collaboration on risk prevention performance and reveal the important role of network reachability in formulating collaboration strategies. The strategy of strong–strong collaboration strategy can best enhance risk prevention performance like a “Matthew effect” in the digital innovation ecosystem.Originality/valueFirst, risk identification based on the TOE framework provides a systematic list of risk factors for future digital innovation risk management research. Second, this study designs stakeholder collaboration strategies from a network perspective to enhance the understanding of the network status of each stakeholder and the network structure of the digital innovation ecosystem. Third, the simulation results reveal the effects of different collaboration strategies on risk prevention performance.

A modular framework for the development of multi-hazard, multi-phase volcanic eruption scenario suites

Understanding future volcanic eruptions and their potential impact is a critical component of disaster risk reduction, and necessitates the production of salient, robust hazard information for decision-makers and end-users. Volcanic eruptions are inherently multi-phase, multi-hazard events, and the uncertainty and complexity surrounding potential future hazard behaviour is exceedingly hard to communicate to decision-makers. Volcanic eruption scenarios are recognised to be an effective knowledge-sharing mechanism between scientists and practitioners, and recent hybrid scenario suites partially address the limitations surrounding the traditional deterministic scenario approach. Despite advances in scenario suite development, there is still a gap in the international knowledge base concerning the synthesis of multi-phase, multi-hazard volcano science and end-user needs. In this study we present a new modular framework for the development of complex, long-duration, multi-phase, multi-hazard volcanic eruption scenario suites. The framework was developed in collaboration with volcanic risk management agencies and researchers in Aotearoa-New Zealand, and is applied to Taranaki Mounga volcano, an area of high volcanic risk. This collaborative process aimed to meet end-user requirements, as well as the need for scientific rigour. This new scenario framework development process could be applied at other volcanic settings to produce robust, credible and relevant scenario suites that are demonstrative of the complex, varying-duration and multi-hazard nature of volcanic eruptions. In addressing this gap, the value of volcanic scenario development is enhanced by advancing multi-hazard assessment capabilities and cross-sector collaboration between scientists and practitioners for disaster risk reduction planning.

Risk Culture and Strategic Planning Roles on Enterprise Risk Management and Firm Performance in Selected African Countries

Enterprise risk management (ERM) research has mostly been limited to factors determining its implementation and its effects on firm performance. Despite a clear need for its establishment in sound risk culture and its integration with strategic planning, organisational leaders continue to implement these management concepts in isolation. Academic research into these conjoint relationships has also received less attention in the literature. This study investigates whether ERM's effect on firm financial performance, measured by return on assets, is mediated by risk culture and strategic planning. The study provides empirical evidence that adopting ERM solely does not enhance a firm's financial performance. The ERM, risk culture, and strategic planning constructs are empirically determined to be correlated. Strategic planning has a direct and positive relationship with firm performance. The study further provides empirical evidence that the positive effects of ERM implementation on firm financial performance are mediated by risk culture and strategic planning. The size of a firm and its financial leverage are remarkable determinants of firm performance, while firm age and growth rate are not. The pieces of evidence have been presented from an under-investigated context in Africa with other contributions to the literature, such as, providing comprehensive measures of ERM and risk culture and responding to calls to synthesise risk and strategic management. This study also advances multiple mediation analysis and the use of PLS-SEM in the ERM literature.

Blockchain Empowers Chain Enterprises in the Digital Economy to Strengthen Risk Management Research

With the vigorous development of blockchain technology, researches on various “blockchain+” scenarios continue to bring forth new ideas. As some of the characteristics of the blockchain technology itself deeply meet the demands of the development of chain enterprises, it can better control the related risks of enterprises. Therefore, it is necessary to combine the characteristics of blockchain technology with the characteristics of chain enterprise risks and the interaction mechanism for research. This article aims to study how to strengthen risk management for chain enterprises in the digital economy. For this reason, this article proposes a method to empower the digital economy through the blockchain and calculates and analyzes the risk measurement so that it can effectively estimate the risk. This article also designs an experimental analysis to explore its effect. The experimental results of this paper show that after the improvement, the risk of chain enterprises is reduced by 35%, and the risk is effectively controlled.

Review of risk management studies in public-private partnerships: a scientometric analysis

This paper reviews the trend of research studies on risk management in public-private partnerships (PPP). Bibliometric data of 1730 publications were retrieved from Scopus using selected keywords between 1989 and 2019. The VOS viewer software was then used to conduct a scientometric analysis of the normative literature. The review outcomes show that research on PPP risk management has generally increased over the last decades, however, a significant increase in publications was realized in 2005. This reinforces assertions that risk management is an essential issue in PPP practice globally. Further, the three most productive countries of PPP risk management research are the U.S., China and, the U.K. Lastly, it was found that majority of the PPP risk management studies have focused on only four key areas of the conventional risk management framework process, and this includes risk identification and assessment, risk allocation/sharing, risk analytical models and techniques, and risk mitigation. Other areas including risk treatment, risk monitoring and review have not been properly explored which makes the PPP risk management framework process inconclusive. The present study contributes to PPP knowledge by providing a general overview of risk management in PPP, thereby creating a solid platform for future research efforts in this critical domain.

"Recent Advances in Risk Management Using Business Intelligence"

Over the last several decades, risk supervision has been a hot subject in both academic world and practice. The complexity of the company and the environment in which it works determine operational risk. As the company or the environment becomes more dynamic, i.e., where change is a constant characteristic and a factor to consider into the management of the firm, such complexity grow. The important issue is how companies react to such changes today, and what measures can businesses take to anticipate and prepare for change as the nature of business and the environment becomes more dynamic. The majority of business intelligence (BI) programs or software have been utilized to improve risk supervision, and business intelligence methods have improved risk management solutions. This introductory paper offers an overview of current business intelligence research in risk management.

Supply chain risk management research in construction: a systematic review

Risk management plays a key role in effectively operating construction supply chains with the presence of diverse uncertainties. In construction, some review-based papers have been done to cover various issues in supply chain risk management (SCRM) such as risks associated with the adoption of supply chain management. However, limited review papers have been conducted to comprehensively classify supply chain risk (SCR) types and/or analyze SCRM processes (i.e. risk identification, risk assessment, risk mitigation, and risk monitoring). Therefore, this study aims to overcome such shortcomings of previous literature reviews by applying a review process with six specific stages. Accordingly, 30 relevant papers published during over the last two decades are first extracted from Scopus and Web of Science databases. Then, descriptive and content analyses are used to review these papers. It is found that a considerable amount of focus has been devoted to identifying and assessing risks while mitigating and monitoring risks have not yet received much attention from researchers. Finally, research gaps and opportunities are presented to guide further studies. This paper contributes to the extant literature by conducting a comprehensive view of various past studies across SCRM processes in construction.

A Whole Process Risk Management System for the Monitoring and Early Warning of Slope Hazards Affecting Gas and Oil Pipelines

Pipelines are important methods of oil and gas transportation and are fundamental to many country’s economies. Pipeline safety is a critical issue; over 96% of pipeline accidents due to ground movement are caused by slope hazards and these can lead to serious personnel and property losses. Therefore, effective pipeline slope hazard monitoring and early warning is crucial, but there are many limitations to existing measures. The recent advance in remote sensing technologies enables the collection of slope hazards information that maps the spatial distribution of landslide. But this approach cannot provide real-time monitoring and early warning as there is a time lag due to image processing. Also, pipelines are considered separately from the slope hazard, with only slope event occurrence assessed rather than quantification of the impact of the hazard on the pipeline. Here, we report on a whole process risk management system for the pipeline slope hazard, incorporating monitoring and early warning of pipeline slope hazards. Three sites at risk of slope hazard on the Guangdong Dapeng Liquefied Natural Gas (LNG) Company pipeline in Guandong, South China - Zhangmutou, Huoshaogang and Dapeng New District - were selected for research and implementation of the whole process risk management, monitoring and early warning system. The system is shown to operate well and, overall, we found that the three sites are relatively stable at present. This research provides widely applicable guidance for the prevention, control, and early warning of pipeline slope hazards.

The Language of Trauma Narrative Communication Management

Trauma experiences or post-traumatic disorders prove to be an uprising phenomenon faced by people around the globe. This paper examines the language of trauma studies in two textbooks authored by a prominent trauma analysis expert who has been in the field for more than 20 years. This paper posits that the study or content analysis of trauma narratives discourse textbooks could contribute to self-efficacy beliefs especially in communication management. Using the corpus-based approach, essential keywords, and a word list of the essential language of trauma headwords are identified. Thus, with the 209 identified headwords, the development of the new word list specifically to trauma narratives discourse has been facilitated. The production of the word list of the language of trauma is aimed to assist disaster risk management researchers and authorities in identifying the ‘sensitive’ traumatic keywords to be or not to be narrated to the affected people in community-based studies. Thus, this study entails insightful concepts to the creation of a trauma narrative essential word because of its meaningful application. In conclusion, the article presents the keywords found to be associated closely with trauma narrative textbooks insights and proposes a coping alternative to the community or academia from a linguistics and communication management point of view.

Development of a Risk Classifier as a Stage of Successful Risk Management

The article gives the analysis of approaches to risk classification at industrial enterprise. Based on the findings, conclusions about advantages and disadvantages were drawn up, as well as the possibilities for its application at nuclear enterprises are formulated. The authors propose an original personalized approach to risk classifier development, which takes into account the nuclear industry specifics. An example of an algorithm for risk classifier development based on above-mentioned approach for the enterprise of the Rosatom State Corporation is given. This example can be used in various industries and may be of interest to risk management researchers and specialists.

RISK MANAGEMENT METHODOLOGY THROUGH THE PRISM OF SOCIAL MANAGEMENT MACRO-FACTORS

The history of humanity is a history of the creation of new technologies, including special technologies for risk management, to help us reduce and, in some cases, completely control risks that previously would have had the most devastating consequences. The purpose of the article is to analyze the macro management factors that influence risk management and to reveal their methodological component in this process. The author of the article emphasizes that modern society in the dynamic functioning of the social and economic relations relies already not so much on the analysis of factors influencing on management process, as on the ability of subjects to estimate and correct risks. in relation to the object of acceptance of a management decision. It is noticed that the main studied concepts of a number of Russian scientists are the areas of risk research within the monetary sphere of company management; research of risk management as a paradox and structuring of this activity in the general vector of company economic life management; or risk management in specific areas of socio-economic life, such as insurance, financial services, investment activities, etc. It is concluded that the global factors of management activities have a direct impact on the implementation of risk analysis in the most specific management situations at all levels of its application.

Risk Management of Sports Venues and Olympic Sports Cooperation Spirit under Complex Environment.

The understanding of sports event risk and Olympic sports cooperation spirit, as well as the systematic analysis and research of sports event risk management, are still in their early stages in China's sports theory circle. Institutions for developing sports talent also disregard programmes designed to increase the risk awareness and Olympic spirit of sports workers. This essay provides an overview of the concepts of sports event risk and Olympic sports cooperation spirit based on reality. This paper examines the interaction of risk management of large-scale sporting events and Olympic sports cooperation spirit from the perspective of event organization managers, using the pertinent theory of risk management and the random forest algorithm in machine learning. The experimental results show that, according to the analysis of injury occurrence according to different positions, it is discovered that forward athletes suffer the most injuries, with an average of 54 forwards in injury situations, followed by guards with an average of 43 guards in injury situations, and finally centres with an average of 38 guards in injury situations. Combining risk management for major sporting events with the cooperative Olympic sports spirit has significant practical implications.

Research Advances in Energy Investment Risk Management—A Bibliometric Perspective

To clarify the evolution of energy investment risk management research, we used the Web of Science database, bibliometric, knowledge mapping, and inductive methods to comb through a total of 2150 relevant literature from 2010 to 2021. Firstly, we analyze the time series distribution, core author groups, important journals and source distribution of relevant papers in the field of energy investment risk, and describe the current research status and hot spots of energy investment risk. Secondly, CiteSpace and VOSviewer software are used to cluster the keywords in the field of energy investment risk. The study found four shortcomings in energy investment risk research: firstly, the construction of indicators lacks basis; secondly, the evaluation results lack persuasive power; thirdly, the indicator system lacks pertinence, and fourthly, the evaluation methods and models are not perfect. The directions for future in-depth research include the construction of multivariate evaluation index systems, evaluation methods and models for different industries in a targeted manner.

Risk management in SMEs: Status quo and areas for future research in the German leasing industry

PURPOSE: The purpose of the present research note is to give an overview of research in the field of risk management in leasing SMEs as well as to present fields for future research. It intends to encourage other researchers to fill the current gap in research on risk management in general and on risk management in (German leasing) SMEs in particular. DESIGN/METHOD: The research note is based on interviews with 40 German leasing firms, thereof 35 SMEs. Qualitative research was chosen due to the nascent knowledge area and to explore cause-effect- -relationships as well as to gain a deeper understanding of the practical requirements on risk management. RESULTS/FINDINGS: A research framework was presented based on the findings of the literature review. Based on the interviews, the framework could be drilled down into more operative, leasing-specific topics. Amongst others, it could be found that the risk management organisation is greatly shaped by the underlying risk strategy, the motivation for risk management, as well as the essential risks. These three elements form the basis for the operative and strategic risk management practice. Furthermore, it was differentiated in the different lifecycle phases of risk management. ORIGINALITY/VALUE: The presented research note is based on the first known research in the field of risk management for German leasing SMEs with a comparable number of interviews. Therefore, this research note includes a high degree of novelty. Adapting the findings in practice as well as combining it with other research questions might add significant value to risk management research as well as practice not only limited to the German leasing industry. KEYWORDS: risk management, small and medium-sized enterprises (SMEs), leasing, financial services, Germany. JEL: A12, D81, G32

Risk management in SMEs: Status quo and areas for future research in the German leasing industry

PURPOSE: The purpose of the present research note is to give an overview of research in the field of risk management in leasing SMEs as well as to present fields for future research. It intends to encourage other researchers to fill the current gap in research on risk management in general and on risk management in (German leasing) SMEs in particular. DESIGN/METHOD: The research note is based on interviews with 40 German leasing firms, thereof 35 SMEs. Qualitative research was chosen due to the nascent knowledge area and to explore cause-effect- -relationships as well as to gain a deeper understanding of the practical requirements on risk management. RESULTS/FINDINGS: A research framework was presented based on the findings of the literature review. Based on the interviews, the framework could be drilled down into more operative, leasing-specific topics. Amongst others, it could be found that the risk management organisation is greatly shaped by the underlying risk strategy, the motivation for risk management, as well as the essential risks. These three elements form the basis for the operative and strategic risk management practice. Furthermore, it was differentiated in the different lifecycle phases of risk management. ORIGINALITY/VALUE: The presented research note is based on the first known research in the field of risk management for German leasing SMEs with a comparable number of interviews. Therefore, this research note includes a high degree of novelty. Adapting the findings in practice as well as combining it with other research questions might add significant value to risk management research as well as practice not only limited to the German leasing industry. KEYWORDS: risk management, small and medium-sized enterprises (SMEs), leasing, financial services, Germany. JEL: A12, D81, G32