Risk Management Efforts Research Articles

Windstorm Resilient Rural Housing: Lessons learned in Temerloh, Malaysia

In 2019 alone, Temerloh district located in central Peninsular Malaysia has been hit by unpredictable wind storms in localised areas which damaged more than 185 rural homes. This research set out to assess the structural vulnerabilities of damaged rural houses to severe winds in Temerloh and lessons learned from windstorm damage through field surveys of damaged homes between March 2019-August 2019 and supplemented by district-level post-windstorm reconnaissance reports prepared by Malaysia Civil Defense Force (APM) and other information gathered from local government. Results indicate poor performance of structural and non-structural building components in resisting high wind loads due to inadequate design, under-strength of failed building materials and defective construction details. The results of this study could have important implications for government agencies, NGOs, builders, and engineers in assisting rural communities in reconstructing windproof resistant homes and planning for future windstorm risk management efforts specially catered to homeowners in Temerloh.Keywords: Rural housing; Windstorm; Resilience; Malaysia eISSN: 2398-4287 © 2019. The Authors. Published for AMER ABRA cE-Bs by e-International Publishing House, Ltd., UK. This is an open-access article under the CC BYNC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/). Peer–review under responsibility of AMER (Association of Malaysian Environment-Behaviour Researchers), ABRA (Association of Behavioural Researchers on Asians) and cE-Bs (Centre for Environment-Behaviour Studies), Faculty of Architecture, Planning & Surveying, Universiti Teknologi MARA, Malaysia.DOI: https://doi.org/10.21834/e-bpj.v4i12.1817

Public perception and attitudes to disaster risks in a coastal metropolis of Saudi Arabia

Disaster risk reduction is an increasingly important policy issue, especially in developing countries that suffer most of the global human and economic losses associated with disasters. Indeed, public awareness and attitudes can help in disaster risk reduction and management efforts toward reducing mortality and economic losses. In Saudi Arabia, many cities have been recently experiencing incidences of disasters, such as floods, disease epidemics, and sandstorms. However, studies on public perception of disaster risk in the country are few and nascent. Therefore, based on a questionnaire survey (n = 683), this paper explores public perception and attitudes to disaster risks in Dammam, a coastal metropolis in Saudi Arabia. The findings indicate that although almost two-thirds (64.7%) of the participants are aware of disasters, and 81% are concerned about disaster risks, less than half (47.3%) believe that their settlements could be at risk. While 37% opine that disasters are caused by both natural factors and human activities, about half (54%) indicate that they can personally contribute to reducing disaster risks. Chi-square analysis indicates a significant positive relationship between place of residence and perception of disaster risks (χ2 (6) = 56.18, p < 0.05), and between place of residence and concern about disaster risks (χ2 (12) = 68.47, p < 0.05). The paper recommends raising public awareness and encouraging positive behaviors in reducing disaster risks in the study area and similar environments.

The Effect of CSR Disclosure On Firm Risk In Mining Companies Listed On IDX

This research aims to obtain empirical evidence on the effect of corporate social responsibility disclosure on firm risk. This research was conducted on mining companies listed on Indonesia Stock Exchange in 2015-2017. The sample determination method is purposive sampling, with 109 observations. The data analysis technique used is simple linear regression analysis. Based on the research results, it is known that corporate social responsibility disclosure has a negative effect on firm risk. This means that the more CSR disclosure of a company, the lower the firm risk. The implications of the research results supports the signaling theory, stakeholder theory, and legitimacy theory, where risk management efforts are done by sending positive signals through the disclosure of CSR information, to gain the support and trust from the company's stakeholders, and increase the organization's legitimacy. On the other hand, this research provides additional information for all company stakeholders in making decisions.&#x0D; Keywords : CSR Disclosure; Firm Risk; Mining.

Risk enablers modelling for infrastructure projects using Bayesian belief network

Work in the area of risk assessment of infrastructure projects is full of different techniques; study on the risk management factors is non-existent. It is required because such risks of high impact paralyze the performance of infrastructure projects. Delay and cost overruns in infrastructure projects affect the society welfare at large. Because of this, the reputation of the government is at stake. This paper is an attempt to contribute to the risk enablers modelling, by first identifying major critical success factors for risk management and then finding cause-and-effect relationships between them for developing a Bayesian belief network (BBN) model. The analysis of this model and results determine relative importance of the critical success factors on which risk management efforts must be focused first to ensure that the project achieves objectives within the stipulated time and cost.

Integrating spatial statistics tools for coastal risk management: A case-study of typhoon risk in mainland China

Risk-informed planning and management are integral to the sustainability of hazard-prone areas at all spatial scales. This paper proposes a geographic information system- (GIS)-based approach to evaluate the spatial heterogeneities of coastal risk—using typhoons as a case. The study employs several spatial statistics-based distributional models to systematically evaluate the geographies of typhoon risk, its spatial patterns, and statistically significant hotspots of highest risk in coastal Mainland China. Additionally, we model the level of contribution of each risk parameter (i.e., hazard, vulnerability, and community resilience) towards overall risk. The results show that among 70% coastal counties exposed to typhoons, close to 30% are in the highest risk category (value ≥ 3rd quartile). The areas under the highest risk harbor more than 50 million people (~43%)—more than 7 million non-adults (0–14 years) (~42%), and approximately 2.5 million elderly people (above 65 years) (~31%)—which is critical. The Pearl-River-Delta region of Guangdong province in southern China is identified as the hotspot of highest typhoon risk, followed by Fujian and Zhejiang provinces—95% confidence. We propose the integration of spatial statistics and distributional models in coastal risk frameworks to evaluate and map the multi-level geographies of natural hazard risk to support risk management efforts. This study is novel to foster a GIS-based approach for risk management in the coastal regions of China, particularly in a disaster-risk-reduction context. The proposed approach and results have important policy implications and are useful for risk-informed decision-making such as prioritization for risk-relevant actions and resources treatment.

How adapted are built-environment professionals to flood adaptation?

PurposeThe purpose of this paper is to explore how architectural practices have been considering flood-risk adaptation within regular design activities. It relies on the assumptions that floods are hybrid phenomena that require actions in both the anthropic and hydrological domains to be successfully managed, and that floods’ spatial dimension can be subject to design to minimize the impacts of disasters.Design/methodology/approachThis paper draws on the conclusions of a research focussing on the design of flood-prone urban projects in Europe, within which 22 built-environment professionals (BEPs) were interviewed. The statements of these informants were examined through content analysis, as a means to reveal barriers and incentives that affect their perception and practice of dealing with floods through design.FindingsHaving different experiences with flood-related projects, the interviewees showed uneven degrees of sensitivity to manage floods through design. The analyses pinpoint that for BEPs to be up to the challenges associated with these projects, besides technical expertise, some soft skills are needed such as professional openness and a positive mindset.Originality/valueThis paper explores flood adaptation not only as a spatial challenge but also as a cultural change that needs to be embraced within flood risk management efforts.

Risk factors for elder abuse and neglect: A review of the literature

Abstract Elder abuse is a global problem gaining recognition due to its severe impact on victims and the ageing population. Increased recognition has led to the investigation of perpetrator and victim characteristics that increase the risk of elder abuse. The identification of such risk factors can assist practitioners in preventing abuse, determining the risk of continued elder abuse and, where factors are dynamic, can be targets for risk management. This literature review identifies and describes perpetrator and victim risk factors for elder abuse with the goal of informing professional practice and providing the basis for an empirically derived risk assessment instrument for elder abuse. Electronic searches identified 198 studies that met the eligibility criteria. The studies reviewed provide evidence supporting eight risk factors related to the perpetrator that increase their risk of continued elder abuse and eight victim vulnerability factors that place the victim at heightened risk of elder abuse. Hypotheses raised by researchers to account for the associations are outlined. The practical utility of the risk and vulnerability factors are described. The need for and approach to developing a structured method to assess and manage elder abuse risk based on the empirically supported risk and vulnerability factors is discussed. Public significance statement Empirically supported dynamic risk factors for elder abuse are identifiable for perpetrators and victims of abuse in the existing research literature. These risk factors can be utilised by professionals to inform their practice and target risk management efforts.

Efficacy Foundations for Risk Communication: How People Think About Reducing the Risks of Climate Change.

Believing action to reduce the risks of climate change is both possible (self-efficacy) and effective (response efficacy) is essential to motivate and sustain risk mitigation efforts, according to current risk communication theory. Although the public recognizes the dangers of climate change, and is deluged with lists of possible mitigative actions, little is known about public efficacy beliefs in the context of climate change. Prior efficacy studies rely on conflicting constructs and measures of efficacy, and links between efficacy and risk management actions are muddled. As a result, much remains to learn about how laypersons think about the ease and effectiveness of potential mitigative actions. To bring clarity and inform risk communication and management efforts, we investigate how people think about efficacy in the context of climate change risk management by analyzing unprompted and prompted beliefs from two national surveys (N = 405, N = 1,820). In general, respondents distinguish little between effective and ineffective climate strategies. While many respondents appreciate that reducing fossil fuel use is an effective risk mitigation strategy, overall assessments reflect persistent misconceptions about climate change causes, and uncertainties about the effectiveness of risk mitigation strategies. Our findings suggest targeting climate change risk communication and management strategies to (1) address gaps in people's existing mental models of climate action, (2) leverage existing public understanding of both potentially effective mitigation strategies and the collective action dilemma at the heart of climate change action, and (3) take into account ideologically driven reactions to behavior change and government action framed as climate action.

Analysis of The Influence of Services and Procedures of Claim Submission on The Interest of Participants in Islamic Insurance (Case Study in General Takaful for Motor Vehicle Insurance Jakarta 2019)

The financial industry as the financial support of the state is not only support with the banking industry but also support non-banks industry, one of them is insurance. Islamic insurance is a risk management effort that will occur in the future that applies the concept of Islam in its operations. Accidents and natural disasters can occur at any time, especially when living in a country like Indonesia, people try to minimize financial losses caused by disasters that it can be save with insurance. An understanding of the participants about Polis in Islamic Insurance become a reason of the researcher to analyze the influence of the participant in Islamic Insurance. This research was carried out to determine the influence of services and procedures of claim submission towards participants' interest in Islamic insurance. The method used by researchers was a quantitative descriptive method by looking for significance between variables using a simple formula of multiple correlation, with data collecting techniques those are observation, interview, questionnaire and documentation. With sampling techniques of the population amount 61 respondent with purposive sampling. Based on the results of the analysis and discussion, it can be concluded that Service (X 1 ) and the Claim Submission Procedure (X 2 ) affected customer interest in Sharia Insurance (Y). The F counting and F table tests showed that the results were significant, that the F counting value was greater than F table (35.11 > 3.16), while the coefficient of determination was indicated by the R 2 value of 0.5476 or 54.76% affecting the interest of customers in Islamic insurance, while 45.24% was influenced by other variables unobserved.

Considering flood risk in spatial development planning: A land use conflict analysis approach.

Flooding is the predominant natural hazard observed in Africa, and it often leads to damage to property and losses in human lives. To ensure that the detrimental effects of flooding are kept to a minimum, flood-prone areas should best be left undeveloped. Spatial development planning is a tool that can assist disaster risk managers in ensuring the aforementioned. This article proposes the use of a land use conflict analysis approach through which flood risk can be considered in spatial development planning in a proactive manner, specifically contributing to the flood risk management effort. A land use conflict analysis approach, relying on a variety of spatial analysis techniques, was used to identify areas that were both suitable for residential development and free from flood risk in the Batlhaping Ba-Ga-Phuduhucwana tribal area in South Africa. It was found that only 8% of the study area met these criteria. A comparison between the identified 8% and the existing spatial development plan for the study area revealed that some of the areas portrayed as suitable for development in the current spatial development plan are in fact flood risk areas. The article illustrates the value that a land use conflict analysis approach might have for flood risk management when integrated with spatial development planning.Keywords: flooding; land use conflict analysis; suitability analysis; flood-prone area; disaster management; spatial development planning; South Africa.

Comparative Optimism: Relative Risk Perception and Behavioral Response to Lead Exposure.

Despite their true exposure, individuals with Comparative Optimism consider themselves less prone to the adverse health effects of pollution. Since individuals' response to a given environmental risk is affected by their appraisal of the risk, those with Comparative Optimism may be less likely to engage in prescribed behaviors or to do so at the urgency required of the given risk. Such limited or delayed response can amplify the risk instead of reducing it. Thus, there is a need to understand if Comparative Optimism applies to pollutants with irreversible adverse health effects as it would impose a higher burden. There is also a need to know which segments of the population are prone to Comparative Optimism and how it manifests in terms of activities that can enhance exposure. Doing so will allow public health professionals address gaps in risk communication and management efforts and help improve environmental health outcomes. Using survey data, we assess the presence, behavioral and socioeconomic predictors, and implications of Comparative Optimism for communicating and managing lead exposure risk in an urban setting. Our results indicate that a large share of the population has Comparative Optimism for lead exposure, despite living in a city that has a relatively higher lead poisoning burden. We also found that ethnicity, income, length of stay at residence, among others, predict Comparative Optimism, suggesting that Comparative Optimism may predict elevated blood lead level.

Accounting and Cybersecurity Risk Management

SUMMARYAs the number of cybersecurity incidents continue to rise and stakeholders are becoming increasingly concerned, companies are devoting considerable resources to their cybersecurity risk management efforts and related cybersecurity disclosures. This paper describes how accountants are uniquely positioned to assist companies with these efforts in advisory and assurance capacities. We present a model of effective cybersecurity risk management and discuss how accountants' core competencies can add significant value in each of the model's five stages. In addition, we use several recent high-profile cybersecurity incidents as illustrative examples in each of the five stages. We conclude by discussing implications for accountants.

Creating an effective asset integrity program

Establishing an effective asset integrity management (AIM) program begins with the creation of a leadership team at the appropriate level of management. The team membership should encompass all areas of responsibility for asset integrity. Management at the corporate level cannot effectively drive execution of the details. Oversight at a low level in the organization can result in inconsistencies in implementation across the enterprise or insufficient resources to fully implement the AIM program.The AIM program should drive overall risk management for all assets. Regulatory covered processes may have higher safety risks, but non‐covered assets may still pose significant business risk that requires elevated coverage.The AIM program should be established as a full life cycle program, from design to decommissioning. Clearly defining and documenting standards, roles, and responsibilities for each phase of the life cycle are essential to an effective AIM program. Each role needs to be filled with subject‐matter experts who are actively engaged with the leadership team.A successful AIM program can improve existing risk management and reliability efforts through appropriate management direction, thoughtful application of the program to all assets, and clear documentation of the expectations for the full life cycle of the equipment. © 2018 American Institute of Chemical Engineers Process Saf Prog 38: e12008, 2019

Building Up a Protective Shield: The Role of Tax Communication for Corporate Tax Risk Management

Our objective is to examine the ‘black box’ of corporate tax risk management by providing unique insights into practitioners’ tax risk perception, implemented tax risk management practices, and the internal dynamics leading to these practices. We perform our analysis based on 33 expert interviews, which we conducted with 42 practitioners. One important insight from our interviews is that substantial heterogeneity in tax risk definitions exists among corporate insiders and corporate outsiders. Another important finding is that our sample firms engage in detached tax risk management practices that are not integrated into enterprise-wide risk management efforts. We attribute this separation to the unique risk profile of the corporate tax function. Our results further reveal that 90% of our sample firms engage in (preventive) external tax communication to manage their tax risks. Through addressee-specific tax communication, targeted at different external stakeholders, tax departments shield their firm and its CFO from impinging external pressure and thus reduce corporate tax risk exposure.

Imminent danger:: Characterizing uncertainty in critically hazardous mining situations.

■ Mineworkers are routinely tasked with making critically important decisions about whether or not a hazard presents an imminent danger. Researchers from the U.S. National Institute for Occupational Safety and Health collected formative data to investigate mine safety professional perspectives on workplace examinations, which revealed a potential gap in how mineworkers are assessing risk. During interviews, participants revealed not having a systematic methodology for mineworkers to use to determine if a hazard is considered imminent danger. In this paper, we identify and describe three distinct categories of imminent danger complexity and discuss potential steps that could lead to improved identification of imminent danger situations. Finally, we identify potential practices to incorporate into risk management efforts, including feedback, communication and specialized training, to increase awareness of imminent danger situations.

Incorporating a “no claim bonus” in insurance agency contract

A bonus received by an agent from an insurer when the insured does not make a claim is called a “no claim bonus” (NCB). An NCB rewards the agent's risk‐management (RM) effort that reduces the probability that the insured suffers a loss. This paper designs an incentive compatible contract that induces the agent to choose an RM effort. If the agent's RM effort cost is lower than a threshold, feasible ranges of NCB and premium values exist such that the insurer can offer an incentive compatible agency contract with an NCB that is acceptable to the agent.

Return period and Pareto analyses of 45 years of tropical cyclone data (1970–2014) in the Philippines

The epiphenomena of tropical cyclones (TCs) such as landslides, storm surges, and floods cause the largest loss of life and property in the Philippines. In order to improve the disaster risk management efforts of the country, it is necessary to evaluate the return periods (RPs) or chance of occurrence (CoC) of TCs. Hence, this study generally aimed to investigate the relationship of the RPs/CoC, sea surface temperature (SST) anomaly associated with the Interdecadal Pacific Oscillation (IPO), and the cost of socio-economic damages and the number of deaths caused by TCs. The Weibull parametric models and the Pareto principle were utilised to achieve this overarching objective. Using the maximum sustained wind speed (v), forty-five (45) years of TC data (1970–2014) within the Philippines Area of Responsibility (PAR) were analysed by applying the stationary and non-stationary stochastic modelling techniques. The stationary Weibull probability density function revealed that TCs Rita (1978), Dot (1985) and Haiyan (2013) occupy the wind speed region of 61 ≥ v ≤ 64 m/s with a probability of 0.4% for any given year. On the other hand, the analysis of the cumulative distribution function revealed a 60% probability of TCs for the cumulative years with a maximum sustained wind speed of at most 38 m/s. This indicates the central estimate of the wind speed from 1970 to 2014 with TCs Ruby (1988) and Vicki (1998) as the observed cases. Furthermore, the probability values on the annual CoC maps depict the indicative positions of TCs, either singly, co-shared or cross-shared, that made landfall (or not) in the Philippines. Results from the non-stationary stochastic modelling revealed that the low probability values on the decadal CoC maps indicate the locations where extreme TC events are likely to occur within PAR; hence, showing the areas in the country that are more at-risk. The relationship of SST anomaly and CoC values disclosed that the TCs are intensified in the northern Philippines and south of West Philippines Sea during the positive(+) phase and the negative(-) phase of the IPO, respectively. Finally, the Pareto analysis revealed that 80% of the TC-related damage cost and the number of deaths are shared by three (3) different stationary and non-stationary RPs with TCs Ike (1984), Nina (1987), Fengshen (2008), Mike (1990), Parma (2009), and Haiyan (2013) as the observed extreme events. In the absence of accurate or updated cyclone risk models, the communities that are highly vulnerable to TCs can use the stationary and non-stationary stochastic CoC models as an early warning tool for disaster preparedness. Ultimately, the results of this study can provide significant insights to support the Philippines in their pursuit of improving cyclone resilience programs.

Using FloodRisk GIS freeware for uncertainty analysis of direct economic flood damages in Italy

The considerable increase in flood damages in Europe in recent decades has shifted attention from flood protection to flood risk management. Assessments of expected damage provide critical information for flood risk management efforts. The evaluation of potential damages under different flood scenarios through quantification of their ability to provide relative short-, medium- and long-term risk reduction, supports decision-makers in discriminating among several alternative mitigation actions. End-users should be aware of, and knowledgeable about, the limitations and uncertainties of such analyses, as well-informed decisions regarding efficient and sustainable flood risk management will become increasingly relevant under future climate and socio-economic changes. In this context, a method was developed to identify and quantify the role of the input parameters in the uncertainty of the potential flood economic damage assessment in urban areas with low sloping/flat terrain and complex topography using a GIS-based, free and open-source software called Floodrisk. Sets of plausible input parameters for the model’s two flood loss modelling subroutines (hydraulic modelling and damage estimation) were dynamically combined to quantify the contribution of their inner parameters to the total damage assessment uncertainty. To estimate the contributions of each input to overall model uncertainty, the combination of input parameters that minimized the error in the spatial distribution assessment of the extensive damages affecting (downtown) Albenga (Italy), enumerated after the historical Centa River flood of November 5, 1994, was taken as a reference. In this specific case, a high epistemic uncertainty for the damage estimation module was noted for the specific type and form of the damage functions used. In the absence of region-specific depth-damage functions, the vulnerability curves were adapted from a range of geographic and socio-economic studies. Given the strong dependence of model uncertainty and sensitivity to local characteristics, the epistemic uncertainty associated with the risk estimate was reduced by introducing additional information into the risk analysis. Implementing newly developed site-specific curves and a more detailed classification of the construction typology of the buildings at risk, led to a substantial decrease in modelling uncertainty, along with a decrease in the sensitivity of the flood loss estimation to the uncertainty in the depth-damage function input parameter. These findings indicated the need to produce and openly disseminate data in order to develop micro-scale risk analysis through site-specific vulnerability curves. Moreover, this study highlighted the urgent need for research on the development and implementation of methods and models for the assimilation of uncertainties in decision-making processes.

Biological monitoring of workers exposed to engineered nanomaterials

As the number of nanomaterial workers increase there is need to consider whether biomonitoring of exposure should be used as a routine risk management tool. Currently, no biomonitoring of nanomaterials is mandated by authoritative or regulatory agencies. However, there is a growing knowledge base to support such biomonitoring, but further research is needed as are investigations of priorities for biomonitoring. That research should be focused on validation of biomarkers of exposure and effect. Some biomarkers of effect are generally nonspecific. These biomarkers need further interpretation before they should be used. Overall biomonitoring of nanomaterial workers may be important to supplement risk assessment and risk management efforts.

Supply chain disruptions: Insights from South African third-party logistics service providers and clients

Background: Despite risk management efforts, supply chains have become increasingly vulnerable to disruptions. Disruptions should be successfully managed if organisations are to thrive in today’s ever-changing world.Purpose: This study explored supply chain disruptions of third-party logistics service providers (3PLs) and their clients based in South Africa by investigating the disruptions these organisations face, and how they go about managing them.Method: A generic qualitative research approach was used to gather data by conducting semi-structured interviews with 22 participants, which comprised 11 3PLs and 11 client organisations operating in South Africa.Findings: This study classified disruptions as intra-, inter- and extra-organisational. South African 3PLs and their clients face the majority of their disruptions either intra- or inter-organisationally. The focus of 3PLs and clients has shifted from risk management to disruption management. The findings show that 3PLs and their clients based in South Africa prefer disruption learning over traditional risk management as a method to better manage future disruptions.Conclusion: This study contributes to existing literature by providing insight into the specific supply chain disruptions that 3PLs and their clients based in South Africa face, according to the disruption location in the supply chain and how 3PLs and clients manage supply chain disruptions.