Risk Management Capabilities Research Articles

A conceptual framework for improving effectiveness of risk management in supply networks

PurposeThe purpose of the paper is to develop a conceptual framework for improving the effectiveness of risk management in supply networks following a critical literature review.Design/methodology/approachA critical review of 91 scholarly journal articles published between 2000 and 2018 supports the development of an integrated conceptual framework.FindingsThe findings emphasize that supply chain integration (SCI) can have both a positive and negative impact on the effectiveness of risk management in supply networks. It is possible to have a positive effect when SCI can be used to develop competencies in joint risk planning within the organization and with wider supply network members and, in turn, to develop collaborative risk management capabilities. Supply network characteristics can influence whether and the extent to which SCI has a positive or negative impact on risk management effectiveness.Research implicationsThe conceptual framework can be used to empirically assess the role of SCI for effective risk management. Dynamic evaluation of the effectiveness of risk management and potential redesign of the supply network by considering other contingent factors are some future research avenues.Practical implicationsThere is a need for developing specific competencies in risk planning within organizations and joint risk planning with supply network members which, in turn, can help develop collaborative risk management capabilities to improve the effectiveness of risk management in supply networks. Network characteristics will influence whether and the extent to which SCI results in the effectiveness of risk management.Originality valueMoving beyond recent (systematic) reviews on supply chain risk management, this study develops a novel conceptual framework interlinking SCI and the effectiveness of risk management while considering network characteristics.

Extending Organizational Boundaries Through Outsourcing: Toward a Dynamic Risk-Management Capability Framework

Pressure to maintain organizational profitability in an increasingly uncertain business environment is driving executives to seek competitive advantage by increasing their dependence on outsourcing...

Reassessing the Impact of Risk Management Capabilities on Firm Value: A Stakeholders Perspective

Despite the pivotal role of risk management very limited research is carry out on the issue of firm’s risk management capability and value creation. This study aims to analyze the impact of firms risk management capabilities on firm performance and cost. Using panel data technique a sample of 301 non financial firms was analyzed for the time period on five years starting from 2011 to 2015. We assert that effective risk capabilities have positive impact on all stakeholders. The effective risk management capabilities guarantee more resilience to exogenous and endogenous risks. Our findings will have a significant impact on existing literature, by extending the existing knowledge of firm’s risk management capabilities into the domain of diverse stakeholders and resources adjustment.

Risk management capabilities in the extraction of sea hydrocarbons in the Arctic region

Risk management capabilities in the extraction of sea hydrocarbons in the Arctic region

THE RISKS OF INFORMATION SOCIALIZATION AS A MANIFESTATION CRISIS OF MODERN CHILDHOOD

The relevance of the article is explained by crisis nature of modern childhood and the risks of informational socialization, reflected in loss of value in becoming mature, the loss of the leading role of education, and the growth of deviant behavior in children and adolescents. Social anomie and cultural deprivation create a diverse information environment that poses the risks of promoting the cult of violence, cruelty, extremism, suicidal behavior, involving children and adolescents in the consumption of psychoactive substances, the formation of Internet addiction and computer gaming addiction. The purpose of the article is to analyze risk management capabilities of information socialization as a manifestation of a childhood crisis. Methods — theoretical and comparative analysis, generalization. The results. The risks of information socialization associated with a low level of information security are highlighted. Significant age-related psychological characteristics of the child are identified and analyzed. These characteristics determine the effect of the psychological impact of information products on the development of the child. They are specified for preschool, primary school age, younger and older adolescents. A comparative analysis of the features of cognitive activity and mental development is presented: the degree of vulnerability of the child to the effects of harmful content; preservation of psychological well-being; readiness to imitate the social patterns of behavior presented on the Internet. The tasks to ensure informational security of children and adolescents have been specified. Conclusions. Accounting for age-related psychological characteristics will allow to create an effective risk management system for informational socialization of children. Such a system includes the tasks of the age classification of information products and building the developing content of the information environment. The creation of interdisciplinary science of social ecology of childhood will make it possible to make significant progress in overcoming the crisis of modern childhood.

Integrated Supply Chain Risk Management Capabilities and its impact on Supply Chain Demand Management

Integrated Supply Chain Risk Management Capabilities and its impact on Supply Chain Demand Management

Analysing supply chain risk management capabilities through collaborative and integrative approach

Analysing supply chain risk management capabilities through collaborative and integrative approach

Analysing supply chain risk management capabilities through collaborative and integrative approach

In the era of market turbulence and external uncertainty, supply chain risk management is getting top attention in almost every dynamic business. The study is carried out to empirically investigate relational factors influencing demand side and supply side risk management. A sample of 149 valid responses was gathered through a structured questionnaire from marketing, planning, supply chain and logistics professionals from the textile sector and was analysed using partial least square smart (PLS) structural equation modelling (SEM) using SmartPLS 3.2.4. This research will significantly contribute to the literature of supply chain risks management (SCRM) as well as helping risk management professionals to understand the integrative and collaborative approach to improve supply chain resilience and robustness.

Integrated supply chain risk management capabilities and its impact on supply chain demand management - an empirical study

Supply chain risk management has drawn tremendous attention from academic researchers and practitioners in the recent period. Several attempts were made by the practitioners and academicians to understand supply chain risks and their sources. As the supply chain environment is getting sophisticated day by day, the understanding of supply chain becomes increasingly challenging and need of the hour. This empirical paper attempts to understand the sources of supply chain risk and its effect on supply chain demand management. Survey instrument was administered to collect response from the manufacturing companies in India. Data was analysed with the help of PLS and SmartPLS 2.0 M3 was utilised to compute PLS. The result shows that the variables like supply management capability, supply chain information management and supply chain environmental uncertainty management capability are having positive impact on supply chain risk as well as on supply chain demand management. These findings will provide various insights for the practitioners and be used as a knowledge repository in the area of supply chain risk management.

Risk Management of a Social Project: an Algorithm and a Business-case

The article deals with the issues of risk management of a public project. Risk management includes identifying potential threats, structuring their array, identifying steps to reduce the impact of possible negative events, assessing the significance of the relevant effects, etc. The purpose of the article is to identify an improved procedure for identifying opportunities and risks for public projects. The research method is the testing of the proposed algorithm for action within a business-case (real social project). In order to achieve the expected results of the project, it is important to follow a systematic approach in developing a risk management plan. The article emphasizes the role of positive opportunities as a kind of contrast to the risks. An array of threat-triggers and the “launches” of those risks depend to a large extent on the scope of a given project. The article shows the role of SWOT analysis in the context of risk management and project capability. In addition, a metric for assessing the importance of risks and the probability of occurrence of adverse events in the context of the risk management model is offered. The proposed conceptual algorithm for constructing a project risk management plan provides an opportunity to better realize the potential for their reduction and thus allows obtaining a result that is more in line with the objectives of the project. This mechanism is worked out on the example of the construction of the Ice Arena in Kyiv. The mission of this real project is to improve the sports and socio-cultural sphere by creating favourable conditions for the development of ice sports. Due to the appropriately developed risk management plan, taking into account the optimal organizational strategy, the potential for project risk reduction is maximized. The proposed approach in the field of risk management and the elemental “chain” procedure (including identification, structuring, planning, etc.) deserves broad application in practice.Article received 24.04.2019

Capital Structure, Environmental Dynamism, Innovation Strategy, and Strategic Risk Management

Previous research found that capital structure affects performance when it is adapted to the level of environmental dynamism and pursuit of an innovation strategy. The current study reproduces some of these relationships in a more recent dataset but also identifies significant nuances across industrial environments. Analyses of a large cross sectional sample and various industry sub-samples suggest that other factors have influenced capital structure effects in recent years including flexibilities in multinational organization and effective strategic risk management capabilities.

Towards supervisory risk control of autonomous ships

The objective of this paper is to outline a framework for online risk modelling for autonomous ships. There is a clear trend towards increased autonomy and intelligence in ships because it enables new functionality, as well as safer and more cost-efficient operations. Nevertheless, emerging risks are involved, related to lack of knowledge and operational experience with the autonomous systems, the dependency on complex software-based control systems, as well as a limited ability to verify the safe performance of such systems. The framework presented in the paper is the first step towards supervisory risk control, i.e., developing control systems for autonomous systems with risk management capabilities to improve the decision-making and intelligence of such systems. The framework consists of two main phases, (i) hazard identification and analysis through the systems theoretic process analysis (STPA), and (ii) generating risk models represented by Bayesian Belief Networks (BBN) based on the outcomes of the STPA. The application in the paper is aimed at autonomous ships, but the results of the paper have a general relevance for both manned and unmanned systems with different levels of autonomy, complexity, and major hazard potential.

Firm innovation and supply chain resilience: a dynamic capability perspective

ABSTRACTThis paper investigates whether firms that are more innovative are also more resilient to supply chain disruptions, and if so, what capabilities of innovative firms support the firms’ resilience. We use the dynamic capability view to examine the relationship between firm innovation and a firm’s response to supply chain disruptions. Our findings indicate that a firm with a more innovative environment would be more resilient to disruptions, because innovation, directly and indirectly, helps firms fortify capabilities that positively affect risk management capability. Using a systematic literature review, we show that innovation can enhance the capabilities of knowledge sharing, agility, and flexibility within a firm, and these capabilities in turn have a significant impact on enhancing resiliency. Therefore, we provide evidence for the importance of innovativeness in enhancing firm resilience to supply chain disruption. After identifying the relationship between a firm's resilience and its innovativeness, we develop a conceptual framework that demonstrates this relationship.

The role of supplier collaboration and risk management capabilities in managing product complexity

This research presents a theoretical framework to investigate how firms with limited resource maintain and improve their performance facing the problems incurred by product complexity. It considers operational level supplier collaboration as firms’ strategy to reduce the negative impact of product complexity. It also examines the mediating role of risk management capabilities between supplier collaboration and firms’ performance. Survey data was collected from 264 U.S. manufacturing firms to test the hypothesized relationships in the proposed model using Structure Equation Modeling methodology. The findings indicate that product complexity motivates firms to collaborate with their suppliers. Supplier collaboration at operational level enables firms to achieve better performance through improving firms’ risk management capabilities toward normal risks, internal processing risks, and extraordinary risks with limited resource investment. This research contributes to risk management literature through conceptualizing the concept of risk management capabilities and empirically testing its role as a mediating factor between supplier collaboration and firms’ performance. The findings of this research also provide useful insights about how to handle product complexity through basic level collaboration with suppliers.

Modelling capability-based risk allocation in PPPs using fuzzy integral approach

Appropriate risk allocation and sharing are significant critical success factors for public-private partnership projects, but evidence suggests that poor risk allocation practices prevail. This signifies the need to develop a robust model for assisting stakeholders in risk allocation decision-making. A non-additive fuzzy integral based multiple attribute risk allocation decision approach is proposed to effectively aggregate each stakeholder’s risk management capability assessment on accepted risk allocation principles that are derived from qualitative judgements and experience based knowledge of experts. Data collected from privately financed and developed power and transport infrastructure projects in Pakistan are used to demonstrate and validate the model for key risk factors that exhibit variable risk allocation preferences. Comparison of results with an additive aggregation approach confirms suitability of the adopted methodology as it performs better when modelling risk allocation preferences of experts due to its ability to handle interdependencies in the risk allocation criteria. Apparently, the allocation and sharing of key risks is significantly influenced by market, sector and project contexts.

CEO Career Variety and Firm Risk Management Capabilities

We explore how the prior career variety of a CEO shapes the CEO’s capacity to successfully manage risk. Making use of microdata on CEOs and firms, we find that CEOs with a greater career variety, i...

Power Point Presentation: AI-Machine Learning Augmentation and Cybersecurity: Why Smart Minds Using Smart Tools Are Critical for Minimizing Risks, And, What You Can Do About It?

The current presentation advances upon Artificial Intelligence and Machine Learning industry expert leadership for the MIT Sloan School of Management and the MIT Computer Science & Artificial Intelligence Lab, and, invited presentations at Princeton University conferences sponsored by firms such as Goldman Sachs and Citadel over recent four years. Latest related research papers and presentations with 63 Top-10 SSRN Research Rankings accessible from the author’s SSRN page are advancing worldwide strategies, practices, and, policies. Prior background research ranked and recognized among Finance-IT Nobel laureates for real world impact is also accessible from the author’s home page. The primary focus of the presentation is on helping advance intuitive understanding about AI-Machine Learning Augmentation and Cybersecurity for auditors, business managers, critical infrastructure owners, educators, executives, information security professionals, forensic specialists, IT professionals, law enforcement, process improvement managers, and project managers about the emerging contours. With great power comes great responsibility! In case of AI and Machine Learning technologies, the realization and application of such great power can yield unprecedented automation and optimization capabilities for developing more sophisticated cybersecurity and cyber risk management capabilities. However, the same AI and Machine Learning technologies also provide the ‘adversary’ with unprecedented deception, manipulation, and, attack capabilities to launch much more sophisticated cyberattacks with unprecedented destructive power. Furthermore, for designers, developers, and, users of AI and Machine Learning technologies, greater responsibility is needed not only for acutely recognizing the limitations of underlying mathematical models and algorithms but also for smartly deploying human imagination, intuition, and, insight to make up for the mechanistic limitations inherent in the design of the machines and related automation technologies. We shall advance upon the latest insights generated, hi-tech practices developed, and, lessons learned from leading global industry leaders at programs such as MIT and Princeton and industry conferences such as the latest Armed Forces Communications and Electronics Association (AFCEA) C4I conference. By doing so, we shall help you develop intuitive understanding about AI-Machine Learning Augmentation as well as its most critical role in minimizing the downside risks in ongoing and future Cybersecurity and Risk Management capabilities and practices development and deployment.

Tsunami analytical fragility curves for the Colombian Pacific coast: A reinforced concrete building example

From the last large seismic movements generated in the Pacific Ocean, it has been demonstrated that tsunamis have a high potential of destruction of buildings on the coasts. In that sense, although along the Pacific Colombian coast several earthquakes that have generated tsunami were reported during the last century, there are no local data to quantify the physical damage that future events could produce on nearby cities. For the purpose of establishing tools to increase the risk management capabilities along the Colombian-Ecuadorian Pacific Coast, this paper summarizes a research aimed to describe a new integrated methodology to obtain fragility curves for local buildings at risk of a tsunami. This task was accomplished using computational nonlinear structural analysis, combined with a Monte Carlo statistical algorithm to obtain numerical probabilistic fragility curves. The structural capacity of buildings was obtained from nonlinear structural simulations using the finite element method, to calculate later the damage of each building. Two different damage models to estimate the probability of damage were tested in order to evaluate the one that better represents the structural behavior of buildings, in which the tsunami was considered in the structural model as forces scattered to different heights, thus representing different flow depths. As a result, a methodology was developed to calculate theoretical probabilistic fragility curves for the typical structures found in the Colombian Pacific coast, although this methodology could be expanded to any structural system located in any region around the world. As an illustrative example, the methodology proposed in this research was applied to a typical reinforced concrete building, obtained from a previous work in which all the Tumaco city buildings were characterized according to their structural features.

How the Role of Risk Tolerance on Manage Satisfaction Level

Many major firms within the world, particularly in Indonesia, they contend to every different to allow best services as the way to achieve the goal of their main business. They need launched several programmes to enhance and commit for higher quality management by approach of listening their customers. In an exceedingly service surroundings, info on client response toward services is one in all the simplest key component of feedback that indicates whether good or not, the services meet into perception or even below expectation. Someday what we would like is simply assembling info from client and re-evaluation to actual system of performance report. Supported analysis and assesment, we would like change some parameters to satisfy into the client expectation that become their satisfaction. Since client satisfaction can bring United States into trust and commitment, that loyalty are going to be the the last word goal and bussiness can continue once more and once more, coincidental. To adjust some parameters appears straightforward however really all tough. To measure Perception and Expectation become Service Quality is tough, want observation from time to time to induce the best values, particularly to face risk factors like internal and external setting factors, Risk Management capability, IT capability, and IT-related business capability become Risk Response. To achieve the goal to produce Service Quality between Risk Factors and Risk Response, we have got to regulate Risk Tolerance to induce ideal worth and at an equivalent time manage service quality.

Evaluation of Risk Management Maturity: Measurable Proactive Indicators Suitable for Chinese Small and Medium-Sized Chemical Enterprises

Implementing risk management in chemical industry may bring a number of benefits. Risk management maturity reflects risk management capability of an enterprise from various aspects. The aim of this article is to determine a group of measurable proactive indicators suitable for Chinese small and medium-sized chemical enterprises to evaluate risk management maturity. The article describes the development process of the measurable proactive indicators. Appropriate proactive indicators are extracted from literature and divided into four families based on their characteristics, named operation based indicators, management based indicators, individual based indicator, resources and technology based indicators. Typical measurement examples of proactive indicators are proposed according to risk characters of chemical enterprises. Sixteen small and middle-sized chemical enterprises from China provide risk management records on fourteen indicators. The analysis result show the proposed measurable proactive indicators are available for Chinese small and middle-sized chemical enterprises and could reflect the risk management maturity of an enterprise.