Application Of Risk Management Research Articles

Rapid assessment model on risk management based on ISO 31000:2018

Risk management is an integral part of the management process to identify potential risks an organisation faces and mitigation measures to eliminate the impact of risks. The organisation is committed to managing risk consistently and continuously. The application of Risk Management in decision analysis can improve the organisation’s operational performance and competitive value. ISO 31000:2018 is a standard guide, instructions, and requirements for an organisation to build a foundation and framework for a risk management program. This research aims to design a model for rapid assessment of risk management implementation based on ISO 31000:2018. The rapid assessment model developed is supported by a specific and detailed model to have detailed information about the factors that the company should improve. The rapid assessment model is based on three parts of risk management of ISO 31000:2018 according to “three lines of defence”; risk owners, risk control and compliance and risk assurance. The total number of factors measured in the rapid assessment model is 43; 9 factors for the first part, 15 for the second part, and 19 for the last part. A specific and detailed model consists of 481 measurements; 24 factors for the first part, 171 for the second part, and 286 for the last part. A trial of the model has been done for measuring the performance of risk management implementation in two agroindustries; herbal and instant beverage companies. The result shows that both companies are categorised as “well implemented” for operational risk management by using the rapid assessment model. Based on the results using a specific and detailed model, the herbal agroindustry is categorised as “well implemented” for risk management operation in the company, while for the instant beverage company, the risk management is already “implemented but needs improvement”. Thus, the instant beverage company should increase its performance in complying with ISO 31000:2018 based on the lowest scored measurement in the result.

Prediction Skill of GEFSv12 for Southwest Summer Monsoon Rainfall and Associated Extreme Rainfall Events on Extended Range Scale over India

Abstract Indian summer monsoon rainfall (ISMR) from June to September (JJAS) contributes 80% of the total annual rainfall in India and controls the agricultural productivity and economy of the country. Extreme rainfall (ER) events are responsible for floods that cause widespread destruction of infrastructure, economic damage, and loss of life. A forecast of the ISMR and associated ER events on an extended range (beyond the conventional one-week lead time) is vital for the agronomic economy of the country. In September 2020, NOAA/NCEP implemented Global Ensemble Forecast System, version 12 (GEFSv12) for various risk management applications. It has generated consistent reanalysis and reforecast data for the period 2000–19. In the present study, the Raw-GEFSv12 with day-1–16 lead-time rainfall forecasts are calibrated using the quantile (QQ) mapping technique against Indian Monsoon Data Assimilation and Analysis (IMDAA) for further improvement. The present study evaluated the prediction skill of Raw and QQ-GEFSv12 for ISMR and ER events over India by using standard skill metrics. The results suggest that the ISMR patterns from Raw and QQ-GEFSv12 with (lead) day 1–16 are similar to IMDAA. However, Raw-GEFSv12 has a dry bias in most parts of prominent rainfall regions. The low- to medium-intensity rainfall events from Raw-GEFSv12 is remarkably higher than the IMDAA, while high- to very-high-intensity rainfall events from Raw-GEFSv12 are lower than IMDAA. The prediction skill of Raw-GEFSv12 in depicting ISMR and associated ER events decreased with lead time, while the prediction skill is almost equal for all lead times with marginal improvement after calibration.

Application of Risk Management In Shipyards Based SNI IEC/ISO 31010:2016 on New Shipbuilding Projects

Shipbuilding in the shipyard needs to be analyzed for risk management to minimize and take action to avoid risk. Risk management techniques in SNI IEC/ISO 31010:2016, namely the consequence and probability matrix. This study aims to identify hazards in new construction works and determine the level of consequences and the probability of a risk arising. This research's benefit is knowing the danger and risk level category. This study uses qualitative research and data collection techniques through in-depth interviews or direct observation in the field. The results showed 14 hazards from 3 jobs: plate cutting, welding, and lifting. The risk analysis scale shows a very high risk (priority I). The high risk (priority II), medium-high risk (priority III), low risk (priority IV), and shallow risk (priority V) in new construction works.

Penerapan Manajemen Risiko Kredit Dan Likuiditas Dalam Memberikan Pinjaman Dan Pembiayaan Kepada Anggota (Studi Pada BMT Nashrul Umam Balen)

Based on the regulation of the Financial Services Authority (OJK) regarding the implementation of risk management in Islamic microfinance institutions, including the management of credit risk and liquidity risk. Credit risk (financing risk) is a risk that occurs due to the inability of the borrower and/or others to pay dependents to financial institutions. Whereas Liquidity risk is the risk that occurs as a result of NBFI liquidity management (Non-Bank Financial Services Institution) which failed. The purpose of this research is to know the application of risk management in providing financing to members. In this research, the author used a qualitative approach with a descriptive method and type of case study research on the object. With this methodology, the author describes the application of management credit and liquidity, methods of financing decisions, and integration of risk management in financing. The research results obtained are: (1) The application of risk management is to reduce financing so that NPL (Non-Performing Loan) financial institutions remain below standard; (2) In making financing decisions, the marketing department is required to: observe the main principle, namely 5C which relates to the overall state from prospective members, including character (character), capital (capital), capacity (ability), collateral (guarantee), and condition of the economy (state of the economy); (3) In the implementation of day-to-day operations of risk management integration credit and liquidity are indispensable in providing loans and financing to members. This is due to integration in implementation risk management for credit and liquidity risk can have implications for the liquidity position of BMT.

Analysis Risk Management Application e-Raport Using COBIT 4.1

The role of information technology in increasing the use of e-Raport is to make it easier for schools to input student data. The e-Raport application is very important because it is a system to make it easier for teachers, staff, students, parents, and the Ministry of Education and Culture to find out the results of student learning analysis at SMK N 1 Balige as a means of communication between schools, students and parents of students. The problem with e-Report at SMK N 1 Balige is that there is an error when using the application to input data. The purpose of this study was to analyze risk management in the e-Raport application at SMK N 1 Balige. This research method uses quantitative methods. In measuring IT risk management, the author uses the Control Objective for Information and Related Technology (COBIT) 4.1 domain Plan and Organize (PO) framework, especially PO9 (Assessment and Manage IT risk). The result of this research is the value of the maturity level of the risk management application of e-Raport at SMK N 1 Balige is 2.6088. The maturity level of the e-Report of SMK N 1 Balige is Defined. Recommendations from this study are the need for a special person to control the e-Raport application at SMK N 1 Balige and training in the use of the e-Raport application.

Analisis Implementasi Manajemen Risiko Berdasarkan SNI ISO 31000:2018 (Studi Kasus: Sparepart Personal Computer Second Jambi)

Small & Medium-Sized Enterprises (SMES) Sparepart Personal Computer Second Jambi is an assembly and computer service. This study aims to analyze and manage risks to Sparepart Personal Computer Second Jambi based SNI ISO 31000: 2018. ISO 31000:2018 is an international standard application for auditing the application of risk management issued by The International Organization for Standardization (ISO), consisting of three elements: principle, framework, and process. The results of this study stated that there were any problems that had to be mitigated because they had high and moderate risks, which is comprised of eksternal risk is multiple business competitors, financial risk is unstable equipment and materials prices, K3 Risk is accidents at work,human resources risk is scarce manpower, and technical risk is blackouts.

The Application of stressTesting in Bank Risk Management

In recent years, along with bank management become more and more attention to risk management, bank managers by adopt the method of stress tests for Banks manage risk factors in the process of operation, when the bank there was a risk management system, pressure test system will be automatically, which can identify the risk factors at the same time to remind the bank management. This paper mainly through the risk management system in the stress test technology analysis, mainly from the bank stress test to the bank risk management application, the feasibility and necessity of the existence of stress test and the advantages of stress test analysis.

Proof by Earnestness (PoE) to determine the authenticity of subjective information in blockchains - application in supply chain risk management

Blockchain is being used in various global supply chains with its ever-increasing maturity and popularity. However, in the presence of subjective information that does not have a digital footprint, blockchain application is a grey area. This is due to the difficulty in confirming the authenticity or legitimacy of information before achieving consensus on it using existing mechanisms such as Proof of Work (PoW), Proof of Authority (PoA) or Proof of Stake (PoS). In this paper, we attempt to address this issue. Specifically, we propose the Proof by Earnestness (PoE) consensus mechanism that determines the subjective information’s truthfulness before further processing and formalising in blockchains. We consider supply chain risk management (SCRM) as our application area due to the vast amount of available subjective information.

Dr. Romney B. Duffey on His 80th Birthday

Abstract Dr. Romney Duffey is an internationally recognized multi-disciplinary scientist, consultant, manager, speaker, author, and poet. Born on June 26, 1942, and educated in England, Dr. Duffey has over 50 years of unique experience in the UK, USA, and Canada on nuclear technology development, risk assessment, industrial safety, nuclear-system design, and accident analysis. As an applied physicist, his career has included a wide span of senior power-industry and government positions as researcher, executive advisor, senior manager, published author, lecturer, and consultant. Dr. Duffey is globally known as a developer of new concepts and designs with innovation advantages and market potential, for contributions to risk management and reliability applications, and to the enhancement of our understanding of the physical world. In addition to working in the USA, Canada, and the UK his international industrial, laboratory, and technical connections are worldwide.

Extreme output power emitted by commercial laser pointers in Greece: A solely local or a global issue?

Although several countries have enacted legislation that prohibits the commercial distribution of laser pointers, high-power laser pointers are abundantly available on the market. The Greek Atomic Energy Commission (EEAE) investigated the compliance of laser pointers with the laser radiation safety limits in order to apply risk management actions in Greece. Compliance was assessed based on the laser pointer labeled data and in-house optical measurements. Laser pointers were purchased randomly from domestic physical marketplaces. Output power measurements revealed the risk of overexposure compared to the lasers' radiation safety limit values. Measured values also exceeded the output power values claimed on the laser pointer labels; hence, they may pose an unexpected more severe hazard than stated. Spectral analysis revealed an additional emission wavelength by the green laser pointers. All the inspected laser pointers declared “compliance with 21 CFR” and were labeled according to the U.S. 21 CFR 1040.1, although all consumer products available on the Greek market should comply with the relevant EU Directives, harmonized standards, and national legislation. These local findings adhere to a global issue—the unambiguous exposure of nonexpert users to high-power laser pointers that should not be commercially available. Overexposure to laser pointer radiation suppresses national borders as markets are not locally constrained, and laser technology continues to advance. The introduction of a universal laser safety language and a universal regulatory framework for laser pointers might facilitate product safety, international trade, and users' safety. EEAE runs social media campaigns to raise public awareness of laser pointer risks, using specifically designed infographics.

Applying risk management to the management of innovative enterprises

The activities of innovative enterprises entail various risk situations. Organisations should be able to identify perceived risks and minimise them. Innovative enterprises, whose activities are known to be the most risky, should try their best to establish a risk management process.Empirical and theoretical research methods were used in writing the paper: analysis, synthesis of the studied theoretical data, method of generalization, graphical method. The subject of the research in this article is risk management as a constituent link in the management and development of innovative enterprises. The article considers the importance of applying risk management. The author has identified important stages of risk management in the management of innovative enterprises, developed an appropriate information model.

The influence of international agreements on disaster risk reduction

Global frameworks established in 2015 – including the Sendai Framework for Disaster Risk Reduction, the 2030 Agenda for Sustainable Development, and the Paris Agreement – provide a comprehensive foundation for states to improve disaster risk management. However, the degree to which these frameworks are driving necessary changes to public policies and practices for disaster risk reduction remains questionable. This article explores the influence of these frameworks on flood and drought risk management in two federal states, Canada and Australia, and from the perspective of government practitioners. Through two Delphi studies and semi-structured interviews, the research found that although international agreements are considered valuable to the maturation of disaster risk management principles and practices, their perceived application in flood and drought risk management has been more limited. Government practitioners warn that using these frameworks to drive meaningful change to disaster risk management systems and structures risks further politicizing the field because of existing complex and deeply entrenched socio-political infrastructures. The findings highlight the fact that the ability of these global frameworks to facilitate meaningful changes toward more equitable, resilient, and sustainable disaster risk management is challenged not only by the institutional design of these agreements, but by resistant institutional structures that are embedded across levels of governance.

Application of Risk Management in Safety Production Management of Metallurgical Enterprises

Application of Risk Management in Safety Production Management of Metallurgical Enterprises

From offshore to onshore probabilistic tsunami hazard assessment via efficient Monte Carlo sampling.

SUMMARYOffshore Probabilistic Tsunami Hazard Assessments (offshore PTHAs) provide large-scale analyses of earthquake-tsunami frequencies and uncertainties in the deep ocean, but do not provide high-resolution onshore tsunami hazard information as required for many risk-management applications. To understand the implications of an offshore PTHA for the onshore hazard at any site, in principle the tsunami inundation should be simulated locally for every earthquake scenario in the offshore PTHA. In practice this is rarely feasible due to the computational expense of inundation models, and the large number of scenarios in offshore PTHAs. Monte Carlo methods offer a practical and rigorous alternative for approximating the onshore hazard, using a random subset of scenarios. The resulting Monte Carlo errors can be quantified and controlled, enabling high-resolution onshore PTHAs to be implemented at a fraction of the computational cost. This study develops efficient Monte Carlo approaches for offshore-to-onshore PTHA. Modelled offshore PTHA wave heights are used to preferentially sample scenarios that have large offshore waves near an onshore site of interest. By appropriately weighting the scenarios, the Monte Carlo errors are reduced without introducing bias. The techniques are demonstrated in a high-resolution onshore PTHA for the island of Tongatapu in Tonga, using the 2018 Australian PTHA as the offshore PTHA, while considering only thrust earthquake sources on the Kermadec-Tonga trench. The efficiency improvements are equivalent to using 4–18 times more random scenarios, as compared with stratified-sampling by magnitude, which is commonly used for onshore PTHA. The greatest efficiency improvements are for rare, large tsunamis, and for calculations that represent epistemic uncertainties in the tsunami hazard. To facilitate the control of Monte Carlo errors in practical applications, this study also provides analytical techniques for estimating the errors both before and after inundation simulations are conducted. Before inundation simulation, this enables a proposed Monte Carlo sampling scheme to be checked, and potentially improved, at minimal computational cost. After inundation simulation, it enables the remaining Monte Carlo errors to be quantified at onshore sites, without additional inundation simulations. In combination these techniques enable offshore PTHAs to be rigorously transformed into onshore PTHAs, with quantification of epistemic uncertainties, while controlling Monte Carlo errors.

PENERAPAN MANAJEMEN RISIKO OPERASIONAL PADA BANK NAGARI SYARIAH CABANG PEMBANTU PADANG PANJANG

Today, Islamic banking has a weakness that is the lack of public trust in Islamic banks and prefer to transact in conventional banks. So a new strategy or paradigm is needed to build the image of Islamic banks in order to increase the capacity of banking institutions. New strategies or paradigms in building the image of Islamic banks can be done through the application of banking operational risk management in Islamic state banks.

Best-Arm Identification Using Extreme Value Theory Estimates of the CVaR

We consider a risk-aware multi-armed bandit framework with the goal of avoiding catastrophic risk. Such a framework has multiple applications in financial risk management. We introduce a new conditional value-at-risk (CVaR) estimation procedure combining extreme value theory with automated threshold selection by ordered goodness-of-fit tests, and we apply this procedure to a pure exploration best-arm identification problem under a fixed budget. We empirically compare our results with the commonly used sample average estimator of the CVaR, and we show a significant performance improvement when the underlying arm distributions are heavy-tailed.

Multi-faceted and holistic risk management for business-critical food-safety events causing major disruption to both small and large businesses – An illustrative model

In the food industry, a reactive, siloed approach to food safety is common; the proactive application of a broad risk management (multi-faceted risk management) approach is in a relatively early stage of evolution. This paper shows that opportunities exist to move beyond the typical mono-dimensional approaches that focus only on fixing specific causes and look at the broader risks associated with any event. Companies providing nutrition globally face a broad risk landscape across products, geographies, media platforms and Governments, regardless of business size. Multi-faceted risk management has been applied for some time across other industries and provides a useful set of tools to further develop within the food sector. Each event creates a unique series of risks for an affected company. More often than not, these are further enhanced by factors that are external to the company itself. In this paper, the same theoretical food safety event is placed in the context of both a small-scale boutique business and a large-scale corporate business, and a semi-quantitative multi-faceted risk management model is applied to determine and select mitigation options. The illustrative model considers not only the food safety risk, but also various risk facets relevant to the business, population, societal, environment, reputation and public perception. Consideration is also given to additional external events, such as occurrence under the circumstances of a coincidental catastrophic condition. The use of the model in business continuity planning to identify event likelihood and consequences, and therefore pre-emptive identification and emplacement of preventative measures is also illustrated.

EFFECT OF THE APPLICATION OF RISK MANAGEMENT ON FINANCIAL PERFORMANCE CASE STUDY ON PT. BANK ABG, TBK

The economic recession that occurred in Indonesia in 2020 due to the Covid-19 pandemic has suppressed the performance of the national banking system. Almost all banking performance indicators experienced a significant decline. This condition also applies to PT. Bank ABG Tbk (ABG Bank) . To mitigate the risk of losses arising from bank business activities, the Financial Services Authority (OJK) since January 2004 has required every commercial bank to implement risk management effectively. This study aims to determine whether the application of risk management at Bank ABG is proxyed by the ratio of Operating Costs to Operating Income (BOPO) for operational risk, the ratio of Non Performing Loans (NPL) for credit risk and Loan to Deposit Ratio (LDR) for liquidity risk. , has a significant effect on the profitability of ABG Bank which is proxy by the ratio of Return on Assets (ROA). This research is a case study, using quantitative methods with secondary data sourced from the financial statements of ABG Bank for 2018-2020 which are accessed directly from ABG Bank. The analysis technique uses multiple linear regression. The results of the study concluded that there was a very high influence between the implementation of Risk Management on Financial Performance and the variable that had a significant effect was Operational Risk (BOPO). Meanwhile, credit risk (NPL) and liquidity risk (LDR) have no significant effect.
 
 Keywords: Bank, Risk Management, Financial Performance.

Analisis Penerapan Manajemen Resiko dalam Pembiayaan Usaha Mikro pada Pt Permodalan Nasional Madani (Persero) Unit Aksara

This article aims to analyze how the application of risk management in micro business financing at PT Permodalan Nasional Madani Aksara Unit so that it can be seen how far the risk management that is already owned by the company to overcome the existing risks. The results of this study indicate that the risk of late payment of financing installments to not being able to pay off their obligations is the main problem faced by the company, but the company has prepared risk management in dealing with these risks, there are pre-risk and post-risk management stages owned by the company in order to facing the risks that occur or will occur with the aim of minimizing the losses experienced by the company has been implemented properly in accordance with the standard financing procedures owned by the company, starting from identifying each risk to controlling so that any risks that occur can be overcome by the company.

Penguatan Manajemen Risiko Lembaga Keuangan Syariah Non-Bank dalam Menghadapi Ancaman Cyber Security

This research is a qualitative research that discusses the strengthening of risk management non-bank Islamic financial institutions, KSPPS Artha Bahana Syariah Pati Central Java. The sources of data in this study were obtained through focus groups and in depth interviews with KSPPS leaders and related officials. KSPPS Artha Bahana Syariah Pati Central Java develops internet-based digital services to its members in the form of ABS Mobile. The use of digital and internet technology to improve services to members and to gain business effectiveness and efficiency must be accompanied by strengthening risk management to anticipate cyber security threats. The results of the study indicate that the application of risk management at KSPPS Artha Bahana Syariah is related to the threat of cyber security in the form of active supervision by the leadership, the adequacy of policies and procedures for the use of Information Technology, the adequacy of the identification, measurement, control, and monitoring of information technology risks, and the internal control system. on the use of information technology.