Risk Management In Institutions Research Articles

Risk management in financial institutions and acceptable best practices

Risk management in financial institutions and acceptable best practices

HY-RISE: Towards Risk Identification Learning from Massive Scientific Economic Activities

Scientific economic activities document the utilization of research funds, which form a critical component of scientific research. Detecting potential risk behaviors from scientific economic activities is crucial to risk management for research institutions. Most of the existing attempts, however, tackle the problem with traditional machine learning algorithms, which rely on the manual feature extraction. Undoubtedly, these methods cannot extract complex semantic features or fuse information from hybrid data for effective risk identification. To overcome these challenges, in this paper, we propose a novel Risk Identification model for Scientific Economic activities from HYbrid data (HY-RISE), which incorporates both textual and structured data. Firstly, we use a pretrained BERT module to capture the semantic information from textual data. After that, we introduce a BiGRU module to augment the contextual information in semantic embeddings. Finally, we use a shallow neural network to fuse the augmented semantic representation with other discrete features to obtain the final representation. Experimental results on the real reimbursement dataset demonstrate that HY-RISE apparently outperforms existing models in terms of effectiveness and robustness for risk identification.

Comment on Docket No. OP-1793, 'Principles for Climate-Related Financial Risk Management for Large Financial Institutions'

Comment on Docket No. OP-1793, 'Principles for Climate-Related Financial Risk Management for Large Financial Institutions'

The evolution of technical prerequisites and local boundary conditions for optimization of mitral valve interventions-Emphasis on skills development and institutional risk performance.

This viewpoint report describes how the evolution of transcatheter mitral valve intervention (TMVI) is influenced by lessons learned from three evolutionary tracks: (1) the development of treatment from mitral valve surgery (MVS) to transcutaneous procedures; (2) the evolution of biomedical engineering for research and development resulting in predictable and safe clinical use; (3) the adaptation to local conditions, impact of transcatheter aortic valve replacement (TAVR) experience and creation of infrastructure for skills development and risk management. Thanks to developments in computer science and biostatistics, an increasing number of reports regarding clinical safety and effectiveness is generated. A full toolbox of techniques, devices and support technology is now available, especially in surgery. There is no doubt that the injury associated with a minimally invasive access reduces perioperative risks, but it may affect the effectiveness of the treatment due to incomplete correction. Based on literature, solutions and performance standards are formulated with an emphasis in technology and positive outcome. Despite references to Heart Team decision making, boundary conditions such as hospital infrastructure, caseload, skills training and perioperative risk management remain underexposed. The role of Biomedical Engineering is exclusively defined by the Research and Development (R&D) cycle including the impact of human factor engineering (HFE). Feasibility studies generate estimations of strengths and safety limitations. Usability testing reveals user friendliness and safety margins of clinical use. Apart from a certification requirement, this information should have an impact on the definition of necessary skills levels and consequent required training. Physicians Preference Testing (PPT) and use of a biosimulator are recommended. The example of the interaction between two Amsterdam heart centers describes the evolution of a professional ecosystem that can facilitate innovation. Adaptation to local conditions in terms of infrastructure, referrals and reimbursement, appears essential for the evolution of a complete mitral valve disease management program. Efficacy of institutional risk management performance (IRMP) and sufficient team skills should be embedded in an appropriate infrastructure that enables scale and offers complete and safe solutions for mitral valve disease. The longstanding evolution of mitral valve therapies is the result of working devices embedded in an ecosystem focused on developing skills and effective risk management actions.

일본의 확정급부형 연금리스크와 제도 리스크에 대한 고찰

For Japanese private companies, the pension system of employees can be divided into three categories. First, there is a national pension in which a certain amount of money is paid to all citizens aged 20 orolder, which is a public pension. Second, there is a welfare pension paid to the payer in proportion tothe salary while working at the workplace. Finally, there is a corporate pension that companies providefor their employees. The purpose of this study is as follows. First, it presents the risk of defined benefit type corporatepension corresponding to the corporate pension and the direction of institutional risk management. Second, it analyzes the direction of payment certificate system. Finally, in order for the corporatepension system to continue to develop appropriately as a system, it analyzes by dividing it into risk andrisk management. As a result of the study, for the ideal development of the pension system, it cannot be discussedwithout considering changes in the capital market of Japanese economy or changes in industrialstructure and population structure, and risk management of the pension system cannot be successfulunless it is done on these premises. It is certain that the payment certificate system contributes to thedevelopment of the pension system, but it is also true that there are limitations in the areas thatsupplement its contribution. In order for the Japanese economy to develop in the future, it should bedesirable that dynamic changes in the economy continue to occur.

THE QUALITY OF LIQUIDITY RISK MANAGEMENT IN COOPERATIVE BANK UNIREA BRAȘOV

An integrated banking risk management system presupposes the existence and functionality of policies, procedures and tools designed to identify, assess and eliminate/assume the risk to which the banking institution is exposed. There is a set of specific operations and procedures that generate banking risk. In addition, banking companies have to deal with risks that are not specific to them. With the national and international expansion of electronic credit system, financial markets have become much more fragile, the degree of uncertainty has increased, adding to all this the multiplication of risks specific to the financial-banking system due to the pandemic crisis. Therefore, the most common cause of losses and insolvency of credit institutions is due to the difficulty of dealing with events that may occur but have not been foreseen, as is the case with the COVID-19 pandemic. In this paper, we conducted a research targeting banking companies in the current crisis circumstances, analysing the issue of risk management in credit institutions. This approach is the basic pillar of this paper, which, in addition to the traditional aspects of banking management, also considers how the challenges and critical issues during crises become a test of competence for managers in order to overcome less predictable situations. The scientific approach undertaken focuses on the liquidity risk in credit institutions derived from studying the activity of the Cooperative Bank UNIREA Brașov. This paper concludes that, in the context of the global financial crisis and the pandemic due to the SARS-CoV-2 coronavirus, there have been major changes in the operating environment of the credit institutions and indicates a reassessment of the techniques and methods applied in banking management.

Modernising operational risk management in financial institutions via data-driven causal factors analysis: A pre-registered report

To enable more proactive management of the underlying sources of operational risks in financial institutions, this pre-registered study seeks to improve traditional qualitative approaches to causal factors analysis. A Bayesian network-based approach is used to leverage both incident and operations data to model the probability of operational loss events. The approach is applied and empirically tested in a case study on an Australian insurance company. The outputs from the model go beyond simply identifying key risk drivers to offer risk managers a deeper understanding of how causal factors influence risk. Insights into the collective effects of causal factors, their relative importance and critical thresholds strategically inform more efficient and effective mitigation decisions, ultimately enhancing firm performance and value.

Gender Bias in Risk Management Reports Involving Physicians in Training – A Retrospective Qualitative Study

Gender bias, which contributes to burnout and attrition of female medical trainees, may manifest as disparate workplace evaluations. Here, we explore gender-based differences in perceived competence and professionalism as described in an institutional electronic risk management reporting system. In this retrospective qualitative study, recurring themes were identified from anonymous entries reported to an electronic institutional risk management database from July 2014 to July 2015, and from July 2019 to July 2020 using inductive methods. This electronic system is often used by hospital staff to document complaints against physicians under the pretext of poor patient care, regardless of whether an adverse event occurred. Two individuals independently coded entries. Themes were determined from event indicator codes (EIC) using Delphi methodology and compared between gender and specialty using bivariate statistics. A multi-center integrated healthcare delivery system. Risk management entries pertaining to physician trainees by hospital staff as written submissions to the institution's electronic risk management reporting system. Main outcomes included themes defined as: (1) lack of professionalism (i.e., delay in response, attitude, lack of communication), (2) perceived medical error, (3) breach of institutional protocol. Of the 207 entries included for analysis, 52 entries identified men (25%) and 31 entries identified women (15%). The gender was not available in 124 entries and, therefore, categorized as ambiguous. The most common complaint about men involved a physician-related EIC (n = 12, 23%, EIC TX39) and the most common complaint about women involved a communication-related EIC (n = 7, 23%, EIC TX55). Eighty-eight (43%) entries involved medical trainees; 82 (40%) involved surgical trainees. Women were more often identified by their name only (n = 8, 26% vs. n = 3, 6%; p < 0.001). This finding was consistent in both medical (n = 0, 0% vs. n = 5, 31%; p < 0.001) and surgical (n = 2, 7% vs. n = 3, 25%; p = 0.006) specialties. In entries involving women, a lack of professionalism was most frequently cited (n = 29, 94%). Entries identifying medical errors more frequently involved men (n = 25, 48% vs. n = 7, 23%; p = 0.02). Gender-based differences exist in how hospital staff interpret trainees' actions and attitudes. These differences have consequences for training paradigms, perceptions of clinical competence, physician burnout, and ultimately, patient outcomes.

Institutional Investors, Risk Management and Audit Committees Influence on Non-Financial Risk Disclosure

This study examines the complementary or substitution role of audit committee independence (ACInd), risk management committee (RMC) and institutional investors on non-financial risk disclosure (NFRD). While the existing literature provides inconclusive evidence on the individual influences of various monitoring mechanisms on NFRD, it is necessary to examine whether their combined monitoring roles are present as many monitoring mechanisms coexist within an organisation. This study examined a sample of 864 Bursa Malaysia companies from 2016 to 2018. The Delphi technique is used to finalise NFRD items. This study performed regression and simple slope tests to examine the complementary and substitutive role of ACInd, RMC and institutional investors. The findings show that RMC is substitutive to AcInd towards NFRD. This demonstrates that RMC has the expertise and potential to lessen any information asymmetry, making it the most reliable monitoring mechanism. These findings indicate the significance of establishing a standalone RMC among Malaysian companies to supervise the NFRD reporting. Keywords: Complementary and substitutes framework; institutional investors; non-financial risk disclosure; risk management and audit committees. ABSTRAK Kajian ini mengkaji peranan pelengkap atau pengganti jawatankuasa audit bebas (ACInd), jawatankuasa pengurusan risiko (RMC), dan pelabur institusi ke atas pendedahan risiko bukan kewangan (NFRD). Walaupun kajian lalu telah menunjukkan bukti yang tidak konsisten berkenaan pengaruh pelbagai mekanisme pemantauan secara individu ke atas NFRD, adalah perlu untuk memeriksa kewujudan gabungan mekanisme pemantauan secara bersama disebabkan banyak mekanisma pemantauan berada bersama dalam organisasi. Kajian ini menguji 864 sampel syarikat tersenarai di Bursa Malaysia dari 2016 hingga 2018.Teknik Delphi digunakan untuk memuktamadkan item-item NFRD. Ujian regresi dan kecerunan telah dilakukan bagi memeriksa peranan pelengkap dan pengganti ACInd, RMC dan pelabur institusi. Dapatan kajian menunjukkan RMC adalah pengganti kepada AcInd ke atas NFRD. Ini menunjukkan RMC mempunyai kepakaran dan berpotensi mengurangkan masalah jurang maklumat dan menjadikannya mekanisme pemantauan yang paling dipercayai. Penemuan ini menunjukkan kepentingan penubuhan RMC tersendiri dalam kalangan syarikat Malaysia untuk menyelia pelaporan NFRD. Kata kunci: Kerangka kerja kesan pelengkap dan pengganti; pelabur institusi; pendedahan maklumat risiko bukan kewangan; jawatankuasa pengurusan risiko dan audit.

At the Crossroads of Minimally Invasive Mitral Valve Surgery-Benching Single Hospital Experience to a National Registry: A Plea for Risk Management Technology.

Almost 30 years after the first endoscopic mitral valve repair, Minimally Invasive Mitral Valve Surgery (MIMVS) has become the standard at many institutions due to optimal clinical results and fast recovery. The question that arises is can already good results be further improved by an Institutional Risk Management Performance (IRMP) system in decreasing risks in minimally invasive mitral valve surgery (MIMVS)? As of yet, there are no reports on IRMP and learning systems in the literature. (2) Methods: We described and appraised our five-year single institutional experience with MIMVS in isolated valve surgery included in the Netherlands Heart Registry (NHR) and investigated root causes of high-impact complications. (3) Results: The 120-day and 12-month mortality were 1.1% and 1.9%, respectively, compared to the average of 4.3% and 5.3% reported in the NHR. The regurgitation rate was 1.4% compared to 5.2% nationwide. The few high-impact complications appeared not to be preventable. (4) Discussion: In MIMVS, freedom from major and minor complications is a strong indicator of an effective IRMP but remains concealed from physicians and patients, despite its relevance to shared decision making. Innovation adds to the complexity of MIMVS and challenges surgical competence. An IRMP system may detect and control new risks earlier. (5) Conclusion: An IRMP system contributes to an effective reduction of risks, pain and discomfort; provides relevant input for shared decision making; and warrants the safe introduction of new technology. Crossroads conclusions: investment in machine learning and AI for an effective IRMP system is recommended and the roles for commanding and operating surgeons should be considered.

The paradoxical effects of institutional trust on risk perception and risk management in the Covid-19 pandemic: evidence from three societies

Adopting the theoretical lenses of social amplification of risk framework and trust paradox, this study examines how people’s attention to media information influences their risk perception and risk management behaviors (i.e. vaccination intention) in the context of the Covid-19 pandemic in three Chinese societies (i.e. Hong Kong, Taiwan, and Mainland China). A total of 9,575 valid samples were obtained via online survey panels. The results revealed that media attention significantly influenced risk perception and risk management across the three societies. Institutional trust, however, could amplify or attenuate risk perception and risk management in different societies: While institutional trust was found to have a positive impact on people’s risk perception in Taiwan and Mainland China, a negative impact was discovered in Hong Kong. Moreover, different dimensions of institutional trust, which we term ability-based trust and benevolence-based trust, were found to mediate the effect of media attention on risk perception and risk management in different societies: While both dimensions were significant mediators for Taiwan, benevolence-based trust and ability-based trust was the only mediator for Mainland China and Hong Kong, respectively. The paradoxical impact of institutional trust on risk perception and risk management is explained with contextual factors specific to each of the three societies, supplemented with post-hoc analysis on how publics assign risk management responsibility to risk management institutions in different societies. Overall, the results provide empirical support to the social amplification of risk framework (SARF) by highlighting the roles of media and institutions as social stations that shape risk perception.

노인일자리 전담기관의 위험사고와 대응에 관한 위험관리 연구

This study has structural limitations due to the characteristic that the participants are elderly people. This limitation can be explained that risk management is very necessary because there is a high possibility of causing a fatal or serious risk to the elderly in the event of an accident. Therefore, as a risk management study of the Senior Club, an institution in charge of employment for the elderly, the purpose of this study was to provide data for the risk management response of the institution in charge of employment for the elderly. For this purpose, the senior employment agency collected data from 16 senior club employees belonging to the Busan branch of the Korea Senior Club, and finally 234 copies were used for this study. In particular, in this study, the differences according to demographic characteristics were investigated by identifying occupational risks, management (operational) risks, social risks, the possibility of disaster risk accidents, and the possibility of corona 19 risk accidents for employees of senior clubs, which are dedicated to senior employment. Furthermore, the need for risk management by an institution in charge of job placement for the elderly was divided into organizational, environmental, and legal and institutional dimensions, and the need for risk management was analyzed according to demographic and sociological characteristics. As a result, first, among the differences in the possibility of risk accidents occurring at the senior employment agency according to the demographic characteristics of the study subjects, the possibility of occupational risk accidents was determined by age, position, educational background, and work type, and the possibility of risk accidents in management (operational) was determined by age, Position, period of service, social worker qualifications, work type, the likelihood of a socially hazardous accident by age, the possibility of a dangerous accident by gender, age, educational background, and work type, and the possibility of COVID-19 and dangerous accidents by age, There were significant differences in position, working period, work type, social worker qualifications, and educational background. Second, in the difference in response to risk management of senior employment agencies according to demographic characteristics, the need for organizational risk management is determined by position, period of service, and work type, and the need for environmental risk management is determined by position, length of service, and work type, legal and institutional Dimensional risk management necessity had significant differences in position, working period, and working type. Based on the above research results, it was proposed to make compulsory risk management maintenance education taking into account the individual characteristics of workers in senior employment agencies, to establish a response TF team for each type of risky accident and to conduct case management, and to develop a customized risk management manual for senior employment agencies. In addition, this study is meaningful in that it provided basic data on risk accident awareness and risk management response of employees of an agency dedicated to senior citizens.

Strengthening Health Systems for Climate Adaptation and Health Security: Key Considerations for Policy and Programming.

Strengthening Health Systems for Climate Adaptation and Health Security: Key Considerations for Policy and Programming.

Effect of digital governance in risk management in health institutions amidst Corona Pandemic: A study applied on a sample of workers in health institutions

This study aimed to identify the existing situation and the extent to which digitization of governance contribute in enhancing the role of health institutions in preventing the spread of epidemics by managing and containing the risks resulting from the spread of the Corona virus and reducing its risks. It was applied to a representative sample of health institutions workers in the Kingdom of Saudi Arabia which included (50) members. The data was analyzed using the statistical analysis program, statistical packages for the social sciences, and many results and recommendations were presented. The results revealed that there is a clear tendency towards digitization of governance in health institutions in the Kingdom, which resulted in a superior ability to manage risks during the pandemic, limit its spread and reduce its risks, as it was found from the statistical tables for the respondents’ response to the elements of the hypothesis related to the first factor (governance of formulating plans for risk management) and the second element (The digital governance of health institutions) reflected positive responses by more than (90%) of the total responses.

Performance Verification of Bayesian Network–Based Security Risk Management and Control System for Power Trading Institutions

Risk in power trading is unavoidable for various reasons. The impact of this risk would vary based on the trading characteristics that mainly depend on the market design and power purchase agreements. So, a security risk management and control system for power trading institutions based on a Bayesian network is designed to reduce the risk of power trading projects. As a part of the network, we first provided the overall architecture of the risk management and control system, which includes a malicious network behaviour detection module, controller selection module, data transmission module, and management and control result visualisation module. Second, the hardware test design was implemented by analysing each module’s working principle and function. Based on the hardware design of the system, the regression analysis method is used to evaluate the risk of power transactions, followed by market fluctuation prediction to obtain the prediction result induced risks. The relationship between security risks and risk-influencing factors is analysed using the Bayesian network. The initial list of risks is established, the uncertain risk factors are reasoned, and the security risk management and control model of power trading institutions is tested to achieve the goal of risk management and control. The experimental results show that this method’s risk management and control efficiency are high. At the same time, this method effectively realised comprehensive risk identification by reducing the loss to power enterprises and has near-practical application value.

Scrum in Project Risk Management in Cultural Institutions

Cultural animation and education is one of the goals of cultural institutions. In practical terms, this goal is often implemented through projects, which are also a way to obtain additional financial resources. Hence, projects are part of the work of cultural institutions. Agility understood as flexibility in management, is, therefore, becoming a necessity in cultural institutions, and project risk management as an important part of the management process. This resulted to the proposal to apply the Scrum approach to risk management in projects implemented by cultural institutions. Empiricism, adaptation, and iteration are inherent in Scrum. In this respect, they correspond to both the mission of cultural institutions and the need to adapt activities to the changeability of the environment. Pilot research carried out in three cultural projects indicates that the proposed model of risk management using the Scrum approach allows to manage project risk thanks to systemised work of the project team, transparency of activities, and adaptation of the project to the variability of the environment in subsequent iterations resulting from the Scrum approach. This article presents the results of the research and their implications for project management in cultural institutions.

The evolving risks of the 21st century and their effective management

Risk management institutions can be reinvented in the 21st century in response to the changing nature of economic uncertainties and changing information technology. The COVID-19 pandemic and its effects on the economy provide an example of new kinds of uncertainties to be managed. National and international contracts should manage risks to claims on better-defined economic aggregates and prices of factors of human capital to make for better economic measurements and better risk management opportunities. The failures of international management of the COVID-19 pandemic, including failure to control the spread of misinformation, provide lessons for such new financial arrangements

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.

개별 주택가격 데이터를 이용한 주택가격 변동률 분포의 특성 분석*

This study departs from the convention of using only the house price index when analyzing the housing market price change, and examines the market through the lens of house price change distribution. By using a panel data of individual house prices, I find the following. First, house price change distribution has a positive skewness; so, the median is smaller than the mean. Second, when the price index falls, the individual price also falls; however, when the price index rises, the deviation between individual price change increases. Third, even when the price index rises by 10%~20%, 5.2% of the individual houses experience a price fall. Last, the large, high price houses in the capital area shows high price volatility; so, when the price index rises, their price rises more than the average houses, and when the price index falls, their price falls more than the average houses. The results of this study can be utilized in risk management in financial institutions.

Money laundering risk management in multiple-purpose financial institutions in Mexico: a Bayesian network approach

PurposeThis paper aims to develop a money laundering risk management model for multiple-purpose financial institutions (SOFOMES, Spanish acronym for “Sociedades Financieras de Objeto Múltiple”) based on the best international practices.Design/methodology/approachA study of a sample of several SOFOMES is carried out through representative surveys and focus groups to collect information to develop a causal model of risk management under a Bayesian network approach together with a Monte Carlo simulation.FindingsThe probability that SOFOMES has a high incidence to be used as a mean of money laundering is 29.3%, correspondingly with a probability of 33.1% of having medium incidence and 37.4% of low incidence.Research limitations/implicationsOnly nine SOFOMES were willing to provide information for this study.Practical implicationsIn Mexico, there is a large registry in the Ministry of Finance and the Attorney General’s Office of this type of practices in the SOFOMES sector, impacting tax collection and affecting the growth of the real sector. The proposed model serves to establish several preventive policies that reduce the incidence of this type of crime.Originality/valueAs far as the authors know, there is no other study as this one in Mexico or in the rest of the world.