Risk Management Information System Research Articles

Credit Management Practices and Loan Performance of Microfinance Banks in Kenya

Loan performance of microfinance firms has declined recently. This pattern compromises microfinance organizations sustainability, viability and hinders them achieving their objectives. The purpose of this study was to see how credit management strategies affected loan performance at Kenyan microfinance institutions. The particular objectives of the study were to assess the impact of credit policy, customer evaluation, collection policy, credit conditions, and credit risk management on loan performance. Thirteen Kenyan microfinance banks are the subject of this initiative. Financial Intermediation theory, Information Asymmetry theory, and Transaction Cost theory will be used in this research. The study employed a descriptive research approach. In this study, both primary and secondary data will be employed. The basic data will be evaluated using the statistical metrics of mean and standard deviation. A direct model will be used to evaluate the impact of credit management strategies on loan performance (without moderation) and a moderating effect (with moderation). It was also utilized inferential statistics with linear regression models. Structured questionnaires were utilized in primary data collection. Financial reports for Microfinance banks and supervisory reports from the Central Bank of Kenya (CBK) will be used for secondary data collection. The study found that that their firms conduct client appraisal. The study also found that client appraisals were effective. The study found that the firm checks at the client’s credit worthiness before issuing a loan. The study found that the bank has credit analyst whose work is appraise all potential loan customers who seek to borrow from the bank. There are various services providers contracted by the bank e.g. for credit tracking to help with tracking of vehicles used as collateral, insurance firms, law firms who assist in security perfection in case where land has been used as collateral, CRB firms who assist in giving information on clients CRB performance, company search firms e.g. credit info who assist in ascertaining the authenticity of companies belonging to clients who seek to borrow a loan from the firm. The study found that that the loan default rate is below 20%. The study also found that loan performance can be improved by calling customers frequently to remind them off their loans obligation particularly the perennial defaulters. Credit policy, client evaluation, collection policy, credit conditions, and credit hazard control were all huge on advance exhibition of microfinance banks in Kenya, as per the review, at a 5% degree of importance and a 95% degree of certainty. Their organizations perform customer assessment, as indicated by the review's discoveries. Client evaluations were also shown to be beneficial in the study. Before granting a loan, the business examines the client's credit worthiness, according to the research. Following are some recommendations based on the study's results and conclusions: On the impact of microfinance banks' credit policies and decision-making on loan performance, it is recommended that effective credit risk management procedures be developed and executed, particularly through credit risk management information systems. Keywords: Credit Management, Loan Performance, Microfinance

An Information System Risk Management of a Higher Education Computing Environment

Cyber risks, data loss or data leakage, loss exposure are one of the most customer and business significant threats. Those data contained information and were stored in electronic form that made them vulnerable to be hacked. The major target of hackers intruding is the higher education institutions. Therefore, many organizations perform information system risk management to identify their weaknesses and enforce the security of their system. The study aims to identify, analyze, and measure the risks associated with information systems specifically evolve in the higher education sector environment. Then it provides solutions and recommendations for the higher education sector to improve the quality of their information systems. Information system risk management was performed in the computing environment of the Faculty of Medicine, X University. It was conducted using the OCTAVE Allegro framework. The framework can streamline and optimize the information system risk management process through eight steps and various worksheets and questionnaire sheets for guidelines. After completing all the required data, the analysis was conducted to determine the critical information assets for the organization. The results showed that there were 8 (eight) critical information assets. One of them is the Student Profile. It was continued to be assessed using a chronological approach of information system risk management for improving security awareness and formulating mitigation strategies as the control actions. This paper's analysis and results are expected to contribute to the implementation of information system risk management for real case applications in different sectors.

Optimizing the Deployment of the Overall Maturity Improvement Plan for Information Systems Risk Management

Maturity models contribute considerably to the continuous improvement of the various business processes. However, the most important challenge for these tools after assessing maturity is how to define effective and efficient improvement plans especially in the case of an organization having multiple Information Systems (IS). This study presents an algorithm for optimizing the deployment of the overall maturity improvement plan for risk management of information systems. The purpose is to help decision makers identify which actions should be accomplished for each information system, with optimizing efforts needed to reach the global maturity level fixed by the top-down improvement strategy. The application of the proposed algorithm made it possible to define the improvement actions to be undertaken by a company in an optimized way for each of its IS to reach an overall target maturity. The calculation of the number of steps to be taken through the maturity matrix shows the effort gained. That gain can be the human and financial cost for the completion of the various necessary tasks to implement the objectives of control.

ICT Effects and Enhancing Risk Management Information System (RMIS) in Medical Sector in Vietnam

Measuring risk in medical sector in order to propose recommendation s is among concerns of scientists in recent years. In specific, using quantitative and analytical methods, author analyze ICT effects and IT applications in medical sector an hospitals, as well as analyze risk information to propose solutions to enhance risk management information system for Vietnam medical sector. Research findings show us that in order to give suitable suggestions for policy implications, firstly, study recognized that lower risks shown by beta values (< 1) among 57% of listed firms with lower risk. Last but not least, study stated that technology applications in medical sector can help doctors and nurses to manage, store and access better data and documents of patients. And Vietnam hospitals need to enhance more Risk management information system with strong support from IT (information technology) so that we could constantly improve service quality patient services, as well as build a favorable working environment for staff both professionally and professionally, etc.

USING COBIT FRAMEWORK FOR REDUCING THE AUDIT RISKS OF ACCOUNTING INFORMATION SYSTEMS

The fast transition of accounting information systems from manual to electronic media impacts the financial reporting process linked to information technology. First, significant dependence on electronic accounting information systems may expose the company’s databases to information security threats, resulting in higher audit risks. As such, this study seeks to demonstrate how information technology governance structures may aid in protecting information in the context of electronic accounting information systems. Second, the study investigates the impact of improving information technology governance in Iraqi private banks in decreasing audit risks using the COBIT framework for internal control. The results indicate that implementing IT governance mechanisms in Iraqi private banks can reduce audit risks identified by external auditors. This framework increases the reliability of accounting information systems and enhances information security in the context of electronic accounting information systems. In addition, the field findings indicated a positive and statistically significant relationship between audit risk reduction and the dimensions of information technology governance (mechanisms and automation, policies, plans, and procedures, responsibility and accountability, skills and experience, knowledge and communication, and goal setting and measurement). Finally, the study proposes that Iraqi private banks implement the COBIT framework for internal control to govern information technology and risk management in electronic accounting information systems

Analysis of risks methodology in information systems

A method of risk analysis in information systems is being developed. The ways of ensuring the efficiency of control systems in the conditions of information confrontation with the use of the game theory apparatus are investigated. The desire to ensure high efficiency of modern management information systems, minimize financial costs, provide energy and information protection of the management system, highlights the creation of a system of analysis and risk management in information systems. It is assumed that the control system can implement the following behavioral strategies in a conflict situation: the control system does not change the algorithm, but changes the class of algorithms used to achieve the maximum value of the average quality by choosing the probability Pij for a given set of countermeasures, the control system changes the algorithm operation, the class of operating algorithms used to maximize the average quality of fixed countermeasures, the control system changes the operating algorithm and the class of operating algorithms used depending on the countermeasure strategy in order to achieve maximum quality. Using the apparatus of game theory, an analysis was performed and a method for estimating the average value of the quality of the communication system with different strategies of the conflicting parties was developed. The technique of estimation of average value of an indicator of quality of functioning of a control system is developed and expressions for an estimation of average value of an indicator at various strategies of behavior are received. It is shown that the solution to the problem of improving the quality of the control system is possible through the use of a mixed strategy of system behavior and the choice of structure and parameters of the control system that increase the partial quality of its operation.

A Review on Risk Management in Information Systems: Risk Policy, Control and Fraud Detection

Businesses are bombarded with great deals of risks, vulnerabilities, and unforeseen business interruptions in their lifetime, which negatively affect their productivity and sustainability within the market. Such risks require a risk management system to identify risks and risk factors and propose approaches to eliminate or reduce them. Risk management involves highly structured practices that should be implemented within an organization, including organizational planning documents. Continuity planning and fraud detection policy development are among the many critically important practices conducted through risk management that aim to mitigate risk factors, their vulnerability, and their impact. Information systems play a pivotal role in any organization by providing many benefits, such as reducing human errors and associated risks owing to the employment of sophisticated algorithms. Both the development and establishment of an information system within an organization contributes to mitigating business-related risks and also creates new types of risks associated with its establishment. Businesses must prepare for, react to, and recover from unprecedented threats that might emerge in the years or decades that follow. This paper provides a comprehensive narrative review of risk management in information systems coupled with its application in fraud detection and continuity planning.

Assessment of County Internal Control System on Financial Accountability in Tana River County, Kenya

The public management of funds in Tana River County has been ineffectual and the report of the auditor general has reported massive squandering of the public resources. The poor financial accountability formed the rationale of conducting the study to assess how the county's internal control system influences financial accountability in Tana River County. The study was based on four theories, namely agency cost theory, classical management theory, stewardship theory and information systems success theory. The study employed a mixed methodology and specifically a convergent parallel mixed-methods perspective. The study adopted the descriptive research design. The targeted population for the study was 324 employees in Tana River County. A stratified sampling technique was used to get the sample size of 200 respondents. The data collection instruments comprised of questionnaires and interview guides. The results of the study indicated that monitoring systems, information and communication systems, risk management systems and internal audits explain 67.4% of the variations in financial accountability. The regression results showed that risk management system is positively and significantly related to financial accountability (β=.287 p=0.000). Moreover, it was found that internal audits and financial accountability are positively and significantly related (β=.406 p=0.000). Likewise, the study found that information and communication systems and financial accountability is positively and significantly related (β=.25 p=0.000). The study also found a positive and significant relationship between monitoring and financial accountability in Tana River County. (β=.144 p=0.000). Moreover, it was revealed there is a moderating effect of government policy and regulations on the relationship between internal control systems and financial accountability in Tana River County since the coefficient of determination (R squared) increased to 73.9%. The study recommended that counties need to develop a risk management system to spur efficiency and transparency. There should be an effective management system that could evaluate risks in advance to enables counties to maintain those risks within controlled levels. The internal auditor need to be monitored regularly to minimize the chances of presenting reports with mistakes and exaggerations. There is the need to have internal reviews of revenue targets during the financial year. Moreover, it is recommended stringent measures should be taken against the county employees found with corruption cases. Keywords: Risk management system, internal audit, information and communication systems, monitoring systems, government policy and regulations, financial accountability, Tana River County, Kenya

IOT Impacts and Digital Transformation at Listed Vietnam Banks

The Industrial Revolution 4.0 based on digital technologies has led to an unprecedented change in the socio-economic model. Therefore, countries in general and Vietnam are all aiming to develop the digital economy. The concept of digital transformation of the economy or development of the digital economy in Vietnam focuses on the following basic contents: 1) Developing digital businesses; 2) Digital transformation for traditional businesses (towards digitally integrated products; transforming business models on digital platforms; changing production processes based on digital data, automation, virtualization, etc.); 3) Development of digital finance; 4) E-commerce development. Therefore, digital transformation becomes an inevitable and objective trend, supporting banks to overcome challenges, create competitive advantages, and actively adapt to the context of digital transformation. In the context of the development of the digital economy in Vietnam is taking place strongly across industries and fields, requiring banks in Vietnam to have a transformation to a new business model. In this business model, it is necessary to integrate technology in operations and digitize business processes in the direction of automation and intelligence. Thereby, banks can perform activities of providing products and services on digital platforms, effectively exploiting data, thereby increasing experiences in business resolution and customer engagement. Besides, Internet of things has connect everything through internet, therefore risk management information system of Vietnam banks is also affected by IoTs and reliable internet data can help to enhance better RMIS in commercial banks. Generally, we want to emphasize effects of IoTs and digital transformation in banks operation and new business models.

The Role of Information System for Risk Management in Hospital: A Narrative Review

The Role of Information System for Risk Management in Hospital: A Narrative Review

STUDY OF INFORMATION SECURITY OF THE INFORMATION SERVICES MARKET

The article is devoted to the study of information security of the information services market. The subject of the research is information security, and the goal of the paper is to study the information security of the information services market. Information security is considered a socio-economic challenge that can be addressed through the confident actions of the state. Data analysis confirmed the problem of information security at different levels. Information security is aimed at protecting information from unauthorized access. The development and transformation of the information services market depend on the quality metrics of the Internet. This paper deals with the issue of maintaining a sufficient level of information transparency, which is related to and interdependent on information security. The main risks and threats caused by the active introduction of information technologies and the advancement of the information services market are specified. The study found that in the day-to-day operations of each company, many risks can affect the information system due to information security breaches. Social engineering involves the use of psychological techniques to mislead users by providing information or access for attackers. In order for the company to cope with external risks in the information services market, it is necessary to build a strong risk management information system. The process of risk management is ongoing and iterative in nature, it must be repeated indefinitely as new threats and vulnerabilities emerge, especially external ones. The choice of countermeasures or controls used must strike a balance between productivity, cost, effectiveness, and the information value of the asset being protected. Conclusions: the research identified the basic principles of information security, namely confidentiality, integrity, and availability. Moreover, to increase the information security of the companies which are participants in the information services market, the author proposes implementing a range of measures within the company. Information security in the information services market is a marker of the crucial difference between the information society and the industrial society. The main hallmark of the information society is its openness. This means a significant reduction and thus a general lack of confidential information for society. The study established that the digitalization of the economy is modifying the information services market. The research findings may prove useful to businesses and governments to boost information security of the information services market. The research is based on the methods of theoretical generalization and comparison to define the concept of “information security” and its interrelations with other definitions of the relevant terminological framework. Analysis, synthesis, and scientific abstraction were used to identify factors affecting the risks and threats to information security of the information services market. There were used methods of analysis, comparison and generalization when summarizing research findings.

Applying Mathematics in Estimating Weighted Beta CAPM for Vietnam Banking Industry and Building Better Risk Management Information System (RMIS)

Risk management information system (RMIS) is becoming an important element in MIS system of banking sector in Vietnam in recent years and in future. We can use mathematics formulas applied in risk model to strengthen RMIS for banks. Nowadays, mathematics functions expressed high roles in economics and finance fields. Under effects from Covid 19 and industry 4.0, Vietnam banks realie need to enhance risk management and corporate governance system with RMIS channels to deliver proper risk information to clients and investors to attract more capitals via enhancing financial accounting data transparency. This study mainly use combination of quantitative methods including mathematics applied to calculate weighted beta CAPM, a common systemic risk measurement, and qualitative methods including synthesis, inductive and explanatory methods. And it emphasizes again sustainable modern bank management, using 5 bank cases: Eximbank (EIB) and Saigon Hanoi Bank (SHB), Asia Commercial Bank (ACB), Sacombank (STB) and Saigon Hanoi bank (SHB), 5 big listed banks in our country. Research results show us that risk model in banks can be done via some steps. First, calculating weighted beta CAPM or systemic risk via support of mathematics formula applied from market value and beta values of banks. Second, we run OLS regression for weighted beta and found out: for external impacts, exchange rate has negative correlation with weighted beta and for internal effects, CPI and R (lending rate) have negative relationship with weighted beta, so that policy makers can adjust policies to manage risks. Besides, this study also give out recommendations for enhancing management information system (MIS) for upgrading roles of banks in Vietnam economic development. Then, we can suggest suitable plans for sustainable management strategies. Our research limitation is within bank sector, then we can expand for other industries and markets as well.

Building Better Risk Management Information System (RMIS) for Sustainable Bank Management in Vietnam

Recently the roles of building a risk management information system in commercial banks in Vietnam has been becoming necessary during Covid 19 effects. This study mainly use combination of quantitative methods and qualitative methods including synthesis, inductive and explanatory methods. We analyze rism management and risk evaluation in case of one big listed bank in Vietnam, Navibank (NVB) who became National Citizen Bank later (NCB). We figure out that CPI, lending rate and VNIndex have negative correlation with both beta CAPM and stock price of NVB. And these risk results and models can be delivered to suitable users in a management information system (MIS).

Factors that affect Stock Price and Beta CAPM of Vietnam Banks and Enhancing Management Information System – Case of Asia Commercial Bank

This paper aims to improve Risk management information system (RMIS) that is becoming an important element in MIS system of banking sector in Vietnam in recent years and in future. This study mainly use combination of quantitative methods including OLS regression for the case of Asia Commercial Bank (ACB). Research results indicate that GDP growth (G), CPI and Risk free rate (Rf) have highest effects on both ACB beta CAPM and stock price. Besides, this study also give out recommendations for enhancing management information system (MIS) for upgrading roles of banks in Vietnam economic development. Then, we can suggest suitable plans for sustainable management strategies. Our research limitation is within bank sector, then we can expand for other industries and markets as well.

Research on a Computer Aid Risk Control System Using Classification Capabilities of Support Vector Machines

The paper proposes the use of support vector machines to establish a financial early warning system and a method for financial risk monitoring, gives a financial evaluation index system and its quantitative methods, and uses the classification capabilities of support vector machines to establish a financial early warning model. At the same time, the paper explores and studies the combination of enterprise group’s financial risk identification, assessment, response and management information system, and proposes an enterprise group’s financial risk control information system. Through experimental comparison, the model based on the support vector machine has good consistency with the experimental data, which is in line with the expected results.

ANALISIS MANAJEMEN RISIKO SISTEM INFORMASI BALAI PENGKAJIAN TEKNOLOGI PERTANIAN LAMPUNG MENGGUNAKAN METODE NIST SP 800-30

Balai Pengkajian Teknologi Pertanian Lampung (eng. Institute for Agricultural Technology Assessment) also known as BPTP Lampung is one of the government agencies that need information systems in the management, selection, storage, and information dissemination. The application of information systems raises several risks that can disrupt activities and disadvantage in material/time for BPTP Lampung. The purpose of this research is to analyze the risk management information system of BPTP Lampung and find out the factors that affect risk occur by using NIST SP 800-30 method. The risk management information system of BPTP Lampung is implemented to anticipate the threat of risk with several stages are risk assessment, risk mitigation, and risk evaluation. There are 10 (ten) associated risks from research results, namely less communicative language, no backup of research data, no update data, multiple tasks and obligations, human error, internet access, error system, fires, natural disasters (thunderstorms, floods, earthquakes, etc.) and blackout. At a high level of risk is a less communicative language from research results by the researcher of BPTP Lampung and multiple tasks and obligations from the management of information system BPTP Lampung. The final result from the risk management of information system BPTP Lampung is a recommendation given to reduce the impact of risks that occur.

Data mining in a credit insurance information system for bank loans risk management in developing countries

Data mining in a credit insurance information system for bank loans risk management in developing countries

IT project information system for risk management of human resources

The work is devoted to the research of sources of risks of formation and management of human resources of the company and the development of a project of an information system to minimize the risks of dismissal. Existing approaches to employee incentives and programmatic decisions on the human capital accounting are described. This work analyzes the most famous modern information systems for monitoring and management of personnel. A target tree has been built to address the current problematic situation. Alternative means for the realization of the project of the information system considering the peculiarities of the scope are considered. The hierarchy of the general purpose of choosing the optimal means of implementing the information system for minimizing the risks of personnel management is presented. Using the method of analytical hierarchy, the priorities of alternatives relative to the focus are calculated. The most appropriate project implementation for such a system is to use the WordPress platform. A complex of UML diagrams was developed for the project implementation. The structure of the project in the form of WBS is given. Gantt chart, which shows in detail the schedule of information system design. To track all possible deviations of the project, the critical path of the project is calculated. The prototype information system for minimizing the risks of dismissal of workers runs on an Apache Web Server using MySQL as a database. The design was based on a suite of tools for creating WordPress sites and web applications. The project of the information system implements the policy of identification and management of risks associated with the outflow of valuable employees, describes and allows to regulate the procedure of identification and accounting of employees who are the sole owners of project knowledge. It also defines the sequence of steps that make it impossible to incur the risks associated with the outflow of staff, complicate, and/or slow down the process. The information system in the field of software development, database design, and support of existing information systems is offered.

IDENTIFIKASI RISIKO SISTEM INFORMASI BP-REMUN UNIVERSITAS LAMPUNG MENGGUNAKAN METODE NIST SP 800-30

The implementation of remuneration information system make a various risks that can disturb of performance assessment and make a damage for the time or material for Remuneration Management Agency of Lampung University. This research intend to analyze the risk management of remuneration information system and to know the influence of factor the implementation system of risk management remuneration information to used NIST SP 800-30 method. This remuneration information system risk management held for anticipating the source of threat by the following step risk assesment, risk mitigation, and risk evaluation. The result of this risk management is, slow system performance, no features update data, human error, no synchronization with the staffing system, password, security server, differences in perception between verifiers, no notifications data which has not been verified, late data claim and invalid report. The from risk assesment for differences in perception between verifiers and late data claim is high risk, to reduce and eliminate the impact of risk Remuneration Management Agency of of Lampung University do risk mitigation with choose verifier who masters the lecturer performance and early warning system to remind lecturers who have not made claims. The factor that influencing remuneration information system Lampung University risk assesment is human resource that having and ability in information technology for convenience support to risk all risk in every circumstances.

Retrospective Assessment of U.S. Army Aviator Anthropometric Screening Process.

INTRODUCTION: The current U.S. Army aviator anthropometric screening process for rotary-wing cockpit compatibility was codified over 30 yr ago. Critical to the process are the anthropometric standards that define what is acceptable for U.S. Army flight school applicants. The purpose of this study was to assess and optimize the efficiency of the standards in screening for anthropometric cockpit compatibility while maintaining safety.METHODS: A retrospective analysis was performed. Anthropometry and disposition data of flight school applicants from 2005 to 2014 were taken from the Aeromedical Electronic Resource Office database to determine efficiency of the process. Data on mishaps from 1972 to 2017 were retrieved from the Risk Management Information System database to determine the safety benchmark of the existing process, to which adjusted standards would be held. Adjustments to standards were modeled that would more efficiently pass applicants over the period studied without exceeding the established acceptable safety level.RESULTS: There were 40,136 (98.28%) applicants who passed the standards, while 702 (1.72%) failed. Most (98.52%) applicants who failed the standards and applied for an anthropometry exception to policy (ETP) received one. The models would pass up to 396 (99.25%) applicants who received ETPs without exceeding the established number of mishaps attributable to the anthropometry standards, which was found to be zero.DISCUSSION: The screening process is efficient and effective, but could be improved. Adjusting the standards could increase process efficiency by passing more applicants during their flight physical and widening the applicant pool, while maintaining the current level of safety.Moczynski AN, Weisenbach CA, McGhee JS. Retrospective assessment of U.S. Army aviator anthropometric screening process. Aerosp Med Hum Perform. 2020; 91(9):725731.