Risk Management Problems Research Articles

A Study on Enterprise Risk Management in the Chinese Context

Abstract: The establishment of the market economy, accompanied by the emergence of risks, requires enterprises to consider not only the economy and profitability but also the risk. Therefore, enterprise risk management problems arise. Many developed countries see risk management, strategic management, and operation management as the three main management functions of modern economic organizations, which will become a critical factor in the competitiveness of businesses in the future. Therefore, the paper reviews the development of traditional risk management theory, financial risk management theory, and internal control theory, with a focus on Enterprise Risk Management (ERM). After analyzing the current situation of ERM in Chinese enterprises, the paper proposes suggestions for improving risk management methods, strengthening the internal control system, and enhancing staff quality. Finally, the paper emphasizes the importance of Enterprise Risk Management (ERM) development in China and suggests the need for a risk management system tailored to the countrys specific circumstances.

Nonparametric Expectile Shortfall Regression for Complex Functional Structure.

This paper treats the problem of risk management through a new conditional expected shortfall function. The new risk metric is defined by the expectile as the shortfall threshold. A nonparametric estimator based on the Nadaraya-Watson approach is constructed. The asymptotic property of the constructed estimator is established using a functional time-series structure. We adopt some concentration inequalities to fit this complex structure and to precisely determine the convergence rate of the estimator. The easy implantation of the new risk metric is shown through real and simulated data. Specifically, we show the feasibility of the new model as a risk tool by examining its sensitivity to the fluctuation in financial time-series data. Finally, a comparative study between the new shortfall and the standard one is conducted using real data.

Problems of reproductive risk management in occupational medicine and issues of causation

In the Russian Federation, 2024 has been declared the year of the family, which, in the context of the growth of domestic industrial production, determines the importance of preserving the reproductive health of women working in harmful and unfavorable working conditions, preventing the adverse effects of factors in the working environment and the labor process on women’s health indicators. The review examines publications presented in the RSCI, PubMed, Scopus, and Google Scholar databases, which cover mainly the last 10 years (2013–2023)

K-Nearest Neighbors Estimator for Functional Asymmetry Shortfall Regression

This paper deals with the problem of financial risk management using a new expected shortfall regression. The latter is based on the expectile model for financial risk-threshold. Unlike the VaR model, the expectile threshold is constructed by an asymmetric least square loss function. We construct an estimator of this new model using the k-nearest neighbors (kNN) smoothing approach. The mathematical properties of the constructed estimator are stated through the establishment of the pointwise complete convergence. Additionally, we prove that the constructed estimator is uniformly consistent over the nearest neighbors (UCNN). Such asymptotic results constitute a good mathematical support of the proposed financial risk process. Thus, we examine the easy implantation of this process through an artificial and real data. Our empirical analysis confirms the superiority of the kNN-approach over the kernel method as well as the superiority of the expectile over the quantile in financial risk analysis.

Selected Pearls Indicators for Enhancing Financial Performance of Deposit Taking Savings and Credit Co-Operative Societies in Kenya

Even though DT-SACCOs in Kenya work extremely hard, their financial performance is greatly impacted by deteriorating level of capital sufficiency, liquidity, and asset quality which adversely affects their financial performance significantly. To address these issues, WOCCU has recommended the PEARLS framework to assist DT-SACCOS in mitigating credit risk management problems that are harming financial performance. In spite of an abundance of research on PEALRS and financial performance, conclusive findings about PEARLS's effect on DT-SACCOs' financial performance in Kenya remain to be seen. This is because majority of empirical study have conceptual gaps while some have contextual gaps and methodological gaps in addition to inconsistent result. The current study assessed PEARLS indicators which were observed as affecting the financial performance of Kenyan DT-SACCOs in an effort to close the knowledge gap. The specific objective to guide the study has been to find out the effect of; protection, effective financial structures, asset quality, and liquidity affect financial performance of Kenyan Deposit Taking Savings and credit co-operative societies. The research used a quantitative approach, which led to the adoption of the positivist paradigm and a correlational research design. The 176 DT-SACCOs that operated in Kenya between 2018 and 2022 were the target population. The study concludes that; protection has a statistically significant positive effect, effective financial structure among Kenyan DT-SACCOs has a statistically positive effect, assets quality has a statistically significant positive effect and liquidity has a positive effect on financial performance of Kenyan DT-SACCOs.

Introduct Risk Prediction Protection Study Based on GA-BP and K-means Clustering

This paper mainly focuses on the risk management problems caused by frequent extreme weather events. Firstly, a grey bp neural network model is used as a heuristic optimization algorithm to construct an IWM model, which is used to decide whether insurance company provides insurance under extreme weather conditions. Secondly, based on the Comprehensive evaluation method (RSR), a DDI evaluation model was constructed to analyze the data of 100 buildings in 10 provinces in China to help developers evaluate the rationality of decisions. Finally, a PM evaluation model is constructed based on AHP and EWM-CRITIC, and K-means clustering is used to conduct comprehensive rating and grading evaluation of 30 low-insurance landmarks, and corresponding protection strategies are designed. The comprehensive application of these models provides useful suggestions and decision support for insurance company underwriting, real estate bidding, community building protection and so on.

Methods for assessing risks in the aviation safety management system

The relevance of the topic is due to the fact that the civil aviation of the Republic of Azerbaijan is intensively implementing the recommendations of the international organization ICAO on the “Theory and Practice of Risk Management” in order to reduce the accident rate in air transport. It is proposed to determine the safety indicators of aviation systems through risk in order to carry out an objective measurement of the level of safety, taking into account many possible risk factors. The problem of risk management currently cannot be solved in an integrated form, since the necessary tools are missing. Therefore, a particular problem is proposed for solution, which consists in risk management exclusively in the field of flight safety. Investigated based on the results of a synthesis of materials from scientific foreign publications on the problems of creating promising flight safety management systems in civil aviation using risk management methods in the sense of ICAO definitions. This article also discusses the problem of risk identification, risk definition, many different risk management methods and different principles for their classification. A generalization is made on risk management within the framework of new directions for assessing flight safety, taking into account statistical data and monitoring results in civil aviation (CA).

Risk management under weighted limited expected loss

We present and solve an optimal asset allocation problem under a weighted limited expected loss (WLEL) constraint. This formulation encompasses the risk management problem with a limited expected loss (LEL) constraint as a specialized instance and offers a pertinent internal risk management instrument for firms. We observe that a WLEL constraint makes the optimizing investor pursue less volatile payoffs than the unconstrained Merton solution. Compared to the LEL-constrained problem with the same weighted default threshold, the WLEL optimal terminal wealth displays a less dispersed distribution with a smaller variance, suggesting a more secure risk management framework. Conducting a comprehensive equilibrium analysis in the presence of a WLEL risk manager, we validate the relatively conservative investment approach undertaken by the WLEL manager. Subsequently, we expand our findings to encompass broader incomplete market settings, wherein the uniqueness of the equivalent local martingale measure is not assured.

Towards Promoting the Efficiency of Enterprise Investment Management with Artificial Intelligence

With the continuous development and optimization of artificial intelligence, enterprises have begun to pay attention to the use of artificial intelligence for the optimization of work and the improvement of efficiency, and in the management of enterprise investment, a number of companies have begun to use a large number of artificial intelligence technologies in the integration and analysis of data, information processing and analysis, risk management, efficiency improvement, and so on. Enterprises encounter problems in analyzing data and information in investment management, and problems in risk management, all of which affect the improvement of their investment returns. Enterprises face a huge amount of data in the process of investment management, it is difficult to calculate a large number of data models in a relatively short period of time, and it is impossible to analyze and extract more information. In the face of investment risk, the control of risk in the past investment process is more based on experience to judge, there is a great deal of subjective assumptions in risk avoidance. And in the investment process companies also want to increase returns, improve efficiency, avoid risk, and achieve a more automated and intelligent trading process. Enterprises need to use artificial intelligence to technically solve the problems of data aggregation, arithmetic, and analysis; use artificial intelligence to optimize the problem of processing large amounts of information; use artificial intelligence technology to enhance risk management and predictive analysis, strengthen intelligent decision-making and portfolio optimization, and provide insights into big data analysis and market trends. The wide application of artificial intelligence technology in enterprises also has a certain impact on the development of enterprises, and it has a certain impact on the planning, feasibility, whole-process control, investment evaluation, investment report, and investment efficiency of investment in the investment link, which makes it widely concerned in the society and in enterprises.

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.

Electronic Commerce Security and Risk Management: An Important Part of College Curriculum

With the rapid expansion of e-commerce, its security and risk management problems become increasingly prominent. In the current business environment, the ability to understand and apply e-commerce security and risk management has become an important criterion to measure a good person. Therefore, the importance of e-commerce security and risk management courses in college education is self-evident. This course can not only help students master the basic knowledge of e-commerce, but also enable them to understand how to deal with various risks in practical work and ensure the safe operation of e-commerce. At the same time, through the study of e-commerce security and risk management, students can better understand the operation mode and law of e-commerce, and lay a solid foundation for their future career. In general, e-commerce security and risk management occupy an important position in the curriculum of colleges and universities, and play a crucial role in cultivating e-commerce professionals with practical operation ability and innovative thinking.

Conditions for the Formation and Development of a Culture of Risk Management for Teaching Staff

Introduction. In conditions of socio-economic instability, the use of risk management tools when making management decisions, building a management system that includes risk management, will allow you to more effectively achieve your goals. At the same time, the problem of risk management by the management of educational organizations, as well as in the organizational and managerial activities of teaching staff, is not given due attention. This allows us to talk about an unformed risk management culture as one of the results of professional training and advanced training of workers in the field of education. Risk management culture is one of the components of management culture that determines the readiness of teaching staff to ensure the quality of management in the educational system (management of the educational process, educational and cognitive activities of students, etc.). Risk management culture is increasingly being considered by researchers from the perspective of an innovative type of management culture, focused on the implementation of innovations, and the implementation of innovative activities always takes into account risks. Materials and methods: terminological analysis of risk management in the management of educational systems; abstract review of the formation and practical implementation of the risk culture of teaching staff. Results. Scientific and practical substantiation of the relevance of the development of theory and practice of creating a culture of risk management in the process of education, training and advanced training of teaching staff. Conclusions. The effectiveness of organizational and managerial activities in the education system presupposes a sufficient level of riskological competence of a teacher at all stages of the implementation of managerial functions, regardless of his status and position. The process of forming, improving and developing a risk culture requires taking into account the current level of implementation of certain organizational and pedagogical conditions when implementing professional retraining and advanced training programs.

Algorithm of innovation project risk management

Aim. To develop a risk management algorithm that can be used in risk management of innovations.Objectives. On the basis of the current international standards of risk management and scientific publications to study the existing practice of risk management, highlighting the main elements of the risk management process into a single generalized risk management algorithm; based on the results of the first task, as well as taking into account the identified features of the process of innovation implementation, to develop an algorithm for risk management of innovation projects.Methods. The work is based on the study of scientific publications in the field of risk management and analysis of international standards on risk management in order to adapt them to the peculiarities of innovation management.Results. The problem of risk management of innovation projects is one of the most difficult in project management because of the significant degree of uncertainty inherent in innovation. The article reflects the problem of investors’ acceptance of increased risk during the realization of an innovation project. The peculiarity of risk management of innovations is the need to accept increased risk, and in return the opportunity to present a new product or technology to the market. Taking into account the considered peculiarities, an algorithmic approach to risk management of innovation projects is given. The practical significance of the study lies in the possibility of applying the developed algorithm of innovation project risk management by economic entities, which will improve the quality of corporate risk management and increase the efficiency of resource utilization. The authors point out the necessity of selecting a project with positive NPV (discounted cash flow, DCF) and accepting the increased risk of the innovation project in the process of innovation management.Conclusions. The authors have created a comprehensive methodological approach to innovation project risk management in the form of a sequence of actions algorithm. The purpose of its application is to increase the efficiency of risk management and to achieve a successful result of innovation implementation.

The concept of increasing the efficiency of financial risk management based on the application of new digital technologies

Aim. Development of the author’s concept of increasing the efficiency of financial risk management on the basis of application of the technology of creating and using the digital twin of the enterprise.Objectives. To formalize the problems of existing approaches to solving the problems of financial risk management of enterprises of the real sector of economy; to identify trends in the development of digital twins, to formulate the advantages of their practical application and to give the author’s interpretation of the concept of “digital twin of the enterprise”; to build and substantiate a multilayer system of indicators of the digital twin of the enterprise in the context of improving the efficiency of financial risk management; to develop the principles of building a digital twin of the enterprise, focused on solving the problems of financial risk management.Methods. The research was carried out on the basis of system approach, in the process of realization of which the methods of synthesis, logical comparative, factor and graphical analysis, basic provisions of financial risk management and the results obtained in domestic and foreign scientific literature on the problems of realization of approaches and methods of financial risk management were used.Results. The author’s concept of increasing the efficiency of financial risk management based on the application of new technologies for creating digital twins is proposed. In particular, by means of formalizing the problems of existing approaches to solving the problems of financial management, identifying trends in the development of methodology and technologies for creating digital twins, the idea of increasing the efficiency of financial risk management on the basis of creating a digital twin of the enterprise is outlined. The multilayer system of indicators defining the structure of this digital twin is proposed and substantiated, the tasks are defined and the principles of its construction oriented to solving the tasks of financial risk management are developed. The financial kernel of the digital twin of the enterprise is constructed, containing the contours of formation of financial indicators common for different enterprises, determining the achievement of the objectives of financial risk management and its efficiency. The qualitative substantiation of increasing the efficiency of financial risk management with the application of the methodological basis for the creation and use of digital twins proposed in the article is given.Conclusions. Conceptual provisions of creation and use of digital twins for the purposes of financial risk-management, given in the article, create a theoretical and methodological basis for increasing the efficiency of financial risk-management taking into account the use of new digital technologies and can serve as a basis for practical construction of effective systems of financial risk-management at enterprises of the real sector of economy.

Responsible Innovations as Tools for the Management of Financial Risks to Projects of High-Tech Companies for Their Sustainable Development

This paper is devoted to the resolution of the problem of risk management in a high-risk market environment. The goal of this paper was to study the experience of and prospects for the use of responsible innovations as tools for managing the financial risks of high-tech companies’ projects for their sustainable development (using the example of companies in Russia’s IT sphere in 2022–2023). We used the SEM method to study the daily statistics of the Moscow Exchange in 2022–2023. As a result, we quantitatively measured the financial risks of Russian companies in the IT sphere in 2022–2023. The studied case experience of the IT sphere in 2022 confirmed that Russian high-tech companies actively implement responsible innovations based on ESG projects. Our main conclusion is that the financial risks of high-tech companies are reduced in the case of the implementation of responsible innovations. Therefore, it is advisable to implement responsible innovations for the sustainable development of high-tech companies in a high-risk market environment. The theoretical significance of our conclusions lies in the substantiation of the synergetic effect of financial risk management with the help of responsible innovations. The scientific novelty and contribution of this paper to the literature consist in its clarifying the sectorial (in the IT sphere) and market (in a high-risk market environment) specifics of managing the financial risks to companies. We also disclosed a poorly studied and largely unknown unique and leading experience of managing the financial risks of Russian high-tech companies in 2022–2023. The practical significance of our recommendations is that the compiled scenario can be used as a strategic benchmark for the most complete development of the potential of the sustainable development of Russian high-tech companies in 2024.

Hépatite virale B chronique chez les soignants : management du risque d'infection nosocomiale (à propos d'un cas)

This work addresses the problem of risk management of healthcare-associated infection by a surgeon-in-training, who is required to perform high-risk procedures. This case discusses the transmission risk of hepatitis B virus from a healthcare professional to a patient. Therefore, Moroccan legislation needs to be revised in the aim to safeguard the interests of patients and healthcare workers.Hépatite virale B chronique; Chirurgien; Risque nosocomial; Aptitude au travail

Discussion on the status quo and problems of health risk management of hand-transmitted vibration in the workplace

The risk management in workplace is an important measure to effectively prevent and control the harm of hand-transmitted vibration. Based on the relevant developments at home and abroad, this paper expounds the risk of manual vibration operation in workplace by taking contact assessment and hazard assessment as an example. On this basis, the limit management and hierarchical management related to risk management are discussed, and the existing problems are analyzed.

CREDIT RISK MANAGEMENT OF “HALYK BANK” JSC: PROBLEMS AND SOLUTIONS

The purpose of the research work is to reveal the essence of the credit risk system, study the causes of its occurrence, and conduct a detailed analysis of the loan portfolio and credit risk management methods on the example of the commercial bank "Halyk Bank of the Republic of Kazakhstan" JSC. The authors analyze the loan portfolio of the bank using CAMELS, Z - score methods and build a regression analysis using R-studio, identify the main problems in credit risk management in a commercial bank and propose some solutions. In this article such problems in credit risk management as incomplete credit risk assessment, weak credit risk monitoring, insufficient collateral assessment, improper risk diversification, insufficient credit risk management policy are identified, and several solutions and methods for their improvement are proposed. The informational approach to solving the set goals is formed based on existing scientific research, published periodicals, scientific articles and financial statements of the bank, and its statistical data is used as material for writing a research paper.

Design and Implementation of an Inpatient Fall Risk Management Information System.

Falls had been identified as one of the nursing-sensitive indicators for nursing care in hospitals. With technological progress, health information systems make it possible for health care professionals to manage patient care better. However, there is a dearth of research on health information systems used to manage inpatient falls. This study aimed to design and implement a novel hospital-based fall risk management information system (FRMIS) to prevent inpatient falls and improve nursing quality. This implementation was conducted at a large academic medical center in central China. We established a nurse-led multidisciplinary fall prevention team in January 2016. The hospital's fall risk management problems were summarized by interviewing fall-related stakeholders, observing fall prevention workflow and post-fall care process, and investigating patients' satisfaction. The FRMIS was developed using an iterative design process, involving collaboration among health care professionals, software developers, and system architects. We used process indicators and outcome indicators to evaluate the implementation effect. The FRMIS includes a fall risk assessment platform, a fall risk warning platform, a fall preventive strategies platform, fall incident reporting, and a tracking improvement platform. Since the implementation of the FRMIS, the inpatient fall rate was significantly lower than that before implementation (P<.05). In addition, the percentage of major fall-related injuries was significantly lower than that before implementation. The implementation rate of fall-related process indicators and the reporting rate of high risk of falls were significantly different before and after system implementation (P<.05). The FRMIS provides support to nursing staff in preventing falls among hospitalized patients while facilitating process control for nursing managers.

THE APPLICATION OF FUZZY SETS THEORY IN THE METHODOLOGICAL APPROACH TO ASSESSING PERSONNEL RISKS OF AN ENTERPRISE

The main idea of this paper is the substantiation of the methodological approach to the assessment of personnel risks of enterprises based on the application of the fuzzy logic apparatus in order to identify the problems of personnel risk management and provide appropriate recommendations for their solution. The methodological basis of the study is the classic provisions and fundamental works of foreign and domestic scientists, statistical data, the results of our research into the problems of assessing personnel risks of enterprises. The methods of fuzzy set theory, comparative analysis, scientific abstraction, generalization of scientific experience of modern theoretical research, systemcomplex approach were used. The study proposed a methodological approach to assessing the level of personnel risks of an enterprise; numerical experiments were conducted on the basis of a group of construction equipment manufacturers. Analysis of the results of assessing the level of personnel risks of enterprises made it possible to identify the problems of managing personnel risks at enterprises Statement of a mathematical problem: the work considers hierarchical fuzzy data, namely: four groups of indicators for assessing the level of personnel risks (quantitative composition – F1, state of qualifications and intellectual potential – F2, staff turnover – F3, motivational system – F4), each of the indicators has a different number of fuzzy coefficients (there are twelve of them in the current work – vi , i=1÷12). Indicators are functions of fuzzy coefficients: F1 = r(v1, v2, v3); F2 = g(v4,v5, v6, v7); F3 = h(v8, v9, v10,); F4=q(v11, v12). As an output variable, there is a functional – an integrated indicator Int = f(F1, F2, F3, F4) of the personnel risk level, which, in turn, is also a fuzzy value. Here, the functions r, g, h, q, f are unknown functions of the given variables. We have expert evaluations of the change in all input data; as a rule, they vary within three terms: Low (I), Medium (G), High (E). Formalized information on each variable can be written as , then for a group of indicators we have: . Using a fuzzy system and performing calculations with its help requires the system to have the following structural elements: membership functions of input and output variables, a rule base, and an output mechanism. These structural elements are the components that will be built when designing a fuzzy system. The built mathematical model and the method of its formalization on the basis of FST make it possible to estimate the level of personnel risk at the enterprise, which enables further substantiation of a set of measures to increase the efficiency of its use. The constructed system of fuzzy logical inference can be considered intelligent as it uses elements of computational intelligence, in particular, the theory of fuzzy sets. The proposed methodological approach to assessing the level of personnel risks of enterprises based on the apparatus of fuzzy logic allows, in contrast to existing ones, to integrate the consideration of both qualitative and quantitative indicators when assessing the level of personnel risks and personnel movement indicators and to significantly increase the efficiency of decision-making under conditions of uncertainty and reduce costs in the event of adverse situations.