Risk Management Research Research Articles

Risk paths in BIM adoption: empirical study of China

PurposeThe purpose of this paper is to model the paths of risks associated with building information modeling (BIM) adoption in the Chinese architecture, engineering and construction industry.Design/methodology/approachA total of 16 risks were identified from the literature review and grouped into nine categories. The data were collected through a questionnaire survey with 95 professionals in China. The partial least square structural equation modeling was used to analyze the data.FindingsThe results suggested the risk categorization was confirmed, and that 15 hypothetical risk paths were statistically significant, which formed 13 chains of risk paths. “Inadequate relevant knowledge and expertise” was the primary root risk category of all the 13 chains of risk paths. Additionally, “technological issues,” “poor information sharing and collaboration,” and “liability for data input” had direct effect on the “cost overrun with BIM,” while all the other risks indirectly influence cost via these three risk categories.Research limitations/implicationsMost of the respondents were designers because few clients and contractors have adopted BIM. In addition, the impact and likelihood of risks were accessed by respondents’ judgment based on their experience, which is a common problem of risk management research. As this study focuses on the Chinese architecture, engineering and construction industry, there would be geographical limitation on the findings.Practical implicationsThis study provides practitioners with a clear understanding of the risks associated with BIM adoption and enables practitioners to take measures to mitigate the root risks and assure the potential benefits of BIM.Originality/valueAlthough there have been studies on the risks associated with BIM adoption, most of them lacked empirical evidence and failed to examine the interactions between risks. This study is different from these prior studies, because it focuses on the interrelationships between risks and identifies the risk paths and root risks using the empirical data. Therefore, this study expands the literature relating to both BIM and risk management. Also, this study enables practitioners to take measures to mitigate the root risks and assure the potential benefits produced by BIM, thereby contributing to the practice.

Distributional characteristics of interday stock returns and their asymmetric conditional volatility: Firm-level evidence

This paper is a pioneering effort to jointly analyze the characteristics of interday distributions of stock returns and their asymmetric time varying volatility using firm-level data in local currency from an emerging stock market, namely, the Bourse Istanbul, for the period January 1996 to December 2015. Using a modified Threshold Generalized Autoregressive Conditional Heteroscedasticity-in-Mean [TGARCH(1,1)-M] model; these distributional characteristics statistically assess in a unique framework (i) the weak-form informational efficiency based on the stylized facts of day of the week effects on stock returns and their conditional volatility; (ii) volatility persistence and asymmetry in conditional volatility; and (iii) the conditional total risk–return relationship, and the impact of systematic risk as an asset pricing factor. It is found that at firm level there are statistically significant positive or negative day of the week effects on either stock returns or their conditional volatility, or both. However, for a sample of 120 firms, a full and cross-sectional analysis of the interday distributions does not lead to a systematic pattern of return differences across days of the week. The average volatility is found to be highest on Mondays and the lowest on Wednesdays. It is reported that – as a proxy of total risk in a mean–variance framework – the estimated conditional standard deviation does not have a significant impact on stock returns for the great majority of the sample firms. With reference to the total risk–return relationship and the asymmetry in volatility, there are no significant differences between the industrial and financial sector companies. It is reported that the systematic risk is always priced; and the results are highly significant with a high explanatory power. Volatility is decidedly persistent for all firms investigated; while, a significant asymmetry in the conditional volatility cannot be reported for most of the firms. Contributing to the existing literature as a first time analysis of firm-level distributional characteristics of interday stock returns and their asymmetric conditional volatility with an additional proper risk-impact investigation, the empirical results are of importance primarily for asset pricing and risk management research and practice.

Primer on the Contribution of Crime Scene Behavior to the Forensic Assessment of Sexual Offenders

Abstract. Over the last decades several attempts in developing incrementally valid risk indicators above and beyond standard actuarial and dynamic risk assessment instruments have been undertaken without much success. The current review will summarize current developments regarding the validity of detailed crime scene analysis for forensic assessments of sexual offenders. To this end, this overview will focus on two issues: First, we will discuss the issue of sexual offender risk assessment based on crime scene information. Second, we will outline how crime scene behavior contributes to the assessment of sexual interest in children. In each section we will introduce the reader to new approaches and instruments for risk assessment and diagnosing pedophilic sexual interest based on crime scene information, respectively, and discuss their validity. Finally, we will discuss the implications of these recent developments for risk assessment, risk management, offender treatment, and future research.

Supply chain risk management research agenda

PurposeSupply chain risk (SCR) has increasingly attracted academic and corporate interest; however, the SCR debate in academic literature is rather limited to case- and location-specific studies. Hence, the purpose of this paper is to utilize a systematic literature review (SLR) to explore the SCR research trends and gaps within the management literature.Design/methodology/approachTo achieve the research objective an SLR, looking into 25 years since 1990, into supply chain risk management (SCRM) was conducted, which resulted in 114 papers.FindingsWhile the SCRM literature is growing, results from the SLR identified limited organized understanding of what constitutes a holistic SCR process, and high reliance of particular categories for SCR, such as the high reliance on specific country settings (the USA and the UK); limited presence of cross competitive SCR process analysis and challenges in developing conceptual SCR frameworks.Research limitations/implicationsThe SCR embeds categories of location, scope of supply chain, risk management tools, and the industry sectors involved. The search for related publications was mainly used from a wide range of coverage from accountancy to design in SCR; hence, although there is indication to specific industries, and foci of risk, this could be explored further.Practical implicationsThis review of SCRM identifies various research gaps and directions for future research to develop theory and a practical understanding of SCR.Originality/valueThe current literature on SCR has been assessed based on its definition and utilization. The current paper bridges this gap by synthesizing the diverse academic journal papers into the categories based on the design continuum, relationship continuum, process continuum and economic continuum. In addition, it highlights the gaps in industry context, theoretical contribution, geographic location, and research methods applied and addresses the scope for further research.

Examining the State of Risk Management Research in New Product Development Process

New products are major sources of competitive advantage and success for a manufacturing enterprise. However, not all new product development (NPD) initiatives result in a successful product and are therefore a major cause of wasted resources. Furthermore, NPD processes are becoming increasingly complex and risky due to today’s globalized market and customers’ desire for technologically advanced products. While there has been a significant interest in academia about NPD risks, the existing literature is spread across multiple outlets, making it difficult for any practitioner or researcher to synthesize the current work. This article aims to minimize that gap by providing a comprehensive overview of current research activities in the field of risk management in NPD process in one place. The research design is based on mapping and classification of the existing body of knowledge into the domains of NPD risk analysis and management. The article analyzes the contemporary NPD risk analysis methods on three fronts: risk identification, risk assessment, and risk mitigation. Based on the review, the article then identifies and discusses several key areas for future research significant to engineering management practices. Finally, an integrated framework is presented to provide a holistic approach toward risk management in the NPD process, followed by the practical implications for engineering managers and practitioners.

Internet Supply Chain Financial Model and Risk Management Research Based on Blockchain Technology

Internet subversion and innovation make the supply chain finance moving in the direction of the Internet, that is, the Internet supply chain finance. This article considers the main body of the internet supply chain which began to become diversified, that individuals also participate in the Internet supply chain finance, from financial institutions, core enterprises to the upstream and downstream SMEs, and logistics companies. The study focuses on the Internet supply chain financial model supported by big data and the related risk factors. To solve the risk factors it demonstrates the application mechanism and framework of the blockchain technology in the financial risk management of Internet supply chain. It also take the receivable account of Internet supply chain as an example to explain how to use the blockchain technology in Internet supply chain finance.

What are the possible future research directions for bank\u2019s credit risk assessment research? A systematic review of literature

Banking prudence and efficiency to manage their risks in different business cycle and environment would help to alleviate crises and losses. Hence, the effective assessment of credit risk is an essential component of a comprehensive technique to credit risk assessment and critical to the long-run of not only banking institutions but also the economy as a whole. Therefore, it has received a great interest from scholars across finance and economics to investigate such assessments by banks in different countries using diverse theoretical underpinnings and methodologies. Hence, this paper is developed to review analytical conceptualisations of credit risks assessments that have been developed in the academic literature. By means of a systematic review, it provides a comprehensive analysis that encompasses approaches used in research papers. There has been no prior review on analytical conceptualisations in this area. Moreover, this review is done in a systematic manner, i.e. categorising journal articles into different categories such as purposes, perspectives and methodologies through a transparent and thorough process. Thus, it will be able to provide an objective review. Finally, the paper will outline the evolution of methodologies and theoretical underpinnings in credit risk management research and a landscape for possible future research directions.

Research of Information System Security Risk Management based on Probability Model and Security Entropy

Nowadays, there is a big challenge on the security risk of information system with the rapid development of network. Computer viruses have brought great intimidation on information systems, which made the loss of worldwide information security moving up. Therefore, more and more people focus on the security problem of information systems, which need our appropriate protection. At first, the principle approach from security risk identification to risk management is proposed. Secondly, an information system security risk management algorithm based on probability model and security entropy is described in detail. Thirdly, a particular system is selected as the example. The whole risk of information system security is modelled and computed according to the risk management computing formula. In accordance with the example, the applicability and feasibility of the probability model is verified. The method proposed in this paper provides some use of reference in the risk management of information system security and execution of security measures.

FORMING COMPANY’S RISK APPETITE

Urgency of the research. Adoption of any managerial decision within the company happens in the presence of risks. Against this background, it is vital to determine whether the risk is acceptable is in the process of achieving the objectives. Target setting. From this perspective, it becomes increasingly relevant to develop proposals aimed at helping the companies to form and present risk management process and place of risk appetite in it. Actual scientific researches and issues analysis. Among scientists engaged in research of risk and risk management were F. Knight (2003), T. Coleman and B. Litterman (2012), D. Kahneman (2014), I. Blank (2005), V. Vitlinsky, P. Verchenko, A. Sigal, Ya. Nakonechny (2002), A. Carol (2008), T. DeMarco and T. Lister (2005). Risk appetite was closely studied by D. Tattam (2015), B. Hassani (2015), L. Rittenberg and F. Martens (2012). Uninvestigated parts of general matters defining. It becomes increasingly relevant to identify differences in clarification of the essence of capacity risk, risk appetite, and risk tolerance, as well as develop recommendations on how to determine them within the company’s risk management system. The research objective. Identifying the essence, relevance and place of risk capacity, risk appetite and risk tolerance formation according to specific stages of the company’s risk management process. The statement of basic materials. Risk appetite reflects the level of losses which the company is willing to accept in order achieve its strategic objectives. In contrast, risk tolerance is associated with acceptance of the outcome of specific identified risk events and is defined as readiness for certain risk event. The article also aims to examine the company’s risk management process, in the context of which the place of risk appetite determination, as well as procedure for adoption of decisions on risk appetite and risk tolerance determination are outlined. Conclusions. Breaching the risk tolerance threshold should serve as a red alert for the management. In such a case the risk position has to be reduced.

浙江省地震灾害风险评估研究

风险管理研究已成为防灾减灾工作从“被动救灾”到“主动预防”转化的热门课题。本文在总结国内外地震灾害风险评估研究进展的基础上，提出基于危险性、脆弱性、暴露量三原则的地震灾害风险评估方法，建立浙江省地震灾害风险评估的标准化框架方案和指标评价体系，并展示了初步研究成果。 The risk management research has become a hot subject in the domain of disaster prevention and mitigation as the works changed from “passively relieve disaster” to “active prevention” in recent years. In this paper, the research progress of the earthquake hazard assessment is summarized, and the method of earthquake hazard assessment based on risk, vulnerability and exposure is proposed. Then, the standardized framework scheme and index evaluation system for earthquake hazard assessment in Zhejiang province are designed and the preliminary result is given.

Methodologies of contemporary disaster resilience research

Abstract The United Nations’ Sendai Framework for Disaster Risk Reduction (SFDRR) 2015-2030 specifically calls for multi hazard and solution-driven research in disaster risk management to address gaps, obstacles, interdependencies and social, economic, educational and environmental challenges and disaster risks. The Advancing Skill Creation to ENhance Transformation (ASCENT) project aims to contribute towards this SFDRR goal by strengthening the research and innovative capacities of researchers to tackle the challenges associated with developing societal resilience to disasters. This research has been undertaken under the auspices of the ASCENT project and it is intended to provide an up-to-date account of the research methodologies in current use in order to inform researchers of contemporary research practice as well as to identify trends and possible gaps that could offer opportunities for innovation and improvement. This paper presents the results of a survey of research methodologies used in contemporary disaster resilience research that has recently (2005-2017) been published in leading disaster resilience journals. For the sample of 156 articles analysed, it was found that qualitative approaches dominate with data collection primarily from literature and interviews. Case study research is particularly common and the development of theoretical and conceptual frameworks is somewhat more prevalent than the development of practical toolkits and guidelines.

Evaluation of sustainable supply chain risk management using an integrated fuzzy TOPSIS- CRITIC approach

Supply chain risk management research has mainly mistreated the important of sustainability issues. Moreover, there is little knowledge about sustainable management of risk and supply chain and the way they impose losses for firms. Risk management's duty in the supply chain is to identify, analyze, and provide solutions for accountability, control and monitor the risks in the economic and production cycle. This study aims to develop a framework for the sustainable supply chain risk management (SSCRM) evaluation. To this end, an integrated fuzzy multi-criteria decision-making (MCDM) approach is proposed based on the technique in order of preference by similarity to ideal solution (TOPSIS) and criteria importance through inter-criteria correlation (CRITIC) methods. The literature was reviewed and the potential criteria were identified. Through an expert panel the criteria were filtered. Seven main criteria and forty-four sub-criteria were developed for the final evaluation SSCRM framework. The most dominant sub-criteria in each group found to be as; machines & equipment risks, key supplier failures, demand fluctuations, government policy risks, IT security, economic issues, and lack of proper sewage infiltration. Besides, A2 (Nouri complex) found to be the best practitioner. The methodology is successfully implemented in a real case company. The detailed account of implications and limitations are presented as the concluding remarks.

THE EVOLUTION OF RISK MANAGEMENT RESEARCH: CHANGES IN KNOWLEDGE MAPS

One of the leading trends in modern academic research is risk management. Over the years, the approach to risk management has changed and affected many different areas. This study aims to investigate changes in risk management and trends of risk management in the past 20 years. Risk management related publications from 1990 to 2016 were retrieved from the Web of Science and Scopus databases. VOS viewer software was used to analyse the research trend. Literature growth related to risk management is expanding rapidly. Significantly more publications related to risk management aspects were collected in Scopus, compared to the Web of Science. Since 2005 is to be noted a significantly increasing interest in risk management problems (nearly 5300 publications by year in Scopus database). Risk management problems mainly appearing in publications related to the fields of Medicine and Engineering, Business, Management and Accounting, Economics, Econometrics and Finance, Computer Science and Environmental Science. In Business, Management and Accounting a significant jump in the interest in the issues of risk management was noted in 2011. Recent studies focus on the enterprise risk management, environmental and industry management innovation in strong connection with risk assessment. The enterprise risk management associated with environmental and sustainable perspective may be the newest topics that should be closely followed in risk management research. Keywords: risk management, knowledge maps, network analysis.

Identifying research advancements in supply chain risk management for Agri-food Industries: Literature review

Agri-food supply chain has different characteristics related to the raw materials it uses. Food supply chain has a high risk of damage, thus drawing a lot of attention from researchers in supply chain management. This research aimed to investigate the development of supply chain risk management research on agri-food industries. These reviews were arranged in steps systematically, ranging from searching related to the review of SCRM paper, reviewing the general framework of SCRM and the framework of agri-food SCRM. Selection of literature review papers in the period 2005-2017, and obtained 45 papers. The results of the identification research were illustrated in a supply chain risk management framework model. This provided insight toward future research directions and needs.

Risk assessment of urban flood disaster in Jingdezhen City based on analytic hierarchy process and geographic information system

The research of urban flood risk assessment and management are of great academic and practical importance, which has become a widespread concern throughout the world. It’s significant to understand the spatial-temporal distribution of the flood risk before making the risk response measures. In this study, the urban region of Jingdezhen City is selected as the study area. The assessment indicators are selected from four aspects: disaster-causing factors, disaster-pregnant environment, disaster-bearing body and the prevention and mitigation ability, by consideration of the formation process of urban flood risk. And then, a small-scale flood disaster risk assessment model is developed based on Analytic Hierarchy Process(AHP) and Geographic Information System(GIS), and the spatial-temporal distribution of flood risk in Jingdezhen City is analysed. The results show that the risk decreases gradually from the centre line of Changjiang River to the surrounding, and the areas of high flood disaster risk is decreasing from 2010 to 2013 while the risk areas are more concentred. The flood risk of the areas along the Changjiang River is the largest, followed by the low-lying areas in Changjiang District. And the risk is also large in Zhushan District where the population, the industries and commerce are concentrated. The flood risk in the western part of Changjiang District and the north-eastern part of the study area is relatively low. The results can provide scientific support for flood control construction and land development planning in Jingdezhen City.

Current research trends and application areas of fuzzy and hybrid methods to the risk assessment of construction projects

Fuzzy and hybrid methods have been increasingly used in construction risk management research and this study aims to compile and analyse the basic concepts and methods applied in this field to date. A content analysis is made of a comprehensive literature review of publications during 2005–2017. It is found that the nature of complex projects is such that most risks are interdependent of each other. Therefore, a fuzzy structured method such as the fuzzy analytical network process (FANP) has frequently been used for different complex projects. However, the application of FANP is limited because of the tedious and lengthy calculations required for the pairwise comparisons needed and an inability to incorporate new information into the risk structure. To overcome this constraint, a fuzzy Bayesian belief network (FBBN) has been increasingly used for risk assessment. Further project-specific studies based on FBBN are recommended to justify its broader application. Beyond fuzzy methods, the Credal network – an extended form of Bayesian network- is found to have potential for risk assessment under uncertainty.

The Impact of Occupational Rewards on Risk Taking Among Managers

Abstract. Managers often have to deal with the financial and ethical risks that companies face. Evidence from risk management research suggests a negative relationship between people’s age and risk taking tendencies. Within such a framework, the present contribution examines how different perceived occupational rewards may mediate or interact with the relationship between age and risk taking of managers at the company level. Our results show that perceived rewards in terms of job security partially mediate the relationship between age and ethical risk taking, while perceived rewards related to job promotion moderate the effect of age on financial risk taking. We further discuss the role of different organizational strategies to preserve an organization’s health.

Research of risk management trends in Ukraine

The current state of risk management in Ukraine is considered in the article. The main factors of economic risk for Ukrainian enterprises are identified, such as the unstable political and economic situation in the state, high inflation, unsustainable tax legislation, etc. The needs of the Ukrainian risk management system are identified, as well as specific features of domestic risk management, which include the lack of own infrastructure of risk management and standards of its implementation, significant differences in the Ukrainian and foreign risk profiles for the enterprise, inefficient state risk management, high level of political risk, etc. The need for further research and development of risk management in Ukraine is proved. The procedure for selection of risk management measures in industrial enterprises is suggested, taking into account the world experience in risk management, in particular the FERMA risk management standards, as well as the peculiarities of the existing approach in Ukraine. The proposals for application of risk management measures are made to mitigate the negative impact of environmental factors on the activities of the enterprise and, as a result, improve the results of the economic activities of the enterprise.

The New Era of Corporate Financial Risk Management and Control Strategy Research

With rapid development of China's market economy, business activities face many risks. The core of the overall management and control of risk is the company's financial risk management. In order to prevent financial risks caused by business management crisis and promote corporate healthy steady sustainable development, the focus on financial risk management and control is a possible series of financial problems and risk to predict and control in the future. In this paper, based on the financial risk characteristics of Chinese enterprises and the management and control situation, in the new period, we strengthen risk awareness, improved scientific financial decisions and build financial risk management and control system by analysing impact factors of financial risk in China to put forward the corresponding management and control strategies.

Pseudo resilient supply chains: concept, traits, and practices

Supply chain vulnerability (SCV) and its counterpart supply risk management are increasingly researched in recent years. SCV is often quantifiable and can be effectively monitored if practices are implemented on a systematic basis. It is essentially more important to extend the research in supply chain risk management so as to address certain traits where the companies perform poor or areas where they overlook their performances. Here, we introduce the concept and property, the so-called pseudo resilience in supply chains where supply chains pretend to perform better in its risk management capabilities, but are essentially vulnerable. Pseudo resilience is an incessant nature of many supply chains to overlook concomitant risks. Typical traits of pseudo resilience were identified in this research and a brief analysis of the disruptions and its effects was done. This research is a maiden effort in the direction of addressing the property of pseudo resilience in supply chains. It is imperative for managers to identify the traits of pseudo resilience in their supply chains so as to avoid the ill effects resulting from it. Further quantitative and qualitative researches are recommended for evincing the property of pseudo resilience in supply chains.