Innovative Risk Research Articles

Діагностика розвитку управління ризиками телекомунікаційних підприємств

The article provides an in-depth diagnosis of the development of risk management of telecommunications enterprises, taking into account the existing level of organization of risk management and the level of the enterprises’ economic stability in the context of digitalization of business processes. Thus, the imperatives for diagnosing the efficiency of risk management development are substantiated; a typology of clusters of telecommunication enterprises has been formed to determine the level of development of risk management; a system of indicators for assessing the level of organization of risk management of telecommunication enterprises and for determining the level of economic stability of the enterprise, taking into account risk factors, is proposed. Based on the proposed scientific-methodological approach, the coefficients of efficiency of risk management development are calculated and the level of efficiency is determined. It is found that the leading telecommunication enterprises of Ukraine, namely, PJSC «Kyivstar», PJSC «VF Ukraine», LLC «lifesell» and PJSC «Ukrtelecom» have a fairly high (above average or average) level of risk management development. The highest level of risk management development and the least «radical» focus of changes in risk management strategy is provided by Kyivstar PJSC. This enterprise has a progressive level of organization of risk management and the highest level of economic stability among the studied enterprises. PJSC «VF Ukraine» (2nd place after PJSC «Kyivstar») and LLC «lifesell» (respectively – 3rd place) have a sufficiently high (on the scale of «above average») level of risk management development. It is determined that at the present stage these enterprises have a standard, with elements of progressive, level of development of risk management and are sufficiently prepared for the use of innovative risk reduction mechanisms.

Dynamic capabilities: Axiomatic formation of firms’ competitive competencies

The capabilities concept is critical in understanding the competitive competencies of firms. Capabilities allow firms to sense, seize and reconfigure their resources in response to opportunities and threats within their environments. This systematic review reviewed a total of 37 Scopus database-selected peer-reviewed articles on capabilities, technology, innovation, and capability frameworks. The purpose was to identify and discuss firms' capabilities and formation processes and effects on competitive advantages to generate an encompassing framework that overcomes the limited and fragmented nature of current capability frameworks. The study employed thematic content analysis and author-anchored keywords analysis which enabled the identification of several themes regarding capabilities and formation processes. The findings of the study were discussed under the following themes: technological capabilities; supply chain capabilities; networking, collaboration, interactive, coordinating, and alignment capabilities; organisational capabilities; and lastly systems capabilities. The study contributes to enlightening a body of firms' capabilities theories and generated an encompassing interactive capabilities framework to guide researchers in understanding firms' capabilities formation processes. The value of the study to the research community lies in emphasising the multi-level approach (macro; mezzo; firm level) and the virtues of combining tenets from different frameworks for a nuanced understanding of firms' capabilities development. The study will be critical in guiding firms in building their capabilities, particularly the importance of open innovation networks and collaboration in reducing innovation risks and costs. The paper is important to policy makers regarding the institutions facilitating the interaction of international, national and firms level dynamics in propping and propelling firms’ capabilities development.

Investor-Induced Cryptocurrency Contagion Channels: An Empirical Evidence from Five Major Economies

Coupled with the global pandemic and hyperinflation, the innovation risks of cryptocurrency have led to significant price volatility. There is a significant effect of cryptocurrencies on traditional financial markets and contagion channels. Therefore, regulatory authorities should understand the contagion channels to analyze the input risks and take necessary measures. This paper adopts the copula model to study the contagion channels of cryptocurrencies in five major economies. Additionally, three hypotheses are tested to determine whether investor induction serves as the main contagion channel. The empirical results indicate that cryptocurrency market contagion is significant in all five economies, with "portfolio rebalancing" as an important channel of transmission. Moreover, some countries represent time-varying contagion channels. Lastly, cryptocurrencies are not only an indirect symbol of the country’s integration into the global economy but also a risk indicator for new assets.

Risks of IT technology adoption

Automation of technological processes and digitalisation of various spheres of the economy are among the key management tasks. The main threats and risks to development include cross-border threats and illegal use of information and telecommunication technologies, including computer attacks on the information infrastructure and means of communication. The primary task in solving problems of cyber security is introduction of domestic technologies and software products. In this article, we consider the risks of adopting new IT-technologies. Initially, the risks at each stage of project implementation and introduction of IT-technologies were identified, then the methodology of risk assessment was applied based on the determination of risk probability and degree of negative consequences realization (losses for the organization). Each risk was assessed taking into account two items. The first is the probability of risk occurrence. The second is the danger of risk or adverse consequences (losses) which arise at the organisation in case of its realisation. To determine the degree of risk of risks, 4 priority groups were allocated, the weighting values of the groups, and the risks were calculated. Subsequently, each risk was assessed and the risks of implementing new IT technologies were ranked. The research showed that the main risks of IT implementation include innovation risks, information security risks, risks connected with decrease of productivity and capacity of information systems, with changes in the project budget, miscalculations in selection of techniques, equipment, its installation, insufficient qualification of executors. The grouping of risks by stage of their occurrence showed that the risks increase and have the highest aggregate assessment at the stage of operation. Risks are managed throughout the life of the project, but the ability to manage risk decreases as the project progresses towards completion. Identifying, assessing and ranking risks is the basis for developing an effective risk management system

Ресурсная субъектность студентов в разных образовательных моделях в период пандемии

Reforming education, the transition from the traditional educational model («educational tube») to «individual educational trajectories» (IET) is perceived by the participants of the educational process quite tensely. The need to adapt to a new educational model amidst COVID-19 pandemic is an aggravating factor for the educational process and mental wellbeing of students. The specific nature of the IET model is that students are in a constant self-determined, active position regarding their educational path. It is necessary to assess the psychological risks of educational innovations for students.
 The purpose of the study: to compare the parameters of resource self-determination of students in the IET and the traditional educational model during the pandemic. Sample: 1687 university students from Tyumen region studying according to the traditional model (1325) and according to the IET model (362). Data collection methods: self-organization questionnaire (Time Structure Questionnaire, M.J. Bond, N.T. Feather) adapted by E.Yu. Mandrikova; the scale of basic beliefs (World assumptions scale, R. Janoff-Bulman) adapted by M.A. Paduna,
 A.V. Kotelnikova; The Ways of Coping Questionnaire, R.S. Folkman, S. Lazarus, adapted by T.L. Kryukova, E.V. Kuftyak, M.S. Zamyshlyaeva; scales of psychological well-being (The scales of psychological well-being C.D. Ryff) adapted by T.D. Shevelenkova, P.P. Fesenko; questionnaire «Losses and acquisitions of personal resources» N.E. Vodopyanova, M. Stein. Mathematical and statistical methods: pairwise comparison of samples was carried out using the ANOVA method (Post Hoc comparison Scheffe Test). Students’ resource self-determination in different educational models differs according to the groups of used resources. Students in a traditional educational model use planning resources more often. Students studying in a IET model are more active users of self-support/self-promotion, resources of achievements and correction of actions.

The banking sector of Ukraine in the space of influence of the VUCA environment on financial stability

Ukraine has been operating in a VUCA environment for quite a long period of time, which was significantly aggravated under the influence of the Covid-19 pandemic and the beginning of full-scale military operations on the territory of the country. A VUCA environment, as the antipode of stability, is characterized by chaos and unpredictability. In this article, financial stability of the banking sector is considered as its ability to effectively perform its functions and resist the effects of destructive factors of a VUCA environment. The essence and features of a VUCA environment manifestation have been examined in the article. The main challenges of the VUCA environment, which caused destructive changes in macroeconomic indicators and the main indicators of the functioning of the banking sector, have been identified, namely: the impact of the global financial crisis of 2008-2009; destabilization of the political situation, the conduct of the anti-terrorist operation in the east of Ukraine, the annexation of Crimea (since 2014); the impact of the Covid-19 pandemic (since 2020); a full-scale military invasion of Russia into the territory of Ukraine (since February 24, 2022). The country’s economy as a whole and the banking sector in particular have suffered the greatest losses during the studied period precisely as a result of the full-scale military invasion. In response to the challenges of the VUCA environment, it became necessary to develop concepts for countering destructive influences. The strategy of behavior in the VUCA environment is aimed at adaptive behavior, meaningful risk, and active implementation of innovations in the business model. Among the technologies that change business models of banks, acting as tools of digital transformation, providing new approaches to customer service and organization of internal business processes in banks, there are: artificial intelligence, big data, blockchain, biometrics, application programming interfaces, etc.

Risk Assessment of Innovation Prototype for the Example Hydraulic Cylinder

This paper presents both an example of the innovation prototype risk assessment and the universal way of conduct in assessing such solutions. For this purpose, the authors proposed a prototype risk assessment method based on the assumptions of the SWOT and TOWS analysis and the multi-criteria technical innovation risk assessment method. In the assumptions of the developed method, an account was taken of the conclusions resulting from the prospect theory. A symptom of this action was, e.g., a characterization of the team of experts (working on the prototype) in terms of their individual personality traits and mind (which has not been used so far in practical methods of assessing risk). As a result of the conducted assessment (for an innovative hydraulic cylinder prototype), the innovation prototype risk was determined as low, which was presented both on the map of domination and the map of risk assessment for this prototype. The procedure presented in the paper was planned so as to ensure that, after the prototype moves to the commercialization phase, it will be possible, on the basis of the already made calculations, to apply the full risk assessment dedicated for technical innovations with ease. This gives it a universal nature.

Pre- And Post-Pandemic Corporate Social Responsibility (CSR) and Organisational Risk Management Practices

Corporate Social Responsibility (CSR), which has been around for a while in the business world, is frequently seen as a group of efforts meant to improve an organization's reputation by enhancing its public relations techniques. Businesses can gain from globalisation, but it also introduces new risks and sources of instability. There is increased uncertainty in corporate decision-making as firms become more reliant and exposed. Inexperienced players have emerged because of this interconnection, necessitating innovative risk management techniques. This study examines the association between CSR and organisational risk management practises in Malaysia's publicly traded corporations before and after the epidemic. The 91 Malaysian listed PLCs' annual and sustainability reports from 2004 to 2021 were the subject of an exploratory content analysis for this study. From a macro perspective, this study's findings suggest that the COVID-19 pandemic has increased Malaysian companies' concern about actively engaging in CSR and organisational risk management practises. This paper demonstrates CSR practises and organisational risk management practises in Malaysia to show an increasing trend in comparisons between pre- and post-pandemic situations, which may suggest manifesting towards better CSR performance to lever any foreseen or unforeseen organisational risk signals.

Can Private Enterprises Improve Their Technological Innovation by Joining the Military Business? Evidence from China

Military-civilian integration is an effective way to promote the development of defence engineering, but existing studies have not given a clear answer whether the participation of private enterprises in military business is conducive to promoting technological innovation of enterprises. In this study, A-shared listed companies in China from 2001 to 2018 were sampled, and the influence of their participation in military business on technological innovation was investigated using a multi-period difference-in-difference (DID) method. Results show that: (1) by joining the military business, private enterprises can significantly strengthen their R&D inputs and substantive innovation, thus promoting their technological innovation. (2) The participation of enterprises in military business acts upon substantive innovation outputs and further affects their technological innovation through R&D input intensity. (3) Participation in military business exerts a stronger positive promoting effect on enterprises in regions with a high marketization level than in regions with a low marketization degree. By joining the military business, SMEs are driven to enlarge their R&D inputs, while large enterprises can enhance their innovation outputs. The policy implications of the obtained conclusions indicate that it requires to be strengthened for private enterprises participating in military business to help reduce their technological innovation risks and improve the construction level of defence engineering projects.

The three-infrastructures framework and water risks in the Murray-Darling Basin, Australia

ABSTRACT Using a three-infrastructures (grey, soft, and green) framework, we examined key risks to water availability and quality in the Murray-Darling Basin, Australia. These risks include increased irrigation efficiency, without a quantitative knowledge of the impact on water flow pathways, particularly return flows, growth in farm dams and floodplain harvesting, and unsustainable management of salinity. Critical to mitigating these risks are the metering, monitoring, and auditing of water flows, effective linkages between evidence and analysis, and accountability of decision-makers operating in the public interest. We contend that these approaches need to be supported by innovative risk assessments, which are fit-for-purpose under the MDB Plan, wherein the ‘who, what, when and where’ are assessed in relation to cumulative, systemic, and cascading risks from human actions.

Ecological risks and innovative-investment projects.

Market competition is becoming fiercer all around the world and countries pay considerable attention to their innovative-investment environment. Rapid global economic development and infinite resource extraction have damaged the environment and the harmful environmental effect has become increasingly significant. Thus, technological innovation occupies an important place in the discussion of developmental issues. Previous studies on innovative projects were focused largely on how technological innovations allow us to prevent financial risks and enter the market. However, it is necessary to pay attention to environmental risks arising from successful technological innovations. Thus, this study focused on the nexus between ecological risks and innovative investment. Specifically, the study considers the environmental risks of innovation. The findings reveal that investment in innovations and environmental protection measures can be carried out simultaneously for both ecological and economic targets. To control and prevent environmental risks of technological innovations, there should be a shift from industrial technological innovations to environmental technological innovations to achieve the unity of economic benefits and environmental interests. Such an approach preserves social and public interests and ensures sustainable development.

RETRACTED: The persistent, bioaccumulative, toxic, and resistance (PBTR) risk assessment framework of antibiotics in the drinking water sources

Antibiotics are emerging pollutants largely considered to have a lower risk based on persistent, bioaccumulative, toxic (PBT) risk assessments. However, an increasing number of studies have illustrated that antibiotics are responsible for the global increase in antimicrobial resistance (AMR), which suggests that the risk of antibiotics has been largely underestimated by using PBT risk assessment. Here, we designed an integrated innovation risk assessment framework of persistent, bioaccumulative, toxic, and resistance (PBTR) that accounts for antibiotic resistance to better represent the antibiotic environmental risk. This novel antibiotic risk assessment framework was further verified via application to 39 target antibiotics in the 23 drinking water sources of the lower Yangtze River (LYR), China, during the normal and flood seasons. In contrast with the PBT assessment, single toxicity assessment and single resistance assessment, in the PBTR assessment, 7 of 39 target antibiotics with bacterial insensitivity were observed to represent a more prominent risk, as were the sites sampled during the flood season with low concentrations but high pollution loads, which confirmed that the sensitivity of PBTR risk assessment was instructive. The PBTR risk assessment for the screened priority antibiotics contributes not only representative data but also an innovative approach for identifying resistance risks. Using the positive matrix factorization (PMF) model, the sources of priority antibiotics can be predicted and thus supported the corresponding policy. Overall, this study first constructed a PBTR risk assessment framework, then applied it to facilitate the accurate management of antibiotic pollution at the basin level.

Methodological support of management decisions in innovative activities of industrial enterprises based on the use of intellectual property

The article reflects that intellectual property management, carried out under conditions of uncertainty and significant financial risks, is currently gaining special importance in innovation activities. The impact of taking into account potential risks is mainly manifested at the early stages of innovation activity the stage of scientific research, the initiation of innovations, the selection of alternatives to innovative projects. In the proposed model of analysis and assessment of innovation risks, it is necessary to take into account such factors as: the presence of copyrights, the presence of patent protection, the availability of licenses for certain types of activities, the target orientation of the innovation project, the experience of implementing certain stages of the project, etc. These factors significantly affect the degree of risk of an innovative project and the probability of obtaining a positive result during its implementation. In addition, taking into account risk factors allows you to increase the efficiency of the project. The article substantiates that the essence of organizational and methodological support for the management of intellectual activity of industrial enterprises is the formation and use of new technologies and new business models of production, taking into account the intellectual property objects available on them. In this case, methodological support consists in the development of individual competencies of the company's personnel, the provision of new opportunities for the organization of innovative activities within the structure of the enterprise, the availability of intellectual property, the development of management competencies. The effectiveness of methodological support of management decisions in the innovative activity of an industrial enterprise based on the use of intellectual property is determined by the effectiveness of managing directly the objects and results of intellectual property, which are considered as the main tool for ensuring innovation, a prerequisite for all the activities of the enterprise, its sustainable development and increasing competitive advantages. Consequently, the methodological support of management decisions in the field of intellectual property greatly contributes to the development and achievement of new results of innovative activity.

Technological Innovation, Risk-Taking and Firm Performance—Empirical Evidence from Chinese Listed Companies

Technological innovation can restructure the production factors of enterprises, and it is an important factor for enterprises to meet market demand, improve competitiveness, form long-term competitive advantages and obtain sustainable development. This study focuses on the practical issue of the impact of technology innovation on firm performance. Taking 1166 listed companies in China from 2012 to 2020 as research samples, this study systematically investigates and reveals the impact of technological innovation on firm performance and its internal impact mechanism. The research shows that technological innovation significantly reduces firm performance, and that conclusion holds after an endogeneity test and a robustness test. The analysis of the impact mechanism shows that risk-taking is an important transmission path of corporate technological innovation affecting corporate performance and that technological innovation reduces firm performance by improving the risk-taking capacity. Finally, a heterogeneity test regarding the firm ownership shows that technological innovation has a significantly stronger negative impact on the performance of non-state-owned enterprises than on that of state-owned enterprises. The relevant government departments and market subjects should fully understand and give attention to the impact of enterprise technological innovation on firm performance and its mechanism, which has important practical significance for standardizing and strengthening enterprise R&D management, reducing the market and technological risks of firm technological innovation and perfecting modern enterprise systems. It is helpful for firms to form a sustainable technology innovation cycle development mode.

Abstract 15372: Machine Learning Distinguishes Continuous Risk of Gastrointestinal Bleeding, Stroke, and Death in Ambulatory Lvad Patients

Introduction: Advanced data analytics are needed to reliably predict bleeding and thrombotic risk in ambulatory left ventricular assist device (LVAD) patients. Hypothesis: Machine learning techniques can be used to predict risk of gastrointestinal bleeding (GIB), stroke, or death in ambulatory LVAD patients. Methods: HeartMate 3 TM LVAD recipients from the MOMENTUM 3 studies with up to 2-year follow-up were included. A multistate model was developed with 5-fold cross-validation to characterize the continuous probability of events after discharge. Model features included pre-implant, index implant, and short- and long-term post-implant clinical features. 85% of patients were used for model derivation and 15% for validation. Model performance was assessed with area under the curve (AUC). With the model features, a risk stratification tool was created by dividing patients’ into terciles of predicted risk. Results: Among 2,056 LVAD patients who survived to hospital discharge, the median age was 59.4 yrs (20.4% Female, 28.6% Black). At 2-years, the incidence of GIB, Stroke, and Death was 25.6%, 6.0% and 12.3%, respectively. Unique models including pre-implant, implant and post-implant features were created for GIB (Figure A), Stroke and Death. In ambulatory LVAD patients, the model could predict 30-day risk of GIB at any time post-implant which was 26.9%, 2.6% and 0.8% in high, medium and low-risk patients respectively (Figure B). Similar risk prediction was performed for stroke and death. The cross-validated AUC in the derivation cohort was 0.70, 0.69, and 0.85 for GIB, stroke, and death respectively. Conclusion: We developed an innovative risk tool informed by machine learning techniques that predicts risk of GIB, stroke, and death at any 30-day interval in ambulatory LVAD patients with readily available clinical data. The model allows for risk stratification that accurately predicts future events and may be useful to guide clinical decision making.

Dual‐class share structure and innovation

AbstractUsing a sample of dual‐class firms matched with single‐class firms possessing similar antitakeover protection, we find a positive association between disproportionate insider control and patent output, quality, creativity, research and development efficiency, and chief executive officer innovative risk taking. We also find, however, that the positive effects of disproportionate control on innovation are concentrated in financially constrained firms and firms in highly competitive industries, and that the positive effects dissipate within 10 years after the initial public offering. Most important, the positive effect of dual‐class structures for innovation is conditional on the presence of innovative insiders in the firm. These findings imply that entrenchment through concentrated control in the hands of uniquely innovative corporate insiders provides a positive environment for innovativeness beyond the entrenchment effects of alternative antitakeover measures.

Reducing the Risks of Home Dialysis Innovation and Uptake: The Case for Human-Centered Product Design.

Reducing the Risks of Home Dialysis Innovation and Uptake: The Case for Human-Centered Product Design.

СИСТЕМИ ЕКОНОМІЧНОГО УПРАВЛІННЯ ІННОВАЦІЙНОГО РОЗВИТКУ ПІДПРИЄМСТВА

The article is devoted to the theoretical and methodological foundations of the application of the basic systems of economic management of the enterprise in the management of innovative development. The relevance of the problem lies in the fact that a modern enterprise on the way to success must take a number of circumstances into account, first of all, it must be based on the introduction of innovations, and economic management of the enterprise should be the the basis of management. The main focus of the article is on the analysis of three systems of economic management of the enterprise – the CVP system, the system of balanced indicators and the controlling system. The author identified the main problems solved by each of the systems regarding the innovative development of enterprises, the advantages and disadvantages of their use in the management of scientific research and innovation activities of the enterprise. It was determined that the CVP system enables the construction of a model of planned income from innovative activities and partially solves the biggest problem of innovative development of the enterprise – taking into account innovative risks; the system of balanced indicators coordinates the operational and strategic management of innovative development by building a complex of interrelated specific indicators of their achievement, helps to determine indicators of intangible asset evaluation; the controlling system involves the creation of a new concept of management, which is based on the management's way of thinking, focused on effective economic management and on the basis of the formation and use of information support for analysis, planning, and evaluation of innovative development. In fact, each of the three analyzed systems solves separate problems of improving the management of research and innovation and reflects the need to change the concept of management by innovative development of a modern enterprise. The conducted analysis of the peculiarities of the use of each of the economic management systems in relation to the innovative development of the enterprise will enable the optimization of managerial decision-making in the process of forming and implementing strategic and operational plans of the enterprise.

Break Out of Your Technological Comfort Zone by Connecting the Dots

Accelerating the dynamics of technological change presents business leaders with complex innovation risks, be they manifested as opportunities or threats, and challenges to bridge the widening strategy-technology chasm. We propose a decision-support tool in the form of a new strategic lens to make sense of evolving technologies within the context of a company's strategy by transforming both the company's strategic imperatives and the technological landscape to the same functional domain through the use of corpus linguistics and interpretive text networks. This approach facilitates a strategic conversation in a company by leveling the playing field between leadership and technologists in a transparent and inclusive process. We present a real-world case study to illustrate how business leaders can proactively use this tool to create the future.

Application of Innovative Risk Early Warning Model Based on Big Data Technology in Internet Credit Financial Risk

The emergence of the new economic model of Internet credit industry brings convenience to people's lives, and it also impacts the business model of traditional commercial banking to a great extent. How to better improve the operation mode, correctly assess and avoid the risks of Internet finance, and create a healthy, orderly, safe and sustainable development environment of Internet finance industry is an important research topic in this industry under the current situation. This paper studies the application of innovative risk early warning model based on big data technology in Internet credit financial risk assessment, aiming at maximizing the utilization efficiency of internal and external data, building a timely, accurate and effective early warning system with independent characteristics, and creating a sharp weapon for intelligent risk early warning. In order to promote the healthy and benign development of China's Internet finance industry.