Responsibility For Risk Management Research Articles

Multi-objective optimal allocation of construction project risks, ant colony optimization algorithm

PurposeThe purpose of this paper is to introduce a new approach for finding the most appropriate risk allocation among construction contract parties. Although risk allocation is a strategic decision that can greatly affect the cost and time of the project, it is often made based on the personal judgments of employers. That is why owners usually find it a very time-consuming and expensive decision process, while most contractors feel that risk sharing is not done fairly. In this paper, a quantitative model for risk allocation is introduced to fulfill clients’ conflicting expectations in the risk allocation process.Design/methodology/approachBy defining conflicting expectation of owners in the form of three quantitative objectives (lowest cost, maximum reliability and minimum risk exposure), a multi-objective optimization algorithm was developed to select the most appropriate risk allocation. Using experts’ knowledge through fuzzy set theory, a multi-objective decision-making model is developed based on an ant colony optimization algorithm. The proposed model is able to find the optimum risk allocation at the lowest cost and highest reliability while protecting the client against risk exposure within multiple parties projects.FindingsThe proposed model has the ability to select the most appropriate risk allocation in multi-parties projects (such as public–private partnerships) and quantitatively measure the impact of each employer’s choice on project results in the form of cost and time. The results of implementing the proposed model in a case study project revealed that optimum risk allocation requires a balanced attitude, and the transfer of all risks to the other parties will not necessarily lead to the lowest cost. The client should bear more responsibilities in risk management to avoid extreme time delay and cost overrun.Research limitations/implicationsThe proposed model can be implemented in multi-parties projects (such as public–private partnership), while other methods introduced in previous studies can only be used for projects with two party (client and contractor).Practical implicationsBy implementing the proposed model in a real project in this article and comparing its results with previous works, it has been shown that the proposed model has a good performance. Using this model can help clients drastically reduce cost and time and ultimately successfully conclude risk allocation negotiations (which is the most difficult part of any contract negotiation).Originality/valueIn this paper, the risk allocation process is modeled in the form of a multi-objective decision problem. This method helps employers to measure their conflicting goals and choose the most appropriate risk allocation according to their objectives. Also, in this article, the conflicting expectations of the employer in the process of contract negotiations are introduced as three measurable goals, which gives the decision-maker the ability to balance his expectations and not miss an objective. In the final step, an optimization model is developed to select the best option, which can choose the most appropriate party to bear the risk in a short time and among an unlimited number of participants.

Evolution of disaster risk governance and its implication to resilience building in Nepal

The concept of disaster risk governance has evolved in line with international trends in the face of various challenges, such as sustainable development, climate change, and urbanization. Nepal, a country prone to natural disasters, has a history of disaster risk governance. The 2015 Earthquake caused extensive damage, but disaster risk governance in Nepal was re-established as reconstruction progressed. Ratification of the Sendai Framework for Disaster Risk Reduction 2015-2030 (SFDRR) was also adopted in 2015, and the establishment of a federal system on a new constitution was promulgated in the same year, decentralized responsibility for disaster risk management from the center to the regions. This paper attempts to identify the evolution of disaster risk governance in Nepal, considering the above background and the impact of civil society interventions and technological advances in the disaster risk reduction field.

Property-level adaptation to pluvial flooding: An analysis of individual behaviour and risk communication material

Integrated risk management requires all stakeholders to work together proactively. Residents of floodplains can participate by implementing property-level adaptive measures. Risk communication materials can motivate those households to do so. Research on these materials is limited. Therefore, we systematically assessed freely available German risk communication materials in terms of their recommendations and how their content aligns with behavioural theories. We compare these results with data from surveyed households affected by urban flooding (N = 1,352) on their attitudes towards flood adaptation and the adaptation measures implemented.209 risk communication materials were reviewed. Adaptation options (mostly evasion or resistance strategies) were communicated in 93%, the hazard itself in 78%, the local hazard situation in 48%, and responsibilities in risk management in 54% of the risk communication materials. These aspects were rarely broken down for the reader by, for example, presenting the damage that can be expected or by presenting measures with the expected costs or their response efficacy. However, these details commonly increase the adaptive behaviour of residents according to commonly used behavioural theories.Survey data indicated that households feel able (82%) and responsible (41%) for implementing adaptive measures. However, many households indicated that measures are not effective (41%), too expensive (34%), and that there are not enough support programs (87%). We recommend that future risk communication materials focus more on communicating the efficacy and costs of adaptive measures and highlight funding opportunities. Our mixed method approach highlighted mismatches in information needed and provided.

Collaborative projects: sustainable development and risk management in the corrugated cardboard industry

The high costs of environmentally responsible and socially just approaches are some of the factors that hinder the implementation of sustainable projects in the industrial sector. However, upstream collaborative integration in the corrugated cardboard industry in southeastern Brazil is a reality. In this context, this study aimed to highlight the structure of a collaborative sustainable project in the context of the corrugated cardboard industry, to analyze ESG risk management in the corrugated cardboard industry in the Southeast Region of Brazil, the relationship between ESG risk management and social responsibility in corrugated cardboard industries, the strengths and weaknesses of risk management models in use by the consulted participants, and to propose innovations regarding risk analysis, applicable in sustainable projects with a collaborative bias. The methodology adopted was the case study, with consultation with managers in professional activity in the industrial sector, corroborated by document analysis and systematic review of the literature. We identified preliminary risk analysis (PRA) and failure mode analysis (FMEA) as key practices used by managers in the corrugated paper industry in the region. These practices are insufficient in the convergence of objectives, engagement with the community, and extension of the lifecycle of products and processes. Our findings show that the sustainability of a project may be an extension of the risk analyses carried out in the initial phase, mainly about strategic decision-making and the operationalization of investments. Without bias to the need for risk analysis, the life cycle analysis is also an effective way of highlighting the critical factors, weaknesses, and strengths of a sustainable project. The study indicates the so-called GUT matrix approach (gravity – urgency – tendency) as the most suitable for innovation in risk analyses oriented towards sustainable projects in the analyzed sector.

Analisis Kinerja Bisnis Jasa Carbon Dan Painting Carbon Plus Di Kota Palembang

Carbon Plus is an automotive business specializing in Carbon Kevlar products, which are made from carbon kevlar fibers and can be used as coatings for vehicle parts, both for cars and motorcycles, as well as other components. The business offers three services: carbon skinning, carbon repairing, and painting. Located at Sakura I Street, Palembang, Carbon Plus plans to promote its services through Instagram and ads on social media.. The performance analysis of the Carbon Kevlar business is conducted by considering financial, operational, market, risk, innovation, and sustainability aspects to evaluate the efficiency, profitability, and social and environmental impact of Carbon Kevlar production and marketing activities. The main focus is on increasing revenue, production efficiency, market dominance, risk management, product innovation, and corporate social responsibility.

The effect of maturity learn element in Enterprise risk management and corporate social responsibility on the level of digital transformation

AbstractEnterprise Risk Management (ERM) has emerged as a response to globalization and regulatory pressure on firms to manage their risk comprehensively. CSR is related to corporate risk management, as by engaging in CSR activities firms can be more effective in managing stakeholder relationships. Extant studies rarely examine both issues to the level of digital transformation. In the coming years, the issue of digital transformation will have an even bigger impact on business models. The first step in the effective implementation of ERM is the ability of the organization to learn and understand the requirements of ERM implementation in its company. Thus, it is important to examine the effect of the maturity learn element in ERM and CSR as risk management on the level of digital transformation. In addition, this paper also examines the moderating role of CSR on the association between ERM and the level of digital transformation. Our samples consist of manufacturing companies of developed countries in the European Union (which consists of Italy, Spain, Belgium Switzerland, Germany, France, and UK). The paper found evidence that enterprise risk management has a positive significant effect on the level of digital transformation. The paper also found evidence that CSR has a direct effect on the level of digital transformation. However, the paper failed to provide supporting evidence on the moderating role of CSR on the association between ERM and the level of digital transformation.

THE ROLE OF INTERNAL AUDIT IN RISK MANAGEMENT OF CORPORATE ORGANIZATIONS

Abstract. The role of audit in a company is very important because auditis a control of all activities in the organization, so the function of internalaudit is to control all activities in the organization so that workimplementation is more effective and efficient according topredetermined standards, therefore the role of internal audit Thecompany's risk will be small because company risk management canhelp the company's risk of events that will be faced in the future. Thisresearch uses a qualitative approach which aims to understand thephenomena that occur in research subjects to assess research questionsand to provide data. based on the researchers' ideas. focuses on previousresearch findings regarding the role of internal auditors in implementinggood risk management for good corporate governance. Based on thedescription, analysis, data interpretation and statistical data processingthat have been described in the previous chapters, it can be concludedthat the level of effectiveness of the role of the internal audit function isimportant in operational risk management. Based on the calculationresults of the average level of effectiveness located in quadrant II in theCartesian Diagram, it shows that the role of the internal audit function inoperational risk management has been effective. The role of internalauditors in risk management is closely related to the risk managementsystem development stage. Top management must be aware of theirspecific functions and responsibilities in risk management. Topmanagement must provide appropriate signals to lower levels ofmanagement (top-down approach) to convince them of their operationalresponsibilities regarding for example the development andimplementation of internal controls. Keywords: Internal Audit, Risk Management

Enhancing firm value: The role of enterprise risk management, intellectual capital, and corporate social responsibility

Enhancing firm value: The role of enterprise risk management, intellectual capital, and corporate social responsibility

ESG: Transformation of interpretations

Purpose: to identify directions of transformation in the ESG interpretations in the system of interrelated scientific conceptions. Methodology: the study is based on the interpretation of the abbreviation ESG as a term element that forms ESG issues acting as specific ESG factors. The consideration of these factors meaningfully transforms the conceptions that explain the interaction between business, society and nature. Findings: acknowledging ESG factors fills new meanings in the content of the following conceptions: responsible investment, risk management and business responsibility in general. Also, it stimulates the reinterpretation of the “umbrella” conception of interaction between business, society and nature including the conception which exists in the form of ideological preference. Originality and contribution: the work identifies the directions and presents an original model for transforming the interpretations of ESG in the relevant interrelated scientific conceptions that explain the interaction between business, society and nature. The incorrectness of using the term “ESG conception” in scientific research is substantiated.

Dynamic connectedness amongst green bonds, pollution allowance policy, social responsibility and uncertainty

PurposeThis study explores the interconnectedness and complexity of risk-varied climate initiatives such as green bonds (GBs), emissions trading systems (ETS) and socially responsible investments (SRI). The analysis covers the period from September 2011 to August 2022, using six indices: three representing climate initiatives and three indicating uncertainty.Design/methodology/approachTo achieve this, the study first examines dynamic lead-lag relations and correlation patterns in the time-frequency domain to analyse the returns of the series. Additionally, it applies an innovative approach to investigate the predictability of uncertainty measurements of climate initiatives across various market conditions and frequency spillovers in the short, medium and long run.FindingsThe findings indicate changing relationships between the series, increased linkages during turbulent market periods and strong co-movements within the network. The ETS is recommended for diversification and hedging against uncertainty indices, whereas the GB may be suitable for long-term diversification.Practical implicationsThis study highlights the role of climate initiatives as potential hedges and contagion amplifiers during crises, with implications for policy recommendations and the asymmetric effects on market connectedness.Originality/valueThe paper answers questions that previous studies have not and contributes to the literature regarding financial risk management and social responsibility.

Methodological Design of Risk Management and Social Responsibility in The School of Engineering of a Peruvian University

The objective of this study is to design the Risk Management methodology for the University Social Responsibility (USR) process, with the participation of the administrative and teaching staff of the Mechanical and Electrical Engineering School of a private Peruvian university as a contribution to the licensing project in 2021. The population consisted of 38 people involved in the USR process in the University’s Mechanical and Electrical Engineering PE, including teaching and administrative staff. The methodology uses a mixed approach, explanatory scope and sequential explanatory design (DEXPLIS). Although very few universities apply risk management at the institutional level, the results show that it is feasible to design a risk management methodology applied to a specific educational management process that contributes to achieving institutional objectives. Therefore, it is concluded that the successful design of a risk management methodology facilitates the achievement of the objectives of the process to which risk management is applied and that risk management can have a direct impact on the licensing process by aligning the USR sub-processes with the sub-processes and indicators of the licensing process, being essential for a good design not only to know the dimensions of risk management but also to know the process applied, in this case, the process of University Social Responsibility.

The limits of scalability: Uncovering friction between levels of flood risk governance in the French Alps

Flood risk governance can be a source of tension between different government actors and citizens across spatial scales. In this context, we consider the hydro-social contract (HSC) as a framework to understand the formal and informal societal constructs that aid or impede effectiveness in managing flood risk. Specifically, we used Q-methodology to understand different perspectives of flood risk governance and identify points of friction in executing the HSC. We interviewed 62 flood risk management actors from small municipalities (intra-watershed) to regional State agencies (inter-basin) in the Isère River basin of France, from which three perspectives emerged. Most participants correlated to a perspective reaffirming a commitment to integrated and holistic approaches in flood risk management. However, the second and third perspectives illustrate a governance gap due to an upward transfer of risk management responsibilities to a broader watershed approach. At the same time, municipalities remain responsible for crisis management in the advent of flooding. Our findings bring into question the right balance of scale in flood risk governance, particularly regarding hydrological boundaries that are incongruous with political jurisdictions at multiple scales.

The International Society for Biological and Environmental Repositories Presents Abstracts from Its Annual Meeting

The International Society for Biological and Environmental Repositories Presents Abstracts from Its Annual Meeting

The Effect of Enterprise Risk Management and Environmental Performance Toward Corporate Social Responsibility Disclosure (CSRD): Study in Mining Sector

The population is 47 Mining companies in IDX 2016-2018. Have PROPER rating and published annual report. The purpose to examine the effect of enterprise risk management(ERM) and environmental performance (EP) toward CSR Disclosure. Data were obtained from 63 samples and used sample selection method, purposive sampling method and IBM SPSS 26. The analysis statistic used is multiple linear regression analysis method. The ERM used COSO ERM Framework to disclosure 108 items, EP used PROPER rating represent in 5 ranking and CSRD used GRI G4 CSR index consisting 91 items, 3 categories. The study result shows that ERM have positive and significant effect on CSRD, while EP does not have significant affect on CSRD.

The Role of Internal Audit in Credit Risk Management in Commercial Banks

This study focused on assessing the role of internal audit in credit risk management in commercial banks in Kosovo. Methodology: The methodology used was quantitative, involving data collection through a structured questionnaire for internal auditors and bank loan analysts in Kosovo. The survey aimed to gather information about their practices, adherence to Institute of Internal Auditors standards, and the organization’s credit risk management structure and responsibilities. The Chi-Square test was applied to test the hypotheses. Study Findings: Internal audit affects the reduction in credit risk and the definition of existing credit policies. Also, a positive relationship was found between bank size and the approach used in auditing, and the organisation of credit policies and credit risk management in commercial banks in Kosovo. Originality: Through this scientific paper we can present real and consistent results regarding the role of internal audit in credit risk management in commercial banks in Kosovo. Extracting data from the questionnaire and adhering to international standards on auditing leaves room to draw competent conclusions and recommendations in this area.

의약품의 긴급사용승인과 국가책임

There is a saying, “History of mankind is the history of diseases.” Humans are still developing numerous drugs that have not existed before to overcome or alleviate diseases, and these efforts will continue as long as humanity exists. COVID-19, which began at the end of December 2019, served as a momentum to inform all of us of the importance of the new drug development. North American countries are leading the development of new drugs, followed by China and Japan. Korea also has reorganized the legislation for the development and supply of new drugs and encouraged the development and supply of new drugs. However, it is true that Korea has been importing a lot of drugs, including COVID-19 vaccines and treatments. On March 9th, 2021, the Special Act for Promotion of Development and Emergency Supply of Medical Products Responding to Public Health Crisis was made. In this Act, Approval for Emergency Use of Drugs is allowed, which is different from the formal licensing procedure, and through this, medical products that can prevent public health crises can be quickly imported and supplied. As the products supplied under Approval for Emergency Use of Drugs have also side effects, undesirable and unintended signs, symptoms, or diseases may occur to some individuals. However, because there is no basis for damage relief in the relevant laws, the need for supplementation of the system has been pointed out. Reflecting this, it is welcome that some revised legislation specifying the basis for national compensation has been passed. National compensation presupposes the nation's regulatory or arbitrator status, and is clearly different from the administration’s compensation system that admits the national professional negligence. Even after the Approval for Emergency Use of Drugs to cope with the public health crisis, the administration still bears the risk management or risk prevention responsibility for the drugs, so it cannot be free from the liability for omission if this obligation is not fulfilled. National responsibility by administrative omission can also be applied when the form of action is administrative guidance. Of course, some point out that it is difficult to recognize the existence of a duty of action due to the randomness. However, if the probability of avoiding or mitigating damage to life and health can be increased by providing administrative guidance, its effectiveness can be verified. In addition, the obligation of administrative guidance can be actively interpreted even though the requirements for exercising administrative authority are not met, or administrative guidance is forced to respond to risks immediately due to time constraints.

Editorial

Editorial

Developing a Conceptual Framework of Instructional Model for Creating an Innovative Business Project: Applying the Sufficiency Economy Philosophy for Private Vocational Colleges in Bangkok, Thailand

Vocational students in business programs become the future of the global workforce; this field requires innovation, given its added value. Importantly, the balance among profit, people, and the planet is greatly needed. Adaptability to sudden changes, such as pandemics or economic crises, is essential. This research developed a conceptual framework of instructional model for creating innovative projects applying the sufficiency economy philosophy (SEP), which aims to balance prosperity, society, environment, and culture with risk management for private vocational colleges in Bangkok, Thailand. The conceptual framework of instructional model was created from a literature review and empirical studies. Empirical data was gathered by studying current business project instructions from stratified random samples given by 250 teachers. The findings showed that instruction of basic business management, entrepreneurship, risk management, business innovation, and social responsibility are separate instead of integrated and applied to real situations. Furthermore, student business innovation in projects is low, while the suggestions to apply the SEP to business project instruction are high. The conceptual framework of instructional model consisted of instructions and assessments, based on design thinking, SEP, constructivist learning theory, and project-based learning. These instructions and assessments led to student learning outcomes that include the knowledge, skills, and attributes necessary to develop socially responsible, risk-manageable, and innovative business projects. Evaluation of the conceptual framework of instructional model’s feasibility by five experts resulted in high or very high ratings of all items.

CORPORATE SOCIAL RESPONSIBILITY, ECONOMIC VALUE ADDED, ENTERPRISE RISK MANAGEMENT, AND FINANCIAL PERFORMANCE: INTELLECTUAL CAPITAL MODERATION

Financial performance is required to evaluate possible economic resource changes and forecast the existing resources’ production potential. This study examines how intellectual capital acts as a buffer between the effects of corporate social responsibility, economic value-added, and pricing risk management on financial performance. The 52 manufacturing enterprises that were listed on the Indonesia Stock Exchange between 2016 and 2020 made up the study’s population. Purposive sampling was utilized during sampling. Manufacturing businesses in the consumer goods sector that consistently disclose an exhaustive annual report meet the sample criteria. Based on these standards, 39 businesses were selected for the sample. The method of data processing employs moderate regression analysis (MRA). The findings demonstrated that enterprise risk management, economic value-added, and corporate social responsibility impacted financial performance. The impact of corporate social responsibility on financial performance is strengthened by intellectual capital. The influence of economic value addition and the impact of enterprise risk management on financial performance is strengthened by intellectual capital. The innovative aspect of this study is the non-monetary IC index, which measures intellectual capital.

Climate change exposure, risk management and corporate social responsibility: Cross-country evidence

We examine how climate change risk impacts corporate social responsibility using an international firm-level sample. Exploiting a new firm-level measure of climate change risk, we find that firms significantly adjust their CSR standards upwards in response to climate change risk shocks. Using the difference in difference (DiD) approach and natural disaster shocks as plausibly exogenous shocks to climate change risk, we document an increase in CSR performance for affected firms relative to their unaffected peers after severe natural disasters. Additionally, we observe that the sensitivity of CSR performance to climate change risk jumps after the release of the Stern Review and the Paris Agreement. Furthermore, we find that this impact is more pronounced for firms in climate-sensitive sectors, firms with more growth options, firms with higher governance standards, and firms in highly competitive industries. Overall, our findings reveal that climate change uncertainty can trigger firms to invest more in CSR activities to hedge against regulatory and physical risks.