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Project failure is the result of one or a combination of several causes of risk factors that are very important to identify for effective performance. This study aims to focus on studying the fundamental relationship between internal risk factors and the negative effect on oil and gas project success in Yemen using the partial least square structural equation modelling (PLS-SEM) method.

Data collection was carried out using a formal questionnaire survey of the oil field sector in Yemen by companies involved in mega-oil and gas construction projects. A hierarchical model for determining causative internal risk factors and their effects was developed and evaluated using SEM method by SmartPLS3 software technology.

The findings of analyzing model indicate that all categories have a significant effect on project success, while the most significant affected categories in the internal risk factors are project management factors, feasibility study-design and resources-material supply with a path coefficient value of 0.213, 0.197 and 0.186, respectively. Moreover, for the hypotheses test, the positive relationship means that all experimental hypotheses are accepted according to path coefficient value analysis. In addition, the internal risk factors research model shows the ranking of effects on project success starting with project stoppage (loading factor 0.841), cost overruns (loading factor 0.818), time overruns (loading factor 0.726) and project target failure with loading factor 0.539.

The research was limited to the oil and gas construction projects in Yemen.

Interpreting the relationship between internal risk factors and their impact on the success of construction projects in the oil and gas sector will assist project team and oil companies in developing risk response strategies and developing appropriate plans to mitigate the effects of risks, which is presented in this paper.

The paper explains the relationship between cause and effect of internal risk factors in oil and gas projects in Yemen, and is expected to be a guideline for the oil companies and future academic research in the risk management area.

When a firm goes public for the first time, its prospectus serves as an important reference for investors. It is required by regulation that the risk factors which have significant influence on the business be disclosed in the prospectus. The purpose of this study is to analyze how disclosure of these risk factors influences the initial returns of initial public offerings (IPOs).

To do this, a sample of 96 Malaysian new equity offerings (IPOs) from year 2009 to year 2013 is used. Ordinary least squares regression technique is used to regress initial returns against risk disclosures. Aside from overall risk disclosure, individual dimensions of risk (internal risk, external risk and investment risk) are also considered.

Results of the regression analyses reveal a direct relationship between the IPO initial returns and the disclosure of risk. Overall risk disclosure is found to be highly significant in influencing initial returns. However, further investigation into the individual group of risks shows that only investment risk is highly significant in influencing IPO initial returns.

The results found in this study are interesting as, unlike prior studies, it is shown that disclosures of internal and external risks are not significant in influencing investors’ actions possibly because of their generalizability, whereas disclosures related to investment risks are significant. Equity of firms which disclose more of its risk factors can be expected to generate higher initial returns.

This paper aims to examine how project managers frame variability for categorised risk factors on enterprise resource planning (ERP) projects.

Weighting and selection of the risk factors was undertaken based on an analysis of data (using PASW17), obtained from a random sample of 307 ERP project managers working in Thailand.

The findings suggest that: framing of variability for categorised risk factors in ERP projects is not necessarily culturally bound; both “internal” and “external” risk factors did have a strong impact on ERP project success; and the impact of the degree of inter‐relationships between critical risk and success factors may influence the success of a ERP project.

The authors anticipate that the results will stimulate future research in this area as well as raise the profile of critical success factors for ERP implementation, particularly in developing countries.

The study contributes to a better understanding of the viewpoint of consultants on critical success factors for ERP implementation in the context of a developing country.

This study aims to focus on the development and testing of a social risk management scale that could be applied to identify internal and external dimensions of strategic risks.

This study applied a quantitative approach for testing an theoretical model in the Brazilian mining sector, using partial least squares–structural equation modeling to assess reliability and validity of the dimensions and model.

Results points that internal and external risks have similar impact on general risk in the mining sector on the company studied. The research also identifies multidimensional scales consisting of internal (company policy, attitudes, loss of assets, human resources and operational) and external risks (market, strategic, social, credit, liquidity, loss of assets and technological). The results also points the relative importance of these dimensions and sub-dimensions on general business strategic risks.

The scale was tested in just one company and, as a case study approach, the results are of limited generalization. Also, the scale was developed in the mining sector, so also the scale may require adaptation to applications in other contexts.

The multidimensional and hierarchical approach applied to modeling and scale development helps managers to understand the nature of risks and how to minimize them in business strategic settings.

The study points out cues for managers to reconcile divergent sources of strategic risks that affect business, taking in to account the social dimension as a central element of risk management.

The study proposes and tests a scale with a multidimensional and hierarchical approach for social risk managing.

In an effort to further explain why manufacturing firms that move towards service provision often do not achieve the financial benefits they would expect, the purpose of this paper is to examine the impact of service additions on the risks affecting the firm.

Using data drawn from a sample 129 bankrupt manufacturers (75 servitized and 54 non-servitized) and a categorization framework of failure risks, the study explores the impact of the presence of a service business on environmental and internal bankruptcy risks that a manufacturing firm must face.

The study finds that the presence of a service business leads to a greater number of bankruptcy risks for the supplying firm. This is essentially because of greater internal risks. In addition, two types of service offerings are identified – demand chain and product support services. When firms offer demand chain services, they are also exposed to greater environmental risks.

The study provides empirical evidence on the relationship between servitization and bankruptcy risks, and on how this is influenced by the type of service offering. The research should be extended by a more comprehensive assessment of organizational risks in order to further validate and develop the conclusions.

The study suggests that, as adding services introduces new risks for firms, managers have to seek means of mitigating these risks to ensure successful introduction of services.

The paper addressed the gap in the literature for structured analyses of the risk consequences of service strategies.

The second of two articles dealing with a survey of health care internal auditing in the United States. The first article appeared in Vol. 7 No. 6, 1992. The second article builds on the first and deals with: the allocation of time to various internal audit activities and the rationale employed to determine such allocations; the structure of the board of directors and the relationship of the board to the internal audit function; the power, conflict and risks associated with health care entities; and finally the working relationship that exists between the internal and external auditors.

This study aims to examine the extent to which external auditors (EAs) use the work of the internal audit function (IAF) based on the purpose of its primary activities. The authors rely on attribution theory, which suggests that individuals search for meaning when an event occurs. In this setting, the authors explore how the overall (assurance vs advisory) or specific (e.g. risk management and evaluating internal controls) focus of IAF activities influences perceived EA reliance on the IAF’s work.

The authors first explore the research question with data extracted from a broad, longitudinal survey conducted triennially by the national chapters of the Institute of Internal Auditors in Austria, Germany and Switzerland. The data includes responses from 2014, 2017 and 2020 administrations of the survey. The authors conduct a parallel survey with practicing EAs attending two training sessions of a European office of a global network firm. Hypotheses were tested using ordered logistic regression.

Among the chief audit executive (CAE) participants, the authors observe that a balanced or primarily assurance-related purpose of the IAF, relative to a primarily advisory-related purpose, is associated with higher perceived EA reliance. The authors observe similar perceptions of the extent of reliance among the EA participants.

With a unique data set of practicing internal auditors from three countries, coupled with a sample of EAs, to the best of the authors’ knowledge, this study is the first to examine differences in EA reliance across the IAF’s primary roles. The study relies on data from three European countries, which differs from prior EA reliance literature with a largely North American focus. Further, comparison between perceptions of EAs and CAEs is a novel approach and this paper’s findings suggest that perceptions of CAEs could be a reliable proxy for EA-intended behavior.

The objective of this paper is to provide a global perspective of the operational risk (OR) management framework from an internal audit viewpoint.

This paper describes the new role of the internal audit function in reviewing the OR framework.

An efficient OR management framework will improve and reinforce the internal controls of the organization. Internal audit should be alert to the whole process of implementation of the systems for managing OR in entities.

This area has not been analyzed in depth to date. The paper provides a summary guide to audit of OR management frameworks in financial institutions.

This paper examines the role of professional associations, governmental agencies, and international accounting and auditing bodies in promulgating standards to deter and detect fraud, domestically and abroad. Specifically, it focuses on the role played by the US Securities and Exchange Commission (SEC), the American Institute of Certified Public Accountants (AICPA), the Institute of Internal Auditors (IIA), the Institute of Management Accountants (IMA), the Association of Certified Fraud Examiners (ACFE), the US Government Accounting Office (GAO), and other national and foreign professional associations, in promulgating auditing standards and procedures to prevent fraud in financial statements and other white‐collar crimes. It also examines several fraud cases and the impact of management and employee fraud on the various business sectors such as insurance, banking, health care, and manufacturing, as well as the role of management, the boards of directors, the audit committees, auditors, and fraud examiners and their liability in the fraud prevention and investigation.

Risk impedes the success of construction projects in developing countries due to planning in an unpredictable and poorly resourced environment. Hence, the literature suggests that practitioners are not fully aware of how important the risk identification process is. Some of the prior studies identified risks in developing countries without highlighting how they can be beneficial to the practitioners in the industry. Therefore, this study highlights this process and identifies the key risks that affect the Jordanian construction industry.

This study adopted an exploratory sequential mixed approach, two rounds of face-to-face interviews that were conducted in Jordan among 12 experts followed by a questionnaire randomly distributed to 122 practitioners. This study utilized the relative importance index, coefficient of variation, and Mann–Whitney (U) to analyze the data. Also, the factor analysis technique was used to identify and regroup the risk factors to further understand the correlation among the risks.

The result revealed an agreement among contractors’ and consultants’ responses toward allocating risks. Furthermore, several risks can be traced back to the project communication management process, highlighting a deficiency in the process. Also, four-factor groups were established, the first group includes the risk of defective design, late decisions making by other project participants and poor coordination with the subcontractor. The second group has only the risk of corruption, including bribery at sites. The third group includes stakeholders’ financial instability and inadequate distribution of responsibilities and risks. The fourth group includes adverse weather conditions and the use of illegal foreign labor.

Some of the prior studies identified risks in developing countries without highlighting how they can be beneficial to the practitioners in the industry.