Risk Management Structure Research Articles

Relation Extraction of Domain Knowledge Entities for Safety Risk Management in Metro Construction Projects

Gathering experience and organizing knowledge from a large number of engineering construction projects is conducive to more effective and efficient safety risk management in construction projects. Metro construction practitioners often find it difficult to determine what professional knowledge is needed to establish better management. By constructing the knowledge structure of safety risk management, which is composed of domain knowledge entities (DKEs) and their hierarchical relations, practitioners can systematically master the knowledge of safety management, enhance safety management levels, and reduce the occurrence of accidents. Traditionally, domain knowledge structure was determined by experts, the mistakes occur due to the limitations of individual knowledge, and high time costs are unavoidable due to the massive amount of data. Therefore, in this study, we used a rule-based Chinese-language natural language processing (C-NLP) method to automatically extract the hierarchical relations between DKEs from a large dataset of unstructured text documents; we aimed to clarify the affiliation relationship and parallel relationship between DKEs. First, 68,817 sources of literature written in Chinese were collected. Next, the specific syntactic structures of relations of the DKEs were analyzed. Hierarchical extraction rules, including 16 hyponymic indicators and 8 appositive indicators, were revealed based on the linguistic characteristics. Then, the relations were extracted from test dataset. The precision and recall values were used to verify the model. Finally, the hierarchical relations of all the DKEs were extracted, and the knowledge structure was formed. The proposed method of hierarchical relation extraction contributes to the quick automatic construction of knowledge structures and minimizes expert bias. The knowledge structures can be used to guide safety training and can assist practitioners in safety risk management.

Технологии риск-менеджмента в формировании социальной активности молодежи

The article presents the results of the study aimed at justifying the possibility to use risk management technologies in working with young people in order to support their social activity. The study hypothesis is based on the assumption that modern risk management technologies, which are interdisciplinary in nature, can be used when working with young people, contributing to the formation and development of constructive forms of their social activity. Research methods: subject-categorical analysis; analysis of theoretical and empirical research on the problems of young people’s social activity and risk management in various spheres of social life. The study proposes an interdisciplinary approach in order to determine the main vectors of the risk management directions in the development of social activity of an individual. The research indicates the main zones and sources of young people’s risks that are associated with manifestation of various forms of social activity in modern conditions of Russian society. Technologies of risk analysis, assessment and management are analyzed in relation to the problem of social activity of young people. The authors consider the applied aspects of implementing these technologies when working with young people using the example of civic, and educational and developmental activity. The study shows that methods, forms and the structure of risk management are universal and can be used in risk management in the social activity development.

Expanding Domain Knowledge Elements for Metro Construction Safety Risk Management Using a Co-Occurrence-Based Pathfinding Approach

Knowledge is a contribution factor leading to more effective and efficient construction safety management. Metro construction practitioners always find it difficult to determine what specialized knowledge is needed in order to lead to better safety risk management. Currently, domain knowledge elements are generally determined by experts, which is coarse-grained and uncomprehensive. Therefore, this paper aims to provide a structure of domain knowledge elements, using an automatic approach to expand domain knowledge elements (DKEs) from a big dataset of unstructured text documents. First, the co-word co-occurrence network (CCN) was used to find the connected knowledge elements, and then the association rule mining (ARM) was compiled to prune the weakly related subnetworks, leaving the strong associated elements. Finally, a list of DKEs in the metro construction safety risk management was obtained. The result shows that the obtained DKEs are more comprehensive and valuable compared to previous studies. The proposed approach provides an automatic way to expand DKEs from a small amount of known knowledge, minimizing the expert bias. This study also contributes to building a fine-grained knowledge structure for metro construction safety risk management. The structure can be used to guide safety training and help knowledge-based safety risk management.

What accounts for the high underwriting losses in the Ghanaian insurance industry?

PurposeThis research explores to answer the question: What accounts for the substantial underwriting losses in the Ghanaian insurance industry?Design/methodology/approachThirty-four (34) insurers' audited financial reports covering the period of 2007 to 2017 were analysed through dynamic panel regression to uncover the underlying causes of high underwriting losses in the Ghanaian insurance industry.FindingsThe findings indicate that efforts at increasing market share by overtrading add no value to insurers underwriting profitability. The underwriting risk suggests that the industry charges disproportionately too small premiums for the risks it underwrites. This may indicate under-pricing by some insurers to grow their customer base.Practical implicationsThe findings have implications for managerial efficiency and risk management structures that align compensation with underwriting efficiency.Originality/valueThe association between managerial preference and the underwriting performance of insurers in emerging markets has rarely been researched. This study responds to this knowledge challenge.

Управление рисками аварийных ситуаций на опасном производственном объекте (установка каталитического риформинга)

The article considers the problem of reducing the risks of emergency situations and increasing the reliability of operation of hazardous production facilities (HPOs) of the petrochemical and oil and gas processing industries and oil products supply facilities. Analysis of industrial safety in this industry and quantitative values of the dynamics 
 of accidents at HPOs made it possible to determine the main causes of emergencies. For the object of study (a catalytic reforming unit) there was conducted a comparative analysis of methods and technologies for assessing the risk of accidents, with a preliminary classification of evaluation criteria for each technology according to a number of characteristics that determine the goals and boundaries of its use, the time range, the level of initial information, etc. As a result 
 of the analysis there has been defined a most effective solution, taking into account the strengths and possible limitations for the object of study. On the basis of the proposed solution an emergency risk management structure at the HPF under consideration was developed, functioning of which aims reducing the accident rate and ensuring industrial safety within the established norms and rules.

Cashflow Volatility, Corporate Investments and Value of Nonfinancial Firms Listed in Kenya

Cashflow volatility causes shortages in cash leading to a reduction in investment expenditure and adverse impact on firm value. There is a scarcity of research on cashflow volatility and its effects on corporate investment and firm value. Existing studies yield mixed results, with the bulk of them emanating from advanced economies that are culturally and economically distinct from developing economies. This study sought to examine the influence of corporate investments on the link between cashflow volatility and firm value. A census survey was carried out on 42 nonfinancial firms listed in Kenya from 2002 to 2019 and secondary data obtained from 36 firms listed for at least three continuous years. Random effects panel regression model robust for standard errors was applied to analyse the data. Results from a four-step mediation analysis provided evidence of a mediating effect of corporate investments on the relationship between cashflow volatility and firm value. The study points the need for government and regulators to draw policies that provide a favourable working environment for businesses and advises management to actively monitor their operating expenses and strengthen risk management structures to mitigate cashflow volatility which adversely impacts investments and firm value.

Implementation of Risk Management and Capital Structure on Financial Performance: A Study of Islamic Banking in Indonesia

This study examines the influence between risk management and capital structure on the financial performance of Islamic Commercial Banks (BUS) in Indonesia with 3 measurement proxies, namely ROA, ROE, and zakat. ROA's financial performance will be used as a key proxy in this study. Meanwhile, ROE and zakat will be used as additional proxies to see the difference in results between the three of them. Risk management is measured by parameters of credit/financing risk management (NPF), liquidity risk (FDR), and operational risk (BOPO). Meanwhile, capital structure is measured using the ratio of CAR and DER. This study also added five control variables: company size, income stability, asset growth, third-party funds, and financing. This study used panel data and purposive sampling techniques to determine the sample. Data obtained is on published financial statements of Islamic commercial banks for 2008-2019. The data analysis technique used is a multiple regression analysis technique using E-views 9 program. The results showed that BOPO and CAR variables affected financial performance (ROA), while NPF, FDR, and DER have no effect on financial performance (ROA), and there were inconsistencies in results with ROE and Zakat proxies.

기업의 내·외부 공급사슬위험관리가 공급사슬 회복탄력성을 통해 성과에 미치는 영향

In the situation where the global supply chain crisis is prolonged and constant, systematic management of risks is an essential factor to mitigate corporate instability and improve performance. This study investigates the relationship between supply chain risk management(structure, culture, cooperation), supply chain resilience(agility, robustness) and supply chain performance. For this purpose, a survey was conducted on 300 domestic manufacturing companies and data were collected from 101 companies. The collected data were analyzed using SmartPLS program. The research results are as follows. First, the risk management structure of supply chain risk management had a significant positive effect on agility and robustness, which are the supply chain resilience. Second, culture of supply chain risk management had a significant positive effect on agility, but it did not have a statistically significant effect on robustness. Third, supply chain cooperation did not have a statistically significant effect on agility and it had a significant positive effect on robustness. Fourth, agility and robustness, which are the components of supply chain resilience, have a significant positive effect on supply chain performance. The results of this study suggest an integrated model that can understand the relationship between the two concepts and supply chain performance at a time when it is important to strengthen the capacity of supply chain risk management and resilience, and can contribute academically and practically as data that can broaden the base of supply chain management theme and predict supply chain performance and change.

ASSESSMENT OF ENVIRONMENTAL RISKS FROM TECHNOLOGICAL PROCESSES OF COKE PRODUCTION

The article is devoted to the problem of assessment and management of environmental risks in the context of the formation of ecological and economic system of coke production. The technological process at the coke plant is due to significant environmental pollution due to man-made load, which poses a serious danger to the environment. Therefore, the study of the impact of coke production on the natural environment in Ukraine is important and relevant. In order to ensure constant control, increase the efficiency of enterprises, meet the requirements of stakeholders, respond quickly to violations, reduce the negative impact on the environment, the proposed procedure for identifying environmental aspects and assessing their impact. Criteria of significance and principles of assessment of ecological aspects are established. These principles are the basis of risk management. They establish the characteristics of effective and efficient risk management, reflect its values and explain its purpose. Therefore, these principles must be taken into account when creating the structure and process of risk management of production. Adherence to these principles will allow production to manage the impact of uncertainty about achieving its goals. The objectives of risk management and opportunities of environmental management system processes are also defined, the objectives of risk management are identified and the criteria of identification and assessment of risks and opportunities are proposed. The procedure for assessing environmental risks, which is based on quantitative calculations, is considered. Based on the developed procedure, a register of environmental aspects of the coke plant has been developed. Assessment of the impact of the metallurgical industry on the environmental situation in Ukraine is a promising area of further research to optimize the level of environmental safety of metallurgical enterprises.

Adoption of the COSO methodology for internal Sharīʿah audit

PurposeIslamic financial institutions (IFIs) are required to establish a Shariīʿah Governance Framework (SGF) to strengthen their Sharīʿah-compliance mechanism and ensure that all relevant IFI regulations are in line with Sharīʿah rules and principles. Effective implementation of the Shariīʿah-compliance function will further promote stakeholder confidence, as well as the integrity of IFIs, by reducing Shariīʿah non-compliance risks. This study aims to examine the internal control framework developed by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) and explore the extent to which it can be incorporated in the Sharīʿah-compliance function of IFIs.Design/methodology/approachThis study adopts a qualitative method of inquiry, utilizing the inductive method and content analysis to build comprehensive knowledge that will assist in exploring the framework of COSO methodology and the extent to which it can be adopted by IFIs.FindingsThe findings indicate that the existing frameworks of Sharīʿah governance, whether that of the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) or Bank Negara Malaysia (BNM), need to be further developed. Therefore, the adoption of COSO methodology in the internal Sharīʿah audit of IFIs, as suggested by AAOIFI, is not only possible but desirable. The study also finds that the COSO framework places the highest priority on risk management in that it makes it an integral part of the decision-making process in all the institution's activities. As a result, incorporating the comprehensive COSO risk management structure within the Sharīʿah-compliance function will enhance risk management in IFIs.Originality/valueThis study highlights the importance of the COSO internal control framework and examines its components, principles and the possibility of its adoption by IFIs. The findings of this study are expected to contribute to enhancing the Sharīʿah-compliance function of IFIs.

A Bibliometric Analysis of Risk Management in Foreign Direct Investment: Insights and Implications

Aiming to identify the intellectual structure of risk management in foreign direct investment and its evolving trends, this paper introduces bibliometric analysis to systematically review the 1231 articles published between 1995 and 2022. Through the analysis of publication trends, influential indicators, cooperative networks, and citations, we draw the following important conclusions. From 1995 to 2021, the average annual growth rate of scientific production in the field reached 21.4%, with scholars from the United States and China contributing the most. Regarding the cooperation network, its structure is relatively dispersed, and the deep cooperation among a wide range of researchers has not yet been formed. As for research topics, the popularity of interest in environmental protection, carbon dioxide emissions, energy consumption, and climate change has increased significantly in recent years. Moreover, this paper points out that future research directions include new risks and challenges posed by the COVID-19 pandemic and the effects of climate risks on foreign direct investment. These results are helpful for scholars to systematically understand the current research status, research frontiers, and future trends of risk management in foreign direct investment.

The influence of international agreements on disaster risk reduction

Global frameworks established in 2015 – including the Sendai Framework for Disaster Risk Reduction, the 2030 Agenda for Sustainable Development, and the Paris Agreement – provide a comprehensive foundation for states to improve disaster risk management. However, the degree to which these frameworks are driving necessary changes to public policies and practices for disaster risk reduction remains questionable. This article explores the influence of these frameworks on flood and drought risk management in two federal states, Canada and Australia, and from the perspective of government practitioners. Through two Delphi studies and semi-structured interviews, the research found that although international agreements are considered valuable to the maturation of disaster risk management principles and practices, their perceived application in flood and drought risk management has been more limited. Government practitioners warn that using these frameworks to drive meaningful change to disaster risk management systems and structures risks further politicizing the field because of existing complex and deeply entrenched socio-political infrastructures. The findings highlight the fact that the ability of these global frameworks to facilitate meaningful changes toward more equitable, resilient, and sustainable disaster risk management is challenged not only by the institutional design of these agreements, but by resistant institutional structures that are embedded across levels of governance.

Impact Of Risk Governance, Associated Practices and Tools on Enterprise Risk Management: Some Evidence from Colombia

Enterprise risk management is a discipline that is becoming increasingly necessary due to the changing environment in which companies operate. This paper is based on a research question that propose to hypotheses that question the impact of risk governance and associated practices and tools on ERM development. Hierarchical linear regression models are used to test the hypotheses that suggest a relationship between predictor variables and the ERM criterion variable. A sample of 140 large private companies in Colombia, belonging to different economic sectors, is selected, of which their behaviour and/or organizational performance related to the analysis variables is evaluated. The main results suggest that the risk governance composed of the senior management commitment and the risk management structure has a positive correlation with ERM. Also, it is demonstrating that the practices and tools integrated by the risk maps and the risk treatment measures that are defined, have a positive correlation about the maturity of enterprise risk management. Finally, the study’s, main findings are presented, and their implications are discussed to form the basis for ERM strengthening in emerging markets.

Assessing the Impact of Risk Management Structure on Financial Firm Performance: Evidence from Nigerian Services Sector Listed Firms

With the advancement in the global economy, corporate risk management has been more impactfully implemented by firms and equally become a topic of scholarly studies. However, most of these studies are from different contexts. The purpose of this study is to assess the relationship between enterprise risk management (ERM) structure and the financial performance of Nigerian listed Services Sector firms from 2010 to 2019. The study relates risk governance structure to firms financial performance. The ex post facto research design was adopted, and data were collected from the annual reports and accounts of selected firms with a complete set of data for the study. From the study population of 25 firms, a final sample of 21 Services Sector firms. Descriptive and inferential statistics of regression analysis stacked as panel data was employed for data analysis. The study results revealed that risk management committee had a negative and insignificant relationship with ROA but significant with Tobin-Q. The size of the audit committee, however, exhibited a positive and insignificant relationship with ROA but a significant relationship with Tobin-Q. Furthermore, the study revealed an insignificant negative relationship between board finance experts with all financial performance (both ROA & Tobin-Q). However, chief risk officer exhibited a positive and significant relationship with firm performance (both ROA & Tobin-Q). It was, therefore, concluded that although the firms have structures of ERM governance in place to meet the legal requirement, the innovations aimed at improving market evaluation are yet to be deeply rooted in the listed services firms in Nigeria. It contributed through evidence of mixed relationship between risk management structure and firm performance in an under-investigated context such as Nigeria. It was recommended that the firms should adopt effective risk management structural practices as a strategy for enduring growth and survival in the face of environmental complexity. Also, further research is suggested to extend the study by widening the scope and context of the research.

ОЦІНКА РИЗИКІВ КІБЕРБЕЗПЕКИ ТА КОНТРОЛЮ КОНФІДЕНЦІЙНОСТІ В ІНФОРМАЦІЙНИХ СИСТЕМАХДЕРЖАВНОГО УПРАВЛІННЯ

The relevance of this work is due to the approval by the Administration of the State Service for Special Communications and Information Protection of Ukraine “Methodological recommendations for increasing the level of cyber protection of critical information infrastructure” in October 2021. The recommendations were developed based on the world's best approaches - the NIST CyberSecurity Framework. At the moment, the developed Recommendations of the State Special Communications Service have partially lost their relevance and require adjustment with the release of NIST Special Publication 800-53A Revision 5 “Assessing Security and Privacy Controls in Information Systems and Organizations” Governance Oversight”, publication date: January 2022. These documents complete the cycle of integrating cybersecurity risk management (CSRM) and enterprise risk management (ERM). These projects describe methods for combining risk information of all system assets, an organization (enterprise) network, including conditional examples for aggregating and normalizing results from cybersecurity risk registers (CSRR) taking into account risk parameters, criteria and impact on the continuous functioning of communication systems. As a result, the integration and normalization of risk information enables decision-making and monitoring of risks at all levels of the system, which allows you to create a comprehensive picture of the overall cyber risk. These documents describe the creation of an Organizational Risk Profile (ERP) that supports the comparison and management of cyber risks along with other risk types in general.Quite interesting are the views of the authors of the developed documents regarding the control of confidentiality associated with systems and their distribution environment, their functioning. It is substantiated that a qualitative system assessment helps to determine the existing controls contained in the organization in accordance with the security and confidentiality plan, which are subsequently used in organizational systems and the operating environment. In this environment, the assessment control is an indication of the implementation of specific steps in the risk management structure, which contributes around the clock to an effective approach to sustainable risk management processes by identifying weaknesses or deficiencies in systems, which allows the organization to determine how to respond to certain cyber threats. Therefore, in order to solve the problems of settling and implementing the norms and rules of international organizations in the field of cybersecurity and cyberdefence, it is proposed to analyze the above documents and put forward appropriate proposals for correcting and supplementing the previously approved State Communications “Methodological recommendations ...”. In turn, this will allow not only to ensure the protection of the state's critical information infrastructure from cyber attacks, but also to conduct preventive offensive operations in cyberspace, which includes disabling critical enemy infrastructure facilities by destroying communication systems that control such facilities.

ФОРМИРОВАНИЕ ИНДИКАТОРОВ, КРИТЕРИЕВ, МЕР И ШКАЛ ОЦЕНКИ РИСКОВ

The article discusses the architecture of the formation of indicators, criteria, measures and risk assessment scales necessary in risk management systems based on the fundamental axioms of management theory and the principles of risk theory to build a risk management structure. As the most effective modeling method, it is proposed to use a hybrid one using the advantages of both formal and informal methods and models in building an adaptive risk management system in enterprises on a bottomup basis. To remove the emerging contradictions of indicative risk indicators, it is proposed to use a multicriteria method of structuring characteristics in evaluation models according to different criteria of objective functions – minimizing time or costs, maximizing sales revenue or profit, which determines the risk of an unmissed opportunity. The structure of the hybrid adaptive model suggests a radical scheme for changing managerial behavior, which consists in the transition from conventional regulation from above to direct regulation of risk factors at the points of their manifestation.

МНОГОКРИТЕРИАЛЬНЫЕ МЕТОДЫ АНАЛИЗА ПОКАЗАТЕЛЕЙ ПРОДУКЦИИ В УПРАВЛЕНИИ РИСКАМИ

The article discusses the architecture of the formation of indicative risk indicators in management systems based on the fundamental axioms of management theory and the principles of risk theory in building an adaptive risk management structure. As the most effective modeling method, it is proposed to use the methods of structuring and quantifying product indicators in the form of a hybrid option using the advantages of both formal and informal methods and models in risk management systems at enterprises according to a mixed bottom-up and top-down principle. To remove the emerging contradictions of indicative risk indicators, it is proposed to use a multi-criteria method for quantifying characteristics to form an integral criterion as a risk assessment measure, which determines the risk of an unmissed opportunity. The hybrid adaptive model proposed in this article makes it possible to significantly transform the model of managerial behavior, guided by the mixed management algorithm, taking into account risk indicators at the places of their manifestation, and is implemented by all participants in the labor process.

ИСПОЛЬЗОВАНИЕ МАШИННОГО ОБУЧЕНИЕ В ПРОЦЕССЕ РИСК-МЕНЕДЖМЕНТА ПРЕДМЕТНЫХ РИСКОВ

Background. 
 Currently, artificial intelligence (AI) and machine learning are frequently implemented into the corporate structure and are aimed to transform the risk management system. Not only AI is useful for detection the interconnections between business processes, but also allows to accurately predict financial indicators and the reasons for possible deviations from standard values. Thus, the implementations of artificial intelligence and machine learning mechanisms makes it possible to increase the efficiency of operational activities and detect hidden risks.
 Method. 
 The article discusses the main types of risks, identidication and minimization of which can be carried out using machine learning and also reveals key difficulties that arise while introducing innovative mechanisms into the structure of risk-management. The scientific novelty of the work lies in the relevance of using artificial intelligence mechanisms while minimizing the risks of an economic entity, as well as in identifying the main incentives for the efficient usage of machine learning in risk management. 
 Result. 
 As a result, the potential of introducing innovative methods into the structure of risk management to improve the efficiency of operating activities was revealed. 
 Conclusion.
 In the process of the methodological study, the features of the application of machine learning methods in the risk management process were identified, moreover the article main limitations and possibilities of using artificial intelligence in order to minimize risks were revealed.

The Influence of Risk Committee Board Attributes on Modified Audit Opinion in Malaysia

The presence of a separate risk management committee (SRMC) in non-financial organizations is viewed as crucial. It is an important part of the risk management process as well as a vehicle for corporate governance. The relationship between RMC attributes and amended audit opinion is described in this research using a conceptual framework. It emphasizes the importance of separating roles and obligations between an audit committee (AC) and an RMC. Furthermore, there must be no relationships between RMC and auditors for all risk management (RM) functions to be evaluated fairly. Following the Malaysian Corporate Governance Code of 2017, the board should establish an RMC with a majority of independent members to supervise the company's RM structure and policies, as well as their execution.

Risk management and market structures in seaport–dry port systems

As seaborne and inland transport hubs, seaports and dry ports are vulnerable to diversified risks, such as climate-change-related disasters and congestion in daily operations, owing to their special geographical locations and socioeconomic functions in seaborne supply chains. If appropriate investments are made before the risks occur, the probability and potential damage of such risks can be mitigated. We propose a two-stage game to simultaneously study the preventive and adaptive investments of seaport and dry port authorities on diversified risks in scenarios of vertical cooperation and horizontal competition. In addition, in the latter case, the asymmetry between seaports and dry ports, regarding their vulnerability to risks, is taken into account. Findings show that it is not always advisable to pursue close cooperation, as players in a horizontal relationship must consider not only their own vulnerabilities but also those of others when making investment decisions. Finally, we find that port authorities need to pay more attention to the free-riding problem in the process of preventive investments than in adaptive investments.