Risk Management Structure Research Articles

Analyzing Common Trade Risks Faced by Tanzanian Traders in International Transactions: A Case Study of Dar es Salaam Importers and Exporters

International trade is fraught with inherent risks that can significantly impact the efficiency and success of cross-border transactions. Tanzanian importers and exporters, particularly those navigating the complexities of the Dar es Salaam port, face challenges such as shipment delays, vague contract terms, and financial disputes. This study delves into how the strategic application of International Commercial Terms (Incoterms) serves as a powerful risk management tool, offering clarity and structure to international trade agreements. Utilizing a descriptive research design, we surveyed 96 traders and conducted in-depth interviews to capture their experiences with trade risks and their understanding of Incoterms. The findings reveal a widespread gap in formal training on Incoterms, leading to frequent logistical issues and contractual ambiguities that could otherwise be mitigated. This research highlights the urgent need for targeted educational programs to enhance traders’ knowledge of Incoterms and improve the overall efficiency of Tanzania’s trade environment. By embracing these standardized terms, Tanzanian traders can transform risks into opportunities, positioning themselves as key players in the global trade ecosystem. The study concludes with actionable strategies for improving Incoterm adoption and presents a roadmap for strengthening Tanzania’s competitive edge in international commerce.

Evaluating financial risk management in corporation financial security systems

Systemic risks are relevant to most segments of financial and economic activity, which creates the threat of financial instability of enterprises. Financial security, in this case, implies the state of financial soundness; it is expressed through various parameters including the level of solvency, financial stability, business activity, and efficiency of management. These questions are specific to each indicator, and this paper aims to understand their relations and how changes in them can result in risks. It elaborates the risk analysis and assessment procedure that uses a set of common financial analysis tools and determines key financial coefficients. Liquidity ratios, solvency ratios, profitability ratios, and the risk exposure metrics are the key areas that the research is based on. Correlating the financial indicators from a rich dataset from Yahoo’s Stock market data, regression analysis is used to determine these relationships between these indicators and risk management factors. A positive relationship between liquidity ratios and profitability is detected points to the fact that, firms with high liquidity levels are more capable of attaining good financial health and returns. It establishes the need for the development of a credible risk management structure that would lower threats to fiscal and economic activities. In light of this, the research shows that the liquidity and solvency management lowers financial risk and improves return for companies. The regression analysis was conducted to ascertain the degree of predictability of each independent variable to the dependent variable and the findings revealed that approximately 94 percent of each independent variable is predictable of the dependent variable that able to establish as much as 5% of the total variability in profitability, with the PE ratios being an indication of this aspect, was attributed to stock prices, as a result, the firm must be keen on its financials. This paper explores the employability of the proposed methods and models to assess the risks with high accuracy and supports optimum decision making in regard with the needed security of the enterprises. By adopting these methodologies, the businesses can observe and estimate risks which exist in the future which would help them to avoid certain issues or dangers and also pave the way for the improvements of the financial stability of the businesses. On this note, the study establishes the fact that incorporating the notion of total risk management into the framework of analyzing business and making financial decisions is inevitable in maintaining corporate financial stability and realizing perpetual economic solidity. This research enriches the literature on financial risk management, as it outlines viable strategies for the protection of enterprise financial sustainability.

Impact of ERM and Capital Structure on Firm Value in Indonesia

This study examines the impact of enterprise risk management (ERM) and capital structure on firm value, with firm age and size as moderating factors, using data from 47 banking companies listed on the Indonesian Stock Exchange (2019-2021). Utilizing quantitative methods and Moderate Regression Analysis with SPSS, the results indicate that ERM does not affect firm value, while capital structure has a positive effect. Firm age weakens the impact of ERM but strengthens the effect of capital structure on firm value. Conversely, firm size enhances the impact of ERM but weakens the effect of capital structure. These insights are crucial for investors in the banking sector. Highlight: ERM does not significantly impact firm value. Capital structure positively influences firm value. Firm age and size moderate these effects. Keyword: enterprise risk management, capital structure, firm value, firm age, firm size

Supported decision-making interventions in mental healthcare: A systematic review of current evidence and implementation barriers.

There is a growing momentum around the world to foster greater opportunities for the involvement of mental health service users in their care and treatment planning. In-principle support for this aim is widespread across mental healthcare professionals. Yet, progress in mental health services towards this objective has lagged in practice. We conducted a systematic review of quantitative, qualitative and mixed-method research on interventions to improve opportunities for the involvement of mental healthcare service users in treatment planning, to understand the current research evidence and the barriers to implementation. Seven databases were searched and 5137 articles were screened. Articles were included if they reported on an intervention for adult service users, were published between 2008 and October 2023 and were in English. Evidence in the 140 included articles was synthesised according to the JBI guidance on Mixed Methods Systematic Reviews. Research in this field remains exploratory in nature, with a wide range of interventions investigated to date but little experimental replication. Overarching barriers to shared and supported decision-making in mental health treatment planning were (1) Organisational (resource limitations, culture barriers, risk management priorities and structure); (2) Process (lack of knowledge, time constraints, health-related concerns, problems completing and using plans); and (3) Relationship barriers (fear and distrust for both service users and clinicians). On the basis of the barriers identified, recommendations are made to enable the implementation of new policies and programs, the designing of new tools and for clinicians seeking to practice shared and supported decision-making in the healthcare they offer. This systematic review has been guided at all stages by a researcher with experience of mental health service use, who does not wish to be identified at this point in time. The findings may inform organisations, researchers and practitioners on implementing supported decision-making, for the greater involvement of people with mental ill health in their healthcare.

The Effect of Risk Management, Intellectual Capital and Management Structure on Sustainability Performance

This study aims to test and analyse the effect of Risk Management, Intellectual Capital and Management Structure on Sustainability Performance in industrial companies listed on the Indonesia Stock Exchange from 2017 to 2021. This type of research is quantitative, using secondary data. Data analysis method panel data regression test using Microsoft Excel and Eviews 9 applications. The population in this study were all industrial sectors. The data collection technique in this study was purposive sampling technique, from 50 research populations to 35 used as research samples. The results showed that Risk Management, Intellectual Capital and Management Structure simultaneously affect sustainability performance in industrial companies from 2017 to 2021. The research results obtained Risk Management affects Sustainability Performance, Intellectual Capital has no effect on Sustainability Performance, and Management Structure affects Sustainability Performance.

Chilean Disaster Response and Alternative Measures for Improvement

Effective DRM aims to identify and minimize both hazards and vulnerabilities of a territory. This case study carried out in Chile analyzes national programs and disaster risk management structures at different administrative levels (national, regional, and municipal) and identifies gaps that contribute to the vulnerability of the current system. The proposed measures and options for improvement presented in this study are based on a literature review of scientific discussions about international governance, disaster risk management, and case studies conducted in Chile. The results indicate that the national disaster risk management plan has been adjusted in recent years, especially after the 2010 Chilean earthquake. The national administration, which is primarily responsible for managing potential risks, as well as the regional and local governments, has been replaced by the National Disaster Prevention and Response System (SINAPRED) in 2021, according to the 21364 law. This law was created to make cities more resilient, contributing to the Sustainable Development Goals (SDGs). This change is intended to decentralize disaster risk management, considering local conditions and preventing oversight of disaster risk management, which is not mandatory at the local level. It has also noted some gaps, such as the lack of standardization of emergency and early warning systems and funding at local levels. It is hoped that the system will move forward in this transition period and that the gaps will not affect effective risk management, as they have caused loss of life in past disasters.

Sustainable Infrastructure Development in The IKN Region (Nusantara Capital): Simulation of The Smart Self-Sustaining Urban Center Area Development

Embarking on the quest for a sustainable urban future, this research immerses itself in the vibrant landscape of "Sustainable Infrastructure Development in the IKN Region (Nusantara Capital)." This study investigates the financial viability and economic attractiveness of the Five City project, focusing on efficient infrastructure management for sustainable settlement development. The core facility comprises four vertical residential towers with supporting amenities. The research aims to evaluate the project''s feasibility over a 25-year investment period through comprehensive financial analyses.The research employs a structured approach, encompassing regulatory analysis, stakeholder identification, financial capability analysis, and risk management. Parameters such as Net Present Value (NPV), Benefit/Cost Ratio (BCR), Internal Rate of Return (IRR), and Payback Period are used for economic feasibility analysis. The study employs a detailed Risk Breakdown Structure (RBS) and Risk Register for risk management. The results collectively highlight the project''s promising economic outlook and proactive risk management approach.In conclusion, the study underscores the feasibility of the Five City project as a sound venture in project financing. The findings contribute valuable insights into infrastructure development, project finance, and risk management, providing a blueprint for sustainable housing projects in the Nusantara Capital Region. Recommendations include continuous monitoring, transparent communication, and adaptability for long-term success.

Information technology for managing information risks for projects of digital business transformation

In the article, the authors revealed the problem of information risk management when implementing digital technologies in business and its relevance. Today creates new challenges for businesses: gathering and storing large volumes of information, transaction history and customer base, all of which can be subject to both cyber threats and technical failures, which can lead to serious financial and reputational losses. Modern information technologies allow businesses to instantly respond to market changes and automate business processes. That is why information technologies are responsible for solving the issue of management effectiveness, in particular, management of information risks in business (detection, analysis, assessment of risks based on available data). The authors proposed the structure of information technology for information risk management of digital transformation projects in business. This structure is built on the basis of the method of anti-risk management of digital transformation projects in business and creates opportunities for the most effective implementation of project activities. The article also proposes an algorithm for filling the information database of information risk management with a description of the relevant processes. The proposed algorithm allows you to manage information risks, reducing the likelihood of threatening situations, time and costs for project implementation. Information technology is one of the effective tools in the process of solving the problems of information risk management during the implementation of digital transformation projects in business. The work presents schemes of the structure of the information base and the algorithm for filling the information database of information risk management of digital transformation projects in business.

Understanding the risks associated with wallets, depository services, trading, lending, and borrowing in the crypto space

The crypto space offers numerous opportunities for users to grow their wealth through trading, lending, and borrowing activities. However, these opportunities come with inherent risks that need to be carefully managed to protect your assets and maximize returns. By understanding the risks associated with wallets and depository services, trading, lending, and borrowing, users can make informed decisions and enjoy the benefits of the rapidly evolving world of cryptocurrencies. This review paper analyses 43 papers for the period of 2019–2023 and proposes recommendations for policy makers. The results confirm that international regulators expect national authorities to implement a regulatory framework for digital assets comparable to those that already exist for traditional finance. For national authorities, this means having and using the powers, tools and resources to regulate and oversee a growing market. Authorities should cooperate and coordinate with each other, at the national and international levels, to encourage consistency and knowledge sharing. Market operators (exchanges), service providers, exchanges and wallets, create effective risk management structures, as well as reliable mechanisms for collecting, storing, protecting and reporting data.

Risk Management Culture, Structure, and Process – Theoretical Insights and Empirical Evidence

In the contemporary business environment, companies face a wide range of risks that necessitate effective risk management strategies. Risk management can be approached through either a traditional or integrated concept, which hinges on a company's ability to avoid, reduce, and transform risks into opportunities.
 
 This research aims to investigate the risk management practices employed by joint-stock companies in Bosnia and Herzegovina. The study will focus on evaluating the risk management culture, structure, and processes implemented by these companies.
 
 The research was conducted using a questionnaire distributed to a sample of 141 companies listed on two stock exchanges in B&H. The survey included 31 identified risk management components related to culture, processes, and organizational structure. To enhance accuracy, the survey responses were improved using a Likert scale, replacing the previous "Yes – No" dummy approach. Before administering the survey, all components were validated by a group of experts. The findings revealed that companies in Bosnia and Herzegovina (B&H) have inadequately developed components of an integrated risk management concept.
 
 The research results suggest that B&H companies primarily rely on traditional risk management approaches, failing to keep up with the global trend of implementing risk management standards. This situation may lead to adverse implications for BH companies and its economy.

Dampak Kepatuhan Syariah terhadap Kinerja Keuangan Bank Syariah: Studi Kasus pada Struktur Pengawasan dan Manajemen Risiko

Shariah compliance is important for Islamic banks because it is one of the factors that determines their financial performance. This study aims to analyze the impact of shariah compliance on the financial performance of Islamic banks, with a case study on the supervisory structure and risk management. This study uses a case study method with three Islamic banks in Indonesia as the object of study. The data used in this study is secondary data obtained from the annual reports of these Islamic banks. The results of the study show that shariah compliance has a positive impact on the financial performance of Islamic banks. This impact can be seen from several aspects, including: Profitability: Islamic banks with high shariah compliance have better profitability than those with low shariah compliance, Liquidity: Islamic banks with high shariah compliance have better liquidity than those with low shariah compliance, Risk: Islamic banks with high shariah compliance have lower risk than those with low shariah compliance. Shariah compliance also has a positive impact on the supervisory structure and risk management of Islamic banks. This impact can be seen from several things, including: Supervisory structure: Shariah compliance can enhance the role of the Shari'ah Supervisory Board (SSB) in overseeing the business activities of Islamic banks, Risk management: Shariah compliance can enhance the role of the risk unit in managing risks related to shariah compliance. Based on the results of this study, it can be concluded that shariah compliance is an important factor that determines the financial performance of Islamic banks. Strong supervisory and risk management structures can help Islamic banks to improve shariah compliance and, ultimately, improve their financial performance.

Optimal Capital Structure and Risk Management Policies of Banks That Use CoCo Futures to Hedge Financial-Sector Risk

Abstract We investigate the joint optimal risk management and capital structure decisions of banks when they use contingent-convertible (CoCo) futures contracts to hedge financial-sector risk. In spite of banks choosing significantly higher leverage ratios, their default probabilities drop appreciably while their equity values increase, allowing banks to compete more favorably with the shadow-banking system. Banks’ value-maximizing decision to hedge financial-sector risk unintentionally leads to an economy with extremely low aggregate bank default rates across all future states of nature. Thus, CoCo futures offer a powerful microprudential and macroprudential policy tool. That banks choose not to hedge financial-sector risk in practice is consistent with managers internalizing bank bailouts.

Approaching IRRBB and CSRBB: a case study in line with the EBA approach

EBA guidelines on Interest Rate Risk in the Banking Book (IRRBB) are designed to help EU banks effectively manage their interest rate risk and maintain a stable earnings stream. EBA also requires the credit spread risk from the banking book (CSRBB). Banks can effectively manage their exposure to interest rates and spread risks by implementing a comprehensive IRRBB and CSRBB management framework that includes: regular stress testing, sensitivity analysis, effective hedging strategies, and appropriate governance and risk management structures. Under those frameworks, banks must regularly monitor and report interest rates and credit spread risk metrics.

The Role of Internal Audit in Credit Risk Management in Commercial Banks

This study focused on assessing the role of internal audit in credit risk management in commercial banks in Kosovo. Methodology: The methodology used was quantitative, involving data collection through a structured questionnaire for internal auditors and bank loan analysts in Kosovo. The survey aimed to gather information about their practices, adherence to Institute of Internal Auditors standards, and the organization’s credit risk management structure and responsibilities. The Chi-Square test was applied to test the hypotheses. Study Findings: Internal audit affects the reduction in credit risk and the definition of existing credit policies. Also, a positive relationship was found between bank size and the approach used in auditing, and the organisation of credit policies and credit risk management in commercial banks in Kosovo. Originality: Through this scientific paper we can present real and consistent results regarding the role of internal audit in credit risk management in commercial banks in Kosovo. Extracting data from the questionnaire and adhering to international standards on auditing leaves room to draw competent conclusions and recommendations in this area.

A study on the impact of risk management practices on the loans and advances of selected banks

The issue of risk management in banks has turned into the focal point of discussion after the new monetary emergencies. A few endeavours have been made to further develop the risk management and execution of banks including presenting the Basel Accords just as risk management rules by national banks. Thus, the State Bank of India has given risk management rules to fortify the risk management framework and to work on the exhibition of the neighbourhood banks. The purpose of the study is to review the risk management structure and instruments of credit risk management in India. This study incorporates secondary data. After gathering the significant data, the applicable data is changed over into an even structure. The statistical devices which are considered for the review are trend and ratio analysis. Based on the results, the study recommends that banks should be more pre-emptive than post-dynamic in their credit risk management rehearses. Keywords: Advances, banks, loans, management, practices, risk;

Review of the Lockdown Regulations’ Impact on Informal Businesses during the COVID-19 Pandemic

Globally, the COVID-19 pandemic lockdown regulations caused enormous changes in all business sectors because many businesses were not allowed to operate. Only a few were regarded as essential businesses, such as pharmacies and grocery shops, and allowed to operate. Lockdown regulations negatively affected the South African informal sector. As a result, it is difficult to provide accurate statistics on the entrepreneurs affected by the COVID-19 pandemic. There are no official statistics from the informal sector. This paper aims to examine how the informal sector was affected by the lockdown down restrictions within South Africa. The paper adopts a systematic review methodology using Google Scholar and Web of Science or Scopes to search for articles on informal entrepreneurship, COVID-19, and South Africa to draw a conclusion from the analysed data. The findings indicated that most of the businesses in the informal sector were negatively affected, including workers because some of them lost their jobs and others did not receive their usual salaries due to limited working hours. There were disruptions in the supply chain and pricing of goods and services, and people could not have sustained their income during the lockdown in South Africa. In conclusion, the informal sector is one of the most vulnerable sectors that lacks access to appropriate risk management structures, and most people live on a hand to mouth basis. COVID-19 has negatively affected the informal sector, mainly through distribution and marketing systems.

Editorial: Sustainable corporate governance and regulation — A new paradigm for future research

We are happy to announce that issue 4 (special issue) of the Journal of Governance and Regulation has been released. This issue contains 19 papers that investigate a multiplicity of topics related to the current debates in the governance and regulation domains, ranging from risk management and ownership structure to sustainability. Overall, all the authors of the papers published in this issue of the journal provide a significant contribution to the previous research in the field.

Risk Management, Capital Budgeting, and Capital Structure Policy for Insurers and Reinsurers

Risk Management, Capital Budgeting, and Capital Structure Policy for Insurers and Reinsurers

ОЦЕНКА СИСТЕМЫ УПРАВЛЕНИЯ ФИНАНСОВЫМИ РИСКАМИ В ЭЛЕКТРОЭНЕРГЕТИЧЕСКИХ КОМПАНИЯХ

The purpose of the study is to assess the financial risk management system in organizations in the electric power industry, which allows to determine its most important components, to identify industry-specific risk management features, to establish risk factors and to propose a set of measures to reduce the negative impact of risks on the financial stability of electric power companies. Research methods - generalization and analysis of the scientific basis and practical experience in risk management in the electric power industry; a systematic approach and epistemological principle in assessing the risk management policy, the features of the functioning of management structures, the establishment of risk factors and a set of measures to manage risks in companies in the energy sector. As a result, it was found that the financial risk management system in the organizations of the electric power industry operates within the framework of the overall risk management system. An assessment of the multi-level hierarchical structure of risk management and its powers is given. A grouping of risks specific to electric power companies is made, which includes a group of financial risks, specific risk factors are identified, and measures to compensate them are proposed.

Augmenting Bank Credit Flow to Agro-Processing SMEs through Financial Technology (FinTech): Evidence from Tanzania

The drivers of bank credit flow of transaction costs, credit risk management, information asymmetry, and institutional lending structure are extensively examined. Previous studies have assessed how SMEs might address their financing issues from a demand side. This study is inclined toward the supply side of financing. We aimed to determine how FinTech can counteract the effects of lending costs, information asymmetry, and credit risk management to influence the flow of bank credit to agro-processing SMEs and other entrepreneurs. A total of 399 questionnaires were collected for statistical analysis using partial least square structural equation modeling (Smart PLS). We demonstrate that FinTech as a moderator reduces the negative effects of information asymmetry and credit risk management to allow agro-processing SMEs to obtain more loans. Policymakers can use the findings of this study to improve banks' financial technology in lending activities for the sustainability of entrepreneurial activities.