Understanding Of Risk Management Research Articles

Концептуальные вопросы создания систем управления рисками промышленных предприятий

The article reveals the fundamental issues of creating risk management systems for industrial enterprises and provides a brief description of the main approaches to identifying risks and related goals and assessment methods. The aim of the study is to summarize modern foreign theoretical approaches to the creation of enterprise risk management system. Using the method of bibliographic analysis, an overview of modern main conceptual foreign approaches to understanding enterprise risks and risk management is given. The interrelation between risk reduction (elimination) activities and the types of risks undertaken is elucidated. Various applications of risk management systems within companies are presented, along with examples of the most common risk management systems employed by industrial enterprises and a synthesis of the experience in applying the most effective risk management methods. The conclusion emphasizes the necessity of meticulous risk identification and analysis in building corporate risk management systems. Moreover, the presented examples of successful risk management systems serve as valuable benchmarks for industry practitioners seeking to enhance their risk mitigation capabilities. Moving forward, continued research and refinement of risk management methodologies are essential for adapting to evolving business landscapes and ensuring the resilience of industrial enterprises in the face of uncertainty. Ultimately, proactive risk identification and analysis remain pivotal in fostering a culture of risk-awareness and resilience within organizational frameworks.

Effective risk management practice in Somalia Islamic banks

This paper aims to assess the degree to which Somali banks use effective risk management practices (RMPs). Furthermore, the study has explored the level of risk management practices using the original components of risk management aspects, including understanding risk and risk management, risk assessment and analysis, risk identification, risk monitoring, and credit risk analysis, with the addition of perceived trust to the original constructs of risk management aspects. The study is based on a questionnaire survey of 423 banking staff from 13 licensed banks in Somalia. The researcher adopted a questionnaire that covers six aspects of risk management with perceived trust: understanding risk and risk management, risk assessment and analysis, risk identification, risk monitoring, credit risk analysis, perceived trust, and RMPs. This study found that the staff of Somalia have a clear understanding of risk and risk management and have efficient risk identification, risk assessment, risk monitoring, credit risk analysis, perceived trust, and risk management practices. In addition, the respondents also recognize that the banks do not have deposit insurance, which is a risk to the depositors if the bank goes bankrupt. The paper’s findings are limited to the risk management aspects of the bank industry, with additional perceived trust in Somalia. The paper explores the risk management practice in the Somali bank sector. The results can be used as valuable feedback for improving risk management practice in the banking industry. This study is the first research attempt to investigate risk management practice with additional trust.

Predictive Power of Random Forests in Analyzing Risk Management in Islamic Banking

This study utilizes the random forest technique to investigate risk management practices and concerns in Islamic banks using survey data from 2016 to 2021. Findings reveal that larger banks provide more consistent survey responses, driven by their confidence and larger survey budgets. Moreover, a positive link is established between a country’s development, characterized by high GDPs and low inflation and interest rates, and the precision of Islamic banks’ survey responses. Analyzing risk-related concerns, the study notes a significant reduction in credit portfolio risk attributed to improved risk management practices, global economic growth, stricter regulations, and diversified asset portfolios. Concerns related to terrorism financing and cybersecurity risks have also decreased due to the better enforcement of anti-money laundering regulations and investments in cybersecurity infrastructure and education. This research enhances our understanding of risk management in Islamic banks, highlighting the impact of bank size and country development. Additionally, it emphasizes the need for ongoing analysis beyond 2021 to account for potential COVID-19 effects and evolving risk management and regulatory practices in Islamic banking.

Leveraging Machine Learning Algorithm to Enable Access to Credit for Small Businesses in the United States of America

The research centers on the essential function of loans in driving economic expansion and the intrinsic danger of loan defaults. Small businesses play a crucial role in generating employment and fostering economic growth, highlighting the significance of precise loan eligibility evaluations. The Small Business Administration's (SBA) 7(a) loan program seeks to assist small businesses by providing loan guarantees to mitigate risks for financial institutions (Mini et al., 2018). The study utilizes sophisticated machine learning methods, particularly the Random Forest and XGBoost algorithms, to forecast loan defaults and ascertain ideal loan amounts for small businesses. A dataset comprising 27 variables is analyzed, encompassing loan attributes, borrower details, and loan outcomes. The results highlight the effectiveness of both Random Forest and XGBoost in generating loan default predictions, with a slight edge for XGBoost. Additionally, Linear Regression is used to estimate loan amounts for qualified borrowers. The analysis identifies key factors contributing to loan defaults, with variables such as Term, Disbursement Gross, SBA Approval, and Gross Approval playing a significant role in Random Forest predictions. The study reveals intriguing patterns in loan defaults across various industrial sectors, emphasizing the complex nature of assessing loan performance within these industries (Zhou et al., 2023). This research aims to improve lending practices, benefiting both lenders and borrowers while enhancing our understanding of risk management in the context of small businesses.

GCC Banking Companies Risk Management Practices and its Impact on Their Financial Performance

This article aims to explore the risk management practices (RMPs) of Islamic banks (IBs) and conventional banks (CBs) in the Gulf Cooperation Council (GCC). It assesses the different phases of RMP, including risk understanding; risk identification; risk assessment and analysis; and risk monitoring. This study conducts a structured survey questionnaire to assess the RMP in both types of banks. We find that both types of banks rank the importance of RMP above the mid-point of the 5-point Likert scale. Using t-test analysis, we find no significant difference in RMP between both types of banks, except for understanding risk practice phase. Managers of CBs have a better understanding of risk management (RM) than IBs. We also examine the impact of RMP on banks’ financial performance. The average return on Assets (ROA) and the average return on equity (ROE) over the years (2010–2017) are used as a proxy for financial performance. Applying robust White regression OLS, we find a significant impact on financial performance measures only for IBs. We refer to the fact that IBs follow the equity approach based on risk-sharing with their clients (depositors and investors). The regulatory authorities may find this study useful in enticing banks to implement the best RMP and so improve banks’ performance.

Related party lending and rural bank risk: Evidence during the Covid-19 period

This study aims to investigate bank lending behaviors during the Covid-19 period and further to examine the effect of related party lending (RPL) on the rural bank risk. We posit there is significant change on the lending growth and related party lending proportion during this period. We utilize 730 rural banks in Indonesia using panel data approach from 2019 to 2022. Utilizing panel data estimations to test the impact of RPL on risk and to further investigate its interaction with the COVID-19 using system GMM, we document that RPL is negatively associated with rural bank risk proxied by loan loss provision as ex-ante credit risk and positively associated with Z-Score as bank default risk. Moreover, the COVID-19 weaken the relationship between related party lending and rural bank risk. These results provide new insight into understanding risk management implementation for minimizing these risks. We also adopt several proxies and a split sample analysis to check for the robustness. Finally, we seek for lesson learned from the crisis and propose some implication for bank and relevant authorities.

Implementation of risk management in indonesia’s hospitality industry using OHS (occupational, health and safety) system

In the industrial world, it is necessary to understand risk management to run a company well. Likewise, with the hospitality industry because there are many people in it. For some people, OHS is something other than essential and results in many workplace accidents. Research method used Relevant data is obtained with a qualitative descriptive method and assisted by documentation from many sources like internet, papers and case study. The goal of this research is to show the data of casualties and make the company realized the important of OHS management to prevent any casualties that may occurred In the future. By providing general training, companies can prevent work casualties. However, its implementation takes time because the workers are used to the old working method. OHS Training is an effort made by the company to be even better at maintaining the safety and security of the work environment. In the future, companies that provide OHS management will show zero casualties and good mental health of their workers because of the training and will effect to company good’s name.

Risk management of Islamic microfinance institutions: unique practices at crucial risks

The objective of this study is to gain a better understanding of risk management and control practices at BMT UGT Nusantara, an Islamic microfinance institution in Indonesia, with a particular emphasis on financing risk, liquidity risk, and Sharia compliance risk. These three risks are said to occur frequently and have a direct impact on performance. Because of the uniqueness of the site, the design of this qualitative research is descriptive and exploratory with a holistic single-case approach. In-depth interviews, field observations, focus group discussions, and a review of supporting documents were used to collect data. Because the interactive cycle process includes data collection, data reduction, data presentation, and data withdrawal, data analysis employs an interactive model. The data was validated using the criteria of credibility, transferability, dependability, and confirmability. The study's findings show that BMT UGT Nusantara, an Islamic microfinance institution in Indonesia, employs traditional-partial risk management on financing risk, liquidity risk, and Sharia compliance risk. Risk management is carried out by integrating "macul bumi", or outward efforts based on sincerity, and "macul langit", or spiritual efforts. Furthermore, it employs information systems that play an important role in risk management in order to improve organizational performance and competitive advantage.

Implementation of Risk Management in Archive Management at Universitas Islam Negeri Walisongo, Semarang

Good and planned archive management will provide significant benefits to the organization. On the other hand, improper archives management will put an organization or institution at risk. Therefore, implementing risk management in archive management is essential to minimize the impact of risks that may arise in archive management. UIN Walisongo Semarang has implemented risk management since 2020. Implementing risk management is one of the components of realizing good university governance. This research aims to determine the extent to which risk management is implemented at UIN Walisongo Semarang and whether the implementation of risk management has positively contributed to improving archive management at UIN Walisongo. This research uses a descriptive-qualitative approach, with case studies on applying risk management in several work units (faculties) and the General Division of UIN Walisongo Semarang. The results of this research show that the implementation of risk management has not been optimal and has not made a positive contribution to archive management at UIN Walisongo because the archive management functions need to function better. In addition, it is due to the lack of archival human resources who understand risk management.

A Qualitative Investigation on Risk Management Implementation in the Malaysian Public Sector

"This study aimed to examine the implementation of risk management in the public sector and, subsequently, identify the components of risk management that best fit the public sector. Interviews were conducted with 26 participants from nine government agencies to determine the Malaysian government’s risk management and internal control processes. As a result, a new set of variables was identified for the public sector. These elements are the establishment of risk management in the government sector, the voluntary implementation of risk management, understanding risk management and internal control, the importance of risk management and internal control, the risk management process for the public sector, risk identification and investigation, understanding the risk management framework in the public sector, and the role of a consultant in risk management. This study contributed to the public sector by identifying potential aspects that may be crucial in ensuring the success of the early stages of risk management implementation. The outcomes of this study may benefit the public sector through an improved understanding of how to undertake risk management to ensure the success of risk management in Malaysia."

Toxicological mechanism of ammonia-N on haematopoiesis and apoptosis of haemocytes in Litopenaeus vannamei

Ammonia, as an important pollutant, contributed to the reduction of immunity, disruption of physiology in animals. RNA interference (RNAi) was performed to understand the function of astakine (AST) in haematopoiesis and apoptosis in Litopenaeus vannamei under ammonia-N exposure. Shrimps were exposed to 20 mg/L ammonia-N from 0 to 48 h with injection of 20 μg AST dsRNA. Further, shrimps were exposed to 0, 2, 10 and 20 mg/L ammonia-N also from 0 to 48 h. The results showed that the total haemocytes count (THC) decreased under ammonia-N stress and the knockdown of AST resulted in a further decrease of THC, suggesting that 1) the proliferation was decreased through the reduction of AST and Hedgehog, the differentiation was interfered by Wnt4, Wnt5 and Notch, and the migration was inhibited by the decrease of VEGF; 2) oxidative stress was induced under ammonia-N stress, leading to the increase of DNA damage with the up-regulated gene expression of death receptor, mitochondrial and endoplasmic reticulum stress pathways; 3) the changes of THC resulted from the decrease of proliferation, differentiation and migration of haematopoiesis cells and the increase of apoptosis of haemocytes. This study helps to deepen our understanding of risk management in shrimp aquaculture.

NEXUS OF RISK AND STABILITY IN ISLAMIC BANKS DURING THE PANDEMIC: EVIDENCE FROM INDONESIA

This paper analyzes the effect of liquidity risk and credit risk on Islamic bank stability and whether the risk-stability nexus changes during the Covid-19 pandemic. Using a panel quarterly dataset of 14 Islamic banks from 2017 to 2020, a total of 224 quarterly-bank observations in total and the system generalized method of moment, we find that credit risk and liquidity risk are negatively associated with bank stability. Moreover, the COVID-19 does not alter the negative relationship between liquidity risk and stability. To validate the results, we also estimate the model using the LSDVC. The LSDVC results remain consistent. These results provide new insight into understanding risk management implementation for minimizing these risks.

Understanding and Improving Current Risk Management Practices in Hospital Settings

A large number of patients in the healthcare industry have adverse events. Risk management has been implemented in hospitals to ensure patient safety. However, there is still a lot of room for improvement in current risk management practices. As a result, the purpose of this research is to better understand risk management practices in hospital settings and to make recommendations to improve them. While a questionnaire survey was created to understand current risk management applications, risk management literature was reviewed in order to comprehend and improve these risk management applications. The findings show that over 70% of practitioners and managers regard risk management as defining threats to patients, while only a minority agree on the ISO definition of risk. Furthermore, nearly half of practitioners and managers agree that risk assessment is more important than risk mitigation. To manage risks, participants mostly used Failure Mode and Effect Analysis (FMEA), brainstorming, and risk matrix techniques. Based on the results of the questionnaire and the literature review, risk management practices could be advanced by emphasizing safety culture, staff involvement, safety training, risk reporting systems, and risk management tools.

A stakeholder perspective on risk and safety planning in a major sporting event

PurposeThis study analyses the impact of institutional logics on the outcomes of a sporting event's risk process.Design/methodology/approachThe research design is an exploratory case study of the 2017 Road World Cycling Championship using a qualitative approach. By drawing on multiple sources, documents and experiences of six key stakeholders the richness of the qualitative data were utilised to provide a deeper understanding of the impact of institutional logics on the process.FindingsStakeholders relied on different organisational and professional logics in arguments for certain risk preferences and strategies. Further, the logics behind stakeholder attention varied between stakeholder groups and within a stakeholder group. This led to a tension-filled relationship amongst stakeholders working in the same organisation and between those in different organisations. Finally, new professional practices emerged; however, there were also unintended consequences, such as a large financial deficit, with a significant part of the cost overrun being the risk assessment work.Research limitations/implicationsThe study includes a case study of a major sporting event that was arranged some years ago. Events are usually organised as temporary projects in collaboration with public sector organisations and must be arranged in accordance with the logics of efficiency as well as meeting the particular needs of citizens. Assuming similar risk planning processes may occur in other contexts is reasonable.Originality/valueThe study contributes to knowledge about the impact of logics on the outcome of risk planning and improves scholars' understanding of risk management and the outcomes of planning mega-sporting events. Moreover, insights into these micro-level processes reveal the importance of dealing with the logics that lie beneath stakeholders' perceptions of risk in order to collaborate, achieve common goals, and prevent cost overruns.

How do risk management practices lead to project success in the construction industry? The mediated moderation of risk coping capacity and risk transparency

Project risks are widespread in the construction industry because of the uncertainty and complexity involved in construction activities. Many factors directly or indirectly affect a project’s successful completion. Therefore, a project’s success largely depends on how it manages risks. This study examines the effect of risk management practices on project success. In addition, it explores the mechanism that leads to project success. Understanding risk management practices and processes that influence project performance is vital for success. This study proposes that three risk management practices (e.g. risk identification, monitoring, and prevention) influence project success. Furthermore, this study maintains that the risk coping capacity mediates, and risk transparency moderates the relationship between risk management practices and project success. We tested the hypotheses using survey questionnaire data provided by 320 project managers. It reveals that risk management practices significantly influence project success. It also finds that risk coping capacity mediates the relationship between risk management practices and project success. Furthermore, risk transparency moderates the relationship between risk coping capacity and project success. This study contributes to the risk management literature by explaining the mechanism that leads to project success. It also discussed theoretical contributions and practical implementations.

Increasing the Competitiveness of MSMEs in the Food and Beverage Sector Post Pandemic

MSMEs are one of the leading business sectors to encourage economic growth. However, in 2020 the condition of MSMEs underwent a very drastic change. This is due to the Covid-19 pandemic which has caused many businesses to close and even go out of business. Based on these problems, this study was conducted to analyze the readiness of MSMEs in facing the Covid-19 pandemic, and their understanding of risk management in MSME activities. The research method used is a qualitative method. The sample used is SMEs in West Surabaya. Data collection was done by interview. The data analysis technique used is SWOT analysis. The results in this study indicate that MSMEs in West Surabaya have sufficient strength in dealing with existing threats.

RISK MANAGEMENT PRACTICES OF ISLAMIC AND CONVENTIONAL BANKS OF PAKISTAN: A COMPARATIVE STUDY

This paper is the report of a study that has investigated the impact of the risk management process, including liquidity and operational risk, on the risk management practices of Islamic banks and conventional banks in Pakistan. The study compared the risk management practices of both types of banks. Data was collected through the 200 self- administered questionnaires distributed to senior managers and risk officials of both types of banks. The data was analyzed using basic descriptive statistics, One-way ANOVA and Multiple regression analysis. The empirical results showed that risk assessment and analysis, risk monitoring and liquidity risk analysis were the most influential determinants of the risk management practices of conventional banks, whereas risk identification, risk assessment and analysis, credit risk analysis, liquidity risk analysis and operational risk analysis had influenced the risk management practices of Islamic banks. Overall, Islamic banks were better in terms of understanding risk management, risk identification, risk assessment and analysis, risk monitoring and operational risk analysis, while conventional banks were ahead of Islamic banks in credit risk analysis, liquidity risk analysis, and risk management practices. In the context of the emerging economy of Pakistan, the study outcomes can be helpful for investors, potential and existing customers to make prudent investment decisions. Findings are also helpful for strategy managers and regulators in policy formulation, elevation, and implementation of risk management regulations.

Gestão de risco: estudo de caso sobre os desafios na implantação e implementação

Objective: The Public Administration faces the influence of internal and external factors that bring uncertainty regarding the achievement of its objectives. These uncertainties can be called organizational risks, which can be analyzed by the Implementation and its processes. However, these phases have been approached as synonymous, making it difficult to measure the results desired by Risk Management. Thus, this article aims to highlight the difference in implementation and implementation in risk management, as well as to elucidate the challenges faced by the Federal Institute of Santa Catarina in the Risk Management process.Methodology/Approach: This research is classified as a qualitative case study, with information analysis through interviews with the organization's employees and participant observation over three years.Originality/Relevance: The study provides empirical evidence on the distinction between the implementation and implementation stages, as well as their challenges, to improve the studies and execution of Risk Management. Main results: The implementation and its phases were identified, with challenges occurring in both, especially regarding the difficulty of public servants in understanding risk management and its context, the preparation of risk maps, the assignment of roles outside the committee, and the creation of indicators concise.Theoretical-methodological contributions: Institutions need to go beyond standardization and regulation, completing all the steps established in the implementation of Risk Management, subsequently introducing implementation, and institutionalizing their practices in the management processes.

Where, When and With Whom: Cannabis Use, Settings and Self-Regulation Rules

This article examines to what extent and how cannabis users in different countries, with different cannabis legislation and policies practice normalization and self-regulation of cannabis use in everyday life. Data were collected in a survey among a convenience sample of 1,225 last-year cannabis users aged 18–40 from seven European countries, with cannabis policies ranging from relatively liberal to more punitive. Participants were recruited in or in the vicinity of Dutch coffeeshops. We assessed whether cannabis users experience and interpret formal control and informal social norms differently across countries with different cannabis policies. The findings suggest that many cannabis users set boundaries to control their use. Irrespective of national cannabis policy, using cannabis in private settings and setting risk avoidance rules were equally predominant in all countries. This illustrates that many cannabis users are concerned with responsible use, demonstrating the importance that they attach to discretion. Overall, self-regulation was highest in the most liberal country (the Netherlands). This indicates that liberalization does not automatically lead to chaotic or otherwise problematic use as critics of the policy have predicted, as the diminishing of formal control (law enforcement) is accompanied by increased importance of informal norms and stronger self-regulation. In understanding risk-management, societal tolerance of cannabis use seems more important than cross-national differences in cannabis policy. The setting of cannabis use and self-regulation rules were strongly associated with frequency of use. Daily users were less selective in choosing settings of use and less strict in self-regulation rules. Further differences in age, gender, and household status underline the relevance of a differentiated, more nuanced understanding of cannabis normalization.

Vulnerability and resilience of power systems infrastructure to natural hazards and climate change

AbstractThe value of critical infrastructure rests in the services they provide. Electricity in particular underpins the operation of hospitals, schools, financial systems, transportation assets, telecommunications, and water treatment, and affects many other aspects of daily life. There is an emerging recognition of power systems as complex adaptive systems and a proliferation of work on how to make them more resilient in the face of natural hazards and climate change. However, the term “resilience” is often used to encompass important, but distinct, aspects of infrastructure analysis including vulnerability, asset hardening, resistance to failure and risk management. As work in this domain has evolved through disciplines from risk management, economics, engineering and policy, the term “resilience” has often remained vague or referred to broad aspects of infrastructure performance under hazard events. Here we argue it is important to distinguish asset hardening and risk management from aspects of a system that allow it to deliver services even when some of its components fail. Understanding infrastructure vulnerability and risk are key components of resilient power system assessments. However, differentiating vulnerability from functional resilience (service delivery even when components fail) can help identify gaps in data, modeling and decision making. We propose that continued progress in this area can be made by unifying these areas of work through (1) understanding vulnerability and risk management in the context of hazards and climate change and (2) an orientation of resilient service delivery as a unifying concept for resilience analysis.This article is categorized under: Vulnerability and Adaptation to Climate Change > Learning from Cases and Analogies