Risk Management Issues Research Articles

Research on Credit Risk Contagion of Commercial Banks Based on Copula Model

Research on the credit risk contagion effect of commercial banks is a key issue in credit risk management of commercial banks. This paper constructs a measurement framework for the credit risk contagion effect of commercial banks based on the Copula function theory. On the basis of selecting the appropriate Copula function and measuring specific parameters, taking Bank of China and Industrial and Commercial Bank of China as examples, the tail correlation coefficient was used to measure the credit risk contagion effect of the two banks, and relevant conclusions were drawn.

Risk management technology in the public sector: challenges and opportunities

The paper examines the importance of using effective risk management methods in the public sector, emphasizing the need for an integrated approach to this problem. The author emphasizes that public management mechanisms must be supported by appropriate technologies to ensure sustainable functioning. The use of ISO 31000 and ISSAI 9100 standards helps structure the risk management process and increase its effectiveness. Risk management should be based on the identification, assessment and response to risks and take into account the influence of various factors on the risk management process. The author also notes that risk management in the public sector is complicated by certain factors (frequent management changes, division of operating budgets and programs, lack of clear risk indicators, etc.). The analysis of the issue demonstrates that the system of assessment, management and risk reduction should play a key role in public administration. The main task of risk management as an element of public management is to make effective decisions, create the necessary conditions and plan actions taking risks into account to minimize their negative impact on planned results. As a result of the use of risk management technologies, it is possible to identify risks, determine factors and sources of risk, assess the degree and probability of occurrence of hazards and, ultimately, develop an optimal plan of management actions. The results of the study demonstrate that the issue of forming a risk management mechanism in the public sector requires further scientific research on the application of theoretical developments in the practical activities of public management and administration bodies of Ukraine. The paper also focuses on the issue of risk management in public sector organizations, and concludes that in order to assess the value, type and impact of risk, it is necessary to review the internal part of the organization and its management processes, as well as its environment. Such a review of risks should be complemented by increased risk awareness at each level of the management hierarchy and in the day-to-day activities of all employees of the organization. Thus, the need to use modern risk management technologies in the public sector is outlined in order to increase the effectiveness of the decisions made and minimize the negative impact of potential risks on the results of the work of management bodies.

RISK MANAGEMENT IN HIGHER EDUCATION INSTITUTIONS:EXISTING RESEARCH FRONTIERS AND THEIR APPLIED EXTRAPOLATION

This article focuses on the analysis of published research on risk management in higher education institutions. The authors believe that for effective implementation of risk management in Kazakhstani universities and the development of a concept for its scientific and methodological support, a systematic and large-scale research effort is necessary. This includes identifying the categorical framework of risk management in higher education. In this context, the authors conducted a bibliometric analysis usingthe Scopus database, as well as the methodological approach and capabilities of the VOSviewer software tool. The study of sources on the issue of risk management in universities revealed insufficient development of this topic from methodological positionsand in the applied context. Additionally, the bibliometric analysis not only identified and visualized current research directions in this field but also highlighted trends for future research in the subject areas of "risk management," "university management," and "risk management in higher education institutions."

Methodological approaches to risk management in maritime education based on the integration of areas of responsibility

The article discusses the issues of risk management in maritime education. The relevance of the study lies in the fact that currently the risk is mainly assessed only empirically, which is not a reliable tool for assessing pedagogical risks. In this regard, methodological approaches to risk assessment based on the principles of separation and integration of areas of responsibility have been developed.

Реформа контрольно-надзорной деятельности в России: анализ процесса и возникающие проблемы

The paper offers an analysis of control and supervision activities in Russia. Starting with systematic properties of the analyzed process, authors accentuate the introduction of risk-analysis as the key subject of current reform phase. Dominant issues of risk-management are theoretical (coping with essential characteristics of it) and practical (mechanisms and methods of applying the one) as well. The methodic and normative regulation of control and supervision activities are scarce, which creates limitations for efficient application of risk-oriented approaches in the field. Actual reform of control and supervision activities in Russia belongs to overall systematic reform of state management in the context of digitalization. Arguing the process approach, we evaluate digitalization as the key factor touching actual model of control and supervision activities that are linked to essential aspects of management in general.

Ranking the states most at risk of healthcare data breaches: an application of integrated multicriteria framework for prioritization in risk management

PurposeData breaches in the US healthcare sector have more than tripled in the last decade across all states. However, to this day, no established framework ranks all states from most to least at risk for healthcare data breaches. This gap has led to a lack of proper risk identification and understanding of cyber environments at state levels.Design/methodology/approachBased on the security action cycle, the National Institute of Standards and Technology (NIST) cybersecurity framework, the risk-planning model, and the multicriteria decision-making (MCDM) literature, the paper offers an integrated multicriteria framework for prioritization in cybersecurity to address this lack and other prioritization issues in risk management in the field. The study used historical breach data between 2015 and 2021.FindingsThe findings showed that California, Texas, New York, Florida, Indiana, Pennsylvania, Massachusetts, Minnesota, Ohio, and Georgia are the states most at risk for healthcare data breaches.Practical implicationsThe findings highlight each US state faces a different level of healthcare risk. The findings are informative for patients, crucial for privacy officers in understanding the nuances of their risk environment, and important for policy-makers who must grasp the grave disconnect between existing issues and legislative practices. Furthermore, the study suggests an association between positioning state risk and such factors as population and wealth, both avenues for future research.Originality/valueTheoretically, the paper offers an integrated framework, whose basis in established security models in both academia and industry practice enables utilizing it in various prioritization scenarios in the field of cybersecurity. It further emphasizes the importance of risk identification and brings attention to different healthcare cybersecurity environments among the different US states.

Challenges for Customs Risk Management Today: A Literature Review

Changes and uncertainty in the customs operating environment and the growth of trade and travel volumes have affected how customs administrations manage and approach their tasks. As a result of technological development, the role of customs in border control has changed dramatically. Thus, the massive volume of goods, the way they are traded worldwide, and the speed of such transactions create additional fiscal, security, financial, and safety risks, affecting the resources available to customs services. The current geopolitical situation has significantly impacted the role of customs services. The topic is relevant to simultaneously assure both the quality of the services provided by the customs and compliance with the requirements set in the framework of limited resources. This study focuses on customs risk management (CRM) issues. It acknowledges that the customs services must continuously improve their operational methods, including promoting a more structured, integrated, and systematic way to manage customs risks. Based on the literature review, we examine the CRM-related challenges and how scholars address them in the scientific literature. This study aims to identify and analyse the contemporary challenges in CRM from its effectiveness point of view. We employ a systematic literature review, searching in most recognised databases and covering the period of 2005–2024. We follow this with a qualitative content analysis and synthesis, summarising and discussing the study results. We identify and discuss relevant key factors contributing to effective CRM. Finally, we conclude with the implications of the findings for CRM practice and policy, as well as with various potential developments in CRM that we suggest for further work.

STATISTICAL METHODS FOR MANAGING RISKS IN PLANNING FOREIGN ECONOMIC AND LOGISTICS ACTIVITIES FOR SUSTAINABLE DEVELOPMENT OF THE ENTERPRISE

The article examines the topical issue of risk management in foreign economic and logistics activities, which is closely related to the enterprise’s chosen strategy and ensures its sustainable development. The study considers the issue of developing a hedging strategy using statistical methods since adequate forecasting allows predicting the impact of external environment factors on the exchange rate, which will allow the enterprise to timely predict and mitigate the risks in foreign economic and logistics activities. The authors have used general scientific and special methods of systemic and structural analysis to clarify the directions of sustainable performance and risk management tools; formulate the goals and steps in choosing a strategy of hedging; compare the methods of foreign exchange rate risk hedging and perform correlation and regression analysis of factors that impact exchange rate under crisis conditions. The purpose of the paper is to study the specifics of ensuring the sustainable performance of an enterprise using statistical methods in risk management for planning foreign economic and logistics activities. The authors have proposed a definition of a hedging strategy based on the concepts, approaches, and ideas of asset and/or investment management with the aim of reducing loss through hedging instruments, whose feasibility can be substantiated by statistical methods. It has been found that the formation and successful implementation of a hedging strategy requires the use of statistical analysis in order to timely predict fluctuations in exchange rates. The findings of the research were tested based on the performance of PrJSC "Linde Gas Ukraine". In the strategy of hedging the exchange rate risks, it has been proposed to simultaneously open a foreign currency deposit and take a loan in the national currency to replenish the company's working capital. The perspective of further research is the implementation of the proposed hedging strategy and assessment of its effectiveness.

Manajemen Risiko, Pengelolaan Dana Dan Pentingnya Lembaga Penjamin Simpanan Dalam Koperasi Simpan Pinjam di Indonesia

This study emphasizes the functions of the Indonesian Deposit Insurance Corporation (Lembaga Penjamin Simpanan, LPS) in savings and loan cooperatives (KSP), such as managing funds and managing risks. KSPs play an important role in the micro economy, especially in providing financial access to people who are not served by banks and other formal financial institutions. This research employs a qualitative methodology and uses a literature review approach. A qualitative approach was chosen as it allows for a more in-depth understanding of the complex issues of risk management, fund management, and deposit insurance functions in savings and loan cooperatives in Indonesia. To ensure the viability and health of this sector that aims to make a significant contribution to financial inclusion and inclusive economic growth, the government, financial institutions, and cooperatives must work together. To advance the savings and loan cooperative sector in Indonesia, strategic measures should be taken, such as improving risk management and supporting IDICs. Ultimately, this will support the stability of the national financial system and the economic well-being of people in Indonesia.

РИЗИКИ ЯКОСТІ АУДИТОРСЬКИХ ПОСЛУГ

Introduction. Today, more than a million subjects of economic activity in the world are certified according to the ISO 9001 standard - quality management system. The quality management system (QMS) is an integral part of management that follows both market norms and business rules. The practice of implementing QMS, along with the optimistic results of quality improvements, reveals the debatable aspects of such processes. Problem Statement. The International Quality Management Standards application (which is one of the main audit reform directions in Ukraine) is today complicated both by the active pace of the mentioned processes (insufficient time for the unification of quality policies and procedures) and the difficulty of international regulatory practical application policies and procedures regarding audit quality. Subjects quite often postpone their orders for conducting a mandatory audit during the period of martial law, which leads to the emergence of quality control risks. Purpose – coverage of modern trends in the audit quality risks identification and assessment, justification for an audit firm of an alternative internal quality management system as an integral operational management component, that will enable the systematic approach formation to conduct a competitive audit. Methods. General scientific and special methods are used: analysis, synthesis, grouping, description, comparison, theoretical generalization and abstract-logical. Results. The complex nature of quality risks in modern audit conditions, their impact on the validity, reliability and persuasiveness of the auditor's opinion is revealed. The quality risk is investigated based on a comprehensive risk assessment in terms of the audit company's “quality management system” components. Common errors of auditing companies in the quality management system organization, the significance of their impact on compliance with norms and goals of audit quality are given. Based on the conceptual rules and principles of the International Quality Management Standards, alternative components of the “Quality Management System” for the audit company, their structural and logical connections with the identification of the functional role are proposed. Based on the international practice of risk-oriented management, methodical approaches to the identification and risk assessment are proposed, alternatives for internal regulation and specified processes documentation are revealed. Conclusions. The quality management system does not have a simple cycle, its effectiveness lies in systemic regulatory and internal management development. The internal audit of the QMS cannot fulfill its function by declarative decisions only. Due to the established communication with the auditors, interest in the demand for his role, the person responsible for the company's QMS should raise his competence' level, work with quality risks “in advance”. Issues of audit quality risk management highlighted in the article are quite new and require the methodological and practical principles formation of regulation and conceptually unified mechanisms for the implementation of such processes by audit companies.

Silicon Valley Bank Collapse: Causes & Consequences

This paper discusses the concept of bank bankruptcy and highlights the recent failure of Silicon Valley Bank (SVB) as a significant case similar to the Lehman Brothers' collapse in 2008. Lehman's failure was attributed to the U.S. housing market collapse and internal risk management issues. SVB's failure, occurring in 2023, resulted from both internal factors (improper decisions, high-risk strategies, and poor financial management) and external factors (economic recession, Federal Reserve interest rate hikes, regulatory challenges, and changes in the tech industry). The bankruptcy of SVB has far-reaching economic impacts on depositors, borrowers, entrepreneurs, investors, and the banking industry. It triggers a crisis of confidence, liquidity pressure, and systemic risks. The Federal Reserve implements emergency measures to address the fallout, reflecting on regulatory approaches to mitigate threats to the banking system. The comparison with Lehman Brothers underscores similarities in improper development strategies, asset structures, risk management, and regulatory oversight, leading to systemic risks and undermining financial market confidence.

ASSESSMENT OF BUSINESS RISK AS THE MAIN RISK IN FUNCTIONING OF CATERING ESTABLISHMENTS

The work examines the current issues of risk management in public catering establishments, problems of risk management in the social and commercial segment. A sequence of steps is proposed to identify significant risks for public catering enterprises and determine the appropriate management mechanism. The work also studies the risk models when running a modern business and how to apply them in practice.

Insights of effectivity analysis of learning-based approaches towards software defect prediction

Software defect prediction is one of the essential sets of operation towards mitigating issues of risk management in software development known to contribute towards enhancing the quality of software. There is evolution of various methodologies towards resolving this issue while learning-based methodology is witnessed to be the most dominant contributor. The problem identified is that there are yet many unsolved queries associated with practical viability of such learning-based approach adoption in software quality management. Proposed approaches discussed in this paper contributes towards mitigating this challenge by introducing a simplified, compact, and crisp analysis of effectiveness associated with learning-based schemes. The paper presents its major findings of effectivity analysis of machine learning, deep learning, hybrid, and other miscellaneous approaches deployed for fault prediction followed by highlighting research trend. The major findings infer that feature selection, data imbalance, interpretability, and in adequate involvement of context are prime gaps in existing methods. The paper also contributes towards research gap as well as essential learning outcomes of present review work.

Monetary momentum and risk management in stock market

Purpose- This study aims to investigate the relationship between monetary interest rate decisions, liquidity mechanisms and risk management issues. As a core interest the significance of a structural change in the data around the FOMC meetings is analyzed. By the help of continuous time models we analyze the kind of dynamics, which can be observed in the stock returns, i.e. conditional volatilities and jumps. A further central interest is given to investment decisions and risk management issues. This encompasses the elaboration of the hedging strategies to achieve higher performance. Methodology- The study employs GARCH-Ito and GARCH-Ito-Jump models to analyze the stock market returns and their related volatilities on the day of a FED interest decision announcement. The continuous time GARCH model setting allows to model stock market returns with a high flexibility, therefore these models are abled to capture jump dynamics in the stock returns. Findings- The analysis reveals that persistence in conditional volatilities change according to alternative stocks. These stocks can be classified according to alternative market capitalization sizes. Mega market capitalization stocks are better governed by no jump GARCH-Ito models regardless the monetary policy changes, that is, changes in interest rates or not. Conclusion- Based upon the analysis, it may be concluded that risk management applications effectively might perform under the consideration of stock types in terms of market sizes. The persistence in the conditional volatility massively decreases if a jump component is introduced into the model. Since most of the mega market cap stocks perform better without a jump part component, it might be conjectured that persistence in the conditional volatility for mega cap stocks play a more important role compared to large cap stocks. Regardless the case whether there is an interest rate change or not, the persistence in conditional volatility remains in mega cap stocks, and thus, these stocks are prone to the involvement of prices jumps. Keywords: Monetary policy, risk management, jump detection, investment decisions JEL Codes: C22, E49, G11

Resilience And Sustainability in Tourism-Forestry Systems Through Risk Management Framework: Review and Concept

Objective: This study aims to explore and enhance the tourism-forestry risk management in research and industry practice. By integrating the concept of resilience and sustainability into risk management practices, this research addresses the multifaceted challenges faced by the forest-tourism field and promotes its long-term viability. Methods: The study comprised of three stages. Firstly, it employs the scoping review technique in the Scopus database system to seek for research gaps related to the objective of the study. Secondly, the study continues with conceptual analysis from Malaysian context particularly on the industrial avenue to assess the current state of risk management practices. Final stage is to propose a tourism-forestry risk management framework for the tourism industry in Malaysia. This study evaluates the effectiveness of existing risk management strategies and identifies gaps and opportunities for improvement by analysing publicly available data from researchers, various stakeholders such as government agencies, industry professionals, and local communities. Results: The findings contribute to the development of Risk Management Tourism-Forestry Framework (RTFF) for enhancing resilience and sustainability in tourism-forestry systems not limited to Malaysia but also for other nations. Moreover, the research outcomes provide valuable insights for the researchers on the knowledge gaps that should be filled. Furthermore, this study provides great lessons learned for all countries with similar socio-economic and environmental contexts towards the application of a risk management framework in their region. Finally, the proposed SDG-oriented risk management framework of RTFF offers a holistic and integrated approach, taking into account social, economic, and environmental dimensions, and provides a roadmap for fostering resilience and sustainability in the face of evolving challenges. Conclusion: This study aims to improve the literature reviews on resilience and sustainability in tourism-forestry that are related to risk management issues. The manuscript addresses the multifaceted challenges faced by the tourism-forestry field and promotes its long-term viability by incorporating the concept of sustainable development goals into risk management practises. Elements of tourism-forestry in the state of the art in the literature as well as in practice not to mention the development of the framework, in which no other study has adopted the same methodology, thus proving the novelty of the study.

Research on Financial Risk Management of Free Trade Port under the Revolution of Digital Economy

The commencement of the full implementation phase of Hainan's free trade port building project signifies the initiation of Hainan's endeavour to establish a free trade port with distinct Chinese attributes. The maintenance of financial security in the Hainan Free Trade Port is crucial for ensuring the stable and quick development of the port, particularly in light of the accelerated speed of financial opening in its construction. In the realm of digital finance, the concept of interconnectivity and data exchange is achieved through the transformation of prospective financial data into information chains. Digital finance has emerged as a significant component of the digital economy, exerting a substantial influence on the rebuilding of the financial ecological value system and the formation of the nascent financial services industry. Nevertheless, the expeditious advancement of digital banking has engendered a range of risk management concerns. These include the swift transmission and progression of risks inside the realm of digital finance, the escalation of data security and compliance challenges, and the augmented complexity of market regulation. This study examines the issue of digital financial risk management by assessing the current situation and trends in digital financial development. It analyses the unique characteristics of digital financial risks compared to traditional financial risks and considers the current state of financial development in Hainan. The study explores the risks that should be mitigated during the development of Hainan's free trade port and proposes measures to ensure the financial security of the port. The ultimate goal is to facilitate the sustainable development of Hainan's free trade port.

A Better Understanding of Safety of Engineered Systems

Given the continued increase in scale and complexity of engineered systems, serious safety and risk management issues arise. There have been several catastrophic accidents, which are typically preceded by a number of seemingly unrelated occurrences that add up and cascade across subsystems. In the light of changing software and user interactions in engineered systems, traditional hazard analysis and risk assessment methodologies offer both benefits and drawbacks. Engineers working in contemporary businesses must be able to comprehend the features and characteristics that come from the interactions of components and subsystems as well as the risk assessment tools/approaches.Therefore, the goal of this paper is to increase awareness of the considerations for engineered systems and the risk assessment tools available for safety engineered systems. Specifically, this work focuses on the emergent properties of engineered systems, the various project phases, the available tools, their strengths and limitations and the codes/standards. A case study of the design and construction of a flash gas compression system is presented

Exploring Risk Management Issues of Financial Options in China

Exploring Risk Management Issues of Financial Options in China

Mapping Tools for Flood Risk Rescue and Assistance Management

The assessment of vulnerability to the danger of flooding, with a focus on the need for rescue and assistance from the population, is still in an exploratory scientific phase. The main objective of this research is to propose a methodology based on the issues of rescue and assistance in the face of the risk of floods and to provide a tool for its management. A series of maps is presented, indicating those territorial elements that require rescue and surveillance in a prioritized manner in a visual and accessible way for public administration. Four methodological cartographic proposals have been designed as follows: (1) a map of territory sectors with special rescue needs (dependent population and/or buildings without shelter); a map of the impact on transportation infrastructure and vulnerable areas of buildings (2); a map of vulnerability to possible disorder and looting caused by flooding events (3); and a map of the increase in the cost of deployment for rescue and assistance systems (4). As an experimental zone to test the effectiveness of these proposals, a peri-urban area of the municipality of Málaga (Spain) is chosen, which has an extensive history of severe floods. The results confirm the applied and preventive nature of the tool, which can be incorporated into flood risk management plans and local flood risk action plans developed by public administrations. The main finding of the research is the technical advancement that comes with a precise understanding of vulnerability and its resulting issues for better flood risk management.

Управление индивидуальными рисками пациентом в процессе взаимодействия с системой здравоохранения

Due to the increasing degree of patients' participation in the treatment process, there is a need to realize the possible risks of decisions and take responsibility for them. The paper investigates the issues of individual risk management by the patient in the process of his interaction with the health care system. The methodological basis of the study was the analysis of scientific publications and generalized practical experience. The main stages of the treatment process have been consecutively considered. Possible risks are identified and qualitatively assessed, ways to reduce them are proposed. The complexity and diversity of risk management tasks facing the patient in case of his active participation in the treatment process are shown.